January 25, 2010 Desert Mountain Master Association

1. January 25, 2010Desert Mountain Master Association Annual Meeting Welcome

2. 1.25.2010 DMMA Annual Meeting Call To Order

3. 1.25.2010 DMMA Annual Meeting Quorum

4. 1.25.2010 DMMA Annual Meeting Proof of Notice

5. 1.25.2010 DMMA Annual Meeting 2009 Annual Meeting Minutes

6. 1.25.2010 DMMA Annual Meeting Reports of Officers

7. 1.25.2010 DMMA Annual Meeting President’s Report 2009 Committees • Safety & Access Control • Infrastructure & Landscape • Election • Covenants • Design Review • Council of Presidents • Communications

8. 1.25.2010 DMMA Annual Meeting President’s Report 2009 Committees • Litigation • Governance • Investment • AB Liaison • DMP Transition

9. 1.25.2010 DMMA Annual Meeting President’s Report • Finances Sound • Operations Running Smoothly • Looking to the Future

10. 1.25.2010 DMMA Annual Meeting President’s Report • Finances Sound • Cost Cuts • Improved Collection Practices • Better Financial Support • Conservative Budgeting

11. 1.25.2010 DMMA Annual Meeting President’s Report • Operations Running Smoothly • Landscaping & Safety • Parkway Repair & Resurfacing • Reserve Study Update • Problem Properties • Title Issues • Design Review • Communications

12. 1.25.2010 DMMA Annual Meeting President’s Report • Looking to the Future • Business Model Review Project

13. 1.25.2010 DMMA Annual Meeting Vice President’s Report • Business Model Project – Next Steps • Interview Guides are Drafted • Community Interview Package Developed • Consultants are Being Replaced • AB will Participate in Community Interviews

14. 1.25.2010 DMMA Annual Meeting Vice President’s Report • Business Model Project – Next Steps • HOA is Participating with AB in a Marketing Study • We have nearly half of our candidate communities identified and participating.

15. Master Business Model Development ProjectSummary Work Plan 1 2 3 4 5 Develop DMHOA Options & Solutions Define Objectives & Plan Decision by HOA Board Develop Research Select Providers (Option Driven) • Finalize Board Decision • - Business Model • - Business Rationale • - Financial Cost/Benefit Model • - Providers • - Implementation Plan • Review with Stakeholders • Decision / Voting • Draft Analysis Needs Package • Hire Consultants • Draft Interview Materials • Identify Peer Communities • Conduct Contacts & Research • Analyze Findings • Review with Stakeholders • Develop Option Candidates • Evaluate S&W • Create Candidate Business Models • Perform Cost/Benefits & Functional Analyses • Review with Stakeholders • Finalize Requirements • ID Qualified Target Providers • Engage & Evaluate Selected Providers • Finalize Selections with Stakeholders • Define Objectives Scope & Plan • Draft HOA Requirements • Set up Project Organization and Teams • Brief Teams & Assign Work • Obtain Board & Stakeholder Input Stakeholders • HOA Master and Villages • DM Community Members • Advisory Board & Club Mgmt • CCMC and HOA Staff • Service Provider Community

16. 1.25.2010 DMMA Annual Meeting Treasurer’s Report • Year In Review – 12/31/2009 Overall Focus: • Improved Analysis • Expense Management • Continued cost-saving efforts • Improved Collection Practices • Staff attention • 74 accounts to collection agency

17. 1.25.2010 DMMA Annual Meeting Treasurer’s Report • Year In Review – 12/31/2009 Highpoints: • Operating Surplus - $164K for all entities • Year End Cash Projection - $814K • Reserves = 62% Funded • Bad Debt Write Offs = $80.5K • Master Delinquency rate = 3.5%

18. December YTD ResultsMaster Only ($ Thousands)

19. 2009 Master Actual vs. Budget Major Variances

20. Going Forward • Conservative budget approach • Example: conservative estimate for bad debt • Match operational revenues to operational expenses • Variable revenue such as Design Review fees fund reserve contribution • Increased analysis and oversight

21. 1.25.2010 DMMA Annual Meeting Manager’s Report • Team - E Pluribus Unum • Frequently Asked Questions • Foreclosures • Delinquencies • Collections

22. 1.25.2010 DMMA Annual Meeting Manager’s Report • 2010 Projects • Road Maintenance • Reserve Study Update • Continue to Build on Communication Committee’s Work • Continue to Positively Impact Problem Properties

23. 1.25.2010 DMMA Annual Meeting E Pluribus Unum From the many, ONE

24. 1.25.2010 DMMA Annual Meeting Transfer of Excess Operating Funds

25. 1.25.2010 DMMA Annual Meeting Transfer Of Excess Operating Funds Members must vote to carry over excess 2009 operating income into 2010. This will give the Association’s CPA maximum flexibility to file the most advantageous income tax return possible for the corporation (and pay the lowest possible income taxes). Note – Per IRS Code Section 277 and Revenue Ruling 70-604 where excess of membership income over membership expenses may be applied against future expenses or transferred to the reserve fund.

26. 1.25.2010 DMMA Annual Meeting Election of Directors • Dave Dargo • Rick Harrington • Bill Jensen • Ronald Matricaria • Ann Melsheimer

27. 1.25.2010 DMMA Annual Meeting Election of Directors Cast Your Ballot

28. 1.25.2010 DMMA Annual Meeting Acknowledgements • Clu Lewis • Rick Harrington

29. 1.25.2010 DMMA Annual Meeting Committee Reports • Infrastructure & Landscape – Margie Carpenter • Design Review - Harley Wood • Election – Marilyn Dellaripa

30. 1.25.2010 DMMA Annual Meeting Questions & Answers

31. 1.25.2010 DMMA Annual Meeting Election Results

32. 1.25.2010 DMMA Annual Meeting Adjournment