Hart Ranch Resort Strategic/Long Range Planning Meeting
May 20, 2015
Board Members present: Harry Hixon, Kathy Payne, Bob McCormick, Vikki Day, Karen Ripperda; Resort Manager Tim Schnabel, Business Manager Ivy Allard, and Board Candidate Wayne Pauli.
This document is to be part of the policy guideline for Board Members in Long Range planning that is to be done yearly according to the HRCR By-laws.
There was lengthy discussions of what Strategic Planning as well as Long Range Planning meant to each person there. Everyone share their ideas of what they felt was the most important item going forward for HRCR.
This was followed by discussing the difference between Capital Expenditures, and Long Range Expenditures. One of the determining factors was whether an item i.e. vehicle, can be depreciated in a short period of time; wherein a new cabin has a total different depreciation time frame according to the IRS guidelines. Long Range planning is for future known expenditures of which money is set aside into a Reserve Account to be used at that future date.
Our Business Manager, Ivy Allard is working on a new report for the Board that will outline the balance in the Long Range Reserve account, it will show the monies transferred each year which will be determined at this annual meeting, as well as a detailed payout of those monies. Previously these funds had been paid out of the operating account; and it was hard to track what was Capital expenditures vs Long Range expenditures.
Following these discussions, once again the Board approached the development of a formula that can be used each year, to provide the ‘funding’ that will support the items that are listed in the Long Range Plan created this time for the following year, and an additional estimated time frame of five years into the future.
The formula developed moving into the future is as follows:
A 3 Year Rolling Average based on the previous three years of the Net Operating Income x 50%
| The following depicts the number to be used for 2016. | |
| 2014 Net Operating Income $112,000 | $112,000 |
| The Long Range Total pd out with operating income* | $186,000 |
| Total | $300,000 x 50% = $150,000 |
| 2013 Net Operating Income | $250,000 |
| The Long Range Total pd out with operating income | $221,000 |
| Total | $471,000 x 50% = $235,000 |
| 2012 Net Operating Income | $50,000 |
| The Long Range Total pd out with operating income | $200,000 |
| Total | $250,000 x 50% = $125,000 |
| Calculation for 2016 Long Range Funding Dollars | $510,000/3 = $170,000 |
*This line item will not be included with the 2015 year going forward; since the Long Range Funding items will no longer be paid out of operating income, but paid out of the Long Range Funding account.
2016 Long Range Strategic Planned Allocations and expected Expenditures:
| Described Account | Allocated | Description of | Expected | 2016 L/R Year-End |
| Amount | Set-Aside Use | Expenditure | Account Balance | |
| Campsites & Meadows | $40,000 | Potential Meadow | $60,000 | $180,000 |
| Expansion | ||||
| Campsite Pads & Concrete | $20,000 | General Upkeep | $27,000 | |
| Building/Maintenance/Add | $0 | General Upkeep | $0.00 | $116,113 |
| Roads & Curbing | $30,000 | New Blacktop | $60,000 | $20,000 |
| Siding & Staining | $15,000 | General Upkeep | $62,000 | |
| Utilities | Line Upgrades-Brecks | $33,000 | $250,721 | |
| Comfort Stations | Refurbish Showers | $6,000 | $114,000 | |
| New/Refurbishing Cabins | $20,000 | One New Cabin | $45,000 | $100,000 |
| Cabin Furniture & Equipment | $5,000 | Furnish New Cabins | $5,000 | $0.00 |
| Hart Mart (Equip. Gas Pumps etc.) | $2,500 | Eventual Pump Repic | $17,500 | |
| Housekeeping (Washers/Dryers) | $5,000 | Set-aside for Future | $10,656 | |
| Maitenance Equipment | $3,500 | Continued Upkeep | $16,000 | |
| Mowers | $5,000 | Continued Upkeep | $25,000 | |
| Vehicles | $7,500 | Replace Pick-Up | $15,000 | $4,615 |
| Activities/Playground | $6,000 | Enhance Meadows | $4,000 | $750 |
| Wi-Fi & Technology | $10,500 | Phase 2 of Project | $36,000 | ($38,000) |
| Pool/Equip/Hot Tub Etc. | Replace Childs Hot Tub | $12,500 | $18,640 | |
| Totals: | $170,000 | $276,500 | $924,995 |
2017 Long Range Goals/Plans (No specific priority order to items listed)
- Build on Suggestions/ideas from the Town Hall Meeting
- Additional Cabin Replacements or Refurbishing
- Build on the Sponsorship Support to provide a Rodeo Arena
- Continue Meadow Expansion
- Review our Sales Philosophies to increase Membership
- Extend the length of Pads
- Expand/improve the hiking – walking path to encircle the entire HRCR
- Expand Outside Storage
- Siding/Staining the Lodge
- Continue refurbishing Comfort Stations Showers
- Mower (Hustler) Replacement
- Utility Upgrades
- Begin exploration of Lodge/Pavilion Expansion
2018 Long Range Goals/Plans (No specific priority order to items listed)
- Additional Cabin Replacements or Refurbishing
- Complete the Meadows Expansion
- Siding on Colt II’s & Cheyennes
- Mower (John Deere)
- Utility Upgrades
- Indoor Storage
- Continue exploration of Lodge/Pavilion Expansions
- Upgrade Picnic Shelter A
2019 Long Range Goals/Plans (No specific priority order to items listed)
- Additional Cabin replacement
- Non pet side roads resurfaced
- Begin assessment of extending pool life or replacement
- Upgrade Picnic Shelter in Meadows
Additional Strategic Plan Discussions:
Wayne Pauli gave us a suggestion of how we can identify the importance of the Board’s goals. It is depicted herewith:
In order to best serve our Membership we need to determine where/how/what we need to do with the current Infrastructure; and of course the ultimate end to any plan is to determine where/what/when/how we come up with financing to do all of the services to our Membership.
The Town Hall Meetings will help our Members outline for the Board things that are important to them, and ideas of what we can do to continue to make the HRCR a family destination point.
We need to understand the demographics, motivations, behaviors of our membership, and building on a 1997 and 2012 Long Range plan that prior Board Members and Managers have developed, we want to
come up with a well-planned strategy that includes increasing sales; expansion of the park, additional activities that the current and future members will enjoy, etc.
