Building long term stability and growth for WRSSBA
1. Background
White Rock South Surrey Baseball Association and the White Rock Renegades Softball Association are partners in the construction of our new indoor training facility at Centennial Park. Under the joint agreement, WRSSBA holds a 69 percent share and the Renegades hold 31 percent. The Renegades may choose to exit the partnership after five years. If they do, WRSSBA is required to buy out their share using a declining repayment schedule from Year 5 through Year 20. If exercised in Year 5, the buyout amount would be $373,459, to be paid within two years after the Renegades notify WRSSBA of their intent to exit the partnership.
2. Purpose of the fee
The Indoor Training Improvement Fee (ITIF) allows WRSSBA to save in a planned and transparent way so we can meet any potential buyout obligation. This protects the association, builds equity in the facility, and supports long term growth.
3. How the fee works
- Each player contributes $60 per year for seven years.
- Funds are held in a dedicated interest bearing reserve account.
- We will use a ladder of GICs where appropriate, with an expected yield of about 3 Percent
- By the end of Year 7, the fund is expected to reach the full Year 5 obligation amount.
- If the Renegades remain partners, the reserve remains wholly owned and part of WRSSBA facility equity.
4. Future Budget Surplus
Any year end WRSSBA budget surplus will be allocated to this fund until the target is reached. This could shorten the total time needed to reach the obligation.
5. What members can expect
A family will contribute up to $60 per year, per player, for up to seven years, totalling approximately $380 per player. The fee ends once the fund reaches the target amount.
6. Example of fund growth, simplified projection
| YEAR | MEMBER FEE |
ANNUAL DEPOSIT |
INTEREST EARNED |
FUND TOTAL AT YEAR END |
REMAINING |
| 1 | $60.00 | $53,460.00 | $1,603.80 | $55,063.80 | $318,395.20 |
| 2 | $60.00 | $53,460.00 | $3,255.71 | $111,779.51 | $261,679.49 |
| 3 | $60.00 | $53,460.00 | $4,957.19 | $170,196.70 | $203,262.30 |
| 4 | $60.00 | $53,460.00 | $6,709.70 | $230,366.40 | $143,092.60 |
| 5 | $60.00 | $53,460.00 | $8,514.79 | $292,341.19 | $81,117.81 |
| 6 | $60.00 | $53,460.00 | $10,374.04 | $356,175.23 | $17,283.77 |
| 7 | $20.00 | $18,300.00 | $11,219.86 | $385,215.09 | $0.00 |
Deposits are received in January each year, interest is compounded annually at 3 percent, figures are rounded for readability.
7. Looking Ahead
Once the fund reaches the target, the ITIF ends. As the contractual repayment schedule declines in later years, WRSSBA can direct the difference between the remaining obligation and the fund balance toward future association projects, fee refunds, or other uses as determined by the executive.
Thank you for your continued support. If you have any questions about the ITIF please connect with us at info@wrssba.com.
