2008 Big Canoe Propertyowners Association Annual Meeting

1. ANNUAL MEETINGANNUAL MEETING
December 6, 2008December 6, 2008
10:00 AM – 12:00 Noon10:00 AM – 12:00 Noon
A.A. General BusinessGeneral Business
1. Call to Order1. Call to Order
2. Introductions2. Introductions
B.B. Director ElectionsDirector Elections
1. Determination of Required Quorum1. Determination of Required Quorum
2. Developer Director for 20092. Developer Director for 2009
3. New Elected Directors for 20093. New Elected Directors for 2009
4. Comments by New Directors4. Comments by New Directors
5. Comments by Retiring Directors5. Comments by Retiring Directors
6. President’s Comments6. President’s Comments
C.C. Management ReportsManagement Reports
1. General Manager Report1. General Manager Report
2. Financial Report2. Financial Report
3. 2009 Budget3. 2009 Budget
4. CIF Vote Survey4. CIF Vote Survey
D.D. Committee ReportsCommittee Reports
1. Search Committee Update1. Search Committee Update
2. Big Canoe Conservation Task Force2. Big Canoe Conservation Task Force
E.E. Question and Answer PeriodQuestion and Answer Period
F.F. AdjournmentAdjournment

2. General Manager ReportGeneral Manager Report
2008 Annual2008 Annual
MeetingMeeting
Big CanoeBig Canoe
POAPOA

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

4. What’s to ObserveWhat’s to Observe
 The visibleThe visible
 Behind the scenesBehind the scenes

5. The VisibleThe Visible
 Maintained positive overall cash flowMaintained positive overall cash flow
 Maintained positive cash flow in theMaintained positive cash flow in the
amenitiesamenities
 Improved facilities and appearanceImproved facilities and appearance
 Improved customer serviceImproved customer service
 Board policy updatesBoard policy updates
 Rule and Regulation updatesRule and Regulation updates
 2009 Budget2009 Budget

6. Behind the ScenesBehind the Scenes
 Restructured operations and managementRestructured operations and management
responsibilitiesresponsibilities
 Admin policy updatesAdmin policy updates
 Contract administration updatesContract administration updates
 Updated several committees and chartersUpdated several committees and charters
 Business plansBusiness plans
 PeoplePeople

7. Restructured OperationsRestructured Operations
 Absorbed expanded amenities operationsAbsorbed expanded amenities operations
without expanding Senior Staffwithout expanding Senior Staff
 Placed experienced professionals in thePlaced experienced professionals in the
F&B businessF&B business
 Restructured for economiesRestructured for economies
 Layoffs in AECD and Public SafetyLayoffs in AECD and Public Safety
 Bringing tennis into POA managementBringing tennis into POA management

8. PeoplePeople
 Property OwnersProperty Owners
 BoardBoard
 StaffStaff

9. StaffStaff
 Performance and integrityPerformance and integrity
 Understanding reality of the timesUnderstanding reality of the times
 Need and GenerosityNeed and Generosity
 Appreciation for Staff continues to growAppreciation for Staff continues to grow

13. Looking AheadLooking Ahead
 Polish business plans and goalsPolish business plans and goals
 Improve the businesses and manageImprove the businesses and manage
operating expensesoperating expenses
 Fund reservesFund reserves
 Continue administrative improvementsContinue administrative improvements
 Keep the big picture in focusKeep the big picture in focus

14. Financial Update
October 31, 2008

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

16. 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

17. 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

18. 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

19. 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

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

21. 2009 Budget2009 Budget
PresentationPresentation

22. Board DirectionBoard Direction
 Expect no Improvement in Economy, HomeExpect no Improvement in Economy, Home
Sales and Construction in 2009Sales and Construction in 2009
 Tight Expense ControlTight Expense Control
 Reduce Routine Capital Spending to “MustReduce Routine Capital Spending to “Must
Haves” OnlyHaves” Only
 Minimize Assessment and Fee IncreasesMinimize Assessment and Fee Increases
 Optimize F&B PerformanceOptimize F&B Performance

23. Key Factors for the 2009 BudgetKey Factors for the 2009 Budget
 $255,000 Revenue Loss Since 2006 due to$255,000 Revenue Loss Since 2006 due to
Depressed Housing Sales and ConstructionDepressed Housing Sales and Construction
 $813,000 Increase in Uncontrollable Expenses in$813,000 Increase in Uncontrollable Expenses in
2009.2009.
 DepreciationDepreciation
 TaxesTaxes
 InsuranceInsurance
 InterestInterest

24. 2009 Budget Results2009 Budget Results
 $169,000 Decrease in Controllable Expenses$169,000 Decrease in Controllable Expenses
 Budget Developed on a Line Item BasisBudget Developed on a Line Item Basis
 $392,000 Increase in Overall Amenity Cash Flow$392,000 Increase in Overall Amenity Cash Flow
 $1,460,000 Capital Budget$1,460,000 Capital Budget
 Capital Budget 2008 - $2,047,000Capital Budget 2008 - $2,047,000
 Total Request 2009 - $2,685,900Total Request 2009 - $2,685,900

25. 2009 Budget Results2009 Budget Results
 $675,000 Held until Year End for Debt Reduction$675,000 Held until Year End for Debt Reduction
 6.3% Increase in Monthly Assessments6.3% Increase in Monthly Assessments
20082008 20092009 IncreaseIncrease
 House & LotHouse & Lot $186.25$186.25 $198.00$198.00 $11.75$11.75
 LotLot $121.25$121.25 $129.00$129.00 $ 7.75$ 7.75
 6% Increase in Selected Amenity Fees6% Increase in Selected Amenity Fees
 Marina and Storage Yard Fee IncreasesMarina and Storage Yard Fee Increases

26. Important PointsImportant Points

Total OperationsTotal Operations PayrollPayroll Expenses Decreased $126,000Expenses Decreased $126,000
in 2009in 2009
 F & B Operations Still Progressing up the LearningF & B Operations Still Progressing up the Learning
CurveCurve
 Property Owners are not subsidizing the Operations ofProperty Owners are not subsidizing the Operations of
the Amenitiesthe Amenities
 There is no Money to Fund a Capital ReserveThere is no Money to Fund a Capital Reserve

27. CONSERVATION OF OUR HERITAGE

28. 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

29. 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.

31. DEER MANAGEMENT

32. TYPICAL APPEARANCE OF HWA

33. PREVENTING WATER
CONTAMINATION

34. REFORESTATION

35. McDANIEL MEADOWS

36. WATER CONSERVATION