Driftwood Key Club Financial Presentation

Facts About DWK Community 775 Individual Lots 775 Individual Lots 505 Homes 505 Homes 599 Members 599 Members Many members own multiple lots but only pay for one membership Many members own multiple lots but only pay for one membership DWK represents approximately 45% of the total population living in the Hansville zip code. DWK represents approximately 45% of the total population living in the Hansville zip code.

DWK Club Common Ownership 4.61 Acres of Land 4.61 Acres of Land 1,000+ feet of Waterfront 1,000+ feet of Waterfront 3,000 Sq. Ft. Clubhouse 3,000 Sq. Ft. Clubhouse Pool and Pool House Building Pool and Pool House Building Office/Storage Building Office/Storage Building 93 Slip Marina 93 Slip Marina Boat Launch Boat Launch Sheltered Bay & Channel Tidelands Sheltered Bay & Channel Tidelands Boat Storage Area Boat Storage Area Children’s Playground Children’s Playground

Clubhouse/Marina Complex Boat Storage Area Marina Marina/Clubhouse Parking Clubhouse Office/Storage Building Pool & Pool House Community Beach Children’s Play Area Park Grounds Boat Storage Area 2.65 Acres

Boat Launch Boat Launch Ramp Dock and Temporary Slips Boat Wash Water.17 Acres

Lot 54 Community Park Emergency Helicopter Landing Area 1.62 Acres

Lot 25 Located on Hood Canal Drive Southernmost Lot in DWK Location of DWK Southern Community Sign $150/year Property Tax.17 Acres

Estimated Value of Club Assets DESCRIPTION ESTIMATED VALUE Club House and Property $1,700,000 Marina & Boat Launch $2,500,000 Lot 54 $900,000 Lot 25 $15,000 Total$5,115,000 Value per Member $8,540

Different Funds Two Operating Funds Two Operating Funds Club Operations Club Operations Marina Operations Marina Operations Two Restricted Funds Two Restricted Funds Building and Maintenance Building and Maintenance Harbor & Channel Dredging Harbor & Channel Dredging Special Assessment Special Assessment Modernize Governance Documents Modernize Governance Documents

Club Operation Fund Pays For: Maintenance and Upkeep of: Maintenance and Upkeep of: Member parking areas Member parking areas Clubhouse Clubhouse Pool and Pool House Pool and Pool House Boat Storage Area Boat Storage Area Office/Storage Building Office/Storage Building Club Grounds and Beach Club Grounds and Beach Guest/Member Temporary Marina & Boat Launch Moorage Guest/Member Temporary Marina & Boat Launch Moorage Club Operations Club Operations Newsletter Mailing and Billing Newsletter Mailing and Billing Building/Office Staff Building/Office Staff Insurance Insurance CPA/Legal services CPA/Legal services

Club Operation Fund Income Comes From: General Membership Dues of $14.33/Mo General Membership Dues of $14.33/Mo Boat Storage Fees ($100/Year/Space) Boat Storage Fees ($100/Year/Space) Allocation from Marina Fund to Pay Prorated Share of Club Personnel and Office Expense Allocation from Marina Fund to Pay Prorated Share of Club Personnel and Office Expense

Marina Operation Fund Pays For: Maintenance and Upkeep of Marina and Boat Launch Maintenance and Upkeep of Marina and Boat Launch Pump-out Station Pump-out Station Electricity/Water Electricity/Water Marina Parking Lot Marina Parking Lot Liability Insurance Liability Insurance Marina Property Taxes Marina Property Taxes Annual $5K Contribution to Harbor & Channel Dredging Fund Annual $5K Contribution to Harbor & Channel Dredging Fund Prorated Share of Club Personnel and Office Operating Expenses Prorated Share of Club Personnel and Office Operating Expenses Harbor Navigation Signage Harbor Navigation Signage

Marina Operation Fund Income Comes From: Marina Tenant Slip Leases Marina Tenant Slip Leases Private Dock Tideland Leases Private Dock Tideland Leases Allocation from Club Operations Fund for Guest/Temporary Moorage Space Allocation from Club Operations Fund for Guest/Temporary Moorage Space

Building and Maintenance Fund Pays For: Major Building, Equipment, Vehicle and Facility Repair Major Building, Equipment, Vehicle and Facility Repair Major Capital Improvements and Equipment Acquisitions. Major Capital Improvements and Equipment Acquisitions.

Building and Maintenance Fund Income Comes From: General Membership Dues of $1.66/Mo. General Membership Dues of $1.66/Mo.

Harbor & Channel Dredging Fund Pays for: Permits Permits Soil Analysis Soil Analysis Legal Expenses Legal Expenses Engineering Design Engineering Design Dredging and Soil Disposal Dredging and Soil Disposal Entrance Pilings Entrance Pilings Builds Reserve Fund for Next Harbor and Channel Dredging Project Builds Reserve Fund for Next Harbor and Channel Dredging Project

Harbor & Channel Dredging Fund Income Comes From: General Membership Dredging Assessment of $14.83/Mo General Membership Dredging Assessment of $14.83/Mo

Governance Special Assessment Pays For: Modernizing the Club Covenants, Articles, Bylaws, and other Rules and Regulations Modernizing the Club Covenants, Articles, Bylaws, and other Rules and Regulations Member Assessment in 2008/2009 is $0.83/Mo. Member Assessment in 2008/2009 is $0.83/Mo. Assessment Terminates when Total Expenses Equal $40,000 (approximately $32,000 expended to date) Assessment Terminates when Total Expenses Equal $40,000 (approximately $32,000 expended to date)

Operational Fund History

Summary of Current General Membership Dues DescriptionMonthlyYearly Club Operations $14.33$ Building and Maintenance $1.66$20.00 Harbor & Channel Dredging $14.83$ Governance Assessment $0.83$10.00 Total$31.65$380.00

Proposed 2008/2009 Club Operations Fund Budget Summary Operating Expenses $173,136 Total Income $131,048 Savings Account $801 Net Income -$41,287Summary Operating Expenses $173,136 Total Income $192,146 Savings Account $801 Net Income $19,811 Maintain Dues of 14.33/MoIncrease Dues to 22.83/Mo

No Dues Increase Balanced Operation Fund Budget Summary Operating Expenses $121,806 Total Income $121,117 Savings Account $801 Net Income $113 Eliminate caretaker position immediately Use member volunteer labor to maintain Club’s common property. Close pool immediately Eliminate Club grounds maintenance expenditures This is only a short term fix. Maintain Dues of 14.33/Mo

Summary of Proposal to Increase General Membership Dues DescriptionMonthlyYearly Club Operations $22.83$ Building and Maintenance $1.66$20.00 Harbor & Channel Dredging $14.83$ Governance Assessment $0.83$10.00 Total$40.15$481.50