Letter: Cost to taxpayers at issue with Reading Country Club

Editor:

“New management shines at Reading Country Club” (Reading Eagle, Feb. 3) suggests that “Exeter Township Supervisor David Hughes and his gang” are disparaging the efforts to revitalize the RCC. The part the public sees and experiences is only part of the story.

It is good and proper that the customers have an enjoyable experience. What of responsible management of the taxpayers’ resources? In this case the RCC should be the concern of all the supervisors. Hughes is attacked simply because he is the only one concerned about the financial cost.

Let’s look at the cost to the taxpayer. The contract giving RHM LLC exclusive rights to the club food and beverage business looks like this: Revenue is shared as follows (not operating Income): Events with alcohol, 75% RHM, 25% Exeter/events without alcohol 85% RHM, Exeter 15%. Expected blended rate is RHM 77% and Exeter 23% off the top. The budget for 2023 indicates that the RCC will lose $632,484 at the operating income level, add depreciation expense of $400,000 and interest expense of approximately $208,000. Total taxpayer loss for the RCC in 2023 estimated at $1.2 million.

In order to break even while receiving 23% from RHM, the club would need to generate $5.4 million per year in additional revenue. RHM’s most recent estimate is that they will generate $11 million over the next six years. They will receive $8.5 million in revenue. All of it will be subsidized by Exeter Township taxpayers.

Donna Merritt
Exeter Township

Source: Berkshire mont