Board of Directors Meeting Recap

Meeting Date: Nov. 16, 2017

CA Financials

• Financials as of May 31, 2017 »
• Financials as of June 30, 2017 »
• Financials as of July 31, 2017 »
• Financials as of Aug. 31, 2017 »
• Financials as of Sept. 30, 2017»
• Financials as of Oct. 31, 2017 »

The Community Association's Financials for October 2017 were presented by Ann Dodson, Director of Finance. HOA revenue of $991,582 was reported for the month of October compared to the budgeted amount of $961,255. Home closings for the month were 26 on a budget of 22. The Golf revenue was $440,525 compared to the budgeted amount of $372,154. Golf expenses were $389,687 compared to budgeted expenses of $360,320. Overall, the CA ended the month with a surplus of $75,130 on a budgeted surplus of $53,772 for a favorable variance of $21,358. The May through October 2017 financials were unanimously approved.
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2018 Budget and Related Schedules

• 2018 Operating Budget »
• 2018 Schedule of Fees »
• 2018 Reserve Budget »
• 2018 Capital Asset Fund »

The proposed 2018 CA Budget, Fee Schedule, Reserve Budget and Capital Asset Fund Budget were presented by Director of Finance, Ann Dodson at the November 2 Workshop. The information was posted to the website for two week and the assumptions for the budget include:

Assumptions:

• Number of new homes sold in 2017 is estimated at 260. 2018 Budget 260
• Number of resale homes for 2017 is projected to be 480. 2018 Budget- 492 (approximately 6.3% of average homes for 2018- 7826)
• Average home price for 2017 is approximately $296K. 2018 Budget-$290K
• Budget direction from the CA Board of Directors
• This proposed budget achieves a break even status for the HOA and a $100K surplus for golf
• This draft budget includes a $20 increase for HOA assessments raising the annual assessments to $1130.
  • 1. $20 dues increase produces revenue to the CA of $155K. New Amenity Center (NAC) is budgeted to cost the CA in 2018 approx. $185K
    • a. $71K Maintenance
    • b. $75K Fitness
    • c. IT- $26K
    • d. Building Monitors (staff hours)- $13K
• Golf rates: No resident rate increases. Only increases are in non-resident play
• Proposal includes the proposed Fee Schedule for 2018.
• Budget reflects continued efforts to be more energy responsible
• Capital Asset Fund:
  1. Starting balance, approximately $37K.
  2. Contributions from operating budget of $60K HOA, $50K Golf
          1. Assuming 2017 surpluses for HOA of $40K and Golf of $100K
  3. Proposed expenditures of approximately $160K
  4. 2018 year-end balance of $126K
• Reserves- All funded by Admin. $1.1M contributions for 2018. Reserves maintain the minimum fully funded 70% at year end
• Assumes current level of interest rates
• LMH funds LMH
• 6th year for the CA to fund the retaining wall fund- $30K (first two years funded by Del Webb). At the end of 2017 this fund has a balance of approximately $200K and at the end of 2018, approximately $230K
• Property Taxes- level with 2017 rates
• Insurance: budgeted 20% increase for property coverage over 2017 rates. 3% increase on all other coverage.

The Board voted unanimously to approve the budget and related schedules as presented.
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Federal and State Income Tax Returns

Director of Finance, Ann Dodson, reported that the 2016 Federal and State Tax returns were filed in September. This item passed unanimously.
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Election Timeline

• 2018 Election »

The Elections Committee provided the Board with the election dates and timeline for the 2018 resident director Board elections, which passed unanimously. This timeline will also be announced at the February Meeting. This item passed unanimously.
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Voting & Elections Policy

• Election Policy »

The Board was presented with the proposed amendments to the Voting and Elections Policy which included: updates to the online voting procedures and responsibilities, allowing campaigning to begin at any time, shortening the voting period and compliance with state law. The amendments have been reviewed by the CA attorney, approved by Covenants Committee for enforceability. This item passed unanimously.
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Political Sign Policy

• Political Sign Policy »

The Board was presented with the proposed amendments to the Political Sign Policy which included: the addition of signage for CA Election candidates at the Activities Center and upgraded appendices illustrating areas signage is permitted. The Board voted unanimously to table this item for further review.
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Operational Improvements for Sun City Texas Golf

• Golf Amenity Improvement »

The Board was presented with a summary review of the proposed improvements for golf operations focusing on four major areas: marketing, maintenance equipment, golf staffing and defined level of appearance. This item passed unanimously.
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Strategic Plan

• Strategic Plan »

The Board was presented with amendments and updates to the community’s Strategic Plan which includes a vision statement, mission statement and values as well as strategies to attain short term and long term goals. This item passed unanimously.