Heritage Hunt Homeowners Association
Budget
and Finance Committee
1:00 PM, Wednesday, August
16,, 2006
Members Present:
Cook, Hambric, Jenkins, Landsman, Maroney, McDowell, Parks
Members absent:
None
CMC Staff Present:
Mazzarella, Ebert Western Golf: Jansen
Committee Reps Present:
Golf- Love
Residents Present: B. Moore, E. Yablonski,
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The meeting was called to order by the chair Dale McDowell, promptly at 1:00 PM
Minutes were approved without correction.
The Board passed the following significant items at their last meeting on June 27, 2006:
1 Accepted resignation of Brian Johnson form BOD and appoint Jerry Dabkowski as Secretary of BOD
2 Request from the Budget and Finance Committee to change the time at which a residents Clubhouse account can be flagged to suspend charging privileges from 120 days past due to 90 days past due
3 Request from the Budget and Finance Committee to write off account 2636 in the
amount of 1352.44 as bad debt.
The Board tabled until the August meeting, the Request from the B& F Committee to
change the operational and reserve/capital approval process.
Western Golf reported that they are continuing to look at the advisability of a different outside cooler than continuing to get County approval for the one we previously purchased
Because of various vacation schedules a meeting with representatives of The Marque has not yet been arranged and Michael George said he expected to hear from the individual representing the Marque by August 1st.
Resales: As of 7/30/2006 – 210
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New Homes Sold (YTD): Thru 12/31/2005- 1493 Thru 7/31/2006- 43 Total: 1536
Discussed Morgan Stanley Reserve Accounts/Reserve Accounts 1141, 1142, 1143 and that funds may be better placed in other accounts….i.e…. no need to have that much cash in those accounts
H Landsman suggested that new home or resale home yearly maintenance reserves should be placed in account of its own
Don made a motion that we suggest to the Board to change the depreciation method used by the HOA. The following motion sent to the Board passed 7 Yea, 0 Nay.
The Budget and Finance
Committee recommends to the Board of Directors that they pass a resolution to
change the depreciation method used by the HOA from the Straight-Line Method to
the Modified Accelerated Cost Recovery Method (MACRS), effective January 1,
2006.
Rationale:
We were not aware that the Straight-Line Method was being used. Under this method, the cost of an asset is depreciated equally each year over the life the life of the asset. Under the MARCS method, which is used by most organizations, depreciation is larger in the earlier years of ownership, reflecting the fact that most assets depreciate more in the early part of their life period. Also, organizations that pay income taxes are able to recover taxes more quickly using MACRS. Use of the MACRS method will correctly reflect the value of assets we own.
Members
Aging Report
Warning letters to residents who are 60+ days past due will go out ASAP reminding them of new rules suspending charge privileges after 90 rather than 120 days
Only 7 accounts have 120+ Balances. 2 are with lawyers, 5 are pending
Events
Aging Report
H Landsman pointed out Event 241128 took place without a deposit. Mark to look into matter.
Wescott Nyguen wedding disputing charge. In negotiations
Delinquency
Report
New $2500+ delinquency: Result of a resale unknown to management until now.
New Owner apparently not informed of 1 year advance maintenance payment requirement
Review
of 2005 Draft Audit
Tabled pending further study of Adjustments and additional questions being drawn up by Don
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Old
Business
None
Long
Term HOA Forecast
Bill began discussion of Page 1 of Tables with Unit sold and resale prediction count which was questioned by Nick. Further discussion was tabled for Bill’s updating of figures and committee’s further review of Tables
New
Business
Dale initiated discussion to put all future committee voting to roll call and thus record votes. Motion made and passed unanimously (7/0).
Don made motion to budget $12,000 (additional Golf monies) for driving range apron repair. The following will be sent to the HOA Board:
The Budget and Finance Committee recommends to the
Board of Directors that they approve an unbudgeted amount not to exceed $12,000
that will be charged to account 7522, for the purchase of mats for the driving
range.
Rationale:
The driving range grass gets a
considerable amount of damage that must be repaired on a continuing basis. While the grass areas will continue to be
used for practice, the addition of mats will provide an alternative to the
grass area and will reduce the
amount of damage and needed repairs to the driving area.
Vote passes 5/2
VOTE: Yea- Cook, Hambric, Jenkins, Landsman, McDowell Nay-Maroney, Parks
Don made motion to finance new video projection system in clubhouse ($22,000)
The following will be sent to the HOA Board:
The Budget and Finance Committee recommends to the
Board of Directors that they approve an unbudgeted amount not to exceed $22,000
that will be charged to account 6905, for the purchase of a projection system
that will be installed in the Ballroom.
The system will have a projector that can be automatically lowered
(approximately 5 feet) from the ceiling and will project pictures on to a 12 x
16 foot screen that also will be automatically lowered from the ceiling.
Rationale:
Installation of the equipment
would give the HOA a high definition projection system capable of showing on a
large screen almost anything that can be shown on a television or computer
screen. It would enhance our ability to
show in house and outside events, such as weddings, conferences, movies, sporting events and a myriad other forms of
media. It would give us the ability to
provide an amenity for a “use fee”, for banquets and other income producing
events not
available from our competition.
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The installation of the system would be accomplished by our HOA LSTV Team, assisted by the CMC maintenance staff, and at no cost to the HOA. Without the support of the CMC maintenance staff the LSTV Team, the installed cost would be approximately $50,000.
Vote passes 5/2
VOTE: Yea- Cook, Hambric, Jenkins, Landsman, McDowell Nay-Maroney, Parks
Audience
Participation
Jim Love suggested that committee chairmen meet to discuss better way of having committee members present resumes and qualifications in time for new elections
D. Igoe suggested that HOA Board members get more involved in what is going on in the community
Additional
Handouts Today
1) New Home Sold Units – Count by Date
2) Board of Directors Meeting Resolution Worksheet – Agenda Item IX
3) Analysis of Investments in Reserve Accounts
4) LONG TERM HOA Forecast
5) HOA 2005 Audit – (Not discussed today)
6) Resales Sheet (12/31/3003-7/31/2005)
7) Board of Directors Resolution Action Record – (Directing B&F Committee to
Budget
4 ½% - 5 ½ % in 2007 Budget towards Golf Operations)
8)
HOA Income Tax Returns for 2005
9)
Detailed Resale Logs (Committee requested
distribution be discontinued)
10)
Western Golf Operation Forecast (July-December)
The meeting was adjourned a 3:40 PM. (2 Hours 40 Minutes)
Next Meeting: September 20, 2006
Submitted August 25, 2006
________________________
Howard Landsman, Secretary
Committee Approval
_________________________ Date_____
Dale McDowell, Chairman
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