Notes from the February 5, 2005 Board Meeting

The Board of Directors met last Saturday, February 5 to review 2004 expenditures and plan for ongoing operating expenses for 2005. Kirk presented the financial review and highlighted these points:

Snow removal, lawn care, and insurance are the largest expense items we have to plan for and represent over 80% of the annual operating expense.

For 2005 we are planning zero growth in snow removal and lawn care while Insurance will increase 5%.

We have one new item to plan for and that is the chemical cost for the sprinkler system. 2005 will be the first full year of operation of the new pump.

There are no significant projects planned for 2005.

Dues were last raised in 1997 (8 years ago) and based upon the above planned expenditures the Board feels that current dues income will be satisfactory to accommodate the planned increases in 2005 operating expenses; i.e., no increase is planned for 2005.

As called for in our masterdeed (Article II, Section C, Paragraph #1) the Board is required to establish a reserve fund for maintenance, repairs and replacement. The minimum dollar value of the account is set to an amount that if a major problem occurred such as; a failure in the septic system, new roofs or a sink hole in the parking lot, we would need up-front funds to get the project started. This up-front money would come from the reserve account and it would be replaced by a special assessment.

At this meeting the Board reviewed and agreed to the minimum funding level of the reserve account. Comparing maintenance expenses over the past ten years, the board of directors feels that this amount should be sufficient. The reserve account is presently sitting at this floor amount. Any maintenance expenses that cause the account to fall below this floor will be made up by special assessments to each owner during the 4rth quarter. Presently there are no 2005 projects which would cause money to be withdrawn from the account. Therefore, there is no special assessment anticipated for 2005. However, it is still early in the year.