Informational Meeting
As stated in Article VI, Meeting and Voting, #3 of the Lake Panorama Bylaws. A meeting of the Association shall be called by the President, for informational purposes, to be held not less than forty-five days prior to the mailing of any notice of a special or Annual Meeting, whenever such special or Annual Meeting includes a resolution on an amendment to the Articles of Incorporation and Covenants and Restrictions, or any other significant issues.
       
       The Lake Panorama Association Board of Directors held an Informational Meeting on January 22nd at 9:00 a.m. at the Lake Panorama National Conference Center. The purpose of the meeting was to inform the membership of a proposed assessment increase which will appear on the ballot at the Annual Meeting on April 23, 2005 at the Lake Panorama National Conference Center at 10:00 a.m.
       
       Paul Buchanan, Board President welcomed the large group of Association members. Board members introduced themselves individually and are as follows; Dan York, David Goss, John McRoberts, Ron Frisbie, John McDermott, Mike Dunn. Tom Polking, Legal Counsel and Craig Ditsworth of Merriwether- Wilson, PC were introduced as well.
       
       Buchanan thanked LPA employees for their efforts during the transition period due to the resignation of General Manager, Red Lowe.
       
       John Dinnebier, General Manager of LPN, LLC introduced himself and also employees; Mike Harris, Chef, Dan Wollner, Golf Course Superintendent, Brandon Waddle, Assistant Golf Course Superintendent, Royce Shaeffer, Golf Shop Manager, Marlene Chaloupka, Manager, housekeeping and Linda Wall, Office Manager.
       
       Dinnebier introduced the LPN committee, John McDermott, Barry Monaghan, Ron Morden, Ann Appleseth, Brian Beverly. The committee was instrumental in acquisition of the purchase of the Conference Center and dissolvement of the remaining golf course lease from Progressive Development .
       
       Dinnebier stated 70 events have been booked to date for 2005 and are already taking bookings for 2006. 40 new golf memberships were sold in 2004. The Conference Center/Restaurant is now Lake Panorama Association’s and hoped that all members will support its success.
       
       In November Buchanan stated Red Lowe had submitted his resignation as General Manager. Buchanan introduced Tom Polking to explain the steps that the Board has taken. The quarterly audit revealed misuse of company credit card at gambling casinos. Lowe admitted to his gambling problem and immediately resigned. At that time a partial restitution was made. Board ordered a complete fraud audit. A new auditing firm has now been hired, Merriwether, Wilson to take over the Auditing duties for Lake Panorama.
       
       Polking asked Craig Ditsworth, President of Merriwether, Wilson, PC to explain the procedures of the audit.
       All financial records over 5 years old had been destroyed. Credit card statements were missing. All checks were reviewed from January 2000 – October 2004. Credit card activity was examined from June 2001 – January 2005. Upon request Lowe’s tax returns were voluntarily provided from 1993-2003 and no kickbacks were revealed. Lowe provided 10 years of bank statements showing no unusual deposits. Audit showed some expense account abuse.
       
       Under $50,000 was taken with Lowe paying around half to date. No criminal charges have been filed; the audit is just being completed. Lowe has agreed to make full restitution of the money, plus auditing and legal fees. Ditsworth commented that is was a sad way to end a career.
       
       Buchanan introduced Brian Beverly, RIZ Treasurer. In 1997 an enacted state law that all new taxes and increased evaluations came back to Lake Panorama for the purpose of maintaining water quality. This can be the purchase of equipment, silt basin construction and a contract with Lake Panorama to remove the silt. 4 million dollars was borrowed in short-term notes but with the construction of the County Basin the short-term note was retired and bonding was received for 8.5 million dollars. The County Basin alone will be $3.2 million dollars to completion and will hold silt for the next 20 years. Bonding requirements are in order to borrow the money, a standby tax has to be initiated for reserve accounts. Bonding requires at least one year standby tax with the RIZ budget proposing a 3 year tax.
       
       Buchanan introduced Board treasurer, John McRoberts to explain the need for the assessment increase. If LPA did not have the RIZ, $450,000 would be spent annually for dredging. The cash flow that is available is critical for 2004-2005. Major expenditures have led to this problem such as replacement of the cylinders at the dam, new water storage tank and purchase of the Conference Center. Capital expenditures for 2005 have been taken out of next years budget such as new marina slip, additional equipment, etc. Lot sales and RIZ income has floated the organization for the past years and if lot sales diminish the Association will have a critical cash flow problem. McRoberts stated he and Buchanan had went to area banks to apply for a line of credit if LPA assessment increase does not pass. To date $1,043,000.00 is in investments. An organization LPA’s size should require 2 million in liquid reserves. As voted in the Bylaws the board does have the ability to assess a 5% increase, which would only generate $45,000.00. An assessment increase has not been assessed since 1993 when the road assessment was voted by the membership.
       Question and answers…
       
       Q: Maureen Lubeck – Lot 167-168. Would the board revisit the policy of uncombining lots? To separate lots and pay all back assessments with interest.
       A: Polking – That is a restrictive covenant and the members would have to vote on it.
       
       Q: Bill Weddingfeld – Lot 1659B. Nothing has been said about developing the South Shore.
       A: Frisbie – 3 years ago this was brought up and it was very clear the memberships opinion on developing the South Shore.
        Dunn – The membership was clear that they did not want to deplete this important asset.
       
       Q: Eldon Huston – 4922 Jule Drive, Boulder Cove: What level of bonding did the Association have for the fraud that took place?
       A: Polking – Association had $10,000.
       
       Q: Mike Merritt – Lot 402: Costs and terms of the Conference center purchase. Read RIZ figures to the group.
       A: McDermott - $350,000 was purchase price for the Conference Center and a 90 year lease on the driving range and west parking lot.
        McRoberts – Progressive Development (REC) was saddled with a large debt and were not able to service that debt.
       
       Q: Myron Tallman – Lot 3070C. Dues and Assessments increase. A Home has 33% of the increase where lots have 125% of the increase. Felt an across the board percentage increase would be more fair.
       A: York – road assessment was on a home, lot based increase. Lots have the right to use all the services as the homes.
       
       Q: John Staebell – Lot 376A, what is being done for Red’s replacement?
       A: Buchanan – Brimeyer Group has been contracted. They are creating a profile on what the job entails. Resumes deadline is March 1. Resumes will be sorted and narrowed to 4 to 5 individuals. Board will narrow to 3 and have a social event for the membership to meet the applicants. Hopefully someone is hired by the Annual Meeting.
       
       Q: Mark Moore – Lot 535A. Thank the Board for the job they have done through all this. Could the Board provide more information such as Red’s resignation, Goss new Board members, Committees that are chosen. Pie chart on how the money is being spent.
       A: Buchanan – Board felt that the membership had voted and that they next person that got the next amount of votes should replace Dick Burroughs after his death. Communication is always an issue when there are 1700 members. Red’s resignation and investigation had to handled properly and rumors are always a problem in any situation such as this.
        Dunn – Is Board liaison on the Planning and Zoning committee and they meet once a month. Dan is Board liaison on Water Safety Committee, and they meet as needed. If any member has an interest in being on a committee, please call the Office.
       
       Q: Mindy Poldberg – Lot 292. Board needs to consider a family budget and disposable income on the assessment increase. The increase would cost them an additional $800.00.
       
       Terese Davis – Running for the Board, would appreciate members vote.
       
       Q: Janet Roberts – Lot 2966. Member for 2 ½ years. Wanted clarification on Ditsworth comment about way to end a career. Why no women on the Board. Talk in Board Meetings. Smugness of the Board, don’t want to listen.
       A: Buchanan – Open forum at the Board meetings is a 5:00. Anyone can speak without being on the agenda. There have been women on the Board in the past.
        Ditsworth – His statement was misinterpreted that the Board did the right thing by how they have handled the fraud. It was misfortunate for Lowe to end his 20-year career like this.
       
       Q: Dick Zapf – Lot 627A. Would like to thank Judy Contner, for all her extra work during Red’s resignation.
        Buchanan – wanted to thank all the employees. LPA has good employees and they all stepped in and did the jobs that needed to be done and carry on.
       
       Q: Scott Calmer – 4620 Panorama Drive
       Confusion of RIZ as a taxing body. Compared management of lake to cities. Why didn’t membership vote on buying the Conference Center. Payroll relationships to cities.
       A: McRoberts – LPA’s total budget is a consolidated budget with 2 divisions the Water Company and Erosion Control being profit centers. Erosion Control payroll is 11.65%, Water Co., 3.49%, with administrative being 20%.
        Buchanan – Negotiations with the golf course purchase was a board decision and not one that was taken to the membership. The CIECO payments of $100,000 a year have been deferred until 2008 when they begin again, and extended at the end of the note.
        Stetzel – County Assessor. RIZ does have the right to impose tax under section 357H of the Iowa Code under the standby tax for 1 year. Stetzel stated that Lake Panorama has more homes than 2/3 of the cities in Iowa.
        Beverly – at the end of the RIZ the law states that RIZ has the ability to give money to a non-profit. This will be in 2018. If there is an excess of funds at that time it will go back to Lake Panorama.
       
       Q: Rosemary Staebell – Lot 376A. Who hired the past auditing firm, and aren’t they responsible?
       A: Buchanan – Brooks Lodden was the third auditing firm that Lake Panorama has had and has done the auditing for 4 years. They are a very reputable firm with ½ of the money was taken in 2004. Merriwether, Wilson has been hired by the Board and will do monthly CPA duties, which will only make the year-end audit much easier, and costs will remain about the same.
       
       Q: Wayne Hennessey – Lot 903. Due to growth would the Board consider an auditing committee? What steps are being taken to eliminate what happened with Red from happening again? Elected representation from different sections of the Lake.
       A: Buchanan – Procedures have been changed. Bank statements and certain pieces of mail being opened and initialed by Board Members. Signatures have been changed at the banks.
        Ditsworth – Auditing committee is a good idea. Committee could review audit report and make suggestions.
        Dunn – Members by zone. Great idea but hard getting people to run for the Board.
       Frisbie is not eligible to run. Dunn will be running again.
       
       Q: Jan Frisbie – Lot 138. Glad to see everyone at the meeting but asked why it took a controversy to get people at a meeting. Communication is always an issue but husband Ron has been on the Board for 6 years and the phone rarely rings from members. Encouraged members to call Board members if there are problems
       
       Q: Eldon Huston – Boulder Cove. Board has a thankless job and thanked them for the job they have done. Statistics show 10% of individuals are not interested unless there are controversies. More women should run, encourage women to run.
        A: Buchanan – more people today than at most Annual meetings.
       
       Q: Jim Russell – Lot 649A. Thank Red Lowe for doing a good job as Manager. Asked what Lowe made a year.
       A: Buchanan – the profile for the new manager is a starting salary of around $60,000.00.
       
       Q: Ken Moon – Promontory Point. It should be public record what employees make. Why is Lowe not being prosecuted?
       A: Buchanan – Board has not decided exactly how everything will be handled until the audit is complete. Board will discuss posting the employee wages.
       
       Q: Bienhoff – Lot 9A. Hope the future Manager will not show abuse of power in other areas and will be have tighter controls. If a silt fence is down on a friends lot will he be treated the same as another member.
       A: Buchanan – call the Office and speak with Mike Gleim, building inspector. He has control over silt fence enforcement.
       
       Q: Heedum – Lot 2966. Information on dues increase. What happens if the dues increase gets voted down?
       A. McRoberts – the Board has been concerned for quite some time and has went to the area banks to obtain a line of credit in case LPA needs to borrow money.
        Thank Paul Buchanan as President of the Board and the excellent job he has done.
        Frisbie – in 1988 if a lot would have received a cost of living increase dues would be over $800.00. Members have had use of their own money. Mil levy is at 24 mils, districts vary at the Lake. RIZ standby tax will create a 2.5 mil increase. Panora is at 38-39 mils.
       
       Q: Stetzel – RIZ rolled 4 million into 8.5 million bond. Short-term note paid off and reborrowed. What valuation will be used for 2.5 standby taxes?
       A: Beverly – Bob Josten, Bond Attorney will get ahold of Stetzel, County Appraiser to make that decision.
       
       Q: Judy Wilson – Lot 217. Member since 1982. Feels the Board has done a good job but has to be somewhat accountable. Feels the dues and assessment increase needs to pass. Have procedures established from Merriweather Wilson for stricter internal controls.
       
       Q: Mark Chew – Lot 717A. Where will money go when we receive RIZ money?
       A: Beverly. Debt service has to be established for not less than $425,000.00. Debt service coverage is when more tax money is taken in that what is spent. The June bond payment is ½ million. $800,000.00 is tax revenue for 2005. County basin has been bid and is in early stages of construction. Amortized 8.5 million to 2018 when debt will be paid off.
       
       Q: Bill Weddingfeld – Lot 1569. Everything is about the Lake, not golf course or roads.
       A: Buchanan – Valuations on all properties depend on keeping the lake clean. Boat fees did go up from $70.00 to $100.00 this year. Trail fees went up on the 18-hole course, which will help patch the black top and possible recoating.
       
       Q: Les Marks, Lot 504. Conference Center and Golf Course – profit and loss. If the dues increase won’t we see a large number of Houses and lots going up for sale?
       A: Buchanan. LPA acquired the lease back from the golf course, since LPA has always owned it. LPA did purchase the Conference Center.
       
       Q: Max Gilliland – Lot 1478A. Informational meeting is a good thing. Communication could be better. Are RIZ minutes published will LPA members have 3 years of taxation?
       A: Beverly - RIZ minutes are not published but let him or the Office know and they can be sent. RIZ is a public unit so LPA has no say in what is published. Budget projections to meet all bond requirements have been set for 3 years. If more tax revenues are received it will reduce length of years. Right now is set at 1 year.
       
       Q: Bill Watson – Lot 259A House. Friendly Assessor is an oxymoron. Could there be additional choices on dues increase just not the one presented?
       
       Buchanan in closing thanked everyone for coming and hoped the same number of people would be in attendance at the Annual Meeting on April 23, 2005.
       
       
       Judy K. Contner
       Recording Secretary