This article is intended to help residents to understand the situation at TMCC based on the information we have available. Please read it carefully so you are fully aware of the challenges facing our community. We have a huge problem to solve here in The Meadows and hopefully a better understanding of the details of this situation will give all residents the knowledge and motivation to engage in constructive conversation at Board meetings as well as Town Halls. Although we’ve been able to aggregate the information below, we need a lot more Truth and Transparency.
A reminder of how 2024 went:
Following a $20,000 loss in 2023, in March 2024 the TMCC Treasurer warned TMCC members that there could be cashflow problems during the year (page 7 of link. “Cashflow problems” means TMCC may not have enough cash to pay their bills). This turned out to be an accurate prediction:
- By July TMCC was forecasting to be short of cash IN THE NEXT MONTH (August). The MCA advanced a quarterly RAP fee payment by 2 months to DEFER this problem. TMCC forecast $425,000 of early member dues payments in Sept/Oct 2024 (these are early paid dues for 2025), but the TMCC Treasurer still expected to be short $100,000 of cash in November.
- To be clear, THIS WAS ALL BEFORE THE HURRICANCES OR TENNIS MEMBERSHIP LOSSES from the pickleball announcement debacle.
- As they expected, TMCC had a cash shortfall in Oct/Nov, but it was larger than expected due to the hurricanes and TMCC needed a $250,000 loan to continue operations.
- Net income for the year appears to be headed for a loss of $220,000 (last page, YTD loss is $197,000 below prior year’s loss of $20,000).
2025 is looking worse than 2024
January 2024 weather was cited as a problem last year.
Weather was also bad in January 2025.
TMCC is down 88 annual members from 2024 with an expected net loss of membership dues of $120,000. If seasonal golf memberships don’t increase in February, there will be an additional dues shortfall of $126,000. (Footnote 1) Fewer members will result in fewer rounds and cart fees, but some of this will be offset by higher cart rates for some categories (we don’t have good enough data to reasonably evaluate this amount).
TMCC will need an extra $250,000 of income from operations to repay the loan from MCA in Feb/Mar/Apr.
If TMCC annual snowbird members have concerns about whether TMCC will be operating when they return in the fall, they may discontinue their membership when they depart in the spring to avoid paying dues over the summer (TMCC allows annual members to cancel their membership with 60 days’ notice).
These are the “positives” we are aware of for TMCC:
1. The Clubhouse being closed saves the TMCC from the losses it usually incurs related to that facility (it is common for even successful private clubs to lose money on their Food and Beverage operations because their client base is limited to members who aren’t numerous enough to make the operation self-sustaining). To be clear: it is a large positive for TMCC that the Clubhouse is not operating. But this is also likely to negatively impact member satisfaction and membership levels. It is clear that the MCA’s goal is to have a clubhouse, these savings are not “sustainable” under the current private club model.
2. The Highlands has been in better shape (but still not good). Specifically, only 4 of the front 9 greens are problematic vs about 7 last year. It still has a (deserved) reputation for bad conditioning. We’ve received feedback that some of the conditioning gains are deteriorating as traffic increases and it is “pretty much like last year” (but that is anecdotal).
3. MCA is now subsidizing TMCC more than they ever have with $223,000 of operating expenses moving from TMCC to MCA for pool and fitness operations. (Although this is a positive for TMCC, it is of course a negative for MCA Homeowners).
4. If hurricanes do not disrupt golf rounds in 2025, TMCC will not incur the estimated $100,000 in lost golf revenues.
Overall TMCC needs to improve income by about $470,000 compared to 2024 just to break even on a cashflow basis (eliminate estimated $220,000 loss experienced in 2024 and have an additional $250,000 to pay off the loan).
Based on the information available, this seems very unlikely.
It would be better for the MCA to be receiving data and information from TMCC, rather than having us piece things together as we are doing. But MCA’s two liaisons to TMCC (MCA President and Treasurer) are a roadblock to the Board receiving it. So, Board members are put in the position of making decisions based on the limited information available. That is far from ideal but better than being hamstrung by having no information. If TMCC would like to dispute the information or observations posted here we would be glad to receive it. But it must be with real facts, information and legitimate forecasts. General statements or saying this info isn’t accurate isn’t helpful.
If adjusting the lease is on the agenda for the Feb 13 MCA Board meeting (to shift $223,000 of operations of the pool and fitness center from TMCC to MCA), the MCA should require adding a lease term to receive monthly financial information and forecasts from TMCC (this should have always been part of the lease).
The MCA does not have a lot of time to make a major decision and determine its best course of action for its golf courses. In 2024 TMCC required cash assistance in July and 2025 is looking worse. We don’t want to be in the position of being forced to make a snap decision like we did in the fall (MCA Treasurer told the Board their choice was to lend TMCC $250,000 or take over running the golf courses in a couple of weeks). The sooner we start figuring out what MCA should do with its golf courses, the better our chances of making a good decision. (Footnote 2).
Ballots for the election of 3 MCA Directors have been mailed and you should have received yours by now. Vote for candidates you believe will deal with this issue, and act for the interests of all MCA Homeowners.
Please share this with friends and neighbors.
Contact us at ForTheMeadows@SarasotaMeadows.com
Footnote 1
Link to details of TMCC memberships as of January 2025.
Golf memberships (Jan 2024 vs Jan 2025)
- Down 56 annual members (from 359 to 303 (“Full” members down 6 to 164))
- Down $53,000 in annual dues (rate increases averaging 10% ($263,000) offset much of the membership number decreases ($316,000))
- Having membership down 15% will affect member rounds and cart fees (some will be offset by increased cart fee rates).
Tennis memberships (Jan 2024 vs Jan 2025)
- Down 28 annual members (from 196 to 168)
- Down $80,000 in annual dues (rate increases averaging 2% ($12,000) offset some of the membership number decreases ($92,000))
Social memberships (Jan 2024 vs Jan 2025)
- Down 4 annual members (from 89 to 85)
- UP $13,000 in annual dues (rate increases averaging 11% ($25,000) more than offset some of the membership number decreases ($12,000))
Seasonal Golf memberships (Current Seasonal memberships vs ALL 2024 seasonal memberships)
- Down 35 seasonal members (from 104 to 69) BUT there may still be new seasonal members added in the next month.
- Down $126,000 in annual dues but additional seasonal members may join in the next month.
Footnote 2
Director Mark Pienkos attempted to initiate a Strategic Committee to address the future of our golf courses in August 2024 but was unsuccessful. He was eventually successful in December 2024. The deadline for application for the 3 open spots on the Committee closed Jan 27 2025. It is unknown when those Committee members, the 3 MCA Directors and the 3 TMCC Directors will be selected and announced.
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