2017 High Level Planning and Proposed Budget. Town Hall Meeting November 7, 2016

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1 2017 High Level Planning and Proposed Budget Town Hall Meeting November 7, 2016

2 2016 Income Statement (Revenues thru September 30, 2016) Revenues Assessments 2,539,587 Golf Fees - Members 701,646 Golf Fees - Guest 227,774 Food Sales - net 278,443 Recreation Center Fees 171,655 Boat Dock Fees 220,527 ACC Fees and Sales 149,041 Residential Services 56,049 Investment 95,723 Other Income 124,111 Total Revenues $4,564,556

3 2016 Income Statement (Operating Expenses thru September 30, 2016) Operating Expenses Wages, benefits, taxes, Safety, training &related expenses 2,278,851 Supplies 365,358 Maintenance and Repairs 304,289 Utilities 293,181 Outside services and Interest and Banking fees 145,748 Taxes, Licenses and Insurance 275,678 Marketing and Other 72,310 Depreciation 558,037 Total Expenses $4,293,452 Net Income (Loss) $271,104 Note: 2016 Year-End Forecast = $280,544 Income

4 2016 Forecast vs 2017 Budget Forecasted 2016 Income 280, Budget Loss (17,975) Variance 298,519 One Time Adjustments (Investment Income + One Time Assessment Collections) (123,000) 175,519 Increase in Depreciation (56,000) Difference in wages, benefits, taxes, safety, training, related expenses (13.49% Increase See Next Slide) - New services, overtime regulations, 3% merit increase, wage adjustments, 2016 labor cost mgmt efficiency rebudgeted (481,000) New Website (5,000) 1% Sales Tax (10,000) (376,481) Decrease in Expense Budget - Most likely planning versus worst case planning 85,000 Net Increase in Assessment Revenue 66,000 Increase in Member Golf Revenue 80,000 Increase in Guest Revenue 37,000 Increase in Non-Golf Revenues and Fees 91,000 Balance (494) 2017 Budgeted Loss (17,975)

5 * Difference of personnel related items between the 2016 updated forecast and the 2017 Budget = $481,000 or 13.49% 3 New Service Positions 2.83% Expanded hours 1.12% New Overtime Rules 1.12% Adjustments for Superior Performance 0.53% 3% Merit Increase 2.81% 2016 Labor Cost Efficiencies* Rebudgeted 5.08% - Mgmt. of part time labor, open positions for part of year, etc. * Reference table on previous page and preceding page %

6 2016 Forecast vs 2017 Budget Forecasted 2016 Income 280, Budget Loss (17,975) Variance 298,519 One Time Adjustments (Investment Income + One Time Assessment Collections) (123,000) 175,519 Increase in Depreciation (56,000) Difference in wages, benefits, taxes, safety, training, related expenses (13.49% Increase See Previous Slide) - New services, overtime regulations, 3% merit increase, wage adjustments, 2016 labor cost mgmt. efficiency (481,000) New Website (5,000) 1% Sales Tax (10,000) (376,481) Decrease in Expense Budget - Most likely planning versus worst case planning 85,000 Net Increase in Assessment Revenue 66,000 Increase in Member Golf Revenue 80,000 Increase in Guest Revenue 37,000 Increase in Non-Golf Revenues and Fees 91,000 Balance (494) 2017 Budgeted Loss (17,975)

7 2017 Budget Objectives* 1. Fiscal Responsibility: Operate with a balanced budget while maintaining service and quality improvements. 2. Growth: Positive position for attracting local area investment and new neighborhood/housing development. 3. Investment in Fixed Assets: Continue increased capital reinvestment with cash generated through operations. *Alignment with Business Plan & 5 Year Cash Flow.

8 5 Year Cash Flow Objectives Five Year Cash Flow Forecast Objectives* 1. Balanced Budget: Operate within a balanced break even budget after depreciation. 2. Capital Investment: Strive to limit annual capital expenditures to annual depreciation expense. * As developed and recommended by finance committee & management to the board

9 2016 Forecast vs 2017 Budget Revenues 2017 Budget Revenues vs 2016 Forecast Forecast Budget Difference Assessments 3,353,922 3,420,240 66,318 Golf Fees - Members 910, ,350 87,325 Golf Fees - Guest 288, ,000 36,726 Food Sales - Net 390, ,670 30,595 Recreation Center Fees 225, ,440 24,366 Boat Dock Fees 298, ,189 36,109 ACC Fees and Sales 157,482 48,225 (109,257) Residental Services 86,049 90,000 3,951 Investment 108,323 51,756 (56,567) Other Income 145,337 77,980 (67,357) Total Revenues 5,962,641 6,014,850 52,209

10 2016 Forecast vs 2017 Budget Expenses 2017 Budget vs 2016 Forcast Operating Expenses Forecast Budget Difference Wages, Benefits, Taxes, Safety, Training & Related 3,083,481 3,564,776 (481,295) Supplies 434, ,220 88,420 Maintenance and Repairs 363, ,821 65,088 Utilities 392, ,504 1,241 Outside services and Interest and Banking fees 199, ,921 20,353 Taxes, Licenses and Insurance 372, ,839 9,584 Marketing and Other 88,283 86,315 1,968 Depreciation 747, ,429 (56,087) Total Expenses 5,682,097 6,032,825 (350,728) Net Income (Loss) 280,544 (17,975) (298,519)

11 Cash Flows: 2016 vs Est Bdgt Net income (loss) after Dep 280,000 (18,000) Depreciation 748, ,000 Cash from Operations 1,028, ,000 Cash to Repay Debt (160,000) (166,000) 868, ,000 *Cash Generated from Operations for Capital Total Capital Forecast (858,000) (622,900) Cash Over (Under) $ 10,000 $100

12 2017 Capital Forecast Capital Forecast for 2017: Must Spend: $469,000 Might Have To Spend: $153,900 Total Must & Might : $622,900 Would Be Nice: $195,000 Growth: $50,000 Total Possible Capital $867,900 Note: 2017 Budgeted cash flow from operations for 2017 capital = $623,000

13 2017 Capital Forecast Must Spend UV Conversion Indoor Pool 25,000 #14 Monticello Pond dam repair 100,000 Tara Bunker Conversion / Modification - Contractor 100,000 Monti's Fixtures & TV's 12,000 Tara Kitchen Reconfiguration 35,000 Lawnmower - Right away 19,000 Small Truck 24,000 New Van to Replace Unrepairable Van 29,000 Greens Mower - Tara 35,000 Greens Mower - Monticello 35,000 Holiday Road Building - Interior Improvements 50,000 New Projection System in McCormick Room 5,000 Total Must Spend $469,000

14 2017 Capital Forecast Might Spend Golf Course Pumps - Monticello 50,000 HVAC Replacements 15,000 Used 2500 Van 15,000 Replacement Mower - CS 12,000 4 Utility Carts 28,000 Ice Machine - RC 2,500 Exercise Equipment - RC 5,000 Utility Cart- Tennis Courts 16,400 Computers 10,000 Total Might Spend $153,900

15 2017 Capital Forecast Would Be Nice Tara Cart Paths -Phase 3 75,000 Bottom of Indoor Pool Resurfacing 25,000 Bocce Court Rotate 15,000 RC - Carpet Replacement 40,000 RC New Chairs 20,000 RC - Lobby area refresh 20,000 Total Would Be Nice $195,000

16 2017 Capital Forecast Growth Phase 2: Village Connectivity Trail Network 50,000 Total Growth $50,000

17 2017 Proposed Rates (See Attachment for Details)

18 Assessments Chart below illustrates the year-to-year change in current accounts based on the annual record date: Record Date August Accts Current Yr to Yr Change % Change , % , % , % , % , % , %

19 Properties Current at Annual Record Date 4,954 Home Sites Current Accounts 2527 Performing Home Sites GAP = Non-Performing Home Sites ,427 Non- Performing Home Sites

20 Assessments 2017 Budget includes a 5% assessment increase. A 5% increase in assessments generates $3,420,240 of assessment revenue for This is a $66,318 increase over 2016 forecasted assessment revenue. Assessment revenue budget based on 2,550 accounts forecasted to remain current in Assessment increase of 5%: From $ per month to $ per month.

21 Assessments 2017 budget counts on 1,100 living units and 1,450 vacant home sites remaining current in assessments. Places more pressure on SLV operating amenities in budget planning and month-tomonth results. Balance of Value and Attractiveness - SLV assessment rate remains below comparable competitors and a great value and significant attractor for potential new residents.

22 Assessments - Historical Net Assessment Revenue 4.2M 4.1M 4,100,000 3,900,000 4M 3.9M 3,700, M 3,500, M 3.4M 3.42M 3,300,000 3,100, M 3.3M 3.2M 3.2M 3.1M 3.35M 3.22M 2,900,000 3M 3M EST 2017 BGT

23 Why 5% Increase? 1. Needed to meet budget objectives, providing enough cash flow from operations to fund capital expenditures to keep SLV attractive and relevant to residents, non-residents & new buyers. 2. As of 2015 record date, 2,527 home sites out of 4,954 (51%) are current. At best, 2,600 home sites can be considered performing as of today. 3. Savannah Lakes Village owns $24,000,000 in assets/amenities, but currently only has $1,700,000 (7% of fixed assets) in reserves.

24 Why 5% Increase? Fixed Assets versus Current Reserve Balance Source: Responding large-scale community managers 35,000,000 Fixed Assets 30,000,000 Current Reserve Balance 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 -

25 80% 70% 60% 50% 40% 30% 20% 10% 0% Why 5% Increase? Percentage of Reserve Funded Source: Responding large-scale community managers

26 Why 5% Increase? Annual Assessment Rate of responding communities Source: Responding large-scale community managers Current Annual Assessment 3,500 3,000 2,500 2,000 1,500 1,

27 Golf Program Annual User All-inclusive unlimited play annual user membership: $3,300 or $275/mth + $275 cart rebate at end of year. Annual User 9 Hole program membership $1,900 or $158.33/mth + $130 cart rebate at end of year. New for 2017: Annual user memberships include free golf for child or grandchild under 18 when accompanied by the annual member. Direct relatives (son, daughter, son-in-law, daughter-inlaw) can play for member rates with annual member.

28 Golf Program Daily Rates Prime-time rates of $40 (green & cart) for 18 holes and $25 (green & cart) for 9 holes. Increase in non-prime fees to $32 (green & cart) for 18 holes and $19 (green & cart) for 9 holes. Increase in Outside Guest rates of $5 per round to $54 (green and cart).

29 Golf Rate Comparison $10,000 Total Annual Cost Single Membership $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000

30 Golf Rate Comparison $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 Total Annual Cost - Family

31 Golf Rate Comparison Summary Sorted by Price Course Rate Type Rounds Total Cost Greenwood Country Club $ Family $ 5,392 Hunters Creek $ Family $ 5,028 Stoney Pointe $ Family $ 5,624 Jones Creek $ Family $ 5,658 SLV $ Single $ 3,300 SLV $ Family $ 6,600 Stoney Pointe $ Single $ 3,389 Bartram Trail $ Single $ 3,393 Greenwood Country Club $ Single $ 3,875 Jones Creek $ Single $ 3,707 River Club $ Single $ 3,825 Mount Vintage $ Family $ 7,772 Patriot Golf Course $ Family $ 8,293 Hunters Creek $ Single $ 4,018 Woodside $ Family $ 8,880 Houndslake $ Single $ 4,239 The Reserve Club $ Family $ 8,780 Westlake $ Family $ 9,075 Mount Vintage $ Single $ 4,734 Champions Retreat $ Family $ 11,456 Patriot Golf Course $ Single $ 7,261 The Reserve Club $ Single $ 7,130 Woodside $ Single $ 7,230 Westlake $ Single $ 7,425 Champions Retreat $ Single $ 9,393

32 Recreation Center Program Annual RC Membership: $365 or $30.41/mth - Includes all instructor led classes. $465 or $38.75/mth for recreation and tennis. New RC & Bowling Membership: $465 or $38.75/mth (Limited only if other members are waiting). New RC, Tennis & Bowling Membership: $540/$45 per month New for 2017: Annual user memberships include free usage for children and grandchildren under 18 when accompanied by the annual member.

33 Recreation Center Program Member Daily Rate remains $5 for all day, and $4 after 12 p.m. Instructor led classes increased from $2 per class to $3 per class (Note: All classes are included with annual user pass).

34 Recreation Center 2017 Bowling Rates Proposed adjustments after market comparison: New Bowling & RC Annual NA $465 New Bowling & RC + Tennis/Pickleball NA $540 Member Per Line $3.00 $3.25 RC Only Annual Member Per Line $2.75 $3.00 Member Guest Per Line Guest Per Line $4.50 $4.75 Member League Per Line $2.75 $3.00 Shoe Rental $1 $2

35 SLV Docks 2016 Per Month 2017 Per Month Lake Home Owner - Long Term 17,000 17,500 Lease Community Dock Annual Lease Annual Dock Maintenance Fee

36 Amenity Subsidies 2,000,000 1,900,000 1,800,000 1,876,300 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,346,324 1,313,958 1,320,047 1,313,973 1,100,000 1,000, BDGT 2017 BDGT 2017 Budget Plan Maintains Reductions (Improvements) in Amenity Subsidies, while providing expanded services. Cumulative reduction in subsidy over four years = $2.2M+ that has funded capital improvements and reserve fund growth.

37 Key Results 2017 Budget & Planning will Accomplish Expanded Programs & Services Community Services, ACC, Docks: Architectural Control Inspector & Administrator: Reestablishes this position in the organization We have operated without this position since 2009 during periods of low growth, and work has been done on volunteer basis to this point. No longer feasible. Dock Maintenance: Adds a full time dock maintenance position to better address dock maintenance needs. (Reference Dock Maintenance Presentation from August Town Hall Meeting). Transition of Interceptor Tank Program to County and Contractor. Limit SLV s exposure and expensive inventory carry.

38 Key Results 2017 Budget & Planning will Accomplish Expanded Programs & Services Recreation Center: Open Sunday Afternoon: Expand regular hours of operations to include Sunday afternoon for promotion of new bowling and other programs (has been closed Sunday afternoons except for Summer). Evening Bowling Events: Expanded staff coverage for more evening bowling leagues and bowling events. Improved Clay Court Maintenance: Redressing of clay courts on an annual basis Has been done biennially in the past. Recreation Center Capital Maintenance Improvements: UV pool system. Carpet, lobby area refresh, and chairs identified as capital maintenance if mid-2017 cash flow forecast allows.

39 Key Results 2017 Budget & Planning will Accomplish Expanded Programs & Services Golf Program and Services: Expanded Golf Shop Hours In-Season at Monticello: Monticello will have extended hours for twilight play and practice range, covered by cross-trained cart attendants. Golf Programing: Continued focus on creating, promoting and growing greater participation from membership and newcomers. Golf Maintenance: One additional full time employee. Remained very lean for many years, starting to show in some areas of courses.

40 Key Results 2017 Budget & Planning will Accomplish Expanded Programs & Services Food & Beverage Services: Maintains Expanded Hours & Services: Maintains expansions made in 2016 Monticello Breakfast, Grab & Go Breakfast Services. Expanded Hours & Services: Includes return of evening programs and F&B services at the Monticello Clubhouse. What s Cooking (Heat & Serve Dishes) and Take Out Menu will be focus new programs at RG. River Grille Kitchen Reconfiguration: Moves freezers out of main kitchen/prep space to allow for additional prep-space. Creative solution to improve the quality delivery of plates on higher volume nights at the clubhouse without the need for a major and expensive renovation. Improved Service & Experiences: Continued training, development and commitment to elevating experiences for F&B supporters.

41 Key Results 2017 Budget & Planning will Accomplish Expanded Programs & Services Monticello Clubhouse: Expanded dinner hours: Fun, casual pub/sports bar concept kitchen open until 9 p.m. six nights a week. Classy, yet fun hang-out environment: Expand TV s indoor & outdoor, fire pit, improved outdoor seating. Throw a party every night : Day-to-day programing & promotions of televised sporting events, contests, theme nights, bar specials, live entertainment, and more. Support 2017 golf program planning: Expansion of twilight golf, evening golf programs putting contests, closest to pin events, introductory golf programs, etc.

42 2017 Commitment: Continued Advancement of a culture where Service Excellence & Continuous Improvements can thrive. WE BELIEVE: Happy and Engaged Team = Greater Service = Member Satisfaction = Financial Improvements = GROWTH

43 2017 High Level Planning and Proposed Budget Town Hall Meeting November 7, 2016

44 5 Year Financial Objectives Five Year Cash Flow Objective* * As developed and recommended by finance committee & management to the board

The Landings Yacht Golf & Tennis Club, Inc. For The Month Ending October 31, 2016 Fiscal Period 1

The Landings Yacht Golf & Tennis Club, Inc. For The Month Ending October 31, 2016 Fiscal Period 1 The Landings Yacht Golf & Tennis Club, Inc. Table of Contents Financial Overview Pages 1-6 Balance Sheet