ANNUAL MEETING December 6, 2008 10:00 AM – 12:00 Noon A. General Business 1. Call to Order 2. Introductions B. Director Elections 1. Determination of Required Quorum 2. Developer Director for 2009 3. New Elected Directors for 2009 4. Comments by New Directors 5. Comments by Retiring Directors 6. President’s Comments C. Management Reports 1. General Manager Report 2. Financial Report 3. 2009 Budget 4. CIF Vote Survey D. Committee Reports 1. Search Committee Update 2. Big Canoe Conservation Task Force E. Question and Answer Period F. Adjournment

General Manager Report 2008 Annual Meeting Big Canoe POA

Looking Back It’s been an interesting year If….. By Rudyard Kipling Step back and look at the big picture Property Owner satisfaction is our business Customer service is our product

It’s been an interesting year

If….. By Rudyard Kipling

Step back and look at the big picture

Property Owner satisfaction is our business

Customer service is our product

What’s to Observe The visible Behind the scenes

The visible

Behind the scenes

The Visible Maintained positive overall cash flow Maintained positive cash flow in the amenities Improved facilities and appearance Improved customer service Board policy updates Rule and Regulation updates 2009 Budget

Maintained positive overall cash flow

Maintained positive cash flow in the amenities

Improved facilities and appearance

Improved customer service

Board policy updates

Rule and Regulation updates

2009 Budget

Behind the Scenes Restructured operations and management responsibilities Admin policy updates Contract administration updates Updated several committees and charters Business plans People

Restructured operations and management responsibilities

Admin policy updates

Contract administration updates

Updated several committees and charters

Business plans

People

Restructured Operations Absorbed expanded amenities operations without expanding Senior Staff Placed experienced professionals in the F&B business Restructured for economies Layoffs in AECD and Public Safety Bringing tennis into POA management

Absorbed expanded amenities operations without expanding Senior Staff

Placed experienced professionals in the F&B business

Restructured for economies

Layoffs in AECD and Public Safety

Bringing tennis into POA management

People Property Owners Board Staff

Property Owners

Board

Staff

Staff Performance and integrity Understanding reality of the times Need and Generosity Appreciation for Staff continues to grow

Performance and integrity

Understanding reality of the times

Need and Generosity

Appreciation for Staff continues to grow

Looking Ahead Polish business plans and goals Improve the businesses and manage operating expenses Fund reserves Continue administrative improvements Keep the big picture in focus

Polish business plans and goals

Improve the businesses and manage operating expenses

Fund reserves

Continue administrative improvements

Keep the big picture in focus

Financial Update October 31, 2008

October 31, 2008

Operating Cash Balances October 2007 $2,580,549 October 2008 $1,576,909

October 2007 $2,580,549

October 2008 $1,576,909

Fixed Asset Additions Fixed Asset Additions - 2008 Clubhouse $ 4,241,489 Marina $ 492,432 Other Amenity Projects $ 273,531 Routine Capital $ 1,403,048 (Net of trade-ins) Total $ 6,410,500

Fixed Asset Additions - 2008

Clubhouse $ 4,241,489

Marina $ 492,432

Other Amenity Projects $ 273,531

Routine Capital $ 1,403,048

(Net of trade-ins)

Total $ 6,410,500

Long Term Debt 10/31/2008 Fitness Center Loan $ 2,416,495 Golf/Sconti Loan $ 51,590 Developer Notes Wildcat Pool $ 651,925 Land for Clubhouse $ 250,000 Total $ 901,925 Amenity Project Loan $ 6,661,923 Total Long Term Debt @ 10/31/2007 $10,031,933

Fitness Center Loan $ 2,416,495

Golf/Sconti Loan $ 51,590

Developer Notes

Wildcat Pool $ 651,925

Land for Clubhouse $ 250,000

Total $ 901,925

Amenity Project Loan $ 6,661,923

Total Long Term Debt @ 10/31/2007 $10,031,933

2008 Operations Net Operating Income (Ten Months) Before Special Assessment 10/31/2008 Actual $ 427,752 10/31/2008 Budget $ 649,305 Under Budget $ 221,553

Net Operating Income (Ten Months)

Before Special Assessment

10/31/2008 Actual $ 427,752

10/31/2008 Budget $ 649,305

Under Budget $ 221,553

2008 Operations Net Operating Income (Ten Months) Including Special Assessment 10/31/2008 Actual $ 1,146,780 10/31/2008 Budget $ 1,364,605 Under Budget $ 217,825

Net Operating Income (Ten Months)

Including Special Assessment

10/31/2008 Actual $ 1,146,780

10/31/2008 Budget $ 1,364,605

Under Budget $ 217,825

Cash Provide from Operations & Special Assessment Year-to-Date 2008 Actual $2,731,756 2008 Budget $2,792,491 Under Budget $ 60,735 2%

2008 Actual $2,731,756

2008 Budget $2,792,491

Under Budget $ 60,735

2%

2009 Budget Presentation

Board Direction Expect no Improvement in Economy, Home Sales and Construction in 2009 Tight Expense Control Reduce Routine Capital Spending to “Must Haves” Only Minimize Assessment and Fee Increases Optimize F&B Performance

Expect no Improvement in Economy, Home Sales and Construction in 2009

Tight Expense Control

Reduce Routine Capital Spending to “Must Haves” Only

Minimize Assessment and Fee Increases

Optimize F&B Performance

Key Factors for the 2009 Budget $255,000 Revenue Loss Since 2006 due to Depressed Housing Sales and Construction $813,000 Increase in Uncontrollable Expenses in 2009. Depreciation Taxes Insurance Interest

$255,000 Revenue Loss Since 2006 due to Depressed Housing Sales and Construction

$813,000 Increase in Uncontrollable Expenses in 2009.

Depreciation

Taxes

Insurance

Interest

2009 Budget Results $169,000 Decrease in Controllable Expenses Budget Developed on a Line Item Basis $392,000 Increase in Overall Amenity Cash Flow $1,460,000 Capital Budget Capital Budget 2008 - $2,047,000 Total Request 2009 - $2,685,900

$169,000 Decrease in Controllable Expenses

Budget Developed on a Line Item Basis

$392,000 Increase in Overall Amenity Cash Flow

$1,460,000 Capital Budget

Capital Budget 2008 - $2,047,000

Total Request 2009 - $2,685,900

2009 Budget Results $675,000 Held until Year End for Debt Reduction 6.3% Increase in Monthly Assessments 2008 2009 Increase House & Lot $186.25 $198.00 $11.75 Lot $121.25 $129.00 $ 7.75 6% Increase in Selected Amenity Fees Marina and Storage Yard Fee Increases

$675,000 Held until Year End for Debt Reduction

6.3% Increase in Monthly Assessments

2008 2009 Increase

House & Lot $186.25 $198.00 $11.75

Lot $121.25 $129.00 $ 7.75

6% Increase in Selected Amenity Fees

Marina and Storage Yard Fee Increases

Important Points Total Operations Payroll Expenses Decreased $126,000 in 2009 F & B Operations Still Progressing up the Learning Curve Property Owners are not subsidizing the Operations of the Amenities There is no Money to Fund a Capital Reserve

Total Operations Payroll Expenses Decreased $126,000 in 2009

F & B Operations Still Progressing up the Learning Curve

Property Owners are not subsidizing the Operations of the Amenities

There is no Money to Fund a Capital Reserve

CONSERVATION OF OUR HERITAGE

BIG CANOE CONSERVATION TASK FORCE DAVID HOLTY, CHAIRMAN FRED OMUNDSON, POA BOARD LIASON DICK SCHARF, HOA BOARD LIASON STEERING COMMITTEE JOHN LOMAX, DEER MANAGEMENT TASK FORCE LOU SILLAY, HEMLOCK WOOLY ADELGID TASK FORCE BERT LOFTMAN, BEETLE LABORATORY DIRECTOR FRED HINZE, CHEMICAL TREATMENT ON PRIVATE LANDS HELEN BUCKELEW LIN POLLARD GORDON GRIFFITH GEORGE PORTER TERESA HARTZ LARRY PONDER CYNTHIA HENDRY BILL WILSON JEAN LOMAX MIKE YELLE VERNE NEWHOUSE WE HAVE ROOM FOR SEVERAL MORE

SEVEN CONSERVATION ISSUES CONTROL OF INVASIVE SPECIES SUCH AS KUDZU AND OTHER ALIEN SPECIES MANAGEMENT OF THE DEER POPULATION CONTROL OF INFESTATIONS BY HEMLOCK WOOLY ADELGID, SOUTHERN PINE BARK BEETLE, SPRUCE SPIDER MITE, ETC. CONTROL OF POLLUTION OF ALL KINDS, SUCH AS AIR QUALITY, NOISE ABATEMENT, LIGHT POLLUTION, WATER CONTAMINATION, ETC. REFORESTATION IN AREAS WHERE TREES HAVE BEEN LOST AND PROPAGATION OF DESIRABLE NATIVE PLANT SPECIES INCLUDING WILDFLOWERS RESTORE AND ENHANCE THE “CONSERVATION PURPOSES” OF McDANIEL MEADOWS CONSERVATION OF OUR NATURAL RESOURCES THROUGH RECYCLING, WASTE MANAGEMENT, UTILIZATION OF “GREEN” CONSTRUCTION METHODS, SURFACE WATER IMPOUNDMENT, ETC.

CONTROL OF INVASIVE SPECIES SUCH AS KUDZU AND OTHER ALIEN SPECIES

MANAGEMENT OF THE DEER POPULATION

CONTROL OF INFESTATIONS BY HEMLOCK WOOLY ADELGID, SOUTHERN PINE BARK BEETLE, SPRUCE SPIDER MITE, ETC.

CONTROL OF POLLUTION OF ALL KINDS, SUCH AS AIR QUALITY, NOISE ABATEMENT, LIGHT POLLUTION, WATER CONTAMINATION, ETC.

REFORESTATION IN AREAS WHERE TREES HAVE BEEN LOST AND PROPAGATION OF DESIRABLE NATIVE PLANT SPECIES INCLUDING WILDFLOWERS

RESTORE AND ENHANCE THE “CONSERVATION PURPOSES” OF McDANIEL MEADOWS

CONSERVATION OF OUR NATURAL RESOURCES THROUGH RECYCLING, WASTE MANAGEMENT, UTILIZATION OF “GREEN” CONSTRUCTION METHODS, SURFACE WATER IMPOUNDMENT, ETC.

DEER MANAGEMENT

TYPICAL APPEARANCE OF HWA

PREVENTING WATER CONTAMINATION

REFORESTATION

McDANIEL MEADOWS

WATER CONSERVATION