Quillen’s Point Homeowner Association’s October 3, 2015 General Meeting 10 AM in the Great Room of the Mariner’s Bethel UM Church, 81 Central Ave, Ocean View
Welcome New Neighbors • Lot 22, 38964 Bayfront Dr. – Keith & Mary Boenning (also lot 85) • Lot 29, 38916 Bayfront Dr. – Jeff & Tracy Holcomb • Lot 61, 38793 Apple Ct. – Phil & Annette Arbaugh 2
Water Operations TOTAL GALLONS PUMPED (numbers in red are estimates based on 2011-2014 volume) Year Jan Fed Mar Apr May June July Aug Sept Oct Nov Dec Total 2011 300,000 350,000 275,000 275,000 600,000 1,000,000 1,360,000 1,200,000 1,000,000 600,000 190,000 220,000 7,370,000 2012 300,000 180,000 200,000 400,000 650,000 900,000 1,100,000 900,000 700,000 900,000 400,000 200,000 6,830,000 2013 180,000 100,000 75,000 800,000 900,000 1,000,000 1,190,000 1,100,000 800,000 700,000 400,000 250,000 7,495,000 2014 250,000 200,000 250,000 290,000 900,000 1,200,000 1,400,000 1,300,000 1,200,000 800,000 400,000 230,000 8,420,000 2015 220,000 650,000 240,000 220,000 850,000 1,000,000 1,300,000 1,280,000 925,000 750,000 347,500 225,000 8,007,500 Average 250,000 296,000 208,000 397,000 780,000 1,020,000 1,270,000 1,156,000 925,000 750,000 347,500 225,000 7,624,500 3.28% 3.88% 2.73% 5.21% 10.23% 13.38% 16.66% 15.16% 12.13% 9.84% 4.56% 2.95% 100.00% Percent Annual volume has been largely stable June-August is about half of the total annual volume May-Sept is about 66% of the total annual volume • Quality – No E. Col. or Coliforms detected in either well • Water Valves – Requested to have located by September. Not all homeowners provided or marked location. Homeowners benefit since marking allows the plumber to quickly shut of the water at the street connection 3
Committee Activities Summary • Architecture (James Rich) - numerous requests received and approved • Roads and Grounds (Tom Farrah ) – Drainage issue addressed by homeowner. Lights and irrigation issues at front entrance addressed. • Recreation ( Thomas Gilmore ) – Tennis court trees trimmed, 16 of 18 marina slips rented. Entrance gate repaired. • Landscaping (Warren Smiley) – Grass height, tree trimming and debris concerns addressed. • Welcoming (Nell Hutchins, Connie Britell) – Several new neighbors • Front Entrance (Hugh & Leona Conner) – New flowers and decorations for the holidays. 4
2016 Assessments & Fees Calendar Year Assessment / Fee 2012 2013 2014 2015 2016 (number of lots paying 2015) Annual Assessment (99) $400.00 $400.00 $400.00 $400.00 $400.00 Water Fee (86) $180.00 $280.00 $300.00 $300.00 $300.00 Trash Fee (86) $276.00 $276.00 $276.00 $276.00 $280.00 Slip Rental (17, 16 in 2015) $375.00 $375.00 $400.00 $400.00 $400.00 Home Owner Grass Cutting (12) $240.00 $240.00 $240.00 $240.00 $240.00 Important take aways – 1. Small increase over 2015 in trash only 2. Assessments and fees stable since 2012 5
Income & Expense Analysis (excludes trash - $23,726 in 2015 - and annual HO grass cutting fees -$2,400 - that are passed on at cost) Actual Income & 2015 Income & Expenses by Expenses Average % of 2016 Assessment/Fee 2012-15 Expenses Actual 2012 2013 2014 Budget 2016 (excludes items passed on to Homeowners ) (as of Aug) Annual Assessment $39,600 $39,600 $39,600 $39,600 $39,600 $39,600 $39,600 $5,191 $5,037 $5,587 $6,620 $3,916 $5,609 $6,145 9.6% Accounting & Tax Services $5,199 $5,429 $5,813 $5,900 $5,900 $5,585 $6,000 9.4% Insurance $4,600 $4,850 $5,827 $6,900 $3,247 $5,544 $6,524 10.2% Street Lights $6,640 $6,874 $8,334 $7,100 $6,523 $7,237 $5,655 8.8% Maintenance - Roads, Entrance, Rec Areas $5,084 $4,759 $3,237 $2,950 $3,082 $4,007 $3,725 5.8% Meeting & General $26,715 $26,949 $28,798 $29,470 $22,668 $27,983 $28,049 Total Assessment Expenses Annual Assessment Net of Expenses $12,885 $12,651 $10,802 $10,130 $16,932 $11,617 $11,551 43.8% Water Fees $15,480 $24,080 $25,800 $25,800 $25,900 $22,790 $25,800 $11,343 $19,081 $23,945 $24,000 $15,920 $19,592 $24,000 37.5% Management Fees $8,753 $8,978 $8,462 $5,930 $5,529 $8,031 $5,930 9.3% Utilities & Chemicals $13,648 $5,696 $7,216 $5,000 $1,274 $7,890 $5,020 7.8% Operating & Maintenance Expense $33,744 $33,755 $39,623 $34,930 $22,723 $35,513 $34,950 Total Water Expenses Water Fees Net of Expenses -$18,264 -$9,675 -$13,823 -$9,130 $3,177 -$12,723 -$9,150 54.6% Marina Slip Rents $4,125 $3,750 $5,200 $6,800 $5,285 $4,969 $6,800 $300 $1,903 $1,625 $1,000 $223 $1,207 $1,000 1.6% Marina Repairs Marina Rents Net of Expenses $3,825 $1,847 $3,575 $5,800 $5,062 $3,762 $5,800 1.6% Bottom Line (expense safety) -$1,554 $4,823 $554 $6,800 $25,170 $2,656 $8,201 100.0% Important take aways – 1. 55% of the expenses are set by contract – accounting, tax, insurance, H2O mgn. fees 2. Another 20% of the expenses are recurring - utilities or water treatment chemicals 3. Had a limited need for repairs or equipment replacement and recent budgets included a $5,000 safety net for unplanned repairs/replacement . 6
Reserves and Cash Analysis Actual Year End Estimated Cash or Reserve Accounts Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Cash Saved for DNREC Contract $ 16,615 $ 16,615 $ 16,615 $ 16,615 $ 16,615 $ 16,615 Reserves/Equity Accounts (Updated after year-end, stays same on monthly balance sheet reports) Marina Reserve - Dec YE Balance Sheet $ 14,450 $ 19,560 $ 23,385 $ 25,232 $ 24,321 $ 1,736 Tennis - Dec YE Balance Sheet $ 663 $ 1,633 $ 1,633 $ 2,633 $ 3,633 $ 3,633 Retained Earnings - Dec YE Balance Sheet $ 4,652 $ 14,681 $ 9,749 $ 12,418 $ 33,043 $ 29,609 Dredging Reserve $ 1 $ 1 $ 1 $ 1 $ 1 $ - $ - $ - $ 34,555 $ 45,733 $ 49,500 Emergency Assessment ($500/member) Total Reserve/Equity Accounts $ 19,765 $ 35,876 $ 34,768 $ 74,839 $ 106,730 $ 84,478 Generator Value Included in Retained Earning (not cash) $ - $ - $ - $ 7,824 $ 6,520 $ 5,215 Cash Portion of Reserves/Equity Accounts $ 19,765 $ 35,876 $ 34,768 $ 67,015 $ 100,210 $ 79,263 Cash Generated From Operations Billed Components of Operating Net Income (Not used to fund operations) Emergency Assessment ($500/member) $ 25,245 $ 16,830 $ 7,425 $ - $ - $ - Generator Assessment ($150/member) $ - $ - $ - $ 14,850 $ - $ - Total $ - $ - $ 25,245 $ 31,680 $ 7,425 $ - Operating Results Overage/(Underage) $ 16,139 $ (1,634) $ 5,871 $ 5,217 $ - $ - Net Ordinary Income (From Dec YE Income Statement) $ 16,139 $ (1,634) $ 31,116 $ 36,897 $ 7,425 $ - Other Income (From Dec YE Income Statement) $ - $ 5 $ 9,270 $ 500 $ 500 $ - Other Expenses (From the Dec YE Income Statement) $ - $ - $ - $ (4,476) $ (29,147) $ - Total QPHOA Income (from Dec YE Income Statement) $ 16,139 $ (1,629) $ 40,386 $ 32,921 $ (21,222) $ - Adjustment Post December For Tax Purposes $ (28) $ 522 $ (315) $ (1,030) $ (1,030) $ - Annual Income To Be Reallocated $ 16,111 $ (1,107) $ 40,071 $ 31,891 $ (22,252) $ - Cash Adjustments to QPHOA Income Pre-Payment of Emergency Assessment $ - $ - $ 9,310 $ (5,652) $ (3,658) $ - Cash Generated From Annual Operations $ 16,111 $ (1,107) $ 49,381 $ 26,239 $ (25,910) $ - TOTAL Year-End QPHOA Cash $ 52,491 $ 51,384 $ 100,764 $ 109,869 $ 90,916 $ 95,878 Uses of Cash From Operations - Calculated (Jan-Dec) Add to Marina Reserve $ 5,110 $ 3,825 $ 1,847 $ (911) $ (22,585) Add to Tennis Reserve $ 970 $ - $ 1,000 $ 1,000 $ - $ - Add to Retained Earnings $ 10,029 $ (4,932) $ 2,669 $ 20,625 $ (3,434) $ - Add to Dredging Reserve $ 1 $ - $ - $ - Add to Emergency Assessment $ 34,555 $ 11,178 $ 3,767 Pre-Paid Emergency Assessment (Restricted) $ 9,310 $ (5,652) $ (3,658) Purchase Well House Generator $ - $ - $ - $ - $ - $ - Total Uses of Cash From Operations $ 16,111 $ (1,107) $ 49,381 $ 26,239 $ (25,910) $ - Important take aways – 1. We have about $79,250 in cash reserves of which $49,500 is the emergency assessment 2. We also have another $16,615 in cash if forced to pay DNREC 7
Summary of the 2004 Reserve Study Important take aways – 1. Study recommended that reserves (w/o) dredging be $75,000 and a $22,000-to- $23,000 annual contribution was needed to keep reserves at the $75,000 level 2. The CPI in 2004 was 188.90 versus 236.00 in 2014, about a 25% increase. The study also did not include several recent improvements. 3. Especially for the water plant equipment, annual repairs and preventative maintenance have resulted in longer “useful lives” than those used in the study. 8
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