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SASSESSMENT NOTICE2015

November 26, 2014

Dear Owner

ollowing consultation with the Audit & Finance Committee at a budget meeting on November 25, 2014, the Board of Directors resolved that the Association’s Annual

Assessment Fee for 2015 remain unchanged at $2.75 per square foot. This is the rate introduced in 2006, making it the same assessment for the tenth consecutive year. To put that into perspective in 2015 it will cost about $3.35 to buy $2.75 worth of 2006 goods and services - or 22% more.

Compared to last year which saw the assessed space grow by 4%, our community grew by a little over 3% this year. We have accounted for further improvements in our 2015 budget shown on the adjacent page. Homeowners Associations have the authority to attach special assessments to carry out such improvements, but your Board commits to improving our community without increasing the financial burden, particulary during these fiscally challenging times.

As you may be aware, the Association is by Law registered for VAT which means that all charges made by the Association will have Value Added Tax of 7.5% added to them from January 1, 2015. We pay this tax direct to the government less any VAT paid to our vendors. If registration had been optional for us, it would have been in our interests to register so that we could recover the VAT paid to our vendors. Being unable to recover the VAT would have lead to a prorated increase in our maintenance fees. So whilst the annual Assessment Fees remain unchanged you will notice VAT added to all charges made by the Association.

We have extended the early payment discount of 3% for all 2015 Annual Assessment Fees settled in full by January 14th, 2015. The following conditions apply to qualify:

• Payment must clear in full by January 14th, 2015.• Any other due balances associated with the account should also be clear by the deadline. • Deduction of the 3% discount applies to the 2015 Assessment Fees gross (VAT inclusive) amount only.• Note that Indenture Charges (applied to vacant lots) are not eligible for discount and are due on January 1, 2015 in full.

For VAT reporting requirements we will apply the Assessment Fees to accounts in monthly installments. The 3% discount to eligible accounts will appear as a VAT inclusive credit.

Yours sincerely

Robert Sands Chairman

2015 ASSESSMENT NOTICE

F

KEY METRICS

2015

2006

905,807

sq ft

389

homes

577,817

sq ft

248

homes

$2

.75

per

sq

ft

389 homes assessed 6 under c

onstr

uctio

n >

1

09 u

nd

eveloped

77%COMPLETE

79+34+2969

,78

5

34

,09

8

29

,32

0

2013 2014 2015

ANNUAL GROWTH (SQ FT)

REVENUE 2014 2015 Budget

Maintenance fees - 905,807 sq ft @ $2.75 per sq ft (389 homes, 2014 : 378) 2,490,969

Indenture fees (109 lots, 2014 : 118) 172,502

Other maintenance fees fees - 23,734 sq ft (6 under construction, 2014 : 7) 34,313

Water & meters income 453,266

Other services 50,568

Total revenue 3,201,618

DIRECT EXPENSES

Security expenses 693,536

Gardening expenses 418,834

Water & meters 397,877

Maintenance of common areas 360,272

Wastewater management 301,775

Improvements 300,000

Painting expenses 173,792

Garbage removal 84,000

Total direct expenses 2,730,087

Gross Profit 471,530

OPERATING EXPENSES

Salaries, benefits & national insurance 246,475

Office & computer supplies 44,526

Provision for doubtful accounts 41,830

Professional fees 41,016

Rent & utilities 36,600

Telephone & communications 15,516

Insurance 10,512

Finance charges 9,081

Other expenses 2,370

Property & other taxes 1,000

Total operating expenses 448,930

NET MAINTENANCE FUND 22,599

SANDYPORT HOMEOWNERS ASSOCIATION LIMITED FINANCIAL BUDGET For the year ended December 31, 2015 (Expressed in Bahamian dollars)

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SANDYPORT HOMEOWNERS ASSOCIATION

BAH +1 242 676 8990USA +1 305 831 8921FAX +1 305 705 6599 WWW.SANDYPORTMANAGEMENT.COM

22+14+13+12+11+10+10+5+3+A SEC 22%

O

PE 14%

GAR 13% WAT 12%

MAI

11%

W

AS

10%

IMP 10

% PAI G

2015 EXPENSES

SEC SECURITY EXPENSES OPE OPERATIONAL EXPENSES GAR GARDENING EXPENSES WAT WATER & METERS MAI MAINTENANCE OF COMMON AREAS WAS WASTEWATER MANAGEMENT IMP IMPROVEMENTS PAI PAINTING (5%)G GARBAGE REMOVAL (3%)