Public Comment We want to hear from our residents. A public comment - PowerPoint PPT Presentation

Public Comment We want to hear from our residents. A public comment period precedes the start of each board meeting. Residents wanting to provide information, comments or feedback to the Board may speak for up to three (3) minutes. Please fill out a comment card and present it to Executive Director Darren Shaw. The Board’s Chairperson will call upon you when comments or questions are discussed.

Meeting Agenda • Call to Order • Approval of June 5, 2017 Meeting Minutes • President’s Report • Treasurer’s Report • Executive Director’s Report • Unfinished Business (None) • New Business • 2016 Audit Report (Consideration) • Budget and Finance Committee Charter (Consideration) • Budget and Finance Committee Member Appointments (Consideration) • August 2, 2017 Realtor Training Program (Update) • Strategic Plan 2020 (Update) • Policy Committee Report Re: Proposed Policy on the Development and Management of Policies • Additional Discussion Items/Committee Reports • Adjournment

Call to Order Roll Call of Board Members • Susan Grace President • Fred Green Vice President • Tom Headley Secretary • Mike Esparza Treasurer • Don Matheson Director • Elizabeth Kepuraitis Director • Dr. Philip Geiger Director 4

APPROVAL OF JUNE 5, 2017 MEETING MINUTES

President’s Report Susan Grace • Governance Committee Report • DMB Re-Organization • Board Strategic Planning Exercise (Fall Season)

Treasurer’s Report Mike Esparza Second Quarter 2017

Statement of Revenue and Expense For the Period Ending June 30, 2017 (000’s) Quarter Ending 6 Months Ending June 30, 2017 June 30, 2017 Actual Budget Difference Actual Budget Difference Revenue: Assessments 1,683.5 1,683.3 0.2 3,366.8 3,366.7 0.1 Non-Assessments 235.7 218.3 17.4 440.8 410.0 30.8 Total Revenue 1,919.2 1,901.6 17.6 3,807.6 3,776.7 30.9 Costs: 1,530.6 1,611.0 80.4 2,890.0 3,131.2 241.2 Operating Cash Costs Reserve Funding 305.4 305.4 - 610.9 610.9 - Operating Non-Cash Costs: (Bad Debt & Depreciation) 1.1 14.8 13.7 18.8 29.6 10.8 Total Costs 1,837.1 1,931.2 94.1 3,519.7 3,771.7 252.0 Net Income (Loss) 82.1 (29.6) 111.7 287.9 5.0 282.9

Revenue - Six Months Ending June 30, 2017 4,000.0 3,366.8 3,366.7 3,500.0 3,066.3 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 440.8 434.8 410.0 500.0 - Assessments Non-Assessments Actual Budget Prior Year

Expenses - 6 Months Ending June 30, 2017 3,500.0 3,131.2 3,000.0 2,901.5 2,890.0 2,500.0 2,000.0 1,500.0 1,000.0 610.9 610.9 612.0 500.0 18.8 29.6 30.5 - Operating Cash Costs Reserve Funding Operating Non-Cash Costs: (Bad Debt & Depreciation) Actual Budget Prior Year

Balance Sheet – Assets Balance Balance 6/30/2017 6/30/2016 Change Assets Cash $ 865,965 $ 576,964 $ 289,001 Reserve Funds - Wells Fargo 6,783,221 6,355,905 427,316 Reserves-Accrued Interest Receivable 12,623 14,129 (1,506) Accounts Receivable Accounts Receivable 54,419 51,765 2,654 Accounts Receivable - Other 2,149 17,207 (15,058) Reserve for Bad Debt (13,215) (12,922) (293) Total Accounts Receivable 43,353 56,050 (12,697) Other Assets Prepaid Insurance 75,432 62,677 12,755 Prepaid Corporate Tax 8,117 8,117 - Prepaid Expenses 762 31,435 (30,673) Total Other Assets 84,311 102,229 (17,918) Fixed Assets Property & Equipment 315,850 461,088 (145,238) Accumulated Depreciation (248,750) (327,671) 78,921 Total Fixed Assets 67,100 133,417 (66,317) Intangible Asset - Lease Gain 8,230 - 8,230 Total Assets $ 7,864,803 $ 7,238,694 $ 626,109

Balance Sheet – Liabilities Balance Balance 6/30/2017 6/30/2016 Change Liabilities Short Term Liabilities Accounts Payable $ 272,465 $ 270,350 $ 2,115 Prepaid Assessments 263,902 236,436 27,466 Prepaid Council Assessments 66,205 62,495 3,710 Accrued Payroll 42,824 72,665 (29,841) Insurance Payable 40,238 14,920 25,318 Other Short Term Liabilities 5,841 9,118 (3,277) 691,475 665,984 25,491 Long Term Liabilities Capital Leases 23,225 64,633 (41,408) Note Payable-Ford Focus 6,016 11,172 (5,156) Total Long Term Liabilities 29,241 75,805 (46,564) Equity Reserve Contribution 6,795,843 6,166,954 628,889 Association Equity (84,417) 62,714 (147,131) Desert Haciendas Equity 7,462 14,332 (6,870) Terrace 1.13 West Equity 12,855 23,824 (10,969) Park & Manor Equity 13,112 27,859 (14,747) Country Club Equity 31,180 40,016 (8,836) The Estates Equity 8,606 29,491 (20,885) Terrace 1.14 East Equity 4,498 11,080 (6,582) Rosewood Equity 1,320 3,795 (2,475) 2.13/2.14 Equity 14,099 2,153 11,946 Haciendas Equity 1,178 16,043 (14,865) Market St Villas Equity (20,843) (6,038) (14,805) Montelena Equity 3,183 1,063 2,120 Parks at Silverleaf Equity 9,847 61,008 (51,161) Arcadia at Silverleaf Equity (4,382) 36,082 (40,464) Horseshoe Canyon/Canyon Villas Equity 56,107 41,820 14,287 The Sterling Estates at Horseshoe Canyon 6,487 7,624 (1,137) Net Income (Loss) 287,952 (42,915) 330,867 Total Equity 7,144,087 6,496,905 647,182 Total Liabilities and Equity $ 7,864,803 $ 7,238,694 $ 626,109

Statement of Cash Flows Six Months Ended June 30, 2017 Six Months Ended June 30, 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income (deficit) for period ended June 30, 2017 $ 287,952 Adjustments to reconcile net income (deficit) to cash provided by operating activities Depreciation 23,860 Bad debt expense (2,984) Gain on sale of capital lease (4,352) Intangible lease gain (2,831) (Increase) decrease in Accounts receivable 15,692 Prepaid expenses (38,707) Increase (decrease) in Accounts payable 38,980 Accrued payroll expenses - Prepaid assessments 24,725 Prepaid Community Council assessments 66,205 Intercompany payables (111,344) Other short term liabilities 35,515 NET CASH FROM OPERATING ACTIVITIES 332,711 CASH FLOWS FRON INVESTING ACTIVITIES Proceeds from sale of capital leased vehicle 13,158 CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (2,578) Principal payments on lease obligations (21,192) NET CASH FROM FINANCING ACTIVITIES (23,770) NET INCREASE (DECREASE) IN CASH 322,099 CASH, BEGINNING OF PERIOD 543,866 CASH, END OF PERIOD $ 865,965

Cash Balance - End of Month 1,200,000 1,000,000 952,669 930,212 878,232 865,965 820,008 790,398 773,155 830,473 800,000 758,088 760,718 760,547 774,416 770,708 775,389 723,150 642,667 677,754 600,000 543,866 577,071 556,553 580,281 575,964 549,869 513,301 415,774 487,831 487,355 484,198 484,019 400,000 351,463 200,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017

Executive Director’s Report Darren Shaw • City/Great Hearts Park Update • Desert Discovery Center Update (Desert Edge now) • Budget Development and Reserve Planning • Human Resources / Executive Admin Position • Review of PEO Services • Employment Handbook • Windgate Pass Sealing Project • Speed Device Initiative • Updating Community Maps (Larry) • NVM Meet and Greet Event (October) • Sub-Association Manager and Board Member Event (October) • Standards Review Underway (Conduct Up First) • Tax Exempt Status Proposal • DC Ranch Country Club Maintenance MOU • Gate Equipment Upgrades

2016 Audit Presentation Paul Hansen, Butler Hansen Accounting Firm

Proposed Budget & Finance Committee Charter Mike Esparza

Proposed Budget & Finance Committee Member Appointments Mike Esparza • Mike Esparza – Chairperson – Board Treasurer • Elizabeth Kepuraitis – Board Member • Mike McWalters • David Peterson • John Henrickson • Tom Grace • Scott Horsley

August 2 Realtor Training Program (Update) Terri Raimondi

Strategic Plan 2020 Darren Shaw Principles Initiatives

Proposed Policy on the Development & Management of Policies Tom Headley • Policy Committee Driven Policy • Board Directive • Other Committee Request Origination • Membership Request • Staff Request Policy • Policy Committee Drafts Policies • Policy Committee Reviews all Proposed Policies Before Board Consideration Development • All Policy Committee Meetings are Open to Members • The Board is Presented with Proposed Policy at Open Meeting Policy • The Board May Approve Conditionally Prior to 30-day Member Comment Period Approval • At Conclusion of 30-Day Member Comment the Board Can Formally Approve

Additional Discussion Items/Committee Reports 22

Announcements • The next board meeting is scheduled September 11, 2017 at 6 p.m. at The Homestead. 23

Adjournment