Update on the 2013 Season

TO:

 OAKLYN SWIM CLUB Members

It is with great sorrow and despair that as President and Treasurer of the Oaklyn Swim Club we write this letter to inform you of the status of the organization.

As many of you may know, the Oaklyn Swim Club celebrated its 50^th anniversary in 2012. Every past president, board member, volunteer and participating member has taken great pride in our pool. It is unfortunate at this time that we must inform you, the ACTIVE Bondholders, the pool is no longer able to operate and will not open this year.

There are currently only four (4) board members, We have been acting in all capacities for the 2011 and 2012 seasons.

The board held a meeting on January 20^th, 2013.

A Board meeting was called on December 3^rd and again on January 20th to which we did not have a quorum, therefore no action regarding the swim club was taken

It is with an extremely heavy heart that we recommend we close the swim club & dissolve the organization.

Over the years the income derived from dues, bonds, the snack stand and contributions has not kept up pace with the ever rising cost to maintain the pool and operate it safely. Despite all of our efforts and ideas, membership has declined, the number of volunteers has declined, and the condition of the pool as a whole has declined. The struggle lately has been to connect the income to the expenses and balance the budget to a “break even”status each year. Unfortunately, we have found that this has become impossible. Over the past 10 years we have never been able to sustain any financial cushion. Because of the age of the facility, new health regulations, and the increasing cost of running the pool and grounds, we find the situation no longer sustainable.

Our current outstanding debts are over $6,500 to water, electric & repair contractors.

In addition, taxes for 2011 and 2012, along with fees and interest, now total just over $29,800. And, the Initial cost to open the pool each year is approx $3,500. This means that, just to try to open, we would need to have $39,000 NOW and the ability to pay ongoing expenses and taxes.

 

This scenario has been repeating itself over and over the last 10 years. Annually, we have barely, if at all, been able to cover taxes. As we continue to reach out to the Borough, we are now two years behind and the property has gone to tax sale. Because the property has little or no value other than as a pool, no one purchased this debt. The Borough of Oaklyn assumed the tax liability on January 1^st 2013. They will own the property in July of this year.

 

Please remember, we are a PRIVATE Corporation. The municipality does not have the ability to just “bail us out” or release us of our tax liability. We will have to dissolve the organization. The Borough will then assume the property with the hope for an opportunity in the future to operate again as a municipal pool. That decision would fall to the current Mayor and Council. We will need to pursue this together to show the importance the swim club is to Oaklyn and surrounding towns.

 

If we, the Bondholders, choose to hold the property for the thought of possible resale and/or value, we would have to come up with the money to pay the current tax liability and the outstanding bills. Then, we would need to cover our liability insurance as a vacant pool and list the property for sale. We must note, however, that the property currently is NON-CONFORMING and any use other than a Swim Club will most likely require many variances not to mention time

 

Some information that you may not know:

Each year on average we expend $45,000 – if you include Real Estate taxes the average is $52,500.

Our average Income has been $42,000

 

So that there may be no confusion, our by-laws state in summary, the following:

· There is a Board of Trustees – Nine (9) members in all, elected from the Certificate Holders.

· Elected from the Trustees – there are to be Five (5) Board members. They are

President, Vice President of Administration, Vice President of Pools & Grounds,

Secretary & Treasurer.

· A Quorum consist of five (5) or a majority of the board.

· No dues shall be refundable in the event that pool operations are suspended for any period.

· In the event of dissolution of the club in any manner or for any cause, and in no other event, upon the effect date of dissolution of the Club, certificates shall be a lien upon the proceeds of the sale of the property of the club after the payment of it’s just debts and obligations to the extent of then value of certificates, as fixed by these bylaws, subject to set off of all debts, dues and obligations owed by the holder of the certificates. After payment of all certificates outstanding upon the effective date of the dissolution of the club, the surplus remaining shall be paid and distributed pro rata among the then memberships of the club. (In our case , now that the Borough owns the tax lien, and will own the property in July, there will be no value to distribute.)

 

Everyone involved, Presidents, Board Members, Volunteers and Members, over these past 50 years have done an incredible job in maintaining and operating our Family Town Pool! It is with an extremely heavy heart that we have recommended we close the Swim Club. Letting the municipality assume the property is what we believe will present the only opportunity to possibly see the Swim Club reopen as a Community Pool, owned and run by the municipality, serving the residents of Oaklyn.

 

Regretfully,

Oaklyn Swim Club Board

Sharon Brandley President