The 2026 Fiscal Year Budget – A Commitment to the Our Future
The Club Board will consider approval of next fiscal year’s budget at the April 29 Board meeting. Over the last seven months, staff, under the Board’s direction and in consultation with the three Boards of Directors, conducted a detailed analysis of the needs of our community and created a three-year Strategic Plan. This budget addresses the increased cost of current operations and is the first step in implementing that Strategic Plan. As part of this process, staff is recommending an increase in both operating and capital dues to support ongoing operations and the strategic goals identified by the Boards.
Operating costs are a major part of this year’s increase. Operating Dues cover labor, utilities and fire safety and water conservation programs. The cost of water, electricity, professional services and contracts for maintenance of lakes and trees, are major contributors to the increase. Inflation also increases operating costs. Weaknesses in our financial position include underfunding capital replacement so that our revenue from dues does not meet depreciation. For capital improvements of any kind, we have a modest fund and no dues for capital improvements.
This budget includes commitments to achieve the following four key goals of the 2025–2028 Strategic Plan:
• Enhancing resident engagement,
• Master-planning facilities,
• Improving landscape and fire safety,
• Strengthening financial stewardship.
Each goal is grounded in the community’s mission to provide a safe, attractive, and enriching lifestyle. To provide continuity from one board to the next the Club Board will consider Goals and Objectives for the FY26 Board at the May Board meeting. The Board will strive to keep future dues increases as low as possible. Specific programs Board and staff may consider include:
• Determine what services are necessary to support the community and not spend time and money on extra services.
• Adequate staff to maintain an excellent service level.
• Updating the Fee Schedule with benchmarking to similar facilities.
• Improve the management of our investment accounts to at least meet inflation.
• Reduce expenses wherever possible.
• Study a reorganization of the Club Corporation to allow a new source of revenue.
The Club’s mission and vision statements commit us to be the active country club community of choice for adults 55+ in the South Bay. We expect to spend no more than is necessary and no less than is needed to do so.
Thank You for your suggestions and support.
—Richard Zahner Villages Golf & Country Club Board President
