Reply To: Engine Rebuild Fund

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#9628
Larry KaseLarry Kase
Participant

For about 50 years the BOD has made the financial decisions of SSI. It has dealt with many expenses such as a lawsuit, overhauls, glider and tow plane purchases. These expenses were much larger than the one being discussed.  During the lawsuit, we had to come up with over $200,000. All of these BODs used good financial management to pay the bills without a special assessment. Our dues and flight fees were always reasonable.
Our club is very successful. We have assets of over $400,000 and that number is increasing month by month.
This situation reminds me of a rich uncle that wants you to help pay for his new Porsche because he prefers not to take out a car loan.
Special assessments are a gamble. It can actually lose money. For every new member that decides not to join, we lose $1000. The higher cost per member may actually be a loser for the club.
For the last year, I have had a continuing offer to the BOD to loan SSI $10,000 if our cash balance got too low. The emails of the previous week have shown a strong support of the club. I have no worry that the club can’t get the money for an overhaul when needed. The interest for a loan of the same amount comes to $20/member/year.
Using a loan for the overhaul = no assessment, no dues increase, no members quit, new members join. Our current prices allow paying of all expenses over several years.
Let’s be smart.
Larry Kase