The July Workshop was moved to the Yacht Club because of the large number of Property Owners expected to be in attendance for the discussion of the proposed change to the By-Laws (see below).

1. Lot Disposal Policy: Bob Snodgrass (Chair of the Finance Advisory Committee) presented thoughts for the sale of lots that are owned by the POA as a result of foreclosures for nonpayment of monthly assessments. Currently, the POA has 35 lots in its inventory. Considering foreclosure actions presently underway this number could exceed 100 by the end of 2010. The primary interest of the POA is to get these lots into the hands of new owners and back onto the active assessment rolls. Secondarily, the POA must pay property taxes on each lot that it owns (estimated at $100-$150 per year), an obligation that ceases with the lot sale. The primary method of such sales in the past has been through a bid process (actual bids have been in the $3,000 range). The proposal deals primarily with the sale of interior lots.

   The current proposal envisions a partnering with local real estate firms whereby each lot is listed at $5,000 with $3,000 going to the POA. The realtor can use the remainder of the listing price for negotiating, marketing or other inducements. Unused funds above the $3,000 due to the POA would be the sales commission earned by the realtor. To prevent delays in the process, the proposal gives the POA General Manager authority to approve any sales up to $10,000 without further Board action. Under the present method, the POA Board must approve all sales, which can result in delays of up to a month as well as lost sales.

   After discussion and input from the audience, the Board instructed the Finance Committee to draft a formal procedure for consideration at the next Board meeting.

2. Proposed By-Law Amendment: The POA Board has received numerous communications from property owners concerning recovery of costs incurred by the POA due to actions of members (i.e., other property owners). Of particular concern are the legal and document retrieval and copying costs incurred due to the actions of the "Watchdog Group" over the past two years.

1. President’s Announcements: Board President Joe Marlette made the following announcement:

• Honors Award nominations are due at the POA offices by September 10. Nomination materials are available at the POA Offices as well as numerous other venues around the Village.

1. General Manager’s Comments: POA General Manager, Winston Blazer, offered the following comments:

• POA 101 is scheduled for the Yacht Club on July 29 at 7pm. If you are interested, please make a reservation by calling Patty Robichaud at the POA Office so that they can have your resource book ready for you at the meeting.
• Golf 101 is scheduled for the Tanasi Clubhouse on July 30 at 9am. Please call the Tanasi Pro Shop to make a reservation so materials will be available for you.

1. Yacht Club Food Service Contractor: Winston Blazer announced that The Compass Group North America (a $9.2B subsidiary of Compass Group PLC – United Kingdom) has been chosen to take over the food service at the Yacht Club. Based in Charlotte, NC, Compass Group owns and operates upscale and specialty restaurants throughout the country (includes resort communities, museums, Disney World, sports venues, schools, events like the US Open, etc.) as well as food service for such organizations as Microsoft, Motorola and IBM. It is expected that they will take over the operation in the September/October timeframe. All present employees are being interviewed for opportunities. You can learn more about Compass Group at www.cgnad.com.

2. Long Range Master Plan: Bob Janofsky of the Long Range Planning Advisory Committee (LRPAC) made a short presentation to the Board about the status of the Master Plan. LRPAC has incorporated the more than 900 comments from residents into their process and is proceeding with a priority ranking of options. They are also considering funding options and exploring the availability of grants for "green" initiatives such as walking and bike paths. The committee asked the Board for guidance regarding affordable capital limits.

3. Building Permit Activity: New permits for single-family homes and townhomes now total 26 for the year. Additionally, 2 Townhouse permits have been issued. The budget for this period was 13. Currently, 39 houses and 2 townhouses are under construction in the Village (9 in Kahite).

4. Financial: Revenue year-to-date was $6,685K versus a budget of $6,532K. While golf revenue continues to be lower than budgeted due to the weather earlier this year, improvement was seen in May (413 rounds played over budget) and June (65 rounds over budget). Wellness Center memberships, new home permits and higher water/sewer revenue continue to exceed expectations. Year-to-Date Expenses were $7,080K vs. a budget of $6,840K. This is largely due to timing of maintenance projects (street and parking lot paving, planned repairs of water/sewer substations, equipment maintenance) that have occurred earlier than expected. There is a significant savings in personnel costs to this point due to unfilled positions. The Village’s cash position stands at $4,637K or $276K better than budgeted. The current cash projection for year-end is $3,233K ($100K worse than budget).

5. Lot Disposal Policy: The lot disposal procedure proposal was discussed by the Board with input from the audience. To address a few concerns raised by Board members, the Finance Committee was asked to re-draft portions of the process for presentation at the next Board Meeting.

6. State Tax Audit: Cotton Hunt reported that the Tennessee Department of Revenue has been conducting its first audit of the Village since 1990. In its preliminary findings, they have found that Sales and Use Taxes have been underpaid during the three-year audit period by about $48K. Additionally, the auditor has found that the Village has erred by not filing returns related to a 1937 "Privilege Tax" for sellers of water that are not municipalities (the tax is 3% of sales). This deficiency was never mentioned in the 1990 audit, and POA is researching whether there was supposed to be an exemption for the Village. Total liability for the audit period could be $130K. The potential tax payments are included in the year-end cash projection.

7. Other Actions:

• Delinquent assessment accounts stood at 710 at the end of May totaling $1.29M. This is down from 732 delinquencies at the beginning of the month (and 858 in January). Six owners of 436 lots represent 53% of the total dollars owed. Each month, delinquent lots add about $64K to the outstanding delinquent assessment total. 419 of the delinquencies are more than 360 days. Currently, the POA owns 35 lots.
• There are a total of 6,730 lots in the Village. Currently, 53% of those lots have homes on them (3,570).

1. Membership: Through July 12, the HOA has received 1391 dues payments from memberships. This is 102% of the 2009 year-end total.

2. Starting with the July 19 Welcome Coffee, the New Villagers Club and the HOA combined their welcome orientations into a single periodic meeting. The Chairs for the new format are Mark and Debbie Montgomery from New Villagers and Nancy Eident from the HOA. 48 Individuals representing 26 households attended the session.

3. The HOA and POA Board are working jointly on a "State Of The Village" presentation. It is scheduled for September 9 from 7 to 9:30pm at the Community Church.

4. The HOA has begun the process to identify a slate of officers for 2011. The By-Laws call for a five person nominating committee consisting of two current Board members and three people from the general membership. From the Board, Linda Kaump (Past President) and Rick Blough (New Villagers Liaison) have been chosen. Linda will chair the nominating committee. Cathy DeBoer, Jim Lane and Mike Murphy have agreed to serve on the committee. Election of the 2011 Board will occur at the November General Meeting. If you are interested in serving on the HOA Board next year, please contact one of these individuals.