Baltimore Country Club is a private, family-oriented association of members committed to camaraderie, tradition and core values of dignity, courtesy, respect, and graciousness who enjoy social, golf, and recreational activities provided at the highest level of service and exceptional facilities.
BOARD OF GOVERNORS
Thomas E. Carroll, President
J. Francis Cannon, Vice President
Elizabeth R. Sieck, Secretary
Christopher W. Oven, Treasurer
Jonathan H. Beard
Mason M. Champion
Stasia Collins
Ashley D. Giese
Charles J. (C.J.) Ilardo
Paul D. McKinnell
Lindsay A. Redfield
Jennifer B. Speargas
FINANCE COMMITTEE
Christopher W. Oven, Chair & Board Liaison
Thomas Kelly, Jr.
Hugh W. Mohler, Jr.
Lindsay A. Redfield
Maggie Schmitt
Scott Schuebel
Scott Shaughnessy
PLANNING & CAPITAL IMPROVEMENTS COMMITTEE
Edward Joffe, Jr., Chair
Paul D. McKinnell, Board Liaison
Robert Ariosa
Ted Bowes
Douglas Dollenberg
Henry Knott III
Timothy Kotroco
Marc Munafo
Tracy Philips
Leslie Rose
Daniel White
Dear Members of BCC:
I am writing to our membership to report on the Board of Governors’ decisions regarding the capital needs of the Club. To our members who attended a focus group or town hall meeting and to those who took the time to complete a survey, I want to thank you for helping the Board integrate your thoughts and suggestions into our decision. Two themes emerged from the input. First, there is strong support for maintaining the assets in our current footprint. Second, there is little support at present for expanding that footprint. You will see in our decisions that we have honored those themes. We will be taking care of our assets with sufficient resources and diligent governance to ensure that the financial future of BCC will rest on a more secure foundation. A plan where we fulfill our mission of providing the highest level of service in exceptional facilities.
When we restated our Strategic Plan using our Five Anchors of Excellence, we committed to a journey that demands financial prudence to be a centerpiece of our strategy. As stated in the focus groups and town hall meetings, the highly successful Phase 1 project brought an awareness to the Club leaders that we needed a more thoughtful and intentional approach to the maintenance and repair needs of our assets. There is also new data available to Clubs that support the financial driver for success is a healthy balance
sheet. This awareness and new information demanded our attention and a long-term solution. Our plan is to fully fund those needs over the next 20 years to ensure our assets are well maintained. The plan will be governed through the collaboration of the Planning & Capital Improvement Committee, Finance Committee, and Board of Governors to ensure we are stewarding member dollars conservatively and with discipline. Fiscal responsibility is the driving force for our process and decisions.
The solution we arrived at uses ongoing capital dues to meet the repair and maintenance needs of the Club, while continuing our schedule to be debt-free in fiscal year 2028. This booklet is designed to answer questions and provide detailed insight into our process and the solutions. We believe that years from now, when our children and grandchildren are the active Class A members, this process and these decisions will ensure that their enjoyment of the Club will equal and perhaps exceed our own.
Thank you,
Thomas E. Carroll President, Board of Governors
WHY
WHY IS CAPITAL FUNDING IMPORTANT?
In May 2024, the Board of Governors published an updated Strategic Plan for Baltimore Country Club. This plan included five strategic anchors : Exceptional Member Experience, People Strategy, Fiscal Responsibility, Excellence in Facilities & Activities, and Club Governance. It takes exceptional facilities to create exceptional experiences. Maintaining our footprint is part of our obligation as members. Further, maintaining exceptional facilities will ensure that the membership pipeline remains healthy. Our membership demand as evidence of our waitlist demonstrates this truth. All things work in harmony when membership is full, and there is excess demand for membership.
Lifestyle Facilities Master Plan: Phase 1, completed in 2022, brought to light the impact of inflation and the need to prioritize the care of our existing assets before we initiate any substantive expansion projects. During the renovation project, the Club spent roughly $2.5M addressing critical deferred maintenance. Thus, the Board concluded that an intentional, thoughtful, and thorough process of consideration was warranted.
One can readily see how maintaining our facilities adequately drives our experiences as members. We can all agree that the renovation project at our Five Farms clubhouse has transformed the BCC member experience. In time, everything purchased new for this Five Farms clubhouse will need to be repaired and eventually replaced. Whether
we accumulate the funding over an extended time or ask for it all at once, one thing is certain: when the HVAC system needs to be replaced again, the money will come from the membership.
As indicated in the third strategic anchor—Fiscal Responsibility—the Board is committed to ensuring the Club maintains a disciplined and conservative approach to our funding needs, specifically focusing on our capital requirements. These fall into two areas: first, the adequacy of our repair and maintenance budget, and second, the planning and funding of our Lifestyle Facilities Master Plan.
Fiscal Responsibility
Great clubs conservatively manage their finances with prudence and discipline.
As indicated in the Strategic Plan, the following are steps the Board of Governors is taking to ensure the Club is fiscally responsible now and for future generations:
• Utilize two financial ledgers; the operational ledger used to deliver an exceptional member experience and the capital ledger to fully fund obligations for maintenance and aspirational needs
⊲ Work with Club Benchmarking to determine correct benchmarks to achieve superior financial results, measured against our peer group
⊲ Engage Club Benchmarking to vet capital strategy options
• Use critical Club performance benchmarks from Club Benchmarking to create a Board dashboard. Key Performance Indicators (KPIs) are to be evaluated monthly
⊲ Work with BCC Financial Data Analyst/Chief Financial Officer to create dashboard reports on how members use BCC with data from Qlik Sense and Power BI
⊲ Provide Club Leadership with information to evaluate the utilization of “at risk” member data from all member categories. Implement policies with the Executive and Management teams
• Create a rolling 10-Year Capital Strategy Plan to ensure BCC is generating sufficient capital to fund replacement of existing assets and generate sufficient aspirational capital to execute the Lifestyle Facilities Master Plan
⊲ Create guidelines for capital reserve, cash flow, cash retention, and cash investment policy with the Finance Committee
⊲ Honor guidelines for cash investment policy, cash retention, and cash investment policies
• Update, integrate, and maintain capital reserve studies for Roland Park and Five Farms
⊲ Develop a true cost to operate Roland Park as an “events only” facility
• Request for all members to update member profile on the BCC website
⊲ Complete Admissions Committee audit for nonresident/spouses of members
⊲ Vet legacy membership options
THE CLUB’S FINANCIAL MANAGEMENT
The Club has two financial ledgers: the operational ledger and the capital ledger.
• The operational ledger is funded by operating revenues, social dues, and golf season fees. This ledger reflects the consumption of member experiences annually, covering operational expenses to deliver day-to-day services on a break-even basis
• The capital ledger is funded by entrance fees, capital dues, and assessments; it supports longterm investments and maintenance, distinguishing between maintenance and aspirational capital funding needs
Capital dues were first implemented on March 1, 2021 as a means to supplement funding the Lifestyle Facilities Master Plan: Phase 1 along with the proceeds from the sale of Roland Park land.
DUES
+ GOLF FEES
+ OPERATING REVENUES
= MEMBER EXPERIENCE
OPERATIONAL LEDGER
ENTRANCE FEES + CAPITAL DUES + ASSESSMENTS*
= MAINTENANCE & ASPIRATIONAL PROJECTS
CAPITAL LEDGER
*In the Club’s history, there has never been an assessment
Did the Club get to its current position by financial mismanagement?
No. The Club’s financial health has not been compromised by mismanagement now or in the past. Prior to 2016, the club industry believed the financial driver of a club was the operating budget. After extensive data collection, industry experts at Club Benchmarking have determined that the true driver of a club’s financial success is the balance sheet. Adopting the two-ledger model demonstrates a proactive shift towards strategic and sustainable financial planning, aligning with industry best practices to ensure the Club’s legacy and prosperity.
Until recently, the BCC has not had a thorough process to quantify our maintenance and repair obligations. The Board developed the Capital Planning Strategy to assess, quantify, and prioritize the deferred and routine maintenance required to maintain what we already own at both campuses as a long-term strategy. The Club initiated and received an asset reserve study for each location, which evaluates the location, condition, costs, and expected useful life of all the Club’s assets, to fully understand the required capital needed over the next 20 years at Roland Park and Five Farms. These investments are crucial for maintaining and elevating the Club’s standards of excellence and facilities.
Today, 80% of clubs have come to understand the unsustainability of old models and currently have monthly capital dues to manage the complexity of aging facilities.
—Club
Benchmarking
• Roland Park: $18,000,000 for the repair, maintenance and replacement of existing assets
• Five Farms: $98,000,000 for the repair, maintenance and replacement of existing assets
The Club currently has $11,000,000 in debt. $1,100,000 from the Fitness & Racquets facility in 2007 and $10,000,000 from Phase 1 of the Lifestyle Facilities Master Plan. We anticipate approximately $6,500,000 in net proceeds from the land sale at Roland Park. Proceeds are earmarked to be used to pay down a portion of the debt associated with Phase 1. The Club is on schedule to be debt-free in early 2028.
DEFERRED REPAIRS & MAINTENANCE
How has the Club funded the repair and replacement of capital assets in the past?
Until recently, the Club has relied on surpluses from the operating budget combined with non-recurring sources—namely $2,800,000 in net proceeds from the PGA Tour for hosting the Senior Players Championship from 2007 to 2009 and a $1,300,000 legal settlement over damage to our trees. These funds were reinvested into the Club through projects such as the Fitness & Racquets facility completed in 2007 and the 2014 East Course renovation, where no member funding was required.
With no substantial revenue source for capital funds, many important repairs and replacements have been deferred. Below are current instances of repairs and maintenance that have been deferred due to insufficient capital funding. Click the images to enlarge.
FIVE FARMS GROUNDS FACILITY & COURSE STRUCTURE MAINTENANCE
Repair or replacement of aging buildings and structures throughout the property.
GOLF COURSE & DRIVING RANGE IRRIGATION & DRAINAGE
Continue irrigation installation throughout the property. Improve drainage infrastructure to ensure safe, consistent playability, decrease cart traffic and mowing issues, and minimize turf stress.
35-YEAR-OLD IRRIGATION (WEST)
35-YEAR-OLD IRRIGATION (WEST)
35-YEAR-OLD IRRIGATION (WEST)
IRRIGATION LEAKS (WEST)
DRIVING
CRUSHED DRAINAGE LINES (WEST)
PATH MAINTENANCE
Gravel, dirt, and asphalt path maintenance to ensure safe and accessible conditions.
CART PATH REPAIRS & REPLACEMENT
Select cart path repair and replacement, and alterations on select holes.
TEE & BUNKER MAINTENANCE
Strip, laser level, and resod Driving Range tees every three years for a smooth, level surface, modify tees to increase size, and replace sand and bunker liner since bunkers were last restored in 2006.
ROLAND PARK 1898 BUILDING
A portion of the Roland Park clubhouse is the original 1898 building. This historic structure requires essential maintenance, including repairs to the siding, foundation stabilization, and other critical restorations to preserve its integrity and functionality.
ROLAND PARK CLUBHOUSE INTERIOR
Necessary maintenance and repairs throughout the Roland Park clubhouse, namely water damage, the locker rooms, and laundry facility.
1898 GRILLE CEILING
MARYLAND ROOM PORCH CEILING
GEORGIAN PORCH WINDOWS
DATED LOCKER ROOM
DATED LOCKER ROOM
LAUNDRY ROOM
HOW
HOW DID THE BOARD ARRIVE AT THE DECISION TO INCREASE CAPITAL DUES?
On May 1, 2024, the Board communicated the Capital Planning Strategy and the role of the membership in addressing the capital needs of the Club.
STEP 1 Completion of independent and comprehensive asset reserve studies for each of our campuses. Produced by Club Benchmarking, these studies include all capital needs for existing buildings, grounds, and the entirety of amenity offerings, including our golf course operations.
STEP 2 Following a careful review of the asset reserve studies by the BCC Management Team, the studies were submitted to the Planning & Capital Improvement Committee (PCIC) for review and consideration. PCIC subsequently validated, confirmed, and adjusted associated details inherent in the studies.
STEP 3 Form a special ad-hoc committee with the stated purpose of evaluating BCC’s capital needs over an immediate 5 to 10-year time horizon. The committee, consisting of Finance Committee members and members of the Board, was charged with validating a base case scenario and proposing associated strategies as appropriate and prudent.
STEP 4 Presentation to membership by BCC Leadership and Club Benchmarking (focus groups), with the intention to educate and inform relative to the prudence of our approach. This interactive session was also designed to include question and answer opportunities; and is scheduled as part of the Annual Meeting of the Membership in May 2025.
STEP 5 Facilitation of Town Hall meetings in order to communicate important details, present recommended solutions, and solicit member feedback through a Clubwide membership survey.
STEP 6 Plan finalization and decision approval(s) by the Board of Governors, which would follow the completion of all procedural elements including the review of all final survey results.
Completed in the fourth quarter of 2023
Completed at the conclusion of 2024’s first quarter
Completed in the third quarter of 2024
Completed in the fourth quarter of 2024
Completed in the fourth quarter of 2024
Completed in the first quarter of 2025
STEP 7 Communication to the membership, with final direction noted and memorialized. Completed in the first quarter of 2025
MEMBER FORUMS
Focus Groups
137 members participated in the eight focus groups hosted at the Club from November 6 though November 8, 2024. The purpose of the focus groups was to engage a diverse cross-section of the membership to capture a wide range of perspectives on the Club’s capital needs.
Focus group feedback was gathered via an exit survey administered by Club Benchmarking and reviewed by the Board. Prior to the Town Hall meetings, the Board distributed a FAQ and white paper to further educate the membership.
Town Hall Meetings
250 members participated in the two Town Hall meetings hosted at the Club and available virtually on November 24 and December 3, 2024. At these meetings, members were presented with the focus group exit survey results and the three Board-recommended strategies for capital funding.
CAPITAL STRATEGIES AD-HOC COMMITTEE
The committee consists of Finance Committee members and Board members charged with providing the Board with funding options for the Club’s capital needs.
Christopher W. Oven, Chair & Board Liaison
Jonathan Beard
Frank Cannon
Mason Champion
Tom Kelly
Paul D. McKinnell
Hugh W. Mohler, Jr.
Lindsay A. Redfield
Maggie Schmitt
Scott Schuebel
November 24 Town Hall Meeting Recording
December 3 Town Hall Meeting Recording
SURVEY RESPONSE
On December 11, 2024, Club Benchmarking emailed a survey to all members asking for input on three capital strategies including the “bridge” projects.
VIEW
Survey results presentation from Club Benchmarking
Overall Response 2,557
DEMOGRAPHICS
Capital Funding Opinions
What is your level of agreement with the practice of matching capital dues income to the Club’s established obligatory capital needs?
Do you agree that the Club needs to raise more capital income from members through a capital dues increase?
CAPITAL PLANNING STRATEGIES
The survey polled the membership was on which of the following three Board-approved strategies they were most strongly in favor of.
STRATEGY #1
BASE CASE/STATUS QUO
Capital dues would increase annually by 3%, which would widen the funding gap for the Club’s future obligatory capital needs. This shortfall would hinder the Club’s ability to maintain its aging infrastructure. Over time, this would likely result in a decline in the member experience, as the facilities would no longer meet member expectations.
Key Points
• 3% increase in capital dues perpetually
• No assessment and no aspirational “bridge” projects
• No attrition
Funding Obligatory Capital from Capital Dues:
45% in 5 years
49% in 10 years
69% in 20 years
Reserves for Aspirational Capital from Entrance Fees: None
SURVEY RESPONSE
STRATEGY #2
CAPITAL DUES INCREASE
An increase in capital dues of $85 to help close the gap in capital generation to help fund the Club’s footprint and ongoing capital maintenance.
Key Points
• $85 increase in capital dues in 2025 followed by a 3% increase in capital dues perpetually
• No assessment and no aspirational “bridge” projects
• Initial attrition not exceeding the current waitlist
Funding Obligatory Capital from Capital Dues:
68% in 5 years
76% in 10 years
101% in 20 years
Reserves for Aspirational Capital from Entrance Fees:
$40,200,000 in 20 years
SURVEY RESPONSE
STRATEGY #3
CAPITAL DUES & ASSESSMENT FOR “BRIDGE” PROJECTS
An increase in capital dues of $85 to help close the gap in capital generation to help fund the Club’s footprint and ongoing capital maintenance. And an assessment for any “bridge” projects that receive member support. Unless there is strong support for all five projects, the assessment would only be for projects that are supported by the membership.
Key Points
• Assessment to fund aspirational “bridge” projects in 2025
• $85 increase in capital dues in 2025 followed by a 3% increase in capital dues perpetually
• Initial attrition of 5% beyond the waitlist
Funding Obligatory Capital from Capital Dues:
69% in 5 years
78% in 10 years
105% in 20 years
Reserves for Aspirational Capital from Entrance Fees:
$5,600,000 in 10 years
$48,500,000 in 20 years
Demographic Breakdown
SURVEY RESPONSE
Frequently Asked Questions
What is the difference between capital dues and an assessment?
Capital dues are ongoing fees that go towards the maintenance and improvement of Club facilities. An assessment, however, is a one-time fee for specific projects or investments, and it does not carry forward like capital dues.
When is the next phase of the Lifestyle Facilities Master Plan set to begin?
There is no definitive timeline for the next phase of the Lifestyle Facilities Master Plan. The Board of Governors has prioritized maintaining its existing assets before constructing anything new. However, it should be noted that the Club is on schedule to be debt-free in 2028.
Construction of a 3-hole short game area between holes #4, 5, and 6 of the West Course. The area will provide up to 2.75 acres of space to practice short shots, bunker shots, putting, and more.
Project Cost: $2.5M
Estimated Assessment
• $1,325 per individual adult member
• 9.8% golf season fees increase to cover estimated operating expenses
BRIDGE PROJECTS STRATEGY
The addition of at least one paddle court at Roland Park adjacent to the existing courts. This includes all fees for permits, engineering, structure, court, and lights. If and when the Club proceeds with a racquet facility on the Five Farms campus, courts can be dismantled and moved to a new location.
Project Cost: $1M
Estimated Assessment
• $550 per individual adult member
• 0.7% social dues increase to cover estimated operating expenses
Survey Responses
This project addresses inadequacy in the size Center at Five Farms. This front of the existing Fitness add approximately 2,000 space.
Project Cost: $1.5M
Estimated Assessment
• $800 per individual
• 1.0% social dues increase estimated operating
Survey Responses
PROJECTS
EAST & WEST REFRESHMENT STANDS
addresses the significant of the current Fitness
This project, located in Fitness Center, would 2,000 sq ft of additional Assessment adult member increase to cover expenses
This project addresses the inadequacy of our existing refreshment stands. Increasing the size and functionality of our stands allows for better, more consistent and varied food and beverage offerings, refrigeration, and food prep areas while providing a improved experience for members and guests.
Project Cost: $1.5M
Estimated Assessment
• $800 per individual adult member
Survey Responses
FAMILY-FRIENDLY FAST CASUAL DINING & POOL BAR
This project updates and expands the 1998 pool café into a heated, year-round space offering fast-casual dining with play area access. In summer, it will function as the pool café. A new adults-only bar with seating will be added near the current walk-up bar. Pools will be sectioned off during the off-season for safety. The space will welcome families after school in casual attire for quick dining.
Project Cost: $5.25M
Estimated Assessment
• $2,800 per individual adult member
• 3.6% social dues increase to cover estimated operating expenses
Survey Responses
WHAT IS THE BOARD OF GOVERNORS’ FINAL DECISION?
The results of the survey showed that the membership believes the Club should address its obligatory needs before addressing any of the bridge projects presented, and every member must contribute toward funding obligatory capital. Therefore, after reviewing and studying the survey results, the Board has voted to substantially increase capital dues for each membership category, as well as introduce capital dues to younger resident junior and non-resident junior categories. An assessment will not take place during this fiscal year.
New Capital Dues Structure
HOW WILL THE CLUB DECIDE ON AND MANAGE FUTURE CAPITAL PROJECTS?
As part of the customary capital budget process and following our governance document, a financial formula reviewed and approved by the Club’s Finance Committee will determine the amount of capital available for the upcoming fiscal year.
The asset reserve studies completed by Club Benchmarking will act as a road map. In June, the BCC Management Team will consult the reserve study for the list of expected asset replacements and evaluate each item individually and as part of a potential project(s). This will be followed by obtaining several quotes for replacement from outside professionals and validated by the Planning and Capital Improvement Committee (PCIC). The Management Team will, if necessary, recommend assets be moved up from future years or deferred based on the asset condition and funds available for capital. Furthermore, the Management Team will integrate committee capital requests into a proposed capital budget list so as not to exceed funds available for capital needs.
The detailed proposed capital budget will include item description, estimated cost, expected year of replacement, and any changes noted from the reserve studies. The proposed budget will be presented to the PCIC for review, feedback, and approval. The Management Team will make any changes requested by the committee.
The capital budget will be submitted to the Board of Governors for review and final vote for approval. Upon approval, items approved in the capital budget will be shared with the membership.
Frequently Asked Questions
Can members vote on major Club decisions?
Per the bylaws, members are permitted to vote on two items:
1. Constitutional Amendments 2. The sale of improved or unimproved real BCC owned property in excess of one acre of land
What is the Club’s current philosophy on capital projects and dues increases?
There are concerns that capital charges and dues may perpetually increase. The Club is committed to managing these increases responsibly, though members have called for transparency and clarity on what each project entails and how they are funded. The Club intends to provide this level of transparency on an ongoing basis.
