{ Richmond Hill Plantation HOA Board Meeting

9/13 Pool Expansion

Agenda

• Pre Planning Process • RFP Process • Year Round Pool • Year Round Pool Communication • Pool Design • How we Pay for the pool? • Finical Impact • My thoughts • Next Steps • Board Feedback

Spoke with 25+ residence Feedback? • Pool designed toward Youth • “Splash Pad” Type pool • Zero Entry • Defined Pool Area • Entertainment Type Pool with water

features

RFP Process

• Clearwater Pools • Architectural Pools • Pride Pools Spas

• Year Round Pools • The Pool Man • Perfect Pools • B&M Pools • Poolside Designs – Jacksonville FL

Year Round Pools and B&M where the only companies that showed interest

About Year Round Pool • Started in 1981 • Bluffton SC • Residential and Commercial pools • Pool design • Westin Hotel , Surf Lagoon Water Park, Richmond Hill Plantation • Frank Fotia - Owner

Communication What age group? Ages 1-5 Year old How many kids do you think the new pool

needs to accommodate? 15-20 at a time Do you want a pool with standing water in it

and some play toys to attract them away from the main pool? Yes, a pool that has a zero entry on one side that leads to a 2 ½ foot pool with play toys like a mushroom/fountains etc

Or a wet deck, which has no standing water, play toys and /or spray jets as part of the design.

Or do you just need to add another pool due to

the size and number of people now that are living there? Not another pool. The overcrowding in the pool has to do with the number of kids. If we can get kids away from our main pool and into the kids pool it should be much more accommodating. What age group? Ages 1-5 Year old

How many kids do you think the new pool needs to accommodate? 15-20 at a time

Do you want a pool with standing water in it

and some play toys to attract them away from the main pool? Yes, a pool that has a zero entry on one side that leads to a 2 ½ foot pool with play toys like a mushroom/fountains etc

Or a wet deck, which has no standing water, play toys and /or spray jets as part of the design.

Or do you just need to add another pool due to

the size and number of people now that are living there? Not another pool. The overcrowding in the pool has to do with the number of kids. If we can get kids away from our main pool and into the kids pool it should be much more accommodating.

$100k-$115K

$150 All in (electrical/fencing/paving)

How will we pay for the pool?

Step 1 - Questions · What is our current cash on hand? · What is our monthly cash flow? · How many total houses do we have in the neighborhood? · If we budgeted for $150k for the pool and wanted to pay it off in 5 years what would be the increase to HOA dues?

How much Cash do we have? $120,746.88 operation, $21,415.37 enhancement

What is our monthly cash flow? We only bill/ collect twice a year so there is not a monthly incoming cash flow, with the exception of any late payers, what we have in the account now will take us through the end of the year. I have attached the budget. We are right on track with our expenses, so assuming we don’t spend outside of the budgeted numbers we should have $50,000-$60,000 at the end of the year. This money really should be saved for reserves though, we should have around $100,000 in reserves for this community. All extra money before was going to pay off the pool so we were not keeping large reserves

How many total houses do we have in the neighborhood? 237

If we budgeted for $150k for the pool and wanted to pay it off in 5 years what would be the increase to HOA dues? In order to pay for this (assuming the loan had no interest (which will need to be calculated), you would need to collect $127.00 per Homeowner for 5 years. Typically HOA’s do not like to take out loans (most covenants do not allow this, although yours do). Typically this would be done as a onetime special assessment $632.91 per home, or your could increase the dues next year by $632.91 without a vote from the members, but they could vote down the budget with the increase. One more thing you may want to check into is the availability to get a loan. Keep in mind when the first loan was taken out First Chatham Bank (who gave the loan) was also a Declarant of the property. The builders all agreed to pay $2,700 per home for each home sold in a recorded document to pay down the loan, and one of the other Declarants agreed to not turn the association over to the Homeowners prior to the loan being paid off. You could also do this as a two-five year plan, where you add the increase toward a goal of completing the project once the money is collected. For two years- maybe do a onetime special assessment of $300.00, then an increase of $166.46 for the next two years and build at the end of two years

Can we even get a Loan?

• First Bank of Coastal Georgia • Southeastern Bank • Ameris Bank • South State Bank • First Chatham Bank

Association information Name of Association and Copy of Resolution Officers names and their experience in management and capital planning Copy of By Laws Copy of last two years tax returns ( your 2017 plus former owner's 2016 if possible) Current Balance Sheet Profit and Loss for 2017 and First Half 2018 (Assessment Income/Operating cost) Number of Housing Units, Cost per Unit, How many are rentals Number of Delinquencies, Total amount of Delinquent Funds and Months delinquents (Ageing Report

Payment Options

1-Wait 3 years and pay cash . 2-Take out loan and pay off loan in less than 5 years with no effect on HOA dues. 3-Raise HOA dues 4-One time HOA assessment. EI – 1 time $100 fee for pool.

Next Steps

• Decide if we want to expand? • How will we pay?

• If we change HOA dues we will have to vote. • Sign Proposal Year Round Pool $3,500

• Itemized budget • Design • Renderings