St Marks College Club Inc.

RE: College Club Subscription Fees 2014

Treasurers Recommendation HISTORY OF THE SUBSCRIPTION FEE: Year Amount 2007 $155 2000 $120 2008 $155 2001 $120 2009 $175 2002 $120 2010 $175 2003 $150 2011 $175 2004 $155 2012 $175 2005 $155 2013 $175 2006 $155 2014 ? From the figures displayed above we can see that the College Club has not had a consistent approach to setting the subscription fees. Over time it is important to recognise that the average cost of everything we consume increases and this is known as Inflation. Evidently this has not been recognised by the College Club for some time. The costs required to be paid by the College Club are vastly different to those it incurred one decade ago and it is important to take this into consideration when revaluing the subscription fee for 2014. CONSTITUTIONAL REQUIREMENTS: Section 5.3 (c) of the SMCC Constitution states that the subscription fee for the next Residential Term shall be determined by a special resolution at the Final Ordinary General Meeting of the preceding year. A special resolution requires 75% of the members eligible to vote. Proxy votes are accepted and 14 days notice must be given to members. TREASURERS PROPOSAL: The Treasurer proposes an increase to the membership fee for 2014. It is in the College Clubs best interests for me to propose an increase from $175 to $200. This increase would bring the current price in line with inflation of the past decade and prepare the College Club as it moves forward to continue to provide the many benefits to its members. After 5 years with no increase; it is time.

REASONS FOR THE PROPOSAL: 1st Reason = Inflation. This is measured on the Consumer Price Index (CPI) for Adelaide which is summarised in the below table. Year CPI (%) 2008 3.6 2000 5.3 2009 2.0 2001 2.9 2010 2.4 2002 3.5 2011 3.6 2003 3.3 2012 2.1 2004 2.6 2013 0.2 2005 2.7 *2013 figure is only for the first 6 months 2006 3.2 2007 2.8 What is Inflation? In Australia, the CPI is calculated four times per year (quarterly) and the figure above shows the total of these four quarters. Inflation is a summary of the average increase in costs for almost all goods and services and gives consumers an indication as to how much prices of goods have increased (or decreased) compared to the previous year. In Australia, the Reserve Bank (RBA) aims to keep inflation between 2% and 3%. Based on the 2003 figures and taking into account the time value of money over the past decade, we can establish the following facts: Inflation since 2003 was = 28.5% (10.5 years) Average inflation was 2.714% per annum The subscription fee was $150 in 2003 The question we need to ask is: What would be the fee be TODAY if the membership fee had been increased with the average cost of goods and services? According to my best estimates and research the figure I have reached is:

The data used was from the Australia Bureau of Statistics, which is a very reputable source. The Treasurer believes that the estimate is within the margin of error. 2nd Reason = Uncertainty surrounding the Master Plan redevelopment. With a conservative estimate, we can predict that of 19 rooms that will not be filled in Creswell and East House in 2014, 10 rooms will not be able to be recovered by the College. Whilst St Marks College itself has the savings and capacity to sustain a slight drop in student numbers, the College Club is not quite as flexible. The loss of these students will only occur throughout 2014 and will be recovered in 2015 however in the meantime this reduction will result in an almost 5% drop in subscription fee revenue. Over the course of one year it will be almost impossible to cut essential activities and benefits to this level, without an increase in the fee.

3rd Reason = Uncertainty surrounding Marksenfest. The requirement for Marksenfest to either move offsite in its 24th year or be substantially reduced and altered is virtually guaranteed, with as much one-third to one-half of the tennis courts being a construction site. This is the major fundraising event for the club and its short-term existence is certainly under threat in 2014. On a well-managed and well-budgeted day, Marksenfest can yield between $20,000 and $25,000 in profit. The loss of such income to the Club would be detrimental to the activities and benefits previously received by members. Over the years the club has grown to a point where it comes to rely on the event to provide financial stability. Whilst preparations have begun to consider an offsite Marksenfest, the College Club would be naive to assume that it can again hold another successful event heading into unmapped territory; therefore the uncertainty should not be underestimated. 4th Reason = Requirement to hire more sporting fields to facilitate trainings for SAAUCC sports. With the construction of the Master plan, the financial implications of hiring fields for hockey, soccer and football will likely need to be considered in 2014. 5th Reason = Ongoing expenditure on the Gas Truck. Maintenance of this College Club asset is not cheap and the replacement of the engine took a substantial effect on the 2013 budget. Despite some fantastic fundraising efforts, the Gas Truck fund is in a very bleak state. The Old Collegians Association and The Buttery have laid the foundation to gather more funds for our beloved truck, but there is still a considerable way to go. The on-going running costs such as fuel, oil replacement, registration and the annual service check-up all add to a considerable sum of money. If this is to remain our preferred mode of transport we need to recognise the added costs involved. 6th Reason = Gym Expenditure, Windows, Crockery, Cutlery, Fire Call-Out fees. All these aspects are very variable and should be taken into consideration. The Committee this year has made a considerable effort to reduce each of these charges wherever possible, but inevitably they will continue into the future and could potentially be more severe than in 2013.