Capital Assessment Fee Policy
Background
In 2018, the Jacksonville Rowing Club (JRC) Board determined that it was critical to the future of the Club to update its aging fleet. In order to create a stable and adequate funding source, the Board instituted an annual Capital Assessment Fee (CAF), payable in May of each year (in addition to the Members’ normal monthly dues). The decision was made to separate monthly Member Dues from the CAF such that JRC dues would remain the lowest in the Region. It also enabled the Club to specifically earmark CAF funds to pay-down any debt incurred for JRC’s planned boat purchases (and/or acquire new boats in the future). As the Board recognized that these purchases were the start of a long-term program to continuously update its aging boats to create a strong value proposition for Members, no specific “sunset” for the CAF was put in place.
The first CAF (of $350) was due and payable in May of 2019, in-line with the Club’s intent on purchasing three boats later that year. While the vast majority of JRC Members paid the $350 as a lump-sum on or about May 1, 2019, one Member paid the initial $350 and immediately began paying $30/month to essentially “pre-pay” the next year’s CAF obligation, while another was given permission by the (then) Bookkeeper to forgo paying the initial $350 and instead satisfy the CAF commitment through a pay-as-you-go approach, paying $30/month. (It should be recognized that the JRC Board never authorized the pay-as-you-go approach.). These variations from what the Board originally approved has created a situation where additional members may request arrangements other than paying the full lump-sum every May which was not the intent. Since the CAF was implemented, the JRC Board has also needed to account for how new Members would be treated (i.e., Learn-to-Row and experienced rowers joining outright).
The purpose of this Policy is to clearly lay-out a set of guidelines to be followed going forward to enable the CAF program to be more transparent and fair to all JRC Members. While it may deviate from how what was envisioned was executed, the Board concluded that the guidelines below accomplish the objectives of creating a transparent and more easily administered Program.
CAF Guidelines by Member Group
Legacy Members: This group represents those individuals that were members of JRC as of May 2019 (but excludes those Members that completed the Learn-to-Row Program between May 2018 – May 2019, which will be discussed below). Legacy Members are responsible for continuing to satisfy their CAF obligation as long as they remain members of JRC.
Learn-to-Row (LTR) Members: This group represents the future of JRC and is critical to the Club thriving long-term. Recognizing that LTR Members are just starting out in the sport, JRC wants to avoid creating any unnecessary financial barriers to these Members to continue their membership. To that end, upon graduating from the LTR program, Members will not be obligated to pay the CAF until the beginning of their 13th month of JRC membership, and will be assessed a pro-rated CAF from “month 13” of their membership through the following April. The following provides an example.
- If a LTR Member graduates at the end of February and joins the Club, she/he will not be assessed the CAF until March 1st the following year.
- Once assessed, the Member will be responsible for a pro-rated CAF (of $58.33) from March 1st through the end of April.
- The next month (i.e., May), the Member would be billed the same as JRC Legacy Members.
Experienced Rowers that Join Directly: While this group tends to be minority of new Members, but still has been a solid source of JRC growth. This group will be assessed along the lines of the LTR Program with one important exception. Simply put, the pro-rata CAF will be calculated from the date of the new Member joining through the end of the following April.
The next month (i.e., May), the Member would be billed the same as JRC Legacy Members.
CAF Guidelines related to Payment
It is recognized that the CAF is not an insignificant figure, regardless of the justified need for these funds to continue refreshing and expanding JRC’s Fleet. In fact, the timing of the CAF payment due date of May 1st was purposefully chosen to ensure it was after Tax-Day, to enable Members to get through that major financial event.
As the purpose of the CAF is to fund both equity and debt payments to finance new boats, it is critical that that Members pay the entire annual CAF on a lump-sum basis every May, consistent with the JRC Board’s resolution in 2019 that established the Program. It is recognized that JRC Members come from all financial means and unexpected financial challenges can arise for any of us. The JRC Board does not want a Members’ CAF obligation to push them out of the Club. Hence, if as Member is in a temporary hardship situation, she/he should contact the JRC Treasurer to discuss if a short-term installment plan would provide the relief necessary to continue rowing with the Club.
Adopted by the JRC Board July 8, 2021