GM Notes Board Work Session January 17, 2018 Budget FY19 (V) Proposed budget presentation. The General Manager made a presentation on Budget FY19 highlighting the biggest issues of FY19 which consisted of infrastructure, technology, a proposed reduction in pool memberships, increased costs of utilities-communication-supplies, $250k in cuts from the first budget draft that included staffing cuts, vehicles cut, no 2nd trash day, no additional employee compensation and many other cuts. Fee increases were recommended for the stables and the golf course. The resulting deficits for the GM budget was -$150,285 and the Finance Committee -$163,795 both of which would result in a $6 a-month increase in dues and are mostly related to paving and the new financial/website software. The GM compared our employee roster of 48 (23Ft – 25PT) to a similar HOA which employees 120, provided an update of the reserve (2.5 million) and contingency (665k) accounts and talked about the effort being made to revive the golf course through reduced hours in the winter, staff cuts, the introduction of foot golf and aggressive outside marketing. She also requested Board support for the Peace Park safety fence and park upgrade and made the Board aware that a renegotiation of the trash contract resulted in a $10k savings for FY19. The Health Care resolution is expected to save up to $50k more but until it is implemented we can’t count on it as it involves an option rather than a mandate. That concluded the GM presentation. There were 16 residents in attendance (many of them first timers – thank you for coming!) 11 of whom addressed the Board regarding the budget on topics including the Peace Park upgrade and materials for the safety fence, annual golf course deficit, need to bring the Harbour “out of the 80’s” and appeal to younger families, RFID system vs. paving needs, extension from the county to build the 2nd lane, that even a small dues increase could push some families out of the Harbour, employee compensation, dredging mitigation, the Finance Committee, generating more revenue, the Harbour’s tax form, a question about why todays account balances are different from November 2017, optimization, performance improvement and researching grants. There were also several offers to help with committees, pledges to get more involved and many thanking the Board for the volunteer work they do and the tough decisions they have to make. It was a very constructive and respectful exchange of ideas, answers and information. The Treasurer spoke on behalf of the Finance Committee and identified the few areas where the numbers differed between the Committee and the GM (17-line items out of 386). These items were discussed in earnest by the Board and they came to consensus on all but two items. As a result, there will be two Board Budgets: A & B for the Board to vote on January 31, 2018 at the regular Board Meeting at the Country Club. The difference in these budgets is $12,500 but both budget after cuts by Board result in a dues increase of $5 per month. Update on RFID – The GM reviewed the two days of testing at front gate. We are still not satisfied with the numbers and she reported that we are now engaging the manufacturer of the decals to get their butts to Virginia and provide an explanation and solution as to why the RFID tags sometimes read and sometimes don’t - though they seem to be working very well at the back gate where our VDOT permit is in place for 24/7 access through 2/28 (we asked for a 30 day permit but they gave us 45 – bonus!) though they reserve the option to pull it at any time. The GM expressed frustration with the front gate RFID project but also determination to salvage our investment and require both the contractor and the manufacturer to make it work or refund our money. AHPOA Meeting Recording Policy (V) – The Board members expressed a desire to make the live stream and even short term historical access available under certain conditions: · It doesn’t cost anything. · It is available to ALL members and ONLY members of the Association. · It is recorded and distributed by staff. Additional information was requested by Northstar Global, our new website contractor and our attorney for a resolution at the January 31st regular Board Meeting. 2018 Golf Tournament Schedule (V) The schedule was reviewed. ACC issue regarding a fishing platform behind a resident’s house (V). Town Hall – The Board discussed that they would like to conduct 3 Town Hall’s a year as they Open 30 is not conducive to Q & A. The first one will be in March. The date will be announced in February. Interest was also expressed in ice cream socials and periodic pot lucks at the Harbour Inn. The GM mentioned there is also an effort underway to open the Harbour Inn for ballroom/couples dances a few times a year. All of these suggestions will be forwarded to the events committee. Meeting ended at 9:23p I also couldn't resist showing you the first mock-up of our new website. It’s just the first step but it’s coming along.