Property Owners Association of Terlingua Ranch, Inc. Strategic Plan – Updated 2022
1.0 Executive Summary
The Property Owners Association of Terlingua Ranch, Inc. (POATRI) Strategic Plan provides a roadmap to help us make both short and long-term decisions regarding the future of Terlingua Ranch operations over the next three to five years. The Plan presents our Vision for 2022-2027 and specific and measurable goals, objectives, strategies and activities to achieve the vision and support our mission. Overall, the plan focuses on six areas to meet our Vision.
Assessment collection strategies to ensure POATRI can meet its Operational Expenses and Capital Expenditure requirements for the future.
Road Rehabilitation programs to maintain and improve the quality of our roads and reduce repeated and excessive road repairs.
Successfully operate and manage the Lodge so that it provides a Net Income and positive cash flow to support the needs of the Property Owner Organization. Maintain fiscal responsibility for all operations and develop a long term plan to provide funding to ensure the sustainability of the Ranch.
Build a stronger and more effective Ranch communication and education community infrastructure.
Develop preservation and conservation capabilities for our natural resources, and capabilities to accommodate the future growth of the Ranch while managing the use and distribution of these resources.
Since 1983, POATRI has evaluated various options for meeting the growing needs of our ownership and adapting to external impacts from changes in our economy, technology, and the area population.
In 1990, POATRI made an effort to improve the resort (lodge) areas through increased tourism. A Resort Operations Committee was formed and in 1991 a strategic plan was approved. By 1993, POATRI completed a few tasks, but the motivation and leadership of the plan lost momentum.
In 2003, POATRI conducted a survey of the membership in regard to the future of the Ranch resort, road maintenance, finances, etc. Results of the survey indicated the membership overall wanted to continue with the organization by developing actions to sustain the resort operations, rehabilitate the major roads and enhance Terlingua Ranch for future generations.
In October 2004, the board of directors introduced the strategic planning process and has since developed this plan, and subsequent updates. In 2009 the plan was reviewed and re-published with few changes. Over the years, participants have included management, the board of directors, membership, and a strategic planning steering committee.
Although most strategic plans span a five-to-10-year period, POATRI has focused on a three-to-five-year plan for each release of the plan as a more realistic progression into our future and to better manage the necessary changes to meet our goals.
We understand that internal capabilities or directions may change, and external circumstances can change dramatically, therefore, the strategic plan is an ongoing process that must be regularly revisited, refined and updated in order to be successful and useful over the long term. As a result, this plan is an evolving and changing document and has been extended to cover more years as it has evolved. Several activities and tasks related to our goals are underway today and will shape and redefine our plan as we continue in this strategic direction.
The plan is intended to provide sufficient detail to facilitate understanding at all levels of the association as decisions are made and budgets are developed to support the plan. At the same time, the plan is not so cumbersome or rigidly set that it might compromise sound daily management practices.
We thank all of the members of the POATRI organization for their contributions to the plan. It is only through our continued support the plan will come to fruition.
2.0 Strategic Planning Terms
Mission Statement – describes the overall purpose of the organization.
Vision Statement – vivid description of the organization as it effectively carries out its operations (in terms of where we are, where we are going and who we will be).
SWOT Analysis – identifies internal Strengths to build on and Weaknesses to resolve, and, identifies external Opportunities to exploit and Threats to avoid. The SWOT analysis provides a framework for identifying critical issues/environments and characterizing the situation for the organization.
Core Values – are priorities and drivers for an organization’s culture, including behaviors, standards, expectations, flow of information, etc. These values are usually limited to 5-6 values and consider all stakeholders (i.e., owners, employees, visitors/customers, community, etc.)
Goals – are general, philosophical, broad statements which guide, direct, and maintain the organization on a path consistent with its Mission and Vision Statements. Goals provide a clearer statement of the visions and specify accomplishments to achieve the vision.
Objectives/Strategies – are more directly related to activities designed to achieve the goals and have direct impact on the priorities of the organization (starting from the current status as the point of reference). The overall objectives/strategies are integral in the budget planning process. They must be clear, concise and attainable, be measurable and have a target date for completion.
Activities/Tasks – are the specific steps to achieve objectives/strategies. They are integral in the development of operational or business plans/programs and include the person(s) or operational unit(s) accountable for the activity, estimated costs or resource needs, defined metrics, and target due dates.
3.0 Mission Statement
It is the mission of POATRI to manage Terlingua Ranch for the common good and benefit of all Owners, to enhance health, wellbeing, and safety within our community, to encourage the protection of our natural resources, to preserve and enhance the natural and aesthetic character of Terlingua Ranch, and to maintain and improve facilities, amenities, communication and infrastructure through responsive services and fiscal responsibility.
4.0 Vision Statements
In the next three to five years POATRI will:
Increase membership in good standing by implementing and consistently applying programs to encourage the payment of assessment fees, with a long term goal of having greater than 90% of property owners paying annual assessment fees.
Continue to maintain our Ranch roads to the current high level of accessibility, and, make improvement where possible to minimize the impact of bad weather, for the benefit of our membership and our environment.
Successfully operate and manage the Lodge so that it provides a positive Net Income and Cash Flow to support the Property Owner Organization in providing services to our property owners, maintaining the culture of the Ranch, protecting our environment, and maintaining a balance between our values, future growth and modernization of the Ranch.
Maintain fiscal responsibility for all operations, through effective budget management, operational controls, and financial reporting, and, develop a long term plan to provide funding to support both operations and the capital investment needed to sustain the Ranch on an ongoing basis.
Build a stronger and more effective Ranch communication and education community infrastructure.
Develop preservation and conservation capabilities for our natural resources, and capabilities to accommodate the future growth of the Ranch while managing the use and distribution of these resources.
5.0 Core Values
Develop an organizational culture that is customer-service driven and fosters a spirit of innovation, participation, optimism, and pursuit of excellence.
Understand that we are here to serve the best interests of the majority of our property owners.
Be accountable for the efficient and effective use of the organization’s resources, consistent with all governing requirements.
Work in a collaborative effort to accomplish goals and hold all participants accountable and responsible for actions, behaviors, and duties.
Be accessible and open minded in all of our dealings, and, commit whatever it takes to fulfill our responsibilities defined in our corporate documents for the common benefit of our community.
Utilize facts and data to make sound decisions and come to consensus in the best interest of the organization. Work as a team, use prudent judgement, and support the decisions of the Board and Management.
Act in and ethical manner with honesty and integrity in all relationships through the building of trust by treating all stakeholders with fairness and respect.
Protect our unique environment, that includes the land, the water, the sky, the plants, the roads, and, the freedom to enjoy our environment along with the responsibility to participate in the community to maintain and sustain our environment.
Develop and maintain a Strategic Plan for future of the Ranch and follow through by accomplishing the goals and objectives to achieve the Vision established in the Strategic Plan.
Maintain our Strategic Plan vision as we go forward through the inevitable changes in the board and management.
6.0 SWOT ANALYSIS
-
Strengths
Unique location and environment Lodge operation with high customer satisfaction
Lodge contributes Net Income and Cash Flow
Closeness of National and State Parks
Excellent road maintenance – access to properties
Capable management with hospitality experience
Relatively low land prices and taxes Physical infrastructure in relatively good condition
High property owner satisfaction Available water resources for owners
Relatively low cost assessment fee Unique and colorful history
-
Weaknesses
45% of property owner do not pay assessment
1100 miles of roads require maintenance Dirt roads are vulnerable to serious rain damage
Some opposing member goals – re: Lodge, Gates
1/3 of BoD changes each year – consistency, and reinventing strategies that have already failed
Need for more cash flow for capital expenditures
Decreasing owner participation in the BoD
Remote location, 16 miles off the highway
Limited labor pool, staff turnover Availability and cost of essential services Less than reliable electrical grid Unknown availability of water resources Banks not willing to provide mortgage loans
POATRI cannot control use of land – re: gates, businesses – impact on owners and resources
-
Opportunities
Continue to make the Lodge profitable for the benefit of property owners
Maximize tourist revenue
Continued property sales to new owners who pay assessment fees Meet Ranch current and future demands while embracing its history and environment
Increase the number of owner that pay assessment fees
Improve road conditions to withstand adverse weather
Create an ecological community to protect our environment, with a focus on water management and water conservation, and sound land regeneration measures
-
Threats
Economic downturns that affect owner payments and Lodge occupancy Lawsuits that take management time and legal costs
Competition from local tourist businesses
Maintain Ranch charm and rustic views while keeping pace with owner and visitor demands
Changes in Environmental Regulations re: water distribution; food service; Lodge operations/handicap requirements
Rising costs, especially labor
Road easement court rulings that impact access and road maintenance (Suber case)
Potential loss of the Bad Rabbit logo Water wells run dry, limitations on water availability
7.0 Goals Objectives/Strategies/Activities & Tasks
7.1 POATRI Vision Statement: Be a more viable organization by increasing membership in good standing by applying programs to encourage the payment of annual assessment fees, with a long term goal of increasing membership in good standing from 54% to greater than 90%.
The long term financial viability of the organization depends on almost all property owners paying the annual fee. Current assessment collections, plus the Net Income from the Lodge does not meet the full requirements for both Operating expenses and the Capital Expenditures required to sustain Terlingua Ranch.
Goal: Implement a series of aggressive, cost effective, collections efforts to clear the books of seriously delinquent accounts.
Objectives/Strategies/Activities & Tasks:
Use cost effective programs to increase the number of paying property owners. Continue the current Property Owner Services programs to correct and input new property owner addresses and invoice all Property Owner accounts.
During 2021 and 2022 analyze our property owner data base and identify groups of delinquent accounts where customer assistance programs can assist them to become current or sell their property to new owners. Utilize resources from Property Owner Services, the Budget & Finance Committee and outside resources as required.
By the beginning in 2023 initiate an effort, with outside resources, to find a cost effective way to utilize the legal system to resolve delinquent accounts.
7.2 POATRI Vision Statement: Maintain our Ranch Roads to the current high level of accessibility, and, make improvement where possible to minimize the impact of bad weather, for the benefit of our membership and our environment.
Maintenance, and where possible, improvements of the entire Terlingua Ranch road system is vital, both for the benefit of our membership such as sustaining property owner access to their properties, and, for the ultimate benefit of our environment. In various surveys and at company meetings, maintaining the Ranch roads, meaning access to properties, has always been the highest priority for property owners.
-
Objectives/Strategies/Activities & Tasks:
Continue the 3 current program of thoroughly working all areas of the road system on a practical rotation based on priorities driven by erosion and maintaining property owner access to their properties.
Continue to implement repairs to minimize the damage from heavy rains and where road repairs will minimize water damage, provide better accessibility for owners, create fewer emergency demands on equipment and crews.
Maintain appropriate and adequate road maintenance equipment and trained staff to meet the above objectives.
7.3 POATRI Vision Statement: Successfully operate and manage the Lodge so that it provides a positive Net Income and Cash Flow to support the Property Owner Organization in providing services to our property owners, maintaining the culture of the Ranch, protecting our environment, and maintaining a balance between our values, future growth, and modernization of the Ranch.
For 50 years the Lodge operation generated a net loss, and therefore was supplemented by assessment revenues. Diverting assessment revenue, or road maintenance revenue, to support the Lodge visitors was a major issue for many of our property owners. Starting in 2018, the Lodge began to generate a net profit and positive cash flow, which has been used to both supplement operational road maintenance and to pay for capital expenditures on road maintenance equipment. At present, collection of assessments is not enough to meet our road maintenance budget, and, POATRI could not meet its operational budget, nor pay for capital expenditures without the positive cash flow from the Lodge.
It is also important to note that the Lodge facilities of POATRI are the largest valuable asset of the corporation and therefore must be preserved for the benefit of the members, who are all part owners of the 423 acre complex. To provide the required net income and cash flow, we will continue to promote Lodge facilities to non-owner visitors by providing an excellent visitor experience and by pursuing low-cost marketing programs as authorized in each annual budget.
-
Objectives/Strategies/Activities & Tasks:
Continue to utilize and evaluate several appropriate bookings web sites, the approach which has become the primary source of visitors, and the reason the Lodge has become profitable since 2018.
Maintain the current high level of customer service in Lodge operation that generates customer satisfaction to help spread a positive image of the Ranch as a vacation destination, and to encourage repeat business from current visitors.
o Maintain the friendly, hospitable attitude of the staff, cleanliness and attractiveness of the rooms, and the quality of the Café food and excellent food service.
Improve the financial performance of the Café by implementing effective inventory controls and management procedures, and other Café operating processes as needed, while maintaining a menu and service staff that make the Café and attractive choice for both property owners and visitors.
Develop and implement a plan for utility infrastructure renovation to resolve the current issues and failures of the aging materials and equipment which impact the Lodge operation and all of the POATRI operation. Specific projects are to include:
o Water Supply System
o Septic Systems
o Electrical Supply System
o Laundry Facilities and Equipment
Develop and implement a plan to provide employee housing to facilitate hiring qualified staff for the Lodge operations.
(Add/develop additional items in 2022)
7.4 POATRI Vision Statement: Maintain fiscal responsibility for all operations, through effective budget management, operational controls, and financial reporting, and, develop a long term plan to provide funding to support both operations and the capital investment needed to sustain the Ranch on an ongoing basis.
Effective fiscal management requires focus on two major areas: short term financial control by budget management, operational controls, and financial reporting; and on long term planning to ensure the future viability of the organization. POATRI has had significant financial challenges over the years. Today the organization is in better financial condition, however, there are significant financial issues that need to be addressed and managed. Approximately 55% of property owners pay the annual current year maintenance assessment fee, and the Lodge revenue will always be subject to the ebb and flow of the tourism business in South Brewster County. Our fiscal practices will continue to focus on our short-term management and control systems, and, work on the goals described in 7.1 and 7.3.
-
Objectives/Strategies/Activities & Tasks:
Continue to maintain an active Budget and Finance Committee, and perform monthly reviews of our financial condition, including a cash flow analysis and projection. Report any significant variations form the budget to the Board and Operations on a timely basis, and provide quarterly financial reports to the Board and property owners.
Participate in and provide financial analysis and evaluation on all projects that impact the financial condition of the Ranch.
Generate initial budgeting requirements for the following year and present the budget to the Board for initial review at the July Board meeting. Continue to update the next year budget in the ensuing months and finalize the budget based on actual current year financial data by December.
Employ a professional accounting firm that will provide annual audits or financial reviews, and who will provide accounting and tax advice and direction when needed.
The long term focus will be on developing programs to increase the number of property owners paying their annual assessment fee as presented in 7.1, and on providing financial and operational support for the infrastructure projects in 7.3.
7.5 POATRI Vision Statement: Build a stronger and more effective Ranch communication and education community infrastructure.
Re-establish the Quarterly Ranch Newsletter. In addition, develop a more frequent communication process, i.e. using the Ranch Facebook page, to provide useful and interesting information to property owners about the Ranch and any other related or interesting information.
Create a center and process for education for property owners and other groups on a wide range of topics, discussed in more detail in the section below.
-
Objectives/Strategies/Activities & Tasks:
(This section is to be developed in 2022. Discussions in 2020 and 2021 produced the ideas listed below.)
Idea list from the Strategic Planning meetings – Focus on Communication – and Education
Regular newsletter – Include events, Café hours, updates from task forces, information about the Ranch, accomplishments, what we have done. Property owner services – responding to PO requests and queries.
Social Media sites
Develop a property owner feedback process Volunteer recruitment process
Physically posting the newsletter and other notices Stories from property owners
Ranch weekly update Communication to other outlets Town Hall Meetings / Pot Luck Work groups
Branding
Education information for (new) property owners, tourists, business owners. Potential property owners, outside agencies
Include:
land info, dark sky, water availability and conservation, type of building and constructions, housing, fire safety, education on what POATRI is, what is the assessment used for, what amenities are available, educate on the organization, and road access,
7.6 POATRI Vision Statement: Develop preservation and conservation capabilities for our natural resources, and capabilities to accommodate the future growth of the Ranch while managing the use and distribution of these resources.
(This section is to be developed in 2022)
Objectives/Strategies/Activities & Tasks:
(Ideas developed at Strategic Planning meetings)
Topics – Water, Dark Sky (star parties), Noise, Restoration and the land, business owners, community parks, energy
Water Research and evaluate current Ranch water resources, usage process. Work with agencies about the aquifer
Coordinate efforts with property owners involved in projects – outreach Put out information about wells
New distribution system (for the Ranch)
u-tube video
Solicit grants from State and Fed agencies Develop & maintain a web site
Continuous oversight, annual report