Driftwood Key Club Driftwood Key Club

2008-2009 2008-2009 Financial Financial

PresentationPresentation

Facts About DWK Facts About DWK CommunityCommunity

775 Individual Lots775 Individual Lots 505 Homes505 Homes 599 Members599 Members Many members own multiple lots Many members own multiple lots but only pay for one membership but only pay for one membership

DWK represents approximately 45% DWK represents approximately 45% of the total population living of the total population living in the Hansville zip code.in the Hansville zip code.

DWK Club Common DWK Club Common OwnershipOwnership

4.61 Acres of Land4.61 Acres of Land 1,000+ feet of Waterfront1,000+ feet of Waterfront 3,000 Sq. Ft. Clubhouse3,000 Sq. Ft. Clubhouse Pool and Pool House Pool and Pool House BuildingBuilding

Office/Storage BuildingOffice/Storage Building 93 Slip Marina93 Slip Marina Boat LaunchBoat Launch Sheltered Bay & Channel Sheltered Bay & Channel TidelandsTidelands

Boat Storage AreaBoat Storage Area Children’s PlaygroundChildren’s Playground

Clubhouse/Marina Clubhouse/Marina ComplexComplex

Boat Storage AreaBoat Storage Area MarinaMarina Marina/Clubhouse Marina/Clubhouse ParkingParking

ClubhouseClubhouse Office/Storage Office/Storage BuildingBuilding

Pool & Pool HousePool & Pool House Community BeachCommunity Beach Children’s Play AreaChildren’s Play Area Park GroundsPark Grounds Boat Storage AreaBoat Storage Area 2.65 Acres2.65 Acres

Boat LaunchBoat Launch

Boat Launch RampBoat Launch Ramp Dock and Dock and Temporary SlipsTemporary Slips

Boat Wash WaterBoat Wash Water .17 Acres.17 Acres

Lot 54Lot 54

Community ParkCommunity Park Emergency Emergency Helicopter Helicopter Landing AreaLanding Area

1.62 Acres1.62 Acres

Lot 25Lot 25

Located on Hood Located on Hood Canal DriveCanal Drive

Southernmost Lot Southernmost Lot in DWKin DWK

Location of DWK Location of DWK Southern Community Southern Community SignSign

$150/year Property $150/year Property TaxTax

.17 Acres.17 Acres

Estimated Value of Club Estimated Value of Club AssetsAssets

DESCRIPTIONDESCRIPTION ESTIMATED VALUEESTIMATED VALUE

Club House and Club House and PropertyProperty

$1,700,000$1,700,000

Marina & Boat Marina & Boat LaunchLaunch

$2,500,000$2,500,000

Lot 54Lot 54 $900,000$900,000

Lot 25Lot 25 $15,000$15,000

TotalTotal $5,115,000$5,115,000

Value per MemberValue per Member $8,540$8,540

Different FundsDifferent Funds Two Operating FundsTwo Operating Funds

Club OperationsClub Operations Marina OperationsMarina Operations

Two Restricted FundsTwo Restricted Funds Building and MaintenanceBuilding and Maintenance Harbor & Channel Dredging Harbor & Channel Dredging

Special AssessmentSpecial Assessment Modernize Governance Modernize Governance DocumentsDocuments

Club Operation Fund Club Operation Fund Pays For:Pays For:

Maintenance and Upkeep of:Maintenance and Upkeep of: Member parking areasMember parking areas ClubhouseClubhouse Pool and Pool HousePool and Pool House Boat Storage AreaBoat Storage Area Office/Storage BuildingOffice/Storage Building Club Grounds and BeachClub Grounds and Beach Guest/Member Temporary Marina & Guest/Member Temporary Marina & Boat Launch MoorageBoat Launch Moorage

Club OperationsClub Operations Newsletter Mailing and BillingNewsletter Mailing and Billing Building/Office StaffBuilding/Office Staff InsuranceInsurance CPA/Legal servicesCPA/Legal services

Club Operation Fund Income Club Operation Fund Income Comes From:Comes From:

General Membership Dues of General Membership Dues of $14.33/Mo$14.33/Mo

Boat Storage Fees Boat Storage Fees ($100/Year/Space)($100/Year/Space)

Allocation from Marina Fund to Allocation from Marina Fund to Pay Prorated Share of Club Pay Prorated Share of Club Personnel and Office ExpensePersonnel and Office Expense

Marina Operation Fund Marina Operation Fund Pays For:Pays For:

Maintenance and Upkeep of Marina and Boat Maintenance and Upkeep of Marina and Boat LaunchLaunch

Pump-out StationPump-out Station Electricity/WaterElectricity/Water Marina Parking LotMarina Parking Lot Liability InsuranceLiability Insurance Marina Property TaxesMarina Property Taxes Annual $5K Contribution to Harbor & Annual $5K Contribution to Harbor & Channel Dredging FundChannel Dredging Fund

Prorated Share of Club Personnel and Prorated Share of Club Personnel and Office Operating ExpensesOffice Operating Expenses

Harbor Navigation SignageHarbor Navigation Signage

Marina Operation Fund Marina Operation Fund Income Comes From:Income Comes From:

Marina Tenant Slip LeasesMarina Tenant Slip Leases Private Dock Tideland LeasesPrivate Dock Tideland Leases Allocation from Club Operations Allocation from Club Operations Fund for Guest/Temporary Fund for Guest/Temporary Moorage SpaceMoorage Space

Building and Maintenance Building and Maintenance Fund Pays For:Fund Pays For:

Major Building, Equipment, Major Building, Equipment, Vehicle and Facility RepairVehicle and Facility Repair

Major Capital Improvements and Major Capital Improvements and Equipment Acquisitions.Equipment Acquisitions.

Building and Maintenance Building and Maintenance Fund Income Comes From:Fund Income Comes From:

General Membership Dues of General Membership Dues of $1.66/Mo.$1.66/Mo.

Harbor & Channel Dredging Harbor & Channel Dredging Fund Pays for:Fund Pays for:

Permits Permits Soil AnalysisSoil Analysis Legal ExpensesLegal Expenses Engineering DesignEngineering Design Dredging and Soil DisposalDredging and Soil Disposal Entrance PilingsEntrance Pilings Builds Reserve Fund for Builds Reserve Fund for Next Harbor and Channel Next Harbor and Channel Dredging ProjectDredging Project

Harbor & Channel Dredging Harbor & Channel Dredging Fund Income Comes From:Fund Income Comes From:

General Membership Dredging General Membership Dredging Assessment of $14.83/MoAssessment of $14.83/Mo

Governance Special Governance Special Assessment Pays For:Assessment Pays For:

Modernizing the Club Covenants, Modernizing the Club Covenants, Articles, Bylaws, and other Articles, Bylaws, and other Rules and RegulationsRules and Regulations

Member Assessment in 2008/2009 Member Assessment in 2008/2009 is $0.83/Mo.is $0.83/Mo.

Assessment Terminates when Assessment Terminates when Total Expenses Equal $40,000 Total Expenses Equal $40,000 (approximately $32,000 expended (approximately $32,000 expended to date)to date)

Operational Fund Operational Fund HistoryHistory

-$100,000

-$50,000

$0

$50,000

$100,000

$150,000

$200,000

2003 2004 2005 2006 2007 2008 2009

Total Expenses

Total Revenue

Operating Income

Summary of Current Summary of Current General Membership DuesGeneral Membership Dues

DescriptionDescription MonthlyMonthly YearlyYearly

Club Club OperationsOperations

$14.33$14.33 $172.00$172.00

Building and Building and MaintenanceMaintenance $1.66$1.66 $20.00$20.00

Harbor & Harbor & Channel Channel DredgingDredging

$14.83$14.83 $178.00$178.00

Governance Governance AssessmentAssessment

$0.83$0.83 $10.00$10.00

TotalTotal $31.65$31.65 $380.00$380.00

Proposed 2008/2009 Club Proposed 2008/2009 Club Operations Fund BudgetOperations Fund Budget

SummarySummary

Operating Operating ExpensesExpenses

$173,136$173,136

Total Total IncomeIncome

$131,048$131,048

Savings Savings AccountAccount

$801$801

Net IncomeNet Income -$41,287-$41,287

SummarySummary

Operating Operating ExpensesExpenses

$173,136$173,136

Total Total IncomeIncome

$192,146$192,146

Savings Savings AccountAccount

$801$801

Net IncomeNet Income $19,811$19,811

Maintain Dues of 14.33/Mo Increase Dues to 22.83/Mo

No Dues Increase No Dues Increase Balanced Operation Fund Balanced Operation Fund

BudgetBudget

SummarySummary

Operating Operating ExpensesExpenses

$121,806$121,806

Total Total IncomeIncome

$121,117$121,117

Savings Savings AccountAccount

$801$801

Net IncomeNet Income $113

Eliminate caretaker Eliminate caretaker position immediatelyposition immediately

Use member volunteer Use member volunteer labor to maintain labor to maintain Club’s common Club’s common property.property.

Close pool Close pool immediatelyimmediately

Eliminate Club Eliminate Club grounds maintenance grounds maintenance expendituresexpenditures

This is only a short This is only a short term fix.term fix.

Maintain Dues of 14.33/Mo

Summary of Proposal to Summary of Proposal to Increase Increase

General Membership DuesGeneral Membership DuesDescriptionDescription MonthlyMonthly YearlyYearly

Club Club OperationsOperations

$22.83$22.83 $273.50$273.50

Building and Building and MaintenanceMaintenance $1.66$1.66 $20.00$20.00

Harbor & Harbor & Channel Channel DredgingDredging

$14.83$14.83 $178.00$178.00

Governance Governance AssessmentAssessment

$0.83$0.83 $10.00$10.00

TotalTotal $40.15$40.15 $481.50$481.50