Al and Jerry Board Update
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The following is submitted jointly by Al Reuben and Jerry McQuaid as Board Update #64.
Board
Update #64
by
Al Reuben
The Sun City Community
Association held it's Annual Meeting on Tuesday, November 18.
I. A revenue ruling was presented and passed by the Neighborhood
Representatives. This vote by the neighborhood Representatives was
required to ensure that the Association complies with an IRS ruling designed to
save taxes related to depreciation that otherwise would have had to be paid.
A full presentation was made of the Master Planning Committees Report
and Recommendations.
II. A full presentation was made by the Finance Committee of the
2004 Budget.
III. The meeting was followed by a brief meeting of the Board of
Directors with the purpose of discussing and voting upon the issues related to
the Master Planning Committees Report and Recommendations and the 2004 Budget.
The Board of Directors approved the Master Plans Recommendations with an
unanimous vote. The major issues approved were:
A. Adoption of the report as the basis for the development of a
long-range strategic plan for Sun City Hilton Head, including the creation of a
Strategic Planning Committee.
B. Continue to use the analysis procedures estavblished
by the Committee as a part of the future planning efforts.
C. The use of the Report on Strategic Planning as the primary
reference tool for the next phase of the strategic planning.
D. Acceptance of the recommended time frame range issues and as
quoted from the text, "This Report stresses the need for the Board to focus
on long-range issues and, subsequently, to permit Management to concentrate on
short-term goals and/or day-to-day operational issues. This Report
recommends that the plan time frame be 5 to 7 years."
It was confirmed by the Executive Director, Steve O'Donnell, that the
above does not relegate the Board to only long term goals, but that in fact it
will continue to focus its efforts on both short and long term goals.
E. A Board appointed Strategic Planning Committee will be
established to oversee the develpment of the initial strategic plan and to
periodically update its elements.
F. A Board appointed Government and Business Affairs Committee will
be established to aid in becomming more proactive in key external govenment
agencies and business organizations as they relate to Sun City.
It was clarified at resident Frank Gindhart's request that that non-govenmental
agencies, e.g., United Way, Red Cross, etc., will also be incorporated into
the agencies with which the committee will be proactive.
IV. The Board also approved the 2004 Budget with an unanimous vote.
The key items in the Budget are:
A. Revenues (excluding golf) are estimated to grow by $1.1 million.
New home closings account for $652,000; the remainder is from a rate
increase and a planned increase in the capital reserve fund. The total
budgeted 2004 Revenues for 2004 are $4.8 million.
2004 Expenses (excluding golf) are expected to increase 5.6% over the 2003
projection primarily due to higher costs associated with payroll, operations and
insurance. The total budgeted 2004 Expenses are $5.6 million.
The shortfall is the developer's subsidy.
The 2003 assessment of $1,211 will be increased by $126.00 to $1,337. This
amount is exactly the same 2004 annual assessment (after adjusting for the
insurance increase) that was included in last years Five Year Plan.
B. A golf rate structure was approved that allows for tiered
pricing from a 25 Round to a 300 Round Level. Included in the
proposal were the 2004 rates for Annual Cart Path Passes and Driving
Range Fees. The details to the above will be available to all of
the golfers prior to year end, and they will be allowed to pay the related
costs over a three month period. It was noted that if a golfer uses all
of his/her purchased rounds, he/she may purchase additional rounds at the daily
rate or purchase another package.
The total budgeted 2004 golf Revenues are $2.3 million.
The total budgeted 2004 golf Expenses are $2.4 million.
The shortfall is covered by a non-interest bearing loan to the Golf Operations
until such time that it can be repaid from revenues.
V. During the period of the meeting set aside for questions,
resident Don Avedon asked that the Board consider the need for establishing an
Amenity Planning Committee following the developor's unilateral decision not to
move forward.
Al Reuben
alreubenschh@aol.com