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With $2m in the bank and its mortgage paid off from selling a chunk of land to developers, and membership and income both on an upward trajectory, the Hibiscus Coast Community RSA is feeling more confident about the future than it has for some time.
At an Extraordinary General Meeting on April 16, a majority of members present voted to withdraw $200,000 of that $2m capital to pay for long needed maintenance on the clubrooms at Vipond Road, and high operating costs. The club has a history of running at a loss, and if it continues to top up its funds from capital reserves, that money could be gradually whittled away. However, President David Newman says that is not going to happen on his watch.
He says there were probing questions at the meeting about why the $200,000 withdrawal was needed.
In response, Newman told members that the club had to spend money to ensure compliance with employment law and health and safety regulations – in effect, so it could stay open and trade.
Work on the roof, leaking pipes and rotting floor joists, was needed and ventilation upgrades are being costed.
“We have been dealing with a very run down, leaking and non-compliant building and it has been a long, hard haul,” Newman said.
The RSA has been making substantial losses for at least 14 years, and Newman says this is expected to continue this year, although the loss will be significantly less than previous years.
“When running a business, you must invest into that business and what houses it, otherwise customers won’t use the facilities. There are signs of change with current offerings and the fruits of that investment,” he says.
Since the start of the year, more than 100 new members have joined the club, and the second week of April saw the highest turnover since Covid-19.
Newman says manager Mike Bishara and younger members on the committee are helping to turn the club’s fortunes around.
He says there is no intention to take any more money away from their investment capital.
