Transcript VISION 2013 Planning Session

Rumbling Bald Resort
Fairfield Mountains Property Owners Association
Annual POA Meeting
June 23, 2014
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) 694-3010.
Approval of 2013 Minutes
Interested in Volunteering?
If you are interested in serving on
a committee, please see Christy
Roper. You can also e-mail her
at [email protected].
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.
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.
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.
Treasurer’s Report
Presented by Jeff Kristjansen
May Balance Sheets
Assets (000’s) – Selected Highlighted Accounts
2014
2013
(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.
8,011
8,120
Depreciation is
outpacing the addition
of new fixed assets.
10,132
10,213
Operating Cash
Total Net Fixed Assets
Total Assets
A complete copy of the Balance Sheet and
Financials is available on the website.
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
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
10,132
10,213
Total Liabilities &
Capital
Small decrease since
prior year.
Profit & Loss: Jan - May (000’s)
Unaudited
Financials
2014
Actual
2014
Budget
Variance
3,119
3,243
(124)
April was very
challenging for the Resort.
Lodging ($64k)
F&B ($59k)
Golf ($68k)
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)
Revenue
Cost of Sales
Depr & Loss
Net Income
246
(516)
236
(449)
(10)
Higher than expected
depreciation.
(67)
Action Plans have been
executed to get back on
track.
Profit & Loss Net Income (000’s)
Comparison to Budget
$450
Worse than budget by
$67k. The shortfall is
primarily the result of a
challenging April.
$350
$250
$150
$50
($50)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Actual
Budget
($150)
($250)
($350)
($450)
($550)
($650)
Profit & Loss: Jan - May (000’s)
Unaudited
Financials
2014
Actual
2013
Actual
Variance
3,119
3,230
(111)
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.
Revenue
Cost of Sales
A challenging April.
Lodging ($54k)
F&B ($46k)
Golf ($55k)
Profit & Loss Net Income (000’s)
Comparison to Prior Year
$450
$350
Worse than prior year by $139k.
$250
$150
$50
($50)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Actual
Prior
($150)
($250)
($350)
($450)
($550)
($650)
Chief Executive Officer’s Report
Presented by Tom Judson
Review of Business Units
Net Income Total Golf Operations (000’s)
$100
$75
Worse than budget by $47k.
$50
$25
$0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
($25)
($50)
Budget
($75)
Actual
Prior
($100)
($125)
($150)
($175)
($200)
($225)
($250)
Net Income from Lodging (000’s)
$300
$275
Worse than budget by $22k.
$250
$225
$200
$175
$150
Budget
$125
Actual
$100
Prior
$75
$50
$25
$0
Jan
($25)
($50)
($75)
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Net Income from Food & Beverage (000’s)
$150
Worse than budget by $25k.
Notice how in May we had
a sharp gain of $14k.
$130
$110
$90
$70
$50
Budget
$30
Actual
Prior
$10
($10)
($30)
($50)
($70)
($90)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Net Income from Wellness/Marina/Salon &
Spa (000’s)
$500
$450
$400
Great start to the year, $22k
better than budget.
$350
$300
Budget
$250
Actual
Prior
$200
$150
$100
$50
$0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Net Income Managed Properties (000’s)
$100
$90
Better than budget by $8k.
$80
$70
$60
Budget
$50
Actual
$40
Prior
$30
$20
$10
$0
Jan
($10)
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Net Expense from Marketing & Sales (000’s)
$0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
($50)
($100)
($150)
Better than budget by $28k.
($200)
($250)
($300)
Budget
Actual
Prior
($350)
($400)
($450)
($500)
($550)
($600)
Net Income from Business Units (000’s)
$500
$400
Worse than budget by $38k.
The struggles in April have
caused us a setback.
$300
$200
$100
Budget
Actual
$0
Jan
($100)
($200)
($300)
($400)
($500)
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Prior
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
Accounts Receivable
Over 60 Days
(000's)
750
700
650
600
550
500
2014
2013
450
2012
400
350
300
250
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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 $107,000.
Fortunately through the first five months of
2014 we have only written off $16k (6 lots),
compared to $71k written off in the first five
months in 2013 (18 lots).
Strategic Plan & Resort
Infrastructure
Presented by Mike Modzelewski
Strategic Plan
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.
 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.
 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.
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.

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.

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.
Resort Infrastructure
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
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.
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
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
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
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.
 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.
 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.
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.

Business & Customer
Development Committee
Presented by Jim Rhodes
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)
Closing Comments
Presented by Peggy Dahle
Thank You
Thank you to all the members
who volunteer their time &
service in support of our
community.
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
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.
Member Comments
Interested in Volunteering?
If you are interested in serving on
a committee, please see Christy
Roper. You can also e-mail her
at [email protected].
Adjournment