Finance Committee & Board Meeting

Board Members Present:

President Gary Pritsch                   Sharon Carr

Secretary Debbie Clement             Diane Jones

Treasurer Martha Linvall                Jim Ott

James Meredith                              Dan Hodson

GM Dennis Dubuque

Board Member Absent:

Vice President D.J. Bell

Finance Committee Members Present:

Chairman John Porter                    Tom Moore

Sharon Perisho                               Nancy Smith

Mike Wynn (safety committee)

President Gary Pritsch began the meeting at 6:05 pm.

John Porter explained that the 2017-2018 Budget is based on last year’s revenue of $1,400,000 with a $16,215.00 ‘cushion’.

click on picture to view: Proposed 2017-2018 Budget

Each Department head was consulted.  The departments made their requests – the Finance Committee decided how the moneys would be spent.

·       Golf Course lost

o      $17,000 to Roads

o      $17,000 to Common Grounds Maintenance

GM Dennis Dubuque is hoping & predicting the golf revenue will increase this year.  One of his plans is to open the golf course on Mondays. 

⇒     The 19^th Hole will have 3 full time employees

§       Manager, Assistant Manager, Cook

§       Plus and assortment of part-time help

Director Dan Hodson expressed the Membership’s concern regarding managing revenue from the Golf course & 19^th Hole to adequately provide funds for Security.  “We, as a Board, must represent the members of this community.”

Delinquent Dues collected - $20,000

GM Dennis Dubuque: “I think we need to push & keep pushing until we get results with collection of unpaid dues.”  -560 delinquent Lots-

Director Martha Linvall:  In the past we would get started doing something, but there was no follow through.

Finance Chairman John Porter:  Speaking for the Finance Committee – “we do not anticipate money from delinquent accounts”.  Any delinquent funds received will be added to the Capital Improvement Fund.

Director Jim Ott:  “For 30 some years our developer has let us down by not selling lots.”  This statement was agreed by all and calling the

Developer a “real-estate office”.

Director Diane Jones was pleased to see the allocated funds for the Roads = $121,038.00.

Director Debbie Clement reminded the Finance Committee that the Board approved $1,000 for Diamondhead’s 50^th Anniversary.  This does not appear in the Budget proposal.  GM Dennis promised the money will be provided…possibly through a fund raiser / golf tournament.

President Gary Pritsch suggested a Cost of Living Increase as a way of keeping the POA Dues in line with inflation.  A 2.5% yearly increase = $23.62

Click on picture to view:

United States Inflation Rate

Security Department stays the same as last year - $194,000.  $2,000 was recently spent on the ‘silver’ police cursor that was purchased in 2012 for $5,320. 

⇒    Board members & Finance Committee seemed to agree with the Statement:  The security need consists of two (2) issues

§       First Responders

§       Gate security ~ 24/7

Finance Committee member, Tom Moore, explained the need for a Capital Improvement Assessment or increase in dues of $150 per person.  Examples were shared regarding the deterioration of several facilities / POA buildings / Infrastructure.  This important issue has been expressed many times in the past several years. 

Capital Improvement - $150 yearly increase in dues

Security Department - $144 yearly increase in dues

 “What is the saturation point?”

Other Financial Issues discussed:

⇒      Golf carts are up for renewal – price will jump 40%

⇒      Golf shed repair to cost $12,000

⇒    Fence around the handicap parking area is up for bid.

POA Dues letters must go out 30 days in advance of Date Due – April 1^st.  The Budget must be approved and letters sent before March 1^st.

Notes provided by,

Diane Porterfield

adianerdh@att.net

620-3167