Renewing Our Assets

• Initiation Fees - New Member Initiation fees should be set at a level that reflects the value of BMOI membership as well as the significant investment made by current and past members.  As such, we have adopted the principal that Initiation fees represent the new members contribution to fund ongoing capital projects and, accordingly, initiation fees will be allocated solely to funding capital projects.  A decision was made in November 2020 to raise initiation fees to provide a predictable level of cash flow to execute against a long-term plan to renew and rehabilitate our assets when combined with other sources.  Accordingly, the Board approved an increase in Initiation fees from $10,000 to $15,000.  In November 2021, Initiation fees were raised to $18,250.
• Member Dues Changes - Annual dues should be set at a level sufficient to not only fund annual operating costs but also contribute to ongoing capital project needs.  On this latter point, we believe it is important that existing Regular / Senior Members are also contributing to the funding of ongoing capital improvements.  In line with this guiding principle, we established increases in dues over a two year period as follows:
  • Annual dues for the 2020-2021 season increased as follows: Regular member dues increase $50 a month or $600.  Senior dues were be set closer to the maximum 2/3rds of Regular Dues for an increase of $36 per month or $400. For clarity, an Annual dues increase of $400 and $345 for Regular and Seniors, respectively, was necessary solely to fund annual operating costs.  This is reflective of the shortfall we have experienced in recent years for which we were dependent on Initiation fees and marina/ locker fees to fund the operations.   
  • Annual Dues for the 2021-2022 season: Regular member dues will increase an additional $20 a month or $240. Senior dues were set to the maximum 2/3rds of Regular Dues for an increase of $26 per month or $310.  
  • In total, Regular Dues will be $1,920 and $2,160 in 2021 and 2022, respectively. In total, Senior Dues will be $1,130 and $1,440 in 2021 and 2022, respectively.
• Marina / Locker Fees - Projected to be $75,000 per year, the underlying assumption is that most fees are coming from marina slips which should be viewed as contributions in aid of the construction paid in arrears.  These assets cannot be accessed by all members and therefore income derived from the use of these facilities should be reinvested in BMOI assets enjoyed by all members.  As such, marina and locker fees will be allocated to funding future capital projects.
• Cash Reserves - In recent memory, we have not established a target level of cash reserves on hand to be available for unexpected asset repairs and unforeseen costs.  The Board determined that $120,000 is a proper level of minimum cash on hand.