4Interested in Volunteering? If you are interested in serving on a committee, please see Christy Roper. You can also her at
5Committee VolunteersCommittees 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.
6Committee VolunteersGolf 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.
7Town DredgingThank 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.
9May Balance Sheets Assets (000’s) – Selected Highlighted Accounts 20142013Operating Cash(164)(84)Decrease caused in part by the reserving of initiation fees and impact fees.Reserve – Infrastructure, Improvement, and Repair177141A number of capital projects are still in process.Reserve Funds293207Steady increase with the deposit of initiation fees and impact fees. These will be our capital funds for the future.Inventory167216Decrease as a result of numerous merchandise sales.Total Net Fixed Assets8,0118,120Depreciation is outpacing the addition of new fixed assets.Total Assets10,13210,213A complete copy of the Balance Sheet and Financials is available on the website.9
10May Balance Sheets Liabilities (000’s) – Selected Highlighted Accounts 20142013Accounts Payable424451Relatively small change caused by timing of payments in trade and lodging A/P.Current Portion LTD114308Loan refinanced for better terms last year. Long term liab. are up, short term are down.Line of Credit3364Small decrease since prior year.Advance Deposits539527First time this year it has been over prior year.Deferred Revenue1,7211,768Lower dues billing as a result of lots returned in lieu of dues.Long Term Liabilities2,5442,395Loan refinanced last year.Total Capital4,4144,395Total Liabilities &Capital10,13210,21310
11Profit & Loss: Jan - May (000’s) UnauditedFinancials2014ActualBudgetVarianceRevenue3,1193,243(124)April was very challenging for the Resort.Lodging ($64k)F&B ($59k)Golf ($68k)Cost of Sales46349633Savings related to Lodging and F&B revenue under budget.Payroll1,5821,62543Savings in Medical Insurance of $22k. Multiple departments combined saved $21k.Expenses1,3441,335(9)Bad Debt Recover over budget by $27k.Net before Depr(270)(213)(57)Depr & Loss246236(10)Higher than expected depreciation.Net Income(516)(449)(67)Action Plans have been executed to get back on track.
12Profit & Loss Net Income (000’s) Comparison to Budget
13Profit & Loss: Jan - May (000’s) UnauditedFinancials2014Actual2013VarianceRevenue3,1193,230(111)A challenging April.Lodging ($54k)F&B ($46k)Golf ($55k)Cost of Sales46348724Savings related to Lodging and F&B revenue under prior yr.Payroll1,5821,5831Payroll even with prior year even with an additional $19k in Med.Expenses1,3441,251(93)Bad Debt Recovery $61kNon-Cap Projects $15kSubterranean line break $8k.Net before Depr(270)(91)(179)Depr & Loss24628741Several assets are fully depreciated.Net Income(516)(378)(138)Action Plans have been executed to get back on track.
14Profit & Loss Net Income (000’s) Comparison to Prior Year
15Chief Executive Officer’s Report Presented by Tom Judson
26Property 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).
27Strategic Plan & Resort Infrastructure Presented by Mike Modzelewski
29Strategic 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 mitigationImproving 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.
30Important 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 utilizationOff season facility utilizationCreating a “locals” appeal.
31New 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.
32Updated Strategic Initiatives Complete the existing infrastructure updatesApple 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.
33Define 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.
34Make 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.
37Resort Improvements Planned for 2014 Golf Course ImprovementsApple Valley Restroom #5/#2 – Completed(The old restroom still needs to be removed.)Bald Mountain Restroom #14 – CompletedGolf Course Bunkers – Completed - All greenside bunkers: AV#2, AV#4, AV#13, BM#14, and two bunkers at BM#15.
38Resort Improvements Planned for 2014 Buildings & Grounds ImprovementsReplace 3 HVAC Units – PlaceholderGame Court surfacing and tennis court repair – In processLegends Flooring & Painting – CompletedSecurity Gate Exterior – CompletedTrout Stream Exterior – Completed
39Resort Improvements Planned for 2014 Buildings & Grounds ImprovementsWellness Center Exterior – CompletedPavilion Repainting – CompletedFire Pit for Legends – CompletedExterior Renovation Contingency – Needed to be used
40Resort Improvements Planned for 2014 Business Growth ImprovementsWellness Interior Counter Relocation & Addition of Massage Room – CompletedPurchase of 16 Mountain Bikes & Equipment – CompletedMountain Bike Adventure Trail - Completed
41Chip and SealThe 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.
42By 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.
43Chip 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.
44Buffalo 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.
45Business & Customer Development Committee Presented by Jim Rhodes
46Here is what we are doing for you. POA Perks ProgramMember’s Birthday DessertPrivate Members LockersProperty Rental SurveyAnnual Member Survey (in development)Community Concierge (in development)
48Thank YouThank you to all the members who volunteer their time & service in support of our community.
49Election ResultsElections 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
50Member 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.