Annual Meeting ~ August 15th, 2015

Board Members Present:

Vice President Joe Claflin        Suzie Combs

Treasurer John Porter              Larry Hibbs

Secretary Diane Jones             John Coleman

                                                 Gordon Moore

Board Members Absent:

Sharon Carr

Chris Wasson

General Manager James Turner

Treasurer John Porter served as moderator for the Annual Meeting.

Mike Fikes lead the membership in an opening prayer.

New Meeting Schedule: 

Agenda meeting – 30 minutes before the Town Meeting @ 6:30pm

     Notify the POA office on Wed. before to be placed on the Agenda.

Town Meeting  – 3^rd Thursday of each month @ 7:pm

Board Meeting - 4th Thursday of each month @ 7:pm

Work Shop – Thursday, Aug 20 @ 6:30pm

     Meeting is to discuss the security gates

Minutes of 2014 Annual meeting was passed unanimously

Volunteer Committees sign-up sheets were located in the back of the room

Treasurer’s Report for the month of July was read by John Porter

See copies received from the POA office.

649 homes billed,  - 36 delinquent – not paying - 6 delinquent paying

1.089 lots billed, 603 delinquent – 55%

Auditor's Report:

Moderator John Porter introduced Mr. Gary Welsh from Jordan, Woosley, Crone & Keaton Ltd 

Note:  Blue indicate actual numbers represented in the physical document 

Gary Welsh, CPA with the Auditing Firm – year end March 31, 2015

Complete picture of what happened in the year 2014

We must express an opinion on the financial statements …In our opinion, the financial statements are fairly presented in all material respects in the financial position of the DH Property Owners Association as of March 2015 result of cash flow all under the general accepted accounting principals.  Everything in this report is presented in a fair manner.

The balance sheet of the POA:

·       $4,442,000 total assets                       ($4,442,366)

                 270,858 cash & equivalents                                   

               7,003.000 fixed asset costs

               2,913,000 depreciation expense

Liabilities =$566,000 is down from prior year due to the timing of the bills being sent out in April instead of March this past year.

The Equity of the POA = $3,876,000 ($3876,297) is an increase of $41,000 ($41,245) over the prior year = net worth of POA assets + liabilities.

Revenue for the year was $1,663,000 = consistent with 2014 – up ½ of 1%

$1,663,000 ($1,663,293) – expenses of $1,616,000 = $47.000 ($47,075) net operating income

Results in $41,245 increase in net income and increase to the $3,876,000 ($3,876,297) level

Cash flow of the DH Property owners association produced $40,351 in operating cash flow

Spent $107,000 in capital expenditures = Roads project, air-conditioning unit, police radios, etc.

Paid off debt by $29,000 ($29,324)

You decreased cash by $96,000.

Next 4 pages of the report, I’m sure will be available to you, is notes from the Financial Statement.  More details like; notes payable – 4 notes payable: bought equipment against the country club asset. (Bank Note) Purchased equipment (3) – truck, back-hoe & greens mower

Income taxes:  The association has not paid income tax.  You use Form 1120 = “Homeowners”.  Anything collected for the benefit of the homeowners is exempt from taxes.  Members’ dues support all the operations.

The last 2 pages of the report is supplementary information required under accounting rules.  To replace everything in real-estate and buildings, it will cost $2,307,000 ($2,307,250) not including the golf course & equipment.

On the last page the operations are broken down by all the different divisions; administrative / general, pools, roads, golf course, security, etc.  As you are probably aware the member dues is what keeps you going.  Revenue collections from all other areas are usually in the negative.

This information is transcribed directly from the 8 minute, tape-recorded event, to the best of my ability.  This seemed necessary due to the fact that this year’s audit will only be ‘available for inspection at the POA office’.  As quoted by Treasurer John Porter.  No copies of the 2014-15 financial audit may be taken out of the POA  office.

The Beautification Committee recognized Char Donnelly for her many hours of continued volunteer service to Diamondhead.

The Person of the Year for 2015 is Barbara Schanke. 

Diane Jones did a terrific job of commending Barbara for her contribution to our community.  Please read Diane's statements.

New Board for 2015-2016

Suzie Combs explained that there were only three (3) candidates for the three (3) open Board positions this year.  However, John Engles decided against becoming a Board member due to family obligations.  Director John Porter was asked to fill that vacancy.

The three Appointed Board members – to serve one (1) year are:

·       Chris Wasson (not present due to family obligation)

·       John Coleman

·       John Porter

Gordon Moore agreed to come back onto the Board, filling his own vacancy, for one year.

The two (2) new Board members who will be serving a three (3) year term by acclamation are:

• Jim Ott
• Sharon Carr (on vacation at this time)

The two (2) Board members who are now serving the last of their 3 year term are:

• Suzie Combs
• Diane Jones

Larry Hibbs has two years left of his 3 year term.

Nominating Committee will have 6 vacancies for next year.  ‘The honor is dubious, the rewards are few, but your community needs you.  This is the time to step up and make a difference.’ As stated by Director Suzie Combs.

Vice President Joe Claflin led Jim Ott, Gordon Moore & John Porter in the oath of office.

Nominating Committee for next year:

• Bob Jones
• Jack Watson
• Dave Orel
• Jim Hannon
• Don Oseroff

Moderator John Porter, recognized Director Joe Claflin for his service on the Board of Directors.  Thank you Joe

John Porter introduced Attorney Beau Durban and excused the Board to Executive Session for the purpose of choosing officers.

Attorney Beau Durban, from the office of Carl Crow, spoke to the community.  We work very closely with Diamondhead behind the scenes.  “We are coming up with new strategies for collections.”  “I think you will all see some changes in the coming year.”  “In the By-Laws, not only do the members have a responsibility to pay the POA has the duty to collect on the dues and assessments…”  “going forward we will be more pro-active”  “We are working right now on some activity on real-estate.”

When will some of these delinquencies go to court?

Answer: “This is a process…”

Mary Gage wanted to know why the lots were not getting filed on since we do not have two classes of property owners.  Also, if the Developer has given up developer status, no longer developing DH, then why are we not charging the developer for every lot he owns.

Mr. Durban stated, “I don’t want to get into that right now”.

“We would love to answer your questions. If you would submit your questions to the Board, the Board will give them to us.”

 “I don’t want to get into specific issues tonight. I just want everyone to know that things are going to be different this year and that we are actively pursuing some of these delinquent assessments.  That’s all I have.”

~ 3.44 minutes from start to finish of Beau Durban’s comments ~

The membership talked among themselves for another 7 minutes while the Board remained in Executive Session

Officers of the Board:

President – Larry Hibbs

Vice President – Chris Wasson

Treasurer – John Porter

Secretary – Diane Jones

President Larry Hibbs:  James Turner is our general manager who could not be here tonight.  I will read his State of the Community Address.

Meeting adjourned - total time: 55 minutes

Notes Provided by,
Diane Porterfield
adianerdh@att.net
620-3167