05-05-23.PRESIDENT'S REPORT..Electronic Copy.Issue 1

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What are we going to do to address the issues identified? This will require both short and long term solutions. A few examples follow: ◼ We have a new Executive Chef starting this summer who we believe will significantly elevate the culinary experience. ◼ We are shifting from a reliance on contract labor (aka day labor) in our kitchens to an emphasis on full - time employees, which will enable us to elevate staff training and performance. ◼ On the Board front, we will be developing a Board Policy Manual which will clearly lay out the Board ’ s responsibilities. I hope to increase the frequency of Board communica tions, so you know what and why we are doing certain things. Management is keenly aware that it needs more interaction with the membership, and we are currently filling crucial roles within the management structure. OPERATING BUDGET At the Board meeting, we passed the Operating Budget for the 2023 - 24 fiscal year. I can say with certainty that the process was exhaustive and open; our finance subcommittee met with each of our operating managers to review their budgets line by line. The Operating Budget Subcommittee, led by Herb Selzer, worked diligently on the project. The end result will be an increase in our dues of 13.2%. The email you have received separately from Miles details the factors driving cost increases and explains our plans to minimize the impact of increases while ensuring that we are meeting the needs of the community. It is an understatement to say that we as a Board were not happy with the degree of the increase, but we find it necessary in order to run the club effectively and provide the membership with the experience they have expressed they want. Additionally, it ’ s important to note that our club dues are in line with other comparable clubs. Where we differ, it ’ s important keep in mind is that the size of our community and breadth of

services we provide means we spread our fixed costs over a smaller number of homes versus other clubs. There is a basic management structure needed to run the operation. We also have a Beach Club facility that affects our cost structure. Our low density and our Beach Club are also two of our greatest assets and this shows up in the survey results. One area where fees are significantly higher compared to other clubs is in our POA. It is difficult to com pare our fees to other clubs as we bundle many of the services into one fee, whereas other clubs charge separate fees in different areas. We have asked management to do a study so we can provide more detail and explanation. NEW CLUBHOUSE CONSTRUCTION PROJECT The Clubhouse construction project is moving along. During the first week of May, we will be doing the first concrete pour for the building footings. The team continues to work on realiz ing value engineering items, securing subcon tractors, and ordering long - lead - time items. We have a lot of work in front of us to complete the various projects and processes to improve our service levels. Rome wasn't built in a day, but we are heading in the right direction. COMMITTEE APPOINTMENTS The proposed Committee Chairs were ap proved by the Board for the 2023/2024 season. (see the list of Committee Chairs on Page 3). Some of the changes this year include: adding an Activities Committee, combining the Golf & Greens Committees, discontinuing the Engineering, Insurance, Technology and Medical Advisory Ad Hoc Committees and the Link Committee changing its name to Creek Connection Committee. The Committee Chairs have finalized their selections. If you have any questions regarding the committee process, please contact Linda George in the POA office. Click here to view the 2023 - 2024 Budget Message from Miles Tucker, COO/ED