AGENDA Windmill Harbour Association Annual Meeting Saturday, November 10, 2018 at 9:30a.m. I. Roll Call / Call to Order II. Proof of Notice of Meeting or Waiver of Notice III. Reading & Approval of Minutes of Preceding Meeting IV. Unfinished Business V. Committee Reports - 2018 Achievements & Future Plans VI. New Business A. Appendix 5C-1 B. 2019 Budget Review and Ratification VII. Nominations & Introduction of Director Candidates VIII. Adjournment
Transcript
AGENDAWindmill Harbour Association Annual Meeting
Saturday, November 10, 2018 at 9:30a.m.
I. Roll Call / Call to Order
II. Proof of Notice of Meeting or Waiver of Notice
III. Reading & Approval of Minutes of Preceding Meeting
IV. Unfinished BusinessV. Committee Reports - 2018 Achievements & Future PlansVI. New Business
A. Appendix 5C-1B. 2019 Budget Review and Ratification
VII. Nominations & Introduction of Director CandidatesVIII. Adjournment
2018 ANNUAL MEETING
Welcome!
• Please silence your cell phones.
• Prior to stating a question, comment or motion, please state your name and property address and use the center aisle microphone.
Thank you Board MembersSeat Expires
Dec. 31st of:
Don Baldwin, President 2020
Tim Goldë, Vice President 2020
Jan Stasiek, Secretary 2019
Laurie Burke, Treasurer 2019
Al Graham, Director 2019
Gary Woods, Director 2020
Tom Crews, Director 2018
Jim O'Sullivan, Director 2018
Jose Llorens, Director 2018
Veterans Day
To our men and women in uniform, past, present, and future, we honor and thank you today and every day.
Welcome New OwnersNovember 1, 2017 – October 31, 2018
New ConstructionNovember 1, 2017 – October 31, 2018
1 home built; 2 under construction
In Memoriam
Moment of silence for those passed.
Proof of Notice of Meeting or Waiver of Notice
The notice of the annual meeting was mailed on October 10th, 2018 by regular US postal service
mail to the addresses of the members as provided by the members with proper postage affixed.
Reading and Approval of Minutes
Waiver of reading and approval of the 2017 Annual Meeting Minutes
Unfinished Business
Committee Reports
2018 Achievements & Future Plans
Thank You to All Committee Chairpersons & Volunteers!
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Committee Board Liaison Chairperson
Annexation Tom Crews Phil Gaines
ARB Tom Crews Bill McGrath
Boat Show Al Graham
Marketing Gary Woods Nancy Baldwin & David Warren
Welcoming Gary Woods Kitty Sperry Laine
Community Events Gary Woods Lynn Wiggins
Finance Laurie Burke Laurie Burke
Governance & Nominating Jan Stasiek Jan Stasiek
Landscaping Jose Llorens Nancy Bachelder
Long Range Planning Tim Goldë Stephen Smith
Security Jim O’Sullivan Joseph Price
Traffic Al Graham Mike Garrigan
Traffic Committee
JENKINS ISLAND TRAFFIC SAFETY IMPROVEMENTS
Mike Garrigan, Chairman
For plan details, visit: https://www.bcgov.net/departments/Engineering-and-Infrastructure/traffic-engineering/highway-projects/jenkins-island-access/index.php
The Town of Hilton Head hopes to hold informational meeting for Jenkins Island residents in mid-December. Date will be announced once confirmed.
Marketing
Bill Peacher, Committee Member
Infrastructure & Long Range Planning
2018 ROAD PROJECT
PROMENADE RESURFACING
Tim Goldë, Board Liaison
Road Project
The total cost of the 2018 Road Project was approximately $360k, which
included, but not limited to, project observation by CPW Engineering, and
three different treatments: Reconstruction, Asphalt Overlay, &
Microsurface Overlay.
Road Project
RECONSTRUCTION
There were four areas that were reconstructed with full depth asphalt.
1. Harbour Passage Patio required reconstruction of brick pavers around mail kiosk.
2. Harbour Passage East (HPE). A tree was removed, curbing was added and drainage addressed.
3. Indian Hill Lane Cul-de-sac. Complete, no significant issues.
4. Portion of Sparwheel Loop. Originally intended to include full reconstruction of base course. Test pits concluded base courses are ok, failure was due to the pavement being as thin as 1-inch thick.
Road Project
ASPHALT OVERLAY
There were three areas that received asphalt overlays:
1. Harbour Passage East. Some areas received just an overlay.
2. Indian Hill Lane. Complete, no significant issues.
3. Reef Club.
4. Sailwing Lane Parking Spaces.
Road Project
MICROSURFACE OVERLAY
There were six areas that were completed with micro surface overlay:
1. Crosstree Drive.
2. Crosstree Patio 2.
3. Crosstree Patio 3.
4. Sparwheel Lane.
5. Sailwing Lane.
6. Post Mill Lane.
See more details and information at www.windmillharbour.org
Governing Documents
PROPOSED AMENDMENTS
Jan Stasiek, Board Liaison / Chair
Copy of referendum mailing & ballot can be found at www.windmillharbour.org
AMENDMENT #1: SPECIAL ASSESSMENTS FOR DISASTER RECOVERY
AMENDMENT #2: SPECIAL ASSESSMENTS
AMENDMENT #3: RESERVE FUNDS
AMENDMENT #4: REPURCHASE BY DECLARANT
AMENDMENT #5: LIABILITY OF THE ASSOCIAITON & BOARD OF DIRECTORS
AMENDMENT #6: SHORT TERM RENTING PROHIBITED
AMENDMENT #7: MOTORCYCLES
AMENDMENT #8: BOARD MEETING ATTENDANCE
AMENDMENT #9: ANNUAL MEETING
AMENDMENT #10: PROMOTION FUNCTION
Proposed Amendments
New Business
APPENDIX 5C-1
2019 BUDGET RATIFICATION
APPENDIX 5C-1
ASSOCIATION RESOLUTION FOR REVENUE RULING 70-604 ELECTION - EXCESS INCOME APPLIED TO THE FOLLOWING YEAR'S ASSESSMENTS
WHEREAS, the Windmill Harbour Association is a South Carolina
Corporation duly organized and existing under the laws of the State of South
Carolina; and
WHEREAS, the members desire that the corporation shall act in full
accordance with the rulings and regulations of the Internal Revenue Service;
NOW, THEREFORE, the members hereby adopt the following resolution
by and on behalf of the Windmill Harbour Association:
RESOLVED, that any excess of membership income over
membership expenses for the year ended December 31, 2018,
shall be applied against the subsequent tax year member
assessments as provided by IRS Revenue Ruling 70-604.
MOTION TO ADOPT THE ABOVE RESOLUTION
Financial Review
Laurie Burke, Treasurer
• 2019 OPERATING BUDGET – FOR RATIFICATION
• CAPITAL RESERVES & FINANCIAL UPDATES
• PROPOSED COVENANTS w/ FINANCIAL IMPACTS
Balance Sheet
($ thousands) 2017 2018 EST.
Operating Cash 304 297
Capital Reserves 840 558
Other 184 242
Property & Equip 1,021 1,048
ASSETS $ 2,348 $ 2,145
Liabilities 379 380
MEMBERS’ EQUITY 1,969 1,765
LIAB & EQUITY $ 2,348 $ 2,145 27
Income
Statement
($ thousands) 2017 2018 E2019
BUDGET
POA Dues 1,336 1,339 1,340
Other 258 278 253
TOTAL INCOME $ 1,594 $ 1,617 $ 1,593
Operating Exp. 1,298 1,319 1,353
Reserve Funding 260 267 260
TOTAL SPEND $ 1,558 $ 1,586 $ 1,613
NET INC (EXPENSE) $36 $31 ($20)28
Proposed 2019 Oper. Budget: $1.3M
Security $451,000
33%
Prop / ARB Mgmt / Maint. Staff
$190,000 14%
Oth. Contracts / Fixed Exp.
$172,000 13%
Discretionary $345,000
26%
Landscaping $194,000 14% 29
Income
Statement
($ thousands) 2018 E2019
BUDGET
POA Dues 1,339 1,340
Other 278 253
TOTAL INCOME $ 1,617 $ 1,593
Operating Exp. 1,319 1,353
Reserve Funding 267 260
TOTAL SPEND $ 1,586 $ 1,613
NET INC (EXPENSE) $31 ($20)30
Key Income Changes
($ thousands)
2019 BUDGET
ARB Income ($20)
Late Fees ($4)
NET CHANGE v. 2018 EST. ACTUAL ($24)
( 1%)
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KeyExpense Changes
($ thousands)2019
BUDGET
Security Contract ($24)
Maintenance Expenses $22
Marketing $20
Triennial Capital Reserve Study $6
Prop Mgmt / ARB Admin / Maint Staff $4
All Other $6
NET CHANGE v. 2018 EST. ACTUAL $34
+2.5%32
Oper Exp & Dues Summary
($ thousands)2017 2018 E
2019 BUDGET
Operating Exp. 1,298 1,319 1,353
% Expense Chg. -- 2% 3%
POA Dues 1,336 1,339 1,34033
POA Dues
2017 2018 2019
BUDGET
Residence $ 2,820 $ 2,820 $ 2,820
Lot 1,410 1,410 1,410
Consolidated Lot 705 705 705
Boat Slip 705 705 705
% Change 3% -- --
SC Yacht Club $ 65,552 $ 65,552 $ 65,552
Lot Maintenance 320 320 32034
Vote to Ratify 2019 Budget
Capital Reserves &
Financial Updates
Projected Capital Repairs
($ thousands)
2019 BUDGET
Hydrologic Study of Lagoons $ 45
Lagoon Outfall (Stormwater) 25
Promenade Surface (East) 125
Indian Hill Bridge 40
Hwy 278 Noise Mediation 100
SUBTOTAL CAPITAL REPAIRS $ 335
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Capital Reserves
($ thousands)2017 2018 E 2019 E
Jan. 1 Reserves 492 840 558
20% Cap. Contr. 260 268 268
Hurr. Reserves 112 -- --
Cap. Spending (24) (553) (335)
NET RESERVES $ 840 $ 558 $ 49137
Hurricane Matthew On Budget!
($ thousands) 2017
Jan. 1 Reserves 492
20% Cap. Contr. 260
Hurr. Reserves 112
Cap. Spending (24)
NET RESERVES $ 840
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Other Financial Updates
• Accounts Receivable @ 9/30/18
– O/U 90 Days $23K/$27K
– Bad Debt Reserves of $15K
– Spec Assess: $4K outsdg; write-offs of $1800
• Wells Fargo Lines of Credit Renewed
– $350,000 Operating
– $500,000 Disaster Recovery
• Renewed & Expanded Ins. Coverage
– Increased D&O, Umbrella Limits; added Cyber
– Renewed $500,000 Debris Removal
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Changes to Covenants
Strengthen our Financials –
Our Whole Community!
Your Board Urges OK
• $500K Debt; $500K Reserves
• Irma, Florence, Michael or Other Disaster Strikes
• Use Reserves for Emergent Needs
• Bank Calls Debt
• No $ to Re-Pay Debt
• No $ for Repairs
• No $ in Reserves
• No Borrowing Capacity
Financial Disaster…
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#1: Disaster Recovery Special Assessment ✓ Board Auth only if Disaster
✓ Limited to Amount of Annual Dues
✓ 1x Per Year; No More than 3 Years
Proposed Financial Covenants
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Possible Capital Improvements
($ thousands)
2019 BUDGET
Fiber Optic Network $ 0
Walkway Lighting (Phase I of III) 20
Dog Park 30
Temp-Control for Pool 15
Expand Community Pier 30
Enhanced Parking 55
SUBTOTAL CAPITAL IMPROVEMENTS $ 15043
✓
Capital Res. w/ Covenant
Changes ($ thousands) 2017 2018 E 2019 E 2019 E*
Jan. 1 Reserves 492 840 558 558
30% Cap. Contr.* 132
20% Cap. Contr. 260 268 268 268
Hurr. Reserves 112 -- -- --
Capital Repairs (24) (553) (335) (335)
Cap Improvmnts* (150)
NET RESERVES $ 840 $ 558 $ 491 $ 473* Pending passage of proposed covenant change #3
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#1: Disaster Recovery Special Assessment ✓ Board Auth only if Disaster
