Board Update

Navigation: SCHHCA > Board Index > Board Updates > 153 This is Visit #

Previous Next

Board Update #153 [2006/11/26]

Annual Membership Meeting

 

The following is a summary of the Annual Membership Meeting and Town Meeting of November 9, 2006.

 

1. The minutes of the 2005 Annual Membership Meeting were approved by the Neighborhood Representatives.

2. The Neighborhood Representatives approved a resolution calling for a deferral of Community Association Revenue under IRS Revenue Ruling 70-604.

[Note: Revenue Ruling 70-604:  ...  each year the members of the Sun City Hilton Head Community Association, Inc. must make an election for tax purposes. This election is a “blanket” election, and is provided as a tax-planning tool under IRS Revenue Ruling 70-604.  The members of a Homeowners Association may elect to apply any “excess membership income” to the membership assessments in the following tax year. “Excess membership income” is the amount of Association income greater than the amount of Association expenses in a tax year. The reason that the Community Association has “excess membership income” for tax purposes is because not all of the Association’s depreciation that is recorded in the books is expensed for tax purposes. For tax purposes, the transfer of assets from the Developer to the Community Association is treated as an increase in the Association’s equity.  As a result, there is a possibility that the Association’s income could exceed the expenses for tax purposes, and the Association would be subject to income tax on the excess. The election must be made by the membership; it cannot be made by the Board of Directors. A ‘yes’ vote signifies agreement that any excess membership income should be applied to the membership assessments in the following tax year. A ‘no’ vote signifies non-agreement that any excess membership income should be applied to the membership assessments in the following tax year .... -Ed.]

3. The Finance Committee presented the 2007 Sun City Hilton Head Community Association Budget to the membership. The budget is available for review on the Sun City Website.

4. Mark Taylor, Pulte’s President of the Southern Coastal Region outlined the developer’s plans for completing Sun City Hilton Head, including the final plans for the south side of U.S. 278 and the initial plans for the north side of the highway. The presentation also included general details of some of the retail stores moving into Okatie Crossing and Okatie Center. It is estimated that transition from the developer will take place in 2011 or 2012.

5. Al Reuben, President of the Board of Directors, presented an update of the Amenity Plan. The details are available for review on the Sun City Website.

6. The Finance Committee presented the Five Year Financial Plan for the Community. Once again, details are available on the Sun City Website.

7. The names of those to be honored at the Annual Board of Directors Awards Dinner scheduled for December 4, 2006, were announced as follows:

Bernie Dolat

Jim Hamilton

Steve Koehl

Jerry McQuaid

Richard McCollum

Tom Mehrlich

 

NOTE: Items C and F above were approved in a Special Meeting of the Board of Directors immediately following the Town Meeting.

 

Bob Hooper	bob.hooper@oursuncityhiltonhead.net
Jo Stephey	jo.stephey@oursuncityhiltonhead.net
Al Reuben	al.reuben@oursuncityhiltonhead.net