Club Business

On behalf of the Haig Point Board and Management I would like to thank the Haig Point membership for their overwhelming support of the recent dues increase referendum. With this referendum vote completed, I wanted to take a few moments of your time to review how we will move forward on the Capital Plan referendum.

The next steps in the Capital Plan referendum process are as we have discussed in the past:

· Employee Retention Credit (ERC) – As you might remember we have been in the process of applying for this tax credit. Upon review of the Haig Point financial information and other data, including the number of employees we have and the timing of mandated government restriction orders, our outside consultants have informed us that we do not qualify for this tax credit. While we will continue to monitor any changes in this tax credit legislation and related interpretations, for Capital planning purposes, we will not plan on receiving an ERC tax refund.

· The Board, at its upcoming July 25th meeting, will review Haig Point Managements’ recommendations on the road repair portion of the Capital Plan. We have brought in outside experts to advise us on the best way to repair the roads so that we get the best value for our capital dollars spent. We will review that information and management’s recommendations so that we can then agree on the road repair plan.

· Haig Point management will reforecast 2022’s expected financial outcome once we have the June financial statements, which should be towards the second half of July. We expect to have the reforecast completed by August 15th. The reforecast will include the recently approved dues increase, our actual financial performance for the first half of this year and the forecasted cash flows for the club and real estate operations for the second half of the year. The purpose of this is to understand how much cash might be available to put towards the Capital Plan projects.

· Haig Point Management and the Board will then update our 3-5 year financial forecast to understand the amount of cash from operations and real estate/membership sales that might be available to invest in the Capital Plan projects. This is likely to be completed by the end of August since it requires the steps above to be completed first.

· Haig Point Management will also complete the 3 to 5 year forecast of the required general maintenance repair projects (excluding the roads and docks Capital Plan projects) such as roof repairs, HVAC replacements, revetment, etc. We will then see how those annual requirements compare with the funds we receive from our current quarterly maintenance capital fees to see if any funds are available to invest in the Capital Plan projects.

Because the dues increase referendum passed by a substantial majority, Jeff Smith (Haig Point’s CFO) now has the financial negotiating strength to work with potential banking partners to understand the amount of money and terms for the capital we might be able to borrow in order to allow us to offer our members the ability to spread their assessments over three to five years. Jeff has begun those discussions and they will continue in the coming months.

Once all of the steps above are completed, the Haig Point Board and Management will complete and vote on an updated Capital Plan presentation. The updated presentation will include the latest cost estimates for each of the five projects, their timetables to complete, how they are to be paid for, along with any restrictions on the use of capital dollars in the Plan. Because of the complexity of this Plan and its various components, we do not have a firm date for its completion, but would expect it to be completed by the beginning of September. Once completed we will get the plan to each of you for your review and then hold Open Sessions to review each Capital Project and answer your questions surrounding them. Once that is completed we will schedule a member vote on each of the five components of the Capital Plan.

We will keep you informed on our progress on the above steps though monthly President’s letters.

There has been a tremendous amount of work put into this Capital Plan over the last 18 months by the Haig Point Management and the Haig Point Board, as well as several of our Committees. I personally want to thank everyone for the efforts on behalf of all of the Members of our great community.

Gary Baum

President, Haig Point Board of Directors