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Rumbling Bald Resort Annual POA Meeting June 23, 2014

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Presentation on theme: "Rumbling Bald Resort Annual POA Meeting June 23, 2014"— Presentation transcript:

1 Rumbling Bald Resort Annual POA Meeting June 23, 2014
Fairfield Mountains Property Owners Association Annual POA Meeting June 23, 2014

2 Video Taping In Process
Management will video tape today’s meeting. If you are interested in getting a DVD copy of the meeting, please contact Christy Roper at (828)

3 Approval of 2013 Minutes

4 Interested in Volunteering?
If you are interested in serving on a committee, please see Christy Roper. You can also her at

5 Committee Volunteers Committees play a vital role in the betterment of our community. Most committees meet just once per month. Here is a list of committees seeking volunteers: Finance Committee: Review and interpret financial records, statements, budgets, capital expenditure proposals, monitor internal controls, determine investment strategies, and review/recommend borrowing commitments. Infrastructure Committee: Work to develop and maintain buildings and grounds that are clean and attractive, while sustaining the safety and enjoyment of our property owners and guests.

6 Committee Volunteers Golf Committee: To assist the Resort in ensuring its property owners and guests a challenging, pleasurable, and safe golfing experience. Wellness & Marina Committee: Monitor and seek to enhance programs and services which promote an active lifestyle and a quality, healthy environment for members and visitors. Restaurant & Social Committee: Encourage a focus on quality food, consistent service, and clean appearances for all the food outlets. Create social events for the benefit of property owners. Business & Customer Development Committee: To provide invaluable input and direction that assures guests and members with a quality experience, perceived as a good value and one that will be memorable and worth experiencing repeatedly. Architecture Control Committee: Committed to working with our property owners to protect their investment and property values.

7 Town Dredging Thank you to everyone who gave their support to the Town dredging issue. By working together our voice was heard. In 2015 the Town plans to spend $60,000 on dredging at the Resort’s end of the lake. This funding comes without having to raise taxes. 30.9% of the Town of Lake Lure Ad Valorem taxes are paid by the Resort.

8 Treasurer’s Report Presented by Jeff Kristjansen

9 May Balance Sheets Assets (000’s) – Selected Highlighted Accounts
2014 2013 Operating Cash (164) (84) Decrease caused in part by the reserving of initiation fees and impact fees. Reserve – Infrastructure, Improvement, and Repair 177 141 A number of capital projects are still in process. Reserve Funds 293 207 Steady increase with the deposit of initiation fees and impact fees. These will be our capital funds for the future. Inventory 167 216 Decrease as a result of numerous merchandise sales. Total Net Fixed Assets 8,011 8,120 Depreciation is outpacing the addition of new fixed assets. Total Assets 10,132 10,213 A complete copy of the Balance Sheet and Financials is available on the website. 9

10 May Balance Sheets Liabilities (000’s) – Selected Highlighted Accounts
2014 2013 Accounts Payable 424 451 Relatively small change caused by timing of payments in trade and lodging A/P. Current Portion LTD 114 308 Loan refinanced for better terms last year. Long term liab. are up, short term are down. Line of Credit 33 64 Small decrease since prior year. Advance Deposits 539 527 First time this year it has been over prior year. Deferred Revenue 1,721 1,768 Lower dues billing as a result of lots returned in lieu of dues. Long Term Liabilities 2,544 2,395 Loan refinanced last year. Total Capital 4,414 4,395 Total Liabilities & Capital 10,132 10,213 10

11 Profit & Loss: Jan - May (000’s)
Unaudited Financials 2014 Actual Budget Variance Revenue 3,119 3,243 (124) April was very challenging for the Resort. Lodging ($64k) F&B ($59k) Golf ($68k) Cost of Sales 463 496 33 Savings related to Lodging and F&B revenue under budget. Payroll 1,582 1,625 43 Savings in Medical Insurance of $22k. Multiple departments combined saved $21k. Expenses 1,344 1,335 (9) Bad Debt Recover over budget by $27k. Net before Depr (270) (213) (57) Depr & Loss 246 236 (10) Higher than expected depreciation. Net Income (516) (449) (67) Action Plans have been executed to get back on track.

12 Profit & Loss Net Income (000’s) Comparison to Budget

13 Profit & Loss: Jan - May (000’s)
Unaudited Financials 2014 Actual 2013 Variance Revenue 3,119 3,230 (111) A challenging April. Lodging ($54k) F&B ($46k) Golf ($55k) Cost of Sales 463 487 24 Savings related to Lodging and F&B revenue under prior yr. Payroll 1,582 1,583 1 Payroll even with prior year even with an additional $19k in Med. Expenses 1,344 1,251 (93) Bad Debt Recovery $61k Non-Cap Projects $15k Subterranean line break $8k. Net before Depr (270) (91) (179) Depr & Loss 246 287 41 Several assets are fully depreciated. Net Income (516) (378) (138) Action Plans have been executed to get back on track.

14 Profit & Loss Net Income (000’s) Comparison to Prior Year

15 Chief Executive Officer’s Report
Presented by Tom Judson

16 Review of Business Units

17 Net Income Total Golf Operations (000’s)

18 Net Income from Lodging (000’s)

19 Net Income from Food & Beverage (000’s)

20 Net Income from Wellness/Marina/Salon & Spa (000’s)

21 Net Income Managed Properties (000’s)

22 Net Expense from Marketing & Sales (000’s)

23 Net Income from Business Units (000’s)

24 2014 Accounts Receivable Over 60 Days May 31, 2014 May 31, 2013
Receivables over 60 days $540,000 $507,000 Allowance for Bad Debt $399,000 $352,000 Net Receivables Over 60 Days $141,000 $155,000

25 Accounts Receivable

26 Property in Lieu of Dues
When the POA has no other viable recourse on the collection of dues, we will often accept POA property in lieu of dues. In 2012 $92,000 was written off in dues and in 2013 $107, Fortunately through the first five months of we have only written off $16k (6 lots), compared to $71k written off in the first five months in 2013 (18 lots).

27 Strategic Plan & Resort Infrastructure
Presented by Mike Modzelewski

28 Strategic Plan

29 Strategic Status Update
The Strengths remain intact. Change in the status of some of the weaknesses. New hiking/biking options provides activity options. Significant upgrades in many lodging units, recently recognized by Trip Advisor. Opening of Mulligan’s at Bald Mt. Pro Shop to address some convenience store needs. Some threat mitigation Improving home sales/building is increasing revenue from initiation fees and impact fees that will be used to fund future capital spending. Spa service capacity increased. More aggressive golf management in place. Improvements in departmental accounting.

30 Important issues still remain.
Long term dues strategy. Desire to increase reserves. Financial pressures that negatively impact receivables. Growing lot inventory. On going need to subsidize the golf business. Some opportunities are being capitalized upon, but more can still be done. Identifying other alternative draws as the local area becomes better known as an “outdoor adventure” destination. Further expansion of “family friendly” activities. Added growth in what has become a stagnant wedding business. Increased golf course utilization Off season facility utilization Creating a “locals” appeal.

31 New issues have emerged.
Staffing and the challenges to maintaining quality product and superior service. Adjusting to the requirements of the Affordable Health Care Act. Legends capacity constraints. Need for a reliable third restaurant option. Appropriate use of cash to fund growth initiatives, increase reserves, retire debt.

32 Updated Strategic Initiatives
Complete the existing infrastructure updates Apple Valley Clubhouse and Pool Complex in 2015. Road improvement as an on-going project. Enhance the Resort experience for members and guests. Seek feedback to ensure amenity package is competitive. Create detailed plans to leverage “outdoor adventure”. Improve the integrated reservation system cross-sell effort. Deliver consistently superior products and services.

33 Define and nurture growth opportunities.
Establish reasonable returns for all operating departments and a G&A structure appropriate to our business. Benchmark competitive businesses to ascertain reasonable expense and profit targets. Clearly define reasons for, and expected benefits from, any individual business subsidy (presently golf). Define and nurture growth opportunities. Restaurant, or other, expansion opportunities. “Cluster” lodging to attract more business. Continually seek to identify additional niche markets.

34 Make fiscal responsibility a hallmark of all business decision making
Proper cash planning. Line of Credit usage for short term cash management needs. Allocation of cash to operations/reserves/debt retirement. Prohibit use of long term debt to fund operations. Require cost/benefit analysis on all major new projects. Keep property owners financial burden reasonable, regularly evaluating cost effectiveness of outsourcing functions.

35 Resort Infrastructure

36 Resort Improvements Planned for 2014
General Resort Improvements Road Paving (carryover) – Completed Road Paving (2014) – Fall Trailhead (carryover) – Completed Pavilion Landscaping – Completed Pavilion Restroom – Completed Vehicle Replacement – Completed Drainage Repair – Placeholder

37 Resort Improvements Planned for 2014
Golf Course Improvements Apple Valley Restroom #5/#2 – Completed (The old restroom still needs to be removed.) Bald Mountain Restroom #14 – Completed Golf Course Bunkers – Completed - All greenside bunkers: AV#2, AV#4, AV#13, BM#14, and two bunkers at BM#15.

38 Resort Improvements Planned for 2014
Buildings & Grounds Improvements Replace 3 HVAC Units – Placeholder Game Court surfacing and tennis court repair – In process Legends Flooring & Painting – Completed Security Gate Exterior – Completed Trout Stream Exterior – Completed

39 Resort Improvements Planned for 2014
Buildings & Grounds Improvements Wellness Center Exterior – Completed Pavilion Repainting – Completed Fire Pit for Legends – Completed Exterior Renovation Contingency – Needed to be used

40 Resort Improvements Planned for 2014
Business Growth Improvements Wellness Interior Counter Relocation & Addition of Massage Room – Completed Purchase of 16 Mountain Bikes & Equipment – Completed Mountain Bike Adventure Trail - Completed

41 Chip and Seal The Infrastructure Committee is experimenting with using Chip and Seal to maintain certain (primarily secondary) Resort roads. Last month a number of roads which were deteriorating were paved using Chip and Seal. Here are the benefits of using Chip and Seal compared to a “regular” asphalt overlay: Chip and Seal costs one third to one half the cost of asphalt. This savings is important with 44 miles of roads. It is estimated that to use “regular” asphalt overlay will cost an additional $170 per year per property owner.

42 By extending the time between asphalt overlays, Chip and Seal results in lower costs over the long term. Chip and Seal eliminates the need to crack seal. Chip Seal enhances safety by providing good skid resistance. Chip and Seal provides an effective moisture barrier for the underlying pavement against water intrusion by sealing cracks in the pavement.

43 Chip and Seal prevents deterioration of the asphalt surface from the effects of aging and oxidation due to water and sun. The Department of Transportation has successfully used Chip and Seal for many years to maintain state routes. In hot weather, Chip and Seal re-seals cracks by flowing back together. If the Chip and Seal proves to be an acceptable method of maintaining our roads, further paving of this type will take place in the Fall.

44 Buffalo Creek Trail System
The initial 3.5 miles is open and getting heavy usage. The Resort’s parking lot has been completed. Picnic tables are located close to the parking lot and stream. Planning on the remaining 1.5 miles is underway. This additional portion of the trail will be more moderate in difficulty. The construction timeline has not yet been determined, yet should be within a few months. The Town has already received funding on an additional 7 miles of trails. The construction timeline has not yet been determined. The Town and the Resort are working together to have additional parking at the Buffalo Creek entrance.

45 Business & Customer Development Committee
Presented by Jim Rhodes

46 Here is what we are doing for you.
POA Perks Program Member’s Birthday Dessert Private Members Lockers Property Rental Survey Annual Member Survey (in development) Community Concierge (in development)

47 Closing Comments Presented by Peggy Dahle

48 Thank You Thank you to all the members who volunteer their time & service in support of our community.

49 Election Results Elections results on the two seats for the Board of Directors: Mike Modzelewski 206 Votes Donnie Samarotto 201 Votes Special thanks to the Election Committee: Linda Gledura– Chairperson Sue Lewis Bonnie Worcester Jeannette Moran Dick Nealon Bill Coulthart

50 Member Reception Following the Meeting
There will be a reception at the conclusion of the Annual Meeting. The reception will be held at the Pavilion. Come see the new landscaping and restroom facility. Hors’devours, wine, and beer will be served. Make sure to go to the Pavilion, there is a wedding on the Terrace and a business meeting in the Lakeview bar.

51 Member Comments

52 Interested in Volunteering?
If you are interested in serving on a committee, please see Christy Roper. You can also her at

53 Adjournment

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