January 25, 2010 Desert Mountain Master Association

1

January 25, 2010Desert Mountain Master Association

Annual Meeting

Welcome

2

1.25.2010 DMMA Annual Meeting

Call To Order

3


Quorum

4


Proof of Notice

5


2009 Annual Meeting Minutes

6


Reports ofOfficers

7


2009 Committees• Safety & Access Control• Infrastructure & Landscape• Election• Covenants• Design Review• Council of Presidents• Communications

President’s Report

8


• Litigation• Governance• Investment• AB Liaison• DMP Transition

President’s Report2009 Committees

9


President’s Report• Finances Sound

• Operations Running Smoothly

• Looking to the Future

10



Cost Cuts Improved Collection Practices Better Financial Support Conservative Budgeting

• Finances Sound

11


President’s Report• Operations Running Smoothly

Landscaping & Safety Parkway Repair & Resurfacing Reserve Study Update Problem Properties Title Issues Design Review Communications

12



• Looking to the Future

Business Model Review Project

13


Vice President’s Report• Business Model Project – Next Steps

Interview Guides are DraftedCommunity Interview Package DevelopedConsultants are Being ReplacedAB will Participate in Community

Interviews

14


Vice President’s Report

HOA is Participating with AB in a Marketing Study

We have nearly half of our candidate communities identified and participating.

•Business Model Project – Next Steps

15

Master Business Model Development Project

Summary Work Plan

Define Objectives &

Plan

Develop Research

Develop DMHOA

Options & Solutions

Select Providers

Decision by HOA Board

• Define Objectives Scope & Plan

• Draft HOA Requirements

• Set up Project Organization and Teams

• Brief Teams & Assign Work

• Obtain Board & Stakeholder Input

• Draft Analysis Needs Package

• Hire Consultants

• Draft Interview Materials

• Identify Peer Communities

• Conduct Contacts & Research

• Analyze Findings

• Review with Stakeholders

• Develop Option Candidates

• Evaluate S&W

• Create Candidate Business Models

• Perform Cost/Benefits & Functional Analyses


• Finalize Requirements

• ID Qualified Target Providers

• Engage & Evaluate Selected Providers

• Finalize Selections with Stakeholders

• Finalize Board Decision

- Business Model

- Business Rationale

- Financial Cost/Benefit Model

- Providers

- Implementation Plan


• Decision / Voting

1 2 3 4 5

(Option Driven)

• HOA Master and Villages• DM Community Members• Advisory Board & Club Mgmt• CCMC and HOA Staff• Service Provider Community

Stakeholders

16


Treasurer’s ReportYear In Review – 12/31/2009

• Improved Analysis• Expense Management

• Continued cost-saving efforts• Improved Collection Practices

• Staff attention• 74 accounts to collection agency

Overall Focus:

17


Treasurer’s Report

• Bad Debt Write Offs = $80.5K

• Master Delinquency rate = 3.5%

• Reserves = 62% Funded

Year In Review – 12/31/2009

• Year End Cash Projection - $814K

• Operating Surplus - $164K for all entitiesHighpoints:

18

December YTD ResultsMaster Only ($ Thousands)

2009 2009December YTD December YTD

Actual Budget Variance

Income: $2,756.2 $2,951.8 ($195.7)

Expenses:Administrative: 1,058.9 1,109.2 50.3

Operations: 1,128.8 1,369.3 240.5Taxes & Insurance: 1.1 63.3 62.2

Other Expenses: 14.2 36.9 22.7

Total Operating Expense: $2,203.0 $2,578.7 375.8

Transfers to Reserves:Reserve: 100.0 213.3 113.3

Capital Reserve: 100.0 0.0 (100.0)Legal Reserve: 250.0 0.0 (250.0)

Access Fees Reserve 0.0 79.0 79.0

Excess Revenue over Expense: $103.2 $80.8 $22.4

19

2009 Master Actual vs. Budget Major Variances

Income:

Bad Debt: (87.6)Access Fees: (61.0)

Other: (73.7)Design Review: 26.6

Variance: (195.7)

Expenses:

Security: 153.1Landscaping: 81.9

Other: 74.9Taxes & Insurance: 62.2

Administrative: 26.1Legal: (22.4)

Variance: 375.8

Transfer to Reserve: (157.7)

Net: 22.4

20

Going Forward

• Conservative budget approach– Example: conservative estimate for bad debt

• Match operational revenues to operational expenses– Variable revenue such as Design Review fees

fund reserve contribution

• Increased analysis and oversight

21


Manager’s Report

• Team - E Pluribus Unum

Foreclosures Delinquencies Collections

• Frequently Asked Questions

22


Manager’s Report

Road Maintenance Reserve Study Update Continue to Build on Communication Committee’s Work Continue to Positively Impact Problem Properties

• 2010 Projects

23


E Pluribus Unum

From the

many, ONE

24


Transfer of Excess Operating Funds

25

Members must vote to carry over excess 2009 operating

income into 2010. This will give the Association’s CPA

maximum flexibility to file the most advantageous

income tax return possible for the corporation

(and pay the lowest possible income taxes).

Note – Per IRS Code Section 277 and Revenue Ruling 70-604 where

excess of membership income over membership expenses may be

applied against future expenses or transferred to the reserve fund.

Transfer Of Excess Operating Funds


26


Election of Directors• Dave Dargo

• Rick Harrington

• Bill Jensen

• Ronald Matricaria

• Ann Melsheimer

27


Election of Directors

Cast Your Ballot

28


• Rick Harrington

Acknowledgements

• Clu Lewis

29


Committee Reports

• Infrastructure & Landscape – Margie Carpenter

• Design Review - Harley Wood

• Election – Marilyn Dellaripa

30


Questions&

Answers

31


ElectionResults

32


Adjournment

January 25, 2010 Desert Mountain Master Association

Documents

Transcript of January 25, 2010 Desert Mountain Master Association