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Meeting Minutes of Finance Committee
July 2, 2007

Chairman Tom Sheridan convened the meeting at 7:00 P.M.  Committee members in attendance were:  Neil Buttimer, Bob Hamilton, Joe Quimper, Jim Drabant, and Terry Hileman.  Committee members absent: Tom Eales.  Advisors in attendance were: Pete Rainey, Nick Duy, Chuck Schulle, and Bill Mason.  Advisors absent were: Donna Jackson and M.J. Cronin.  Also in attendance were: Melanie Dynes, Doug Rogers, Bill Wilson, and Eldon Rucker, from the BOD and Planning Committee Liaison Bob Haring and PC Chair Dave McKee.  LOWA members present were: Jeff Flynn, Bruce Kay, Doug Chidlow, and Don Walters.

The draft minutes from the June 4, 2007 meeting were approved unanimously.  The Agenda for today’s meeting was also approved unanimously.

Introductory Remarks:
Chairman Sheridan reported that there was a second reading of Regulation 15 at the June 30th BOD meeting and it was approved.  Regulation 15 states, "Facility user fees, when set by the Board, shall encourage the use of the facilities and produce revenue for LOWA.”

The Chairman gave a brief summary of the final FY06 operating results.  He highlighted some of the major variances and stated that the reports would be available for review in a week or so.

Final fiscal year 2006-2007 operating results were:  Total: $222K over budget based on lower revenue $93K, increased cost of goods sold $47K and higher expenses of $82K.  Major revenue variances were fewer Disclosure Packets $36K, lower Real Estate transfer fees $34K and $38K loss from disposal of assets.  Higher cost of goods sold was mostly $30K for marina gasoline pump problem and $15K higher beverage cost at clubhouse.  The major negative expense variance was $95K for higher contractual services, partly the result of miscoding and $50K higher than planned salary expense due to lower personnel turnover.

Old Business:
Road Fees – Since FC member Tom Eales was not present, the discussion of the road fees was put on hold.

Jonas  – FC member Terry Hileman gave an update concerning the status of the Jonas Budget Report Template.  Dorothy Isenberg (LOWA Controller) is preparing a report template based on guidance from Chairman Sheridan.  This report will be used as an aid during the budget process and will include prior full year actuals, Y-T-D actuals for the prior and current year, the FY07 approved budget, the FY08 draft budget, and variances.  Dorothy’s goal is to have a draft by the end of July.
Chairman Sheridan commented that the Controller will probably request that the association purchase a fixed asset module that will be able to calculate depreciation for future years.  Currently, the Jonas fixed asset module only calculates depreciation for the current year.

Installment Payments – FC member Jim Drabant stated that he has been tasked to look at various options as it relates to installment payments for the LOW association fee.  He has requested specific data from the LOWA Controller.  Some of the information has been provided.  Jim will follow-up with Dorothy in order to gather the remaining data.

Proposed Regulations for the Community Center – FC member Neil Buttimer distributed, for review, the draft regulations for the use of the Community Center.  Neil stated that he received input from the Youth Activities Committee and the Clubhouse Committee.  Neil gave an overview of the proposed regulations and then made a motion to send the proposed regulations to the Rules Committee.  The motion was seconded by Terry Hileman.

Joe Quimper made a motion to delete item 3., within section C. Beverages, from the proposed regulations.  It was seconded by Bob Hamilton.  Item 3. states, “With the express advance approval of the General Manager, groups may serve alcohol at social functions providing it is not sold or included in the price of admission.”  The vote was 3 (Drabant, Hamilton, Quimper) in favor and 2 (Buttimer, Hileman) against.  Chairman Sheridan voted against the motion, which created a tie.  Therefore, the motion did not pass.

Jim Drabant made a motion stating that the LOWA’s attorney should review the proposed regulations. It was seconded by Bob Hamilton and the motion was passed unanimously.
A vote was taken on the original motion to send the proposed regulations to the Rules Committee and the motion was passed unanimously.      

New Business:
Fitness Center Equipment – Chairman Sheridan gave some background concerning the purchase of additional exercise equipment.  Sheridan stated that he had discussions with the General Manager and pointed out the disadvantages of acquiring the equipment via a capital lease.  He also suggested that if the cost of the equipment was under $3,500 that it could be funded from the operating budget.  At this point, Chairman Sheridan believes that the General Manager will go ahead and purchase three pieces of equipment from the current year operating budget.

Planning Committee Survey – The majority of the discussion was focused on question 2.1, which relates to the payment method of the LOW association fee.  The statistics will be used to help with FC Drabant’s analysis of the “Installment Payments”.

Meetings – FC member Jim Drabant made a motion to approve a policy that would require someone from the finance committee attend meetings between the finance committee chairperson and the General Manager or any member of the BOD. The finance committee member would take notes and report back to the other finance committee members.  It was seconded by Joe Quimper.

Chairman Sheridan made a motion to amend the motion to include only those meetings that are initiated by the finance committee chairperson.  It was seconded by Neil Buttimer and passed unanimously.

The vote on the amended motion was 3 (Drabant, Hamilton, Quimper) in favor and 2 (Buttimer, Hileman) against.  Chairman Sheridan voted against the motion, which created a tie.  Therefore, the motion did not pass.

Guest Comments:
FC Advisor Chuck Schulle commented that the Clubhouse is having problems with their walk-in refrigerator.  He asked if a replacement was in the master plan.  The consensus was that it is not included in the master plan.

The meeting was adjourned at approximately 9:00 PM.  Our next monthly meeting will be August 6, 2007 in the CR at the Holcomb Building at 7 PM.        

Respectfully Submitted, Terry Hileman, Acting Secretary.

 

Meeting Minutes of Finance Committee 
August 6, 2007

Chairman Tom Sheridan convened the meeting at 7:00 P.M.  Committee members in attendance were:  Neil Buttimer, Bob Hamilton, Jim Drabant, Terry Hileman and Mike Andricos.  Committee members absent: Joe Quimper.  Advisors in attendance were: Pete Rainey, Nick Duy, Chuck Schulle, and Bill Mason.  Advisors absent were: Donna Jackson and M.J. Cronin.  BOD members in attendance were: Doug Rogers, Bill Wilson, Ginny Thoms, Linc Klabo, Peter Williams and Eldon Rucker. Also in attendance were Planning Committee Liaison Bob Haring, PC Chair Dave McKee, and General Manager John Bailey.  LOWA members present were: Bruce Kay, Boggs Wright, and Lee Frame.

The draft minutes from the July 2, 2007 meeting were approved unanimously.  The Agenda for today’s meeting was amended to recognize a change in the next meeting date, which will be held in the Clubhouse (lower level) on September 4, 2007 at 7:00pm.

Introductory Remarks:
Chairman Sheridan reported that there was a first reading of the Community Center Regulations at the August 4th BOD meeting.

Chairman Sheridan also announced that Tom Eales has resigned from the Finance Committee for personal reasons and is replaced by Mike Andricos.

Old Business:
Road Fees – Chairman Sheridan presented the analysis that was prepared by Tom Eales.  Mr. Eales analysis revealed the following:

  • The Road Reserve will have an estimated balance of $1.1 million on 4/30/08, which will cover the 3rd phase of the Lakeview parkway paving.
  • Based on Elton Rupe's Master Plan Road Spending and projected Road Fee Income, the Reserve will be in deficit by 2010.
  • An assessment increase of $110 would keep the Road Reserve solvent for 15 years.
  • A new Real Estate transfer fee on houses sold in LOW of .3% would keep Road Reserve solvent for 15 years; a 1% fee would yield a $15 million balance in 15 years.
  • A one time $1,500 capital reserve fee to buyers of LOW homes would keep Road Reserve solvent for 15 years.

The Finance Committee has requested LOWA General Counsel to advise on requirements (covenant, bylaws, regulation change) to implement a new fee.

Installment Payments – FC member Drabant presented Second Bank & Trust’s option for making installment payments.  The key points are as follows:

Internet Banking:

  • There is no minimum or maximum number required to contract for this service.
  • There will be transfer costs ($15.00 per transfer).
  • If transfers are made on the same date each month (i.e. - 1 to 100), there will be only one transfer fee.
  • This offering will cover monthly, quarterly, semi-annual and annual payments.

Setup of Fund Transfer Files:

  • Review type of checking account used by LOW (SBT).
  • What is the volume of activity (SBT).
  • Balance in checking account each month (SBT).
  • Build a template for the electronic files.
  • Create files for each intended user.
  • Will train employee on the system and how to build the files (no charge).
  • No charge for the software.
  • 12 files at $15.00 per file per month if transfers are on separate days.
  • 19 files transfers for semi-annual at $15.00 per.
  • 19 x $15 for all options.

       Commercial analysis balance may offset file costs ($60 with $16,000 balance).

Users:

  • Three offered in initial contract.
  • One primary administrator – has total access to the files.
  • Two secondary users – extent of access will be controlled by the primary administrator.
  • Additional users at a cost of $10 per.

Security:

  • There are three levels of security protection.
  • Users will be issued 1st Level – login, access code and ID, 2nd level – tokes, and 3rd level – web-based.
  • Must know how many will use and what offering.

Need to check with lawyer for all legal aspects of this offering.
A question was raised as to whether the Bylaws have been changed to reflect the new covenant changes.

New Business:
Community Center Mortgage – FC member Hamilton raised a concern relating to the community center loan.  He pointed out that the loan on the new Fire & Rescue has a lower interest rate than the community center and thought that there may be an opportunity to reduce the rate by refinancing the loan on the community center.  Chairman Sheridan pointed out that authorization must be granted by the General Manager for someone to negotiate terms on behalf of the Association.  This authorization has been granted and discussions will take place with various local banks. 

Expired Capital Projects – Based on a request from the Rules and Planning Committees, Chairman Sheridan drafted wording for the new bylaw regarding expired capital projects.  Neil Buttimer made a motion to approve the new wording and the motion was seconded by Terry Hileman.  The motion passed unanimously and is stated below.

The Finance Committee is in agreement with the Rules Committee’s proposal to create a FINANCIAL MANAGEMENT article in the bylaws and to include a section for this new bylaw as well as a section for the previously approved Association Debt Financing Policy.  Therefore the Finance Committee proposes the following bylaw changes:

Change: ARTICLE VI ASSOCIATION DEBT FINANCING POLICY
To: ARTICLE VI FINANCIAL MANAGEMENT

Section A  ASSOCIATION DEBT FINANCING POLICY:

Section B  EXPIRATION OF APPROVED CAPITAL FUNDING:  If after twenty four (24) months from the latest date of reserve funding approval no material expenditures have been applied to a capital project and the Board of Directors have not opted to extend the approval authority, the approval will automatically lapse.

It is also the Finance Committee’s understanding, that if approved, this bylaw can be applied retroactively in the event there are capital projects on the books with no material expenditures during the designated 24 month period.

Guest Comments:
Lee Frame made a comment in regards to the future method of collecting road fees.  Based on a law suit relating to “impact fees”, he suggests that the Association would need to show the “derived benefit” of a fee or that it covers an “expense” that does not apply to other members.

FC member Buttimer suggested that we formulate a procedure to identify “controllable” expenses at the clubhouse.

Chairman Sheridan stated that there will be a meeting with Dorothy and Elton and that the date and time still needs to be determined.  Dorothy will explain the development of the monthly financial results including, Jonas vs. manual entries, cash vs. accruals, CTR with Reserve Balances and cost of goods sold vs. inventory balances.  Elton will explain the Operations Center Transfer process and how these costs are comprehended in the annual budget and monthly financial results.

The meeting was adjourned at approximately 8:25 PM.  Our next monthly meeting will be September 4, 2007 in the lower level at the Clubhouse at 7 PM.

Respectfully Submitted, Terry Hileman, Acting Secretary.

Meeting Minutes of Finance Committee    
September 4, 2007

Chairman Tom Sheridan convened the meeting at 7:00 P.M. 

Committee members in attendance were:  Neil Buttimer, Bob Hamilton, Jim Drabant, Terry Hileman, Joe Quimper, and Mike Andricos. 

Advisors in attendance were: Bill Mason, M.J. Cronin, and Donna Jackson.  Advisors absent were: Chuck Schulle, Nick Duy, and Pete Rainey. 

BOD members in attendance were: Doug Rogers, Eldon Rucker, Peter Williams, Bill Wilson, and Ginny Thoms.  Also in attendance were Planning Committee Liaison Bob Haring, PC Chair Dave McKee, and LOWA Controller Dorothy Isenberg. 

LOWA members present were: Bruce Kay, Boggs Wright, Jeff Flynn, Doug Chidlow, and Sue Ericksen.

The Agenda for today’s meeting was amended to recognize a change in the next special meeting date, which will be held on Tuesday, September 18, 2007 at 2:00pm.

Introductory Remarks/Approve Agenda:
Chairman Sheridan thanked LOWA controller Dorothy Isenberg ad LOWA Maintenance Supervisor Elton Rupe for their presentations at the special meeting regarding LOWA Management reports.

A motion to approve the agenda made by Buttimer and seconded by Drabant was approved unanimously. 

Smartstreet Presentation – Outsourcing Assessment Installment Payments

Jim Cunningham from the Community Association Division of Smartstreet (A division of  RBC Centura Bank) discussed the services available and features/advanages to Homeowner Associations  :
            These outsourcing services include 
                        -easy assessment processing (check, echeck, credit card, or online), 
                        -free banking services (with qualifying balance),
                        -favorable rates on loans and deposits
                        -lockbox services

Smartstreet specializes in homeowner associations and because most of the services are internet based they have significantly lower operating costs which are passed on to the homeowner associations.

Approve minutes of August 6th Meeting  

A motion made by Hamilton, and seconded by Quimper to approve the minutes of the August 6th meeting was approved unanimously.

Old Business:

2008 Operating Budget Liaison Reports:

Maintenance & Ecology (Liaison-Drabant)

General maintenance
-cost center transfers have not been included in draft budgets yet but are being developed 
-there is a continuing investigation for contracting leaf removal/collection and the related costs

Grounds Maintenance    
-a 10% increase in repair/maintenance costs of vehicles and equipment reflects an increase in registration fees

Roads
-Area III consists of a 2.4 mile section of Lakeview Parkway (from Monticello Circle to Harpers Ferry mail Station) and includes 24 culvert pipes

Equestrian Center (Liaison Sheridan)
-The draft budget projects reducing the subsidy from ($124K) actual 2006 to ($118K) for 2008. Revenue is projected to increase from $91K to $156K primarily the result of increasing the boarders rent from $350 to $500 per month. (Estimated costs to board a horse are over $600 resulting in an approximate loss of $100 a month for each additional horse boarded). Show registration and Lesson Income are also projected to increase dramatically. Certain other income areas are expected to be flat or decline slightly. While revenue projections are up, expenses are also projected to increase $50K due to higher salary expense (due to understated 2006 salary expenses from loss of Manager and staff) as well as higher operating expenses. Additional savings in feed is being investigated by winter relocation to farms with pasture land.       

Golf (Liaison Sheridan)
-The Golf draft budget is incomplete since Woods Center LOWGO Shop and Food Service area are not yet finalized. The GM did project revenue from these will exceed the higher labor and operating expenses as a result of the extended hours. The Pro Shop is projected to show an improvement in gross profit as a result of higher gross profit margins on soft and hard goods sales as well as a 3% increase in annual memberships and a 5% increase in multi-play passes. A discussion ensued regarding the good condition of the golf course and the need to increase revenue by providing incentives for more annual memberships. One option could also include elimination of multi-play passes.

Safety and Security (Liaison Quimper)
-Quimper noted that the S&S Chair does not get a copy of the draft budget.  He further noted that he would follow with the GM in a couple of weeks for a draft.      

Clubhouse (Liaison Buttimer)
-Buttimer reported that the Clubhouse continues to deliver improved service with increased revenue.  The Clubhouse committee is developing a recommended procedure to separate Clubhouse food service revenue and expense from community support revenue and expense.  The intent would be to provide better information to management for decision making.  In a discussion, it was pointed out that while the revenue is up dramatically, increases expenses have also increased significantly.

Lake Users (Liaison Hamilton)
Hamilton advised that the draft LUC budget is not yet complete pending data from the Administration office.

Activities and Wellness (Liaison Hileman)
-FC member Hileman reported on the status of the Activities and Wellness cost center budgets or FY08.  He reported that Niki Davis (Activities and Wellness Director) resigned and left on August 18th.  She prepared draft budgets for the Fitness and Tennis Cost Centers.  She did not prepare draft budgets for the pools, A&W, and Campgrounds cost centers.  FC member Hileman will follow up with john Bailey and Bob Popovich concerning the remaining cost centers.

Fitness Center Budget:  Revenues are approximately $21,000 and the net surplus is approximately $1400.  The draft budget includes three new pieces of equipment (treadmill, rowing machine, leg press).  In discussions, it was noted that the projected number of members is 275 but concern was expressed that this might not materialize if more equipment is not available, particularly aerobic equipment. 

Tennis Budget:  Revenues are $5000 and the net deficit is approximately $32,000.  The budget includes three awnings and one bench.  In a discussion regarding the budget, it was noted that fees are considerably lower than several years ago but Tennis Committee does not recommend any increases.

Quimper asked what was forecast for the CC budget income from the Preschool.  A discussion ensued regarding only $1700 per year rent income budgeted for space (approximately 21%) of the CC which has a current annual cost budget of $178,000 (see attached data).  After discussion regarding Roberts Rules (the chair advised that he did not feel a motion could be made on a subject that was not on the agenda---four members felt the motion could be made), Hamilton made a motion, seconded by Drabant, “that the Finance Committee recommends the Lake of the Woods Association enter into a one year contract effective May 1, 2008 at a rate of $5.00 per sq. foot for the occupied area”.  After much discussion, the question was called and the motion passed with four yeas (Hamilton, Drabant, Hileman, Quimper) and two nays (Buttimer and Andricos).  Two thirds of the votes cast for the motion were yeas.    

Adjournment:
A motion to adjourn was passed unanimously and the meeting was adjourned at approximately 10: PM.

Respectfully Submitted, Joe Quimper, Acting Secretary.

Minutes of Finance Committee Meeting
October 11, 2007

Meeting was convened by Bill Mason at 5:00PM.

Committee members in attendance were Pete Rainey, Jim Drabant, Joe Quimper, Bob Hamilton, Terry Hileman, Doug Rogers and Mike Andricos. Alternates attending were Doug Chidlow and Jeff Flynn.

Advisors attending were Bill Mason and Nicholas Duy.

BOD members attending were Eldon Rucker, Bruce Kay, Neil Buttimer, Tom Sheridan and Bill Wilson.

Also attending were PC Chair Dave McKee and PC liaison Robert Haring. LOWA members present were Alicia Payne, Suzie Takacs, Lee Frame, Sandra Frame, Betty Tabor, and Sue Ericksen.

Bill Mason called for a vote on the candidates for Chairman of the Finance Committee, Pete Rainey and Jim Drabant, who were nominated at the Oct 1, 2007 Finance Committee meeting.. Pete Rainey was elected Chairman by a vote of 4-3. Bob Hamilton and Joe Quimper then announced that they were resigning from the committee and departed the meeting. Rainey took the chair and called for nominations for Vice Chairman. Rogers nominated Jim Drabant, Hileman seconded. Drabant was elected unanimously. Drabant then nominated Rogers for Secretary. Rogers nominated Andricos. Andricos was elected by a vote of 3-1.

The agenda was approved unanimously as were the minutes of the September 4 and October 1 meetings.

Under old business, outsourcing of assessment payments was discussed. BOD President Rucker commented that it would be helpful to the BOD to have the benefit of Finance Committee deliberations on outsourcing, a FC recommendation on whether to outsource, and if so, a recommendation on which proposal to accept. A discussion led by Drabant ensued. Drabant then made a motion, seconded by Hileman to propose that the FC recommend that LOWA outsource the assessment, billing and collection process. The motion was approved unanimously.

Discussion then turned to whether the FC should make a recommendation on selection of a service provider. Drabant moved, seconded by Hileman, that the FC recommend SMART STREET. Motion passed 3-0 with one abstention.

Discussion of the Community Center Mortgage was deferred. Before departing, Hamilton had distributed a copy of his memo to the BOD on the subject.

No new business was discussed.

Rainey then asked for comments. Doug Chidlow requested a hearing on the Capital Budget and Fee Schedule. Members and alternates were asked to e-mail any budget concerns to Rainey so they could be addressed during the budget hearings scheduled to begin on Oct 16, 2007 and continue through Nov 1, 2007.

The next monthly meeting of the FC is November 5, 2007.

Meeting adjourned at approximately 5:40PM.

Respectfully Submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
November 5, 2007

Meeting was convened by Chairman Pete Rainey at 7:00PM.

Committee members in attendance were Pete Rainey, Jim Drabant, Terry Hileman, Doug Rogers, Jeff Flynn, Doug Chidlow and Mike Andricos.

Alternates attending were Chuck Schulle, Nick Duy, M.J. Cronin, Donna Jackson and Bill Mason.

BOD members attending were Neil Buttimer, Bruce Kay, Bill Wilson, Peter Williams, and Tom Sheridan.

LOWA Committee representatives present were, Chuck Liddick (Golf), Ken Tillman (Pools & Fitness) and Dave McKee (Planning).

LOWA Members present were Charles Batten, Vince Cusack, Joe Quimper, Daniel Greene, Vera Liddick, George & Diane Parkinson, Benny & Nancy Taylor, Janet Bocook, Vera Moody and Don Walters. Also present was LOWA GM John Bailey.

The agenda for the Nov 5 meeting and the minutes of the Oct 11, 2007, meeting were approved unanimously.

Under Old Business, Drabant moved, Chidlow second, that the FC forward to the BOD the Community Center Mortgage recommendations prepared by Bob Hamilton for their consideration. A motion to amend was made by Hileman, Rogers second, that the LOWA Administration provide cash flow data related to the recommendations to the BOD. Motion to amend passed 5-1 (Yea- Rogers, Flynn, Hileman, Drabant, Andricos. Nay-Chidlow). The original motion , as amended, then passed unanimously.

Under New Business, amendments to the Proposed LOWA Budget for 2008 were considered as follows:

1. Equestrian Center: Motion by Chidlow, Andricos second, to adopt Equestrian center Budget as proposed. Approved unanimously.

2. RV Storage Fees: Motion by Drabant, Rogers second, to increase RV annual storage fees as follows for 2008: Lakeview Storage Lot to $500, Campground Section A to $450, Campground Section B to $350. Passed 4-2. (Yea - Drabant, Rogers, Chidlow, Hileman. Nay- Flynn, Andricos)

3. Canoe/Kayak Rack Fees: Motion by Chidlow, Drabant second, to increase Rack Fees to $25. Passed 5-1 (yea- Drabant, Rogers, Hileman, Flynn, Chidlow. Nay- Andricos)

4. Golf Individual Annual Fees: Motion by Chidlow, Drabant second, to increase individual annual golf fees by 10% over 2007 fees. Failed 1-5 (Yea- Chidlow. Nay- Drabant, Rogers, Hileman, Flynn, Andricos).

5. Golf Family Annual Fees: Motion by Chidlow, Drabant second, to set family annual fees (total revenue increase $25,000) as follows: Annual Family $1658, with trail $2,614, with cart $2,808. 35 Multi Play Pass (Cardholder only) $620,with trail $992, with cart $1,054. Passed 4-3. (3-3 with Chairman breaking tie. (Yea- Drabant, Flynn, Chidlow, Rainey. Nay -Rogers, Andricos, Hileman).

6. Tennis Fee: Motion by Andricos, Rogers second, to eliminate Tennis fee. Motion to amend by Chidlow, Drabant second, to increase annual family fee to $75 and allow children with teen ID to play free. Motion to amend failed 2-4 (Yea - Chidlow, Drabant. Nay - Flynn, Hileman, Andricos, Rogers). Original Motion then passed 4-2. ( Yea - Andricos, Drabant, Hileman, Flynn. Nay - Rogers, Chidlow)

7. Boat Storage Fee: Motion by Drabant, Rogers second, to establish new category for Lakeview storage lot of “Boat Storage” and keep fee at 2007 level of $360. Passed unanimously.

8. Pools Annual Fees: Motion by Chidlow, Drabant second, to set annual pools fees as follows: Individuals (18 and over) $100. Family $190, Ages 6-17 $25. Ages 5 and under free, Eliminate Couples Category. Passed 4-2. Yea - Drabant, Chidlow, Rogers, Flynn. Nay - Andricos, Hileman)

9. Pools Daily Fees: Motion by Chidlow, Drabant second, to set daily pools fee at $6.00 and short term (5/30) pass at $27.00. Failed 2-4 ( Yea - Chidlow, Drabant. Nay - Rogers, Andricos, Hileman, Flynn).

10. Skateboard Park: Motion by Chidlow to eliminate guest participation. Motion died for lack of second.

11. Boat Fees: Motion by Andricos, Chidlow second, to set boat registration fees at 2007 levels. Passed 4-2. ( Yea - Andricos, Chidlow, Flynn, Drabant. Nay - Hileman, Rogers).

12. Fire and Rescue Donation: Motion by Chidlow, Drabant second, to reduce donation to Fire and Rescue to $40,000. Failed 2-4. (Yea - Chidlow, Drabant. Nay- Rogers, Hileman, Andricos, Flynn).

13. Large Item Pickup: Motion by Hileman, Rogers second, to eliminate Large Item Pickup. Passed 4-2. (Yea - Rogers, Hileman, Flynn, Andricos. Nay - Drabant, Chidlow).

14. Road Fee Set Aside: Motion by Chidlow that a road fee set aside adjustment of $50,000/yr for next three years be added to the proposed budget. Motion died for lack of second.

15. Marina Gasoline Costs: Motion by Chidlow, Rogers second, to reduce Marina gasoline costs to $40,000. Failed 3-4 (3-3 with Chairman breaking tie. Yea - Rogers, Drabant, Chidlow. Nay - Flynn, Hileman, Andricos, Rainey).

16. Fish Stocking: Motion by Chidlow to eliminate $4,000 for feeder fish and $2,000 for Carp. Motion died for lack of second.

17. Water Quality Testing: Motion by Chidlow to reduce water testing to $5,000. Motion died for lack of second.

18. Clubhouse Payroll: Motion by Chidlow to reduce Clubhouse payroll by $42,000. Motion died for lack of second.

19. Fareways Room Rental Income: Motion by Chidlow, Drabant second, to eliminate room rental income from Fareways and include in CCS budget. Passed 4-2. (Yea- Chidlow, Flynn, Drabant, Andricos. Nay - Hileman, Rogers).

20. Fareways Food and Beverage Revenue: Motion by Chidlow to reduce Fareways Food and Beverage revenue projection by $25,000. Motion died for lack of second.

21. Fareways Food and beverage Revenue #2: Motion by Drabant, Chidlow second, to reduce projected Food and Beverage revenue by $20,000. Failed 2-4. ( Yea - Chidlow, Drabant. Nay - Rogers, Hileman, Andricos, Flynn).

22. PRO/LOWGO Sales: Motion by Chidlow, Drabant second, to reduce PRO/LOWGO sales as follows: Soft Goods $45,000 to $30,000. Hard Goods $30,000 to $20,000. LOWGO $35,000 to $20,000. Make appropriate proportional changes to cost of goods for each category. Passed 4-3 (3-3 with Chairman breaking tie. Yea- Chidlow, Hileman, Flynn, Rainey. Nay- Rogers, Andricos, Drabant).
23. A&W Youth Activities Income: Motion by Chidlow, Drabant second, to reduce Youth Activities income from $1,000 to $250. Failed 2-4. (Yea- Drabant, Chidlow. Nay- Flynn, Rogers, Hileman, Andricos).

24. Fitness Center Furnishings: Motion by Chidlow to withhold expenditure for Expendable Furnishings until catalog prices are provided for Lite Fitness Abdominal/Back machine and Rowing Machine proposed purchases. Motion died for lack of second.

25. Tennis Expendable Furnishings: Motion by Chidlow to delete tennis expendable furnishings. Motion died for lack of second.

26. Equestrian: Motion by Chidlow, Drabant second, to add $6,500 expense for horses. Approved unanimously.

27. Pool Study: Motion by Drabant, Chidlow second, to delete $50,000 from new Capital for Pool Study. Passed 5-1 ( Yea- Chidlow, Flynn, Hileman, Drabant, Andricos. Nay- Rogers). Footnote: FC recommends BOD establish an ad hoc study group to define objectives, scope and cost of replacing Clubhouse Pool and whether to include certain other amenities.

28. Golf Leaf Blower: Motion by Drabant, Chidlow second, to defer Golf Leaf Blower to 2009 Replacement Capital. Passed 5-1 (Yea- Rogers, Flynn, Hileman, Drabant, Chidlow. Nay- Andricos)

29. Golf Sweeper: Motion by Drabant, Chidlow second, to defer Golf Sweeper to 2009 Replacement Capital. Failed 2-4 (Yea- Chidlow, Drabant. Nay- Rogers, Andricos, Hileman, Flynn).

30. Assessment: Motion by Rogers, Andricos second, to endorse proposed 2008 Annual Assessment of $1,128. Passed 5-1 (Yea- Rogers, Andricos, Drabant, Hileman, Flynn. Nay- Chidlow).

Chairman Rainey announced that the presentation of the 2008 Proposed Budget to the LOWA Membership would be held at 9:00AM, Saturday, November 17 at the Community Center. The FC presentation of the 2008 Proposed Budget will be made to the BOD at a workshop on December 19, 2007.

The next monthly meeting of the FC will be December 3, 2007.

Meeting adjourned at 10:30PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
December 3, 2007

Meeting was called to order by Chairman Pete Rainey at 7:00PM.

Committee members attending were Pete Rainey, Mike Andricos, Doug Chidlow, Jim Drabant, Terry Hileman and Doug Rogers. Committee alternates present were Nick Duy, Bill Mason, Boggs Wright, and M.J. Cronin. BOD members attending were Neil Buttimer, Bruce Kay, Tom Sheridan, Jeff Flynn, and Bill Wilson. LOWA GM John Bailey and Comptroller Dorothy Isenberg were also present. LOWA members attending were R.C. Haring (PC liaison to FC), Don Walters, Vera Moody, Bob Fish, Dave McKee, Ken Tillman and William Gordon.

The Agenda for the Dec 3 meeting was approved by a vote of 3-1 (Yea - Andricos, Hileman, Rogers. Nay - Chidlow). Chidlow departed meeting. Drabant arrived shortly thereafter, thus a quorum was present to conduct the following business:

The minutes of the Nov 3, 2007, meeting were approved unanimously.

Under New Business, a motion by Andricos, Rogers second, to rescind Finance Committee increases to the General Manager’s 2008 Draft Fee Schedule passed 3-2 (2-2 with Chairman breaking tie. Yea - Andricos, Rogers, Rainey. Nay - Drabant, Hileman).

Chairman Rainey appointed Jim Drabant to chair a subcommittee to review and revise the Master Plan Appendix G. Drabant will propose membership of the subcommittee which will also include representation from the Planning Committee.

Chairman Rainey then made the following FC liaison assignments to other LOWA committees:

Clubhouse - Pete Rainey
Communications - Donna Jackson
Equestrian - Mike Andricos
Golf - Doug Rogers
Lakes - Boggs Wright
M&E - Jim Drabant
Planning - Jim Drabant
Pools/Fitness - Nick Duy
Safety & Security - Donna Jackson
Tennis - Terry Hileman
Youth - M.J. Cronin

Guest Comments: Vera Moody and Bob Fish made comments regarding RV storage fees.

The next monthly meeting of the FC will be Jan 7, 2008 at 7:00PM, Holcomb CR.

Meeting adjourned at 7:40PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
January 7, 2008

Meeting was called to order by Chairman Pete Rainey at 7:00PM.

Committee members in attendance were Pete Rainey, Jim Drabant, Doug Rogers, Mike Andricos, Boggs Wright and Doug Chidlow . Member absent was Terry Hileman. Also attending were Nick Duy, alternate, R.C. Haring, PC liaison, and BOD members Eldon Rucker, Jeff Flynn, Tom Sheridan, Bruce Kay, Neil Buttimer, Bill Wilson and Peter Williams. LOWA members present were Dave McKee, Bernie Patton and Don Walters.

The Agenda for Jan 7 and the minutes of the Dec 3, 2007 meeting were approved unanimously.

There was no old business.

Under new business

Jim Drabant, Chairman of the subcommittee to review and revise the Master Plan, Appendix G, gave a status report on the subcommittee’s activities to date. Drabant reported that the subcommittee members, which include representatives of the planning committee, were given several documents to review and had begun consultations with BOD members on how to better support judgments and decisions on capital replacement. The intent of the subcommittee is to develop a mechanism to display data in more beneficial ways to decision makers without impacting the day to day operation of the LOWA GM and Comptroller in producing that data. Chairman Rainey asked that the subcommittee provide a schedule with milestones leading to a product which would be ready to accept data input by the end of May, 2008.

In other discussion, Board Member Bruce Kay requested that he be provided with a plan, including costs, to improve the responsiveness and reduce the volume of printing associated with the budget process by utilizing computer hardware, software and training including purchasing, if required, a MS Office/Excel application tailored to our budget process. Chairman Rainey agreed to provide such information.

There will be no FC meeting in February. The next meeting is scheduled for March 3, 2008.

Meeting adjourned at 7:43PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
March 3, 2008

Meeting was called to order by Vice Chairman Jim Drabant at 7:00PM. Committee members in attendance were Jim Drabant, Mike Andricos, Doug Chidlow, Terry Hileman, Doug Rogers and Boggs Wright. Pete Rainey was absent. Alternates present were Nick Duy and Harry Walsh, advisor Bill Mason and liaisons Neil Buttimer (BOD) and R.C. Haring (PC). Also attending were BOD members Eldon Rucker, Peter Williams, Bill Wilson, Tom Sheridan and Jeff Flynn and LOWA GM John Bailey, AGM Ted Wessel and Controller Dorothy Isenberg. LOWA members present were Dave McKee, Ken Tillman, Jim Biggs, Don Walters and Vince Cusack,

Drabant announced that M.J. Cronin resigned from the committee and that Doug Chidlow would be FC liaison to the M&E Committee. Drabant also introduced Harry Walsh as a new alternate on the Finance Committee. He also announced that the Planning Committee was about to begin Capital Budget Hearings in May and  Dave McKee , PC Chairman, invited Finance Committee members to participate in the hearings (non voting).

The Agenda for March 3 and the minutes for Jan 7, 2008 were approved.

Under old business, Terry Hileman presented a demonstration of the computer model he is developing in support of the work underway by the subcommittee to review and revise the Master Plan, Appendix G.

Under new business, BOD President Eldon Rucker began a discussion of Amenity Fees, noting that the Board has sent a letter requesting that the FC provide thoughts,  suggestions and recommendations on reducing the complexity of the fee structure that the BOD can consider in the fall. Bill Mason then presented an outline suggesting policy considerations which could be used in in setting a framework for determining subsidies for the various amenities at LOW. Doug Chidlow read a statement proposing that historically reasonable subsidy levels be established for amenities and that fees be brought into line to support that subsidy level. He also proposed that fees be based on individual, family, or minor child rates. Discussion ensued on several options, including  setting fees as a set percentage of actual costs and establishing annual, vice daily, fees for certain sets of amenities or activities, in addition to considering the purpose of fees, such as control of an amenity as well as, or in lieu of, the economic benefit. Jim Drabant then asked  Mason to  further develop options and proposals for simplifying the fee structure, either by continuing his individual efforts or enlisting support from others associated with the committee.

Liaison  reports were as follows:

Tennis (Hileman)- Committee has not been meeting recently.

Pools and Fitness (Duy) Just now putting data together.

Equestrian (Andricos) Has been evaluating and reviewing short and long term proposals for updating/improving facilities in preparation for upcoming Capital Budget hearings.

Lake Users (Wright) Recent attention focused on grass and revising lake rules.

M&E (Chidlow) Discussing proposal to put lights in Pro Shop parking lot and aerating small lake to replenish dissolved oxygen.

Golf (Rogers) Just had first meeting of year. Revenue to date ahead of YTD projections. Committee considering member incentives, tournaments, fees. Preparing for Capital Budget hearings May 5.

Planning (Drabant) Reviewing survey questions. Progress reported on moving forward with membership card. First phase will be without photos, but eventually will have variety of uses, including tracking of amenity use.

Meeting adjourned at approximately 8:20PM.

Respectfully submitted, Mike Andricos, Secretary 

Minutes of LOWA Finance Committee Meeting
April 7, 2008

Meeting was called to order by Chairman Pete Rainey at 7:00PM.

Committee members present were Pete Rainey, Jim Drabant, Terry Hileman, Doug Rogers, Doug Chidlow, Boggs Wright and Mike Andricos. Also in attendance were alternates Nick Duy, Olive Kelly and Harry Walsh, advisors Chuck Schulle and Bill Mason and liaisons Neil Buttimer (BOD) and R.C. Haring (Planning). Other BOD members present were Tom Sheridan, Jeff Flynn, Bill Wilson and Bruce Kay. Also present were LOWA GM John Bailey and AGM Ted Wessel and members Dave McKee, Chuck Russell, Ken Tillman, Dee Tillman, Vince Cusack, Suzie Takacs, Betty Tabor and J.A. Quimper.

The Agenda was approved unanimously as were the minutes of March 3, as amended.

Under old business, discussion continued on fees. Chairman Rainey asked GM John Bailey for suggestions on how to simplify fees and Bailey distributed a handout in which he proposed eliminating non-annual fees from the printed fee schedule thereby reducing it from four pages to two. This concept would allow management the flexibility of adjusting prices to reflect market conditions without the requirement to get BOD approval for fee and price changes. Chairman Rainey informally polled the voting members on this concept. Rogers, Hileman, Drabant and Andricos were supportive of Bailey’s recommendation, while Chidlow and Wright felt all the daily fees should continue to be published.

Advisor Schulle commented that he thought the published list should be as short as possible. The Committee then turned to further discussion of Bill Mason’s presentation on restructuring fees (outline attached). Mason  proposes establishing three classes of amenities based on the value the amenity adds to the fundamental features the market expects to find in a gated, golf and lake oriented community like LOW and then set target subsidies for those amenities, with the largest subsidies targeted for amenities judged to be the most important to the community.

Discussion then turned to Doug Chidlow’s Fee Proposal, (also attached) which would set specific subsidy goals for certain amenities. Chidlow further proposed that the OCTs for Roads and Grounds charged to the Lakes account (303) should be removed from this account and charged to the CCS account (201) thus allowing relief on boat fees.  Chidlow’s written proposal also includes a detailed “straw man” for further discussion and consideration outlining specific fees and subsidies. Following further general discussion that a reassessment of all amenities is needed with a better idea of costs and revenues for each, the Committee took the following action:

Motion by Wright, Rogers second, that the Committee recommend that the BOD set subsidy goals by cost center. Passed unanimously.

Motion by Chidlow, Drabant second, that the Committee recommend to the LOWA GM that all ground and road maintenance costs  and costs associated with dams and beaches be allocated to CCS. Motion passed 5-0 . Yeas: Chidlow, Drabant, Hileman, Andricos, Wright. Rogers abstained.

Chairman Rainey then asked Bill Mason and Doug Chidlow to undertake a coordinated effort to combine their respective papers and develop a draft guidance letter outlining procedures for setting goals to revise the amenity fee structure.

Under new business, Chairman Rainey announced that he and Nick Duy would be resigning from the committee, which would be reconstituted for the coming year as follows: Voting members Andricos, Chidlow, Drabant, Hileman, Rogers and Wright and that Rainey would recommend Harry Walsh to the BOD to be a voting member. Rainey also announced that the BOD had appointed Olive Kelly and Dave LeMay as alternates. Bill Mason and Chuck Schulle agreed to continue serving as advisors.

Chairman Rainey then asked Jim Drabant to summarize the work completed by the Subcommittee to review and revise the Master Plan, Appendix G, which Drabant chaired. Drabant announced that the subcommittee had completed what it had set out to do, and that the committee had seen a demo of the spreadsheet  program developed by Terry Hileman.

Member comments were related to the earlier discussion of the published fee schedule with comments supporting the publishing of all fees, both annual and daily.

The meeting was adjourned at 8:28PM.

The next meeting will be May 5, 2008, Holcomb CR.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
May 5, 2008

Meeting was called to order by Vice Chairman Jim Drabant at 7:02PM.

Members in attendance were Drabant, Doug Rogers, Terry Hileman, Harry Walsh, Boggs Wright, Doug Chidlow and Mike Andricos. Also present were Alternates Olive Kelly and Dave LeMay, Advisors Bill Mason and Chuck Schulle and Liasions Neil Buttimer (BOD) and R.C. Haring (Planning).

Others present were: BOD members Eldon Rucker, Tom Sheridan, Bruce Kay, Bill Wilson, and Peter Williams; LOWA GM John Bailey, AGM Ted Wessel and Controller Dorothy Isenberg; and LOWA Members Dave McKee, Chuck Liddick, Vince Cusack, Ken Tillman, Karen O’Donnell, Don Walters, Margaret Darby, Joe Quimper, Susan Wright, Suzie Takacs, Alicia Payne, Alice Drabant, Philip McCann, Bob Hauprich, John Klopfer, Marguerite Dwyer, Dee Tillman and R. Michael Dwyer.

The Agenda was approved unanimously.

Drabant announced the Committee as reconstituted for the current fiscal year as follows:  Members: Drabant, Rogers, Walsh, Hileman, Chidlow, Wright and Andricos; Alternates: Kelly and LeMay; and Advisors: Schulle and Mason.

Drabant then opened the floor for nominations for Chairman. Wright Nominated Jim Drabant, Chidlow second. Drabant asked for a vote on that motion before proceeding to other nominations. Nomination failed 3-4 (Yeas - Wright, Chidlow, Drabant. Nays - Hileman, Andricos, Walsh, Rogers).

Motion then made by Andricos to nominate Doug Rogers for Chairman, Walsh second. Rogers was elected Chairman by a vote of 4-3. ( Yeas - Andricos, Hileman, Walsh, Rogers. Nays - Chidlow, Wright, Drabant)

Drabant then turned the meeting over to Rogers. Rogers asked for nominations for Vice Chairman. Drabant declined to run for reelection as Vice Chairman.

Andricos nominated Harry Walsh, Hileman second. Walsh elected by a vote of  5-1 ( Yeas - Drabant, Hileman, Andricos, Wright, Walsh. Nay - Chidlow)

Hileman then nominated Andricos to be Secretary, Walsh second. Andricos elected by a vote of 3-0. Yeas - Hileman, Walsh, Andricos).

The Minutes of the April 7 meeting were approved unanimously.

Under Old Business, Olive Kelly made a presentation on the Subcommittee Report on Capital Planning. Kelly noted that the task given to the subcommitte was to construct a model to be used by LOWA administration, planning and finance to assist in the development of the 5 Year Plan, project reserve balances and the impact of new capital spending on the assessment. The Subcommittee constructed the model using currently available data which was incomplete and/or outdated so sample reports were provided only as examples of what could be produced. Drabant characterized the subcommittee efforts as a work in progress and said that the model turned over to the LOWA GM would require fully updated data before a full test can be performed.

 Terry Hileman pointed out that the data he used in developing the model were mostly  projections with numbers in some cases made up in order to demonstrate the model. Even as such, those numbers represented only a small fraction of the data that the model will eventually process, therefore rendering any discussion of specific projections premature. Drabant stated there was no intent to make projections and the text stared that the reports were samples only.

 Drabant thanked the subcommittee members for all the work they had done, including Doug Chidlow for comprehensive statistical work, Terry Hileman for his work as an advisor and developing the model and Dave McKee for his contributions to the work of the subcommittee.

The committee then turned to the subject of amenity fees, continuing a discussion of  proposals developed by Bill Mason and Doug Chidlow to establish guidelines for setting fees, establishing subsidy goals and simplifying the fee structure. Chidlow commented that new amenities were approved to be self supporting and no subsidy was proposed. Chidlow pointed out that the bylaws and regulations had been modified and no longer require amenities to be totally justified and that fees were no longer directed to be optimized, thus blurring the objectives of the fee structure. Simplification involved identifying individual and children’s fees. The effort involved setting performance goals and proposing specific subsidy percentages. General discussion involving both the committee members and audience covered concerns about individual vs. family fees for golf, considering the effect of amenities on property values and combining fees for pools, tennis and the fitness center. Discussion of fee simplification will continue at the next meeting.

Under new business the BOD request for  recommendations regarding the Community Center loan was presented to the committee. Chidlow commented that the motion provided for evaluation of the cost effectiveness of paying off the loan and of taking no action. Director Williams clarified that the meaning of “from all points of view and aspects” in his motion was that the Finance Committee should explore all of the available options, including payoff, re-financing, “doing nothing” and report back to the board with their findings. GM John Bailey gave some background on various banking and loan topics and noted that Wachovia has advised that they will not negotiate refinancing the loan. Chairman Rogers established a small working group (Rogers, LeMay, Kelly and Walsh plus Hileman as advisor) to develop recommendations.

Chairman Rogers introduced the issue of budget guidance for discussion and distributed copies of the 2008 guidance to be used as a straw man for considering  guidance for 2009. He noted that some topics would be deleted in 2009 and that discussion would continue at the June meeting.

Wright noted the upcoming Soil Conservation Commission vote and inquired about plans for purchasing the Obermeyer gate. Bailey responded that the gate, which is estimated to cost $568K, is pending BOD action/approval and that installation specifics will be addressed later.

Liaison reports were deferred.

The meeting adjourned at 9:35PM.

The next meeting will be June 2, 2008.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
June 2, 2008

Meeting was called to order by Chairman Doug Rogers at 7:00PM.

Members in attendance were Rogers, Harry Walsh, Terry Hileman, Jim Drabant, Boggs Wright, Doug Chidlow and Mike Andricos. Also present were alternates Dave LeMay, Olive Kelly and Dave McKee, Advisors Chuck Schulle and and Bill Mason, and Liaisons Neil Buttimer (BOD) and R.C. Haring (Planning).

Others present were BOD members Eldon Rucker, Tom Sheridan and Jeff Flynn, LOWA GM John Bailey, AGM Ted Wessel and Controller Dorothy Isenberg, and LOWA members Don Walters, Joe Quimper, Chuck Liddick, Vince Cusak, Jim Walsh, Ginny Thoms, Margaret Darby, P. Crowell, Jim Ogletree,  Ken Tillman, Dee Tillman, Suzi Tackacs, Bob Doan and Ken Kaltenmark.

The agenda and the minutes of May 5, 2008 were approved unanimously.

Chairman Rogers announced that Dave McKee would be joining the committee as an alternate.

Under old business, the recommendations of the Fee Simplification working group were to be forwarded to the other LOW committees for their consideration. A motion by Chidlow, Drabant second, to present the report on fee simplification to the BOD for consideration passed unanimously. The report will also be attached to these minutes.

Under new business a discussion ensued regarding Proposed Budget Guidelines for 2009. Doug Chidlow pointed out that the FC Charter does not include providing budget guidance to the BOD for their consideration. After further discussion, a motion by Chidlow, Wright second, to terminate discussion of proposed 2009 guidance and not make a recommendation to the BOD passed unanimously.

The committee then turned to discussion of the Community Center loan and the following options: do nothing, pay down the loan, refinance the loan, accelerate the pay down and pay the loan off this fiscal year. John Bailey then reported on results to date of his contact with five lending institutions and is awaiting further guidance on next steps. Controller Isenberg presented a draft report to  project cash balances at the end of the current fiscal year and concluded, based on those draft projections, that the Association does not have the cash to pay off the loan. The committee then determined that available data was incomplete and scheduled a special meeting of the FC for June 16 to hear further from GM Bailey on this issue. The meeting will be on one subject, refinancing the CC loan. Further discussion of paying off the loan led to a motion by Walsh, Hileman second, to not pay off the loan in its entirety at this time. Motion failed 1-5 with Walsh voting in favor and Andricos, Chidlow, Drabant, Hileman and Wright opposed.

Dave McKee then gave a report on the Planning Committee’s 2009 Capital Planning hearings and noted that a report will be forthcoming that will recommend $1.1m in “must do’ projects, followed by recommendations for “should do”, “defer to next year”, and “deny”.

Member comments included remarks on living within our (The Association) means, capital expenditures, road and capitalization fees, and the status of the dam and options for paying for modifications that may be required by the State.

The meeting was adjourned at 8:55PM

The special Meeting on refinancing the CC loan will be June 16.

The next regular meeting will be July 7, 2008.

Respectfully submitted, Mike Andricos, Secretary

Minutes of Finance Committee Special Meeting
June 16, 2008

Meeting was called to order by Chairman Doug Rogers at 7:00PM.

Members in attendance were Rogers, Terry Hileman, Mike Andricos, Jim Drabant, Boggs Wright and Doug Chidlow. Also present were alternates Dave McKee, Olive Kelly and Dave LeMay, advisor Chuck Schulle, and liaisons Neil Buttimer (BOD) and R.C. Haring (Planning).

Others present were BOD members Eldon Rucker, Tom Sheridan, Jeff Flynn and Bruce Kay, LOWA GM John Bailey, AGM Ted Wessel and Controller Dorothy Isenberg, and LOWA members Don Walters, Alice Drabant, Suzie Takacs,  Alicia Payne and Susan Wright.

The Agenda  was approved unanimously.

Under old business, discussion of the Community Center loan continued with Rogers noting that this special meeting was called to discuss recommendations that he would present to the BOD at the upcoming workshop. It was also reconfirmed by Dorothy Isenberg that the Association does not have $830,000 in liquid assets to pay off the loan.

John Bailey then distributed a confidential handout, which he collected at the end of the meeting that summarized proposals of five lending institutions to refinance the existing Community Center loan. Bailey reviewed each proposal and considerable discussion ensued on details including several institution’s conditions that would require  assignment of LOWA assessments as collateral for the loan. It was noted that we would need to get a legal position on whether the Association could execute an agreement that would pledge a future income stream.

Doug Chidlow made a motion that the Finance Committee recommend that the BOD take no action on the Community Center loan at this time. The motion was seconded by Wright. Wright offered that we should not make any recommendations regarding this topic since we are facing a major decision on our dam in July which will affect our financial position significantly. The motion passed unanimously.

Meeting was adjourned at 8:15PM.

Respectfully submitted, Mike Andricos, Secretary. 

Minutes of Finance Committee Meeting 
July 7, 2008

Meeting was called to order by Vice Chairman Harry Walsh at 7:00PM. Members in attendance were Walsh, Jim Drabant, Doug Chidlow, Terry Hileman, Boggs Wright and Mike Andricos. Also present were alternates Dave McKee, Olive Kelly and Dave LeMay and liaisons Neil Buttimer (BOD) and R.C. Haring (Planning). Others present were BOD members Bruce Kay, Tom Sheridan and Bill Wilson, LOWA AGM Ted Wessel and LOWA members Susan Wright, Don Walters, Margaret Darby, Bernie Patton, Nick Duy and Joe Quimper.

Motion by Chidlow, Wright second, to add Review and Discussion of BOD 2009 Budget Guidelines to the agenda under new business. Motion passed unanimously. Agenda was then unanimously approved.

The Minutes of June 2 and 16, 2008 were approved.

Under new business, the committee reviewed the current charter and several observations were made regarding references to budget guidance and terminology contained in the charter, such as references to cost centers which should be operations centers and possible discrepancies with other committee charters, in particular the Planning Committee charter. A motion was made by Walsh, Drabant second, to establish a joint subcommittee with the Planning Committee to coordinate language of the two committees and recommend appropriate changes that could be made to the BOD. Motion passed unanimously. It was further suggested that Chairman Rogers coordinate with the Chair of the Planning Committee, Don Walters, who was in attendance. Olive Kelly suggested that Dave McKee be one of the representatives of the committee due to the fact that he is the past chair of the Planning Committee.

Walsh then suggested postponing discussion of Education on Financial Reports until Chairman Rogers returned, but some discussion did ensue on a need to simplify financial reports, which prompted a more detailed discussion of what was contained in current reports and that producing simplified reports could cause misunderstanding because simplification meant certain details important to having a complete picture would be omitted. AGM Wessel noted that an effort was being undertaken in conjunction with work by the Quality Management Committee to explore ways to better communicate general financial information, with Bruce Kay noting that additional demands on staff time be a factor of any proposals that may be considered. AGM Wessel also agreed to pursue a possible education session similar to the one held last year which provided a detailed briefing on existing LOWA financial reports. Wessel noted that this would be a briefing on numbers, not process. Neil Buttimer then reviewed the timeline for the annual budget process.

Discussion then turned to 2009 Budget Guidance that the GM provided to Operations Center Managers. Chidlow said that copies of that guidance should be provided to the committee for review. Others noted that the proper time for committee review was during the hearings in the fall on the budget the LOWA GM prepares and submits for committee and BOD consideration. A motion by Chidlow to require the GM to provide to the committee copies of the budget guidance to ops center managers died for lack of a second.

Next under discussion was New Capital Reserves. Chidlow suggested the committee look at the total, by year, for the next five years (2009-2013). Chidlow made a motion, Wright second, that the committee undertake this review and make recommendations to the BOD that might result. Approved unanimously. Chidlow volunteered and was authorized to conduct the review and provide results to the committee for consideration.

General comments covered issues of status of reserves and how they are being spent, differences in CTR, Ops center transfers for Grounds, and campground budget overruns.

The meeting was adjourned at 8:32PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
August 4, 2008

The regular monthly meeting of the LOWA Finance Committee was called to order by Chairman Doug Rogers at 7:00PM.

The Agenda for August 4 was approved unanimously. The minutes of the July 7 meeting, as amended, were approved unanimously.

BOD Treasurer Neil Buttimer distributed samples of a proposed Financial Report that will be published in the next Lake Currents. At the conclusion of the Treasurer’s discussion, Jim Drabant submitted to the committee two samples of a simplified Financial Report format developed by banking and accounting professionals at LOW. Following discussion of these sample formats, Drabant made a motion to attach these samples to the minutes which was approved unanimously.

Under old business, the Committee discussed the charters of the Finance and Planning Committees, the budget process and 5-year New Capital projections.

The Committee also discussed the role of the Finance Committee in making recommendations to the BOD regarding budget guidance.

There was no new business.

In open discussion the committee reviewed risk associated with Association funds on deposit with financial institutions.

The meeting adjourned at 8:35PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
September 9, 2008

The regular monthly meeting of the LOWA Finance Committee meeting was called to order by Chairman Doug Rogers at 7:00PM.

The agenda, as amended, was approved unanimously.

The minutes of the August 4, 2008 meeting were approved unanimously.

Rogers announced that the draft audit was in and the final audit is expected in late September/early October.

Dave McKee reported on the progress of the ad hoc subcommittee of the Finance and Planning committees to review  the respective committee charters and other issues including the possibility of joint hearings in the future on the budget and Master Plan. A draft of the committee’s review and recommendations has been circulated internally for information and comment.

Rogers announced the schedule for the annual budget hearings. They will be held on October 14, 16, 20, 22, 24, 28 and 30.  Operations Centers to be discussed at each hearing will be announced at a later date. All hearings will be held at the Woods Center from 9:00AM until Noon. The Committee will then vote on any proposed amendments at its regular meeting in November.

The Committee then discussed a protocol proposed by Doug Chidlow for recommending changes to the budget during the annual hearings. The protocol included a proposed action item format and was distributed in advance to all members of the committee by Chidlow. There was general agreement that final FC action on an action item would be by consensus of the committee. Chidlow made a motion that the committee adopt the protocol, as amended, which was approved unanimously. The protocol will be attached to these minutes.

In other business, the following liaison assignments were made:

Clubhouse: Dave McKee
Pools and Fitness: Doug Chidlow
Communications: Harry Walsh
Safety and Security: Dave LeMay
Youth Activities: Terry Hileman

The next meeting will be October 6, 2008 .

The meeting was adjourned at 8:05PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
October 6, 2008

The regular monthly meeting of the LOWA Finance Committee was called to order by Chairman Doug Rogers at 7:00PM.

The agenda was approved unanimously. The minutes of  the September 9, 2008 meeting were approved unanimously.

Chairman Rogers introduced Jim Walsh as an alternate member of the committee. There were two new liaison assignments: Communications - Dave LeMay, and Safety and Security - Harry Walsh.

Under old business, Dave McKee gave a report from the ad hoc group on Charters of the Finance and Planning committees which included a detailed discussion of possible changes to the 2010 Budget Cycle.

Discussion then turned to the 2009 Budget Hearings scheduled to begin on October 14. Rogers announced that the location of the Oct 14 hearing had been changed to the Clubhouse lower level. All other hearings will be at the Woods Center as previously announced. There will also be a Town Hall meeting  on the 2009 Budget for LOWA members on November 22, 2008 at 10AM at the Community Center and a follow on meeting with the LOWA GM  to review member comments on November 25 at 7:00PM, location TBA. Budget books and CDs will be available by the end of the week.

Under new business, LOWA Treasurer Olive Kelly reported on her examination of  FDIC coverage of LOWA cash on deposit at financial institutions.

In open discussion, Doug Chidlow pointed out that the budgeted allocation for CTR was $105,519 more than the actual funds shown as contributed to replacement reserves for the year ending April 30, 2008 (BY 2007).

The regular finance committee meeting on November 3 will begin at 6:00PM vice 7:00PM.

The meeting was adjourned at 8:20PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee
November 3, 2008

The regular monthly meeting of the LOWA Finance Committee was called to order by Chairman Doug Rogers at 6PM.

The Agenda was approved unanimously. The minutes of the October 6, 2008 meeting were approved unanimously.

Rogers reviewed the procedures he would follow during the consideration of recommendations on the 2009 Budget. LOWA GM John Bailey distributed responses to pending action items.

There was no old business.

Under new business, the following motions to recommend changes to the 2009 Budget were approved:

1. Motion by  Boggs Wright to recommend the BOD instruct the LOWA GM to issue a new RFP for the golf course requesting bids for (1) maintenance with LOWA providing equipment, (2) maintenance with the vendor supplying the equipment, and (3) complete outsourcing of the golf facility. Any vendor could bid all three of the options, two of the options, or just one of the options. LOWA would accept the bid that provided the best value for the community.

2. Motion by Jim Drabant that the Finance Committee recommend the “Lakeview Culvert Replacement” (below the dam) be removed from the FY 2009 budget in the amount of $227,033.

3. Motion by Doug Chidlow to reduce the allocation (Acct 101) for New Capital from $150K to $50K saving $100K on the bottom line or $23.49 on the assessment.

4. Motion by Wright to delete $160K from salaries and benefits by eliminating Activities and Wellness Director, IT support Tech, grounds worker, and roads laborer.

5. Motion by Wright to add $35K for additional 1% COLA. Add $25K for training and contract services to complete IT support.

6. Motion by Drabant to delete the “Lake of the Woods Parkway Paving Project” in the amount of $186,725 to be removed from the 2009 budget.

7. Motion by Drabant to remove $10,000 for the “Walkway on Right Hand Side of the CH  Parking Lot” from the FY2009 budget.

8. Motion by Chidlow to purify the depreciation schedule (Acct 101) to remove all items with purchase value of $3500 or less.  Recommend corresponding CTR be deducted from the respective budgets. Impact by OC is as follows: OC 101 CTR $109, OC 102 CTR $1817, OC 201 CTR $2184, OC 301 CTR $750, OC 302 CTR $439, OC 303 CTR $694, OC 401 CTR $2108, OC 501 CTR $1650, OC 503 CTR $359, OC 510 CTR $1252.

9. Motion by Wright to delete $20K from telecommunications budget to effect a wiser use of resources especially as relate to T-! lines, long distance and features such as caller ID.

10. Motion by Drabant to remove $30,000 from the FY2009 budget for the “Beer Walk-in”.

11. Motion by Chidlow to revise the label  “insurance-Fire and Rescue Donation” to read “Donation to Fire and Rescue”.

12. Motion by Chidlow to delete all un-repeatable activities for accounts 101, 201,303, 306, 310 and 401 such as plans and drawings identified to completed work. This involves $20,939 in CTR with a $4.86 impact on the assessment.

13. Motion by Chidlow, as amended by Wright, to remove $3307 for chemicals and $4000 for fish stocking from the Lakes (Acct 303) budget.

14. Motion by Wright to delete $6K from Roads budget for 15 mph signs that are unnecessary and unenforceable.

15. Motion by Wright to add $7K to Administrative income.

16. Motion by Wright to revise Equestrian budget to reflect decrease of $20K in boarding income.

17. Motion by Wright to recommend that the BOD direct the Tennis Committee to enact a $5 daily guest fee on an Honor System with honor boxes to be placed at appropriate spots.

18. Motion by Drabant that the BOD direct the LOWA GM to conduct a study to open the Golf Course and Equestrian Center to the public and present it to the BOD by 30 June for a possible vote by the membership on a change to the covenants.

19. Motion by Drabant to reduce the Contingency fund to $40K vice $60K.

20. Motion by Chidlow to establish consistency between ELs in various accounts.

21. Motion by Chidlow to reduce the 30 year CH CTR value (Acct 401) for that building to $759,302 in 2007 (revise the CTR to $18,982 vice $35,746 thus reducing CTR by $16,764 saving $3.94 on the assessment).

22. Motion by Chidlow to reduce the allowance for Serviceware and Kitchen utensils to $250 each for a grand total of $500 thus reducing expenses by $3500 saving $0.82 on the assessment.

23. Motion by Chidlow to remove Lakeview improvement totaling $602,377 prior to 2006 from the depreciation schedule and reduce roads CTR for this work by $40,158 ( saving $9.43 on assessment).

24. Motion by Chidlow to revise the EL for concrete culverts at Flat Run, Harpers Ferry and CH to 40 years thus saving $20,131 in CTR for a reduction of $4.73 on the assessment.

25. Motion by Drabant to restore storage lot fees to 2008 levels.

26. Motion by Chidlow to disconnect utilities at campground and provide only primitive campsites.

There being no further motions on the 2009 budget, the meeting was adjourned at 9:15PM

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
November 25, 2008

Chairman Doug Rogers called the special meeting of the LOWA Finance Committee to order at 7:00PM.

The agenda was approved.

Under Chairman Comments, Rogers asked LOWA AGM Ted Wessel to report on the status of the Reserve Study which is anticipated to be completed by the end of December, 2008.

There was no old business. Under new business, the following motions to recommend changes to the 2009 Budget were approved:

1. Motion by Boggs Wright to reaffirm the committee’s earlier recommendation to expand the RFP on the Golf Contract  to request bids for  maintenance with LOWA providing equipment, maintenance with the vendor supplying equipment and complete outsourcing of the golf facility. Vendors could bid on any or all of the options.

2. Motion by Wright to reaffirm the committee’s earlier recommendation to delete 2 maintenance positions: grounds worker and roads laborer.

3. Motion by Wright to reaffirm $20K cut from the telecommunications budget.

4. Motion by Wright to reaffirm deletion $6K for speed limit signs.

5. Motion by Doug Chidlow to add projected miscellaneous income of $7K to Account 101.

6. Motion by Chidlow to calculate EL’s in various accounts consistently.

7. Motion by Chidlow to reaffirm allowance for Fareways service-ware and kitchen utensil losses at a total of $500 versus $2500.

8. Motion by Chidlow to reaffirm recommendation to disconnect utilities at campsites.

9. Motion by Chidlow to withdraw the $35,000 for COLA and restore COLA to the 1.5% proposed by the GM.

10. Motion by Chidlow to increase annual golf fees 7% versus 5%.

The meeting adjourned at 8:45PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
December 1, 2008

The regular monthly meeting of the LOWA Finance Committee was called to order by Chairman Doug Rogers at 7:00PM.

The agenda was approved.

The minutes of November 3 and the minutes of November 25, as amended, were approved.

Under old business, the presentation on the budget process and committee charter was rescheduled for the January, 2009 meeting.

Under new business, committee recommendations on the 2009 budget were reviewed. The recommendations will be presented to the BOD by Vice Chairman Harry Walsh on December 6. It was noted that the LOWA GM will present the 2009 Budget to the BOD on December 17.

In open discussion, concern about road funding given the current building situation was raised and included a discussion of road reserves versus replacement reserves. There were also comments on, and discussion of, debt service on the Community Center loan.

The meeting was adjourned at 7:30PM.

The next meeting will be January 5, 2009, at 7:00PM in the Holcomb Building.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
January 5, 2009

The regular monthly meeting of the LOWA Finance Committee was called to order by Vice Chairman Harry Walsh at 7:00PM. The following members were present: Walsh, Terry Hileman, Doud Chidlow, Jim Drabant, Boggs Wright and Mike Andricos.

The agenda was approved.

The minutes of December 1, 2008 were approved.

Under old business, the committee engaged in a line by line review of the working draft of the proposed revision of the committee charter and made numerous suggested changes. An updated draft will be circulated separately to committee members for review and further discussion.  A major point of the discussion was to assure the charter did not establish ‘the committee’ as a fiscal policy entity and to preserve its oversight responsibility. The draft charter (attached) will be submitted to the LOWA Board of Directors for further consideration.

A discussion of the budget process and timeline was deferred to the February meeting.

Under new business, LOWA AGM Ted Wessel announced that the reserve study was received on December 31, 2008 and is undergoing review prior to release to the BOD and appropriate committees.

There being no further business or discussion, the meeting was adjourned at 8:15PM.

Respectfully submitted, Mike Andricos, Secretary

Attachment: Draft Finance Committee Charter

Minutes of the LOWA Finance Committee Meeting
February 2, 2009

The regular monthly meeting of the LOWA Finance Committee was called to order by Chairman Doug Rogers at 7:00PM.

The following members were present: Doug Rogers Chairman, Doug Chidlow, Jim Drabant, Dave McKee, and Jim Walsh Acting Secretary.  In order to reach a quorum Dave Mckee was designated a voting member.

The agenda with the following amendments was approved:

Add: Under new business a discussion of the 2009 budget as it pertains to the BOD and GM recommendations.

Delete: Under old business the Budget process, timeline

Delete under old Business Working relations with the Planning Committee.

The following motions were made pertaining to the Draft Finance Committee Charter:

Under Section VI A delete the last sentence which reads “The committee will schedule meetings with each LOWA operating entity yearly to review 
and evaluate budget needs.”  The motion passed.  

Under section VII paragraph L change it to read “Comply with and operate under Regulation XV.”  The motion passed.

Under new business comments were made by several members regarding the budget being presented to the LOWA Board of Directors by the GM.  No votes were taken by the committee.

The meeting was adjourned at 8:18.

Respectfully submitted, Jim Walsh, Acting Secretary

Minutes of the LOWA Finance Committee Meeting
March 23, 2009

The regular monthly meeting of the LOWA Finance Committee was called to order by Vice Chairman Harry Walsh at 7:00PM.

The following members were present: Harry Walsh, Mike Andricos, Doug Chidlow and Boggs Wright and alternates Jim Walsh, Dave McKee and Joe Takacs. Also present was Planning Committee liaison R.C. Haring.

The agenda was approved.

The minutes of February 2, 2009 were approved.

During Chairman’s comments, Walsh made some general remarks related to the Planning Committee and its work on the 5 Year (or Master) Plan which is being led by Mike Hill. He also noted that the Land Use Study is underway and that there would be a Finance Committee liaison to that subcommittee.

Under old business, discussion of the budget timeline and working relations with the Planning Committee were deferred.

Under new business, discussion of how to increase clubhouse revenue was deferred.

Under open discussion, LOWA AGM Ted Wessel responded to questions about delinquent accounts and about the  RFP for the audit. BOD members Tom Sheridan and Bruce Kay responded to questions about the LOWA budget for the coming fiscal year.

The meeting was adjourned at 7:47PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
April 6, 2009

The regular monthly meeting of the LOWA Finance Committee meeting was called to order by Vice Chairman Harry Walsh at 7:00PM.

Present were members Walsh, Mike Andricos, Jim Drabant, Doug Chidlow, and Boggs Wright,  alternates Dave LeMay, Dave McKee and Joe Takacs, and Planning Committee liaison R.C. Haring.

The agenda was approved.

The March Minutes were approved as were the January Minutes, as amended.

Vice Chairman Walsh welcomed new alternate Joe Takacs. 

Under Old Business, the committee tabled discussion of the budget process and timeline update pending further coordination by the Finance and Planning committee Chairmen with the LOWA General Manager

Under New Business, Walsh discussed the committee makeup for the new fiscal year. In other discussion, AGM Ted Wessel advised that although there had not yet been final decisions on how to realize savings in salaries in the upcoming year, he did not anticipate having to cut any of the current employees.

Under general comments, it was noted that clarification was needed regarding the involvement of committees in the budget process and it was announced that the QMC was going to demonstrate the Jonas System at the Woods Center on April 9.

There being no further business, the meeting was adjourned at 7:57PM.

Respectfully submitted, Mike Andricos, Secretary

Minutes of LOWA Finance Committee Meeting
May 4, 2009

Chairman D. Rogers called the regular monthly meeting of the Finance Committee to order at 7:00 PM

Members present were Harry Walsh, Jim Drabant, Doug Chidlow, Boggs Wright, Dave LeMay Terry Hileman, alternates Jim Walsh, Dave McKee, and Joe Takacs, and Planning Committee liaison R.C. Haring. 
 
Board members in attendance: committee Liaison Bruce Kay, Bill Wilson, Margaret Darby, Jeff Flynn, and Tom Sheridan. 

LOWA staff members included Ted Wessel and Dorothy Isenberg.

Members Susan Wright and Bernie Patton were present.

The agenda was approved.

The April Minutes were approved.

Chairman Rogers announced the resignation of Secretary Andricos and announced Jim Walsh as acting secretary.  Dave LeMay was welcomed as a new voting member of the Finance Committee.

Rogers opened nominations of officers for the new year.

The following officers were elected:  Jim Drabant as Chairman and assumed those responsibilities for the remainder of the meeting.  Boggs Wright, as Vice Chairman.  Both Jim Walsh and Doug Chidlow were in contention for Secretary. Subject to discussion, Jim Walsh withdrew his nomination and Doug Chidlow assumed that position.

Old Business –

Bruce Kay introduced a proposed budget guidelines schedule, which was discussed and amended to reflect actual event dates.  Director Kay stated he would prepare a copy reflecting the suggested changes. 

It was suggested the Planning Committee (PC) establish a Five Year Plan schedule that provides their prioritized list and New Capital Project Plan for review by the GM before 30 September and available for Finance Committee review by 1 October 2009.

New Business

Chairman Drabant introduced the subject of the Reserve Study, which was provided to FC members for review. 

Chidlow presented his evaluation of the Reserve Study to the committee, which led to an open discussion of the subject. Copies of the evaluation were provided to members of the Board, Staff and committee members.

The Chair appointed Chidlow to chair a FC Sub-Committee to review and develop recommendations to be sent to Board members prior to their regularly scheduled meeting. 

A motion was made to adopt the current document as the position of the FC.   VC Wright amended the motion to provide for the FC Reserve Study Sub-committee conclusions to be provided to the Board prior to the Workshop, and the official FC position be deferred until the committee reviewed the study at its June meeting.  The document should take the form of specific recommendations for the board to consider in the application of the Study to the 2010 budget.  The motion as amended was approved. 

An invitation was extended to all FC members and alternates to participate in the sub-committee.  Planning Committee Chair Des Flanigan will assign a representative to participate. Subcommittee preliminary report is due prior to the May 2009 BOD workshop.

 Member LeMay moved that the FC establish a subcommittee to review the RFP for the annual audit and make recommendations to management in regards to audit requirements.  The motion was passed. The Chair appointed D. LeMay to chair the Committee.

The meeting was adjourned at 8:20 PM

Respectfully submitted, Doug Chidlow, Secretary

Minutes of LOWA Finance Committee Meeting
June 1, 2009

Chairman J. Drabant called the regular monthly meeting of the Finance Committee to order at 7:05 PM

Members present were Doug Chidlow, Boggs Wright, Dave Lemay Terry Hileman, Doug Rogers alternates Jim Walsh, Dave McKee, and Joe Takacs, and Planning Committee liaison R.C. Haring.

Board members in attendance: committee Liaison Bruce Kay, Jeff Flynn, and Tom Sheridan. 

LOWA staff members included Ted Wessel and John Bailey.

Members Susan Wright, Pat Rowland, and Joe Quimper were present.

The agenda was approved.

The May Minutes were approved.

Chairman Drabant passed out the April Financials, 2009 June Committee Meeting Calendar, copies of the LOW Approved Fee Schedule, and discs containing the 2009 budget to committee members. It was announced that Chuck Schulle has resigned as an advisor from the committee.

It was recommended that committee members carefully review the monthly financials and pay particular attention to the committees for which they are acting as liaison.  The objective is to monitor progress of the revenue and expense projections relative to actuals for their OC’s.

Old Business –

Dave McKee distributed the FC recommended Budget schedule for Fiscal Year 2010-2011 and discussed the entries describing Finance Committees preference regarding operating and capital budgets.  The deviations from the unapproved BOD schedule were discussed.  
The expressed concern was the lack of adequate provision for the PC to review the capital budget submissions that will appear in the budget delivered to the committees on 3 October 2009.  Director Kay pointed out that the schedule being proposed protracted the draft schedule that he and Director Sheridan produced.

A motion was made by Chidlow and seconded by Wright to submit the FC Fiscal Year 2010-2011 Budget Schedule to the board for consideration.  The motion passed unanimously.   

Chidlow distributed a copy of an e-mail message that was sent from the AGM to the Study consultant defining the changes made by the BOD to be included in the study.

 Introductory remarks regarding the Reserves Study sub-committee’s report on the 2009 Reserve Study were made and it was pointed out that the subcommittee study had been revised to incorporate the BOD preferences expressed at their meeting. In addition, there were several changes in addition to the BOD preferences:

1.     SL for Lakeview Parkway was revised to coincide with the Road Master Plan.  An item was added to the inventory to seal Lakeview Parkway at 4-year intervals.

2.     The SL for the roof on metal roof buildings was extended from 25 years to 40 years.

3.     Replacement of plumbing and electrical systems for Holcomb, ECC, and Security buildings were eliminated from the inventory.

Chidlow made a motion that the committee approve the report for submission to the board .  Rogers seconded the motion and it was approved unanimously. 

AGM Wessel indicated that the consultant will submit his revision on 5 June 2009. 

Chairman Drabant expressed an interest in seeing the revised input from the consultant. 

A copy of the sub-committee report and and a copy of the proposed revised fiscal year 2010-2011 Budget Schedule are attached to these minutes.

New Business—

There was no new business

Treasurer Kelly was given the floor to discuss the end of the year financial report.  Copies were distributed to members.     A concern was expressed  that the report was derived from clearly marked ‘preliminary’ data and that it should be emphasized that is the case.  Ms Kelly advised it was marked ‘Unaudited’, but would assure further distribution would reflect the status of the data.  In response to an inquiry, the excess revenue of $665,460 will be transferred to the Capital Reserve Account to help offset some Capital expenditures. 

It was pointed out that an accurate Reserve Study defining our long range replacement reserve  requirements is essential.  It is imperative that all requirements be defined in the inventory or be considered as an undocumented replacement and not have access to replacement reserve funds. 

Liaison Reports—

Chairman Drabant passed out copies of the June calendar of committee meetings.

J Walsh reported that he had not attended an Equestrian committee meeting but one was scheduled for 9 June 2009.

D. Rogers reported he had received some 2008 budget performance data from the golf pro and would seek additional information and provide it to the committee.

J. Takacs indicated he had attended the May M&E meeting and reported the following.

Maintenance.
1. New Annual Work Schedule being done. Waiting to tie into the Jonas system;
2. The Tar and Chip program for 2009 is underway.  
4. The Clubhouse Pool dressing room shingle roof has been completed.

Storm water management
1. A change to the current storm water regulation was proposed on April 24. No comments received.
2. Drainage Easement inspections were completed on 5/18/09.
3. The contractor for the middle school has tapped into the water line on Birch Court in Section #6 and will be connecting all services on Birch Court to a new line soon.

Comments
Lee Frame reported that the cost of the dam modifications to LOWA members will not be tax deductible.
It was reported that there may need to be an alternative to installing the proposed gate at the dam.  

T. Hileman reported on Tennis and Youth Activities. 

Tennis Committee

Maintenance will be installing the awnings for three courts and the rest rooms have reopened after being repaired from the vandalism several months ago.  The wind screens were repaired and installed on courts 1 and 2 and the bulletin board repaired and installed.

The chairperson will continue to meet with the GM and Maintenance to follow-up on several outstanding tennis facility issues, for example, water spigot was vandalized and left deinstalled, erosion around all courts and gazebo seat repair. 

The “Guest Fee Donation Box” was discussed and it was resolved to not pursue any further as this was most likely an oversight by the LOWA in not removing it from the amenity fee summary sheet.  

The tennis budget for expendable furnishings for 2009 is $1,800 which will cover the cost of three additional.    

Youth Activities
The skateboard park hours for the summer are 9:00am – 12noon and 4:00pm – 7:00pm
Paid attendants will be used during regular hours.  Volunteers will be used for any additional hours.  Volunteers are currently undergoing background checks.

Battle of the Bands was held on May 30th and raised approximately $500. The proceeds will be used for events or equipment at the teen center.

J. Drabant participated in the PC meeting where an attempt was made to establish an effective budget schedule that would allow for PC hearings on capital project activity. 

D. Chidlow reported that the May meeting of the Pools and Fitness Committee was hindered by a lack of a quorum and no action to reorganize the committee proved possible.

D. Lemay he had nothing to report from the May meeting of Safety and Security.

The meeting was adjourned at 8:15 PM

Respectfully submitted, Doug Chidlow, Secretary

Attachments     Fiscal year 2010-2011 Budget Schedule
Report of Finance Sub-committee for Reserve Study Review
FC Subcommittee Replacement Inventory List

Minutes of LOWA Finance Committee Meeting
July 6, 2009

Chairman J. Drabant called the regular monthly meeting of the Finance Committee to order at 7:05 PM

Members present were Doug Chidlow, Boggs Wright, Dave Lemay, Terry Hileman, Doug Rogers alternates Jim Walsh, Dave McKee, and Joe Takacs, R.C. Haring, and PC committee Liaison D. Strain

Board members in attendance: committee Liaison Bruce Kay, Tom Sheridan, Bill Wilson, and Treasurer Olive Kelly

LOWA staff members included Ted Wessel and John Bailey.

Members Susan Wright, Don Walters, Des Flanigan, Joel Dinger, Laurie Sale, Sam Hill, Barb Spadero, and Jack Spadero were present.

The agenda was approved.

The May Minutes were approved with amendment to the M&E report deleting reference to the Virginia Resource Authority regarding the manned gate.

Chairman Drabant passed out the final version of April Financials to those members who needed them.  He welcomed the new PC Liaison representative. D. Strain.  Mr. Strain provided a brief biography of his life and involvement at LOWA.  Jim welcomed Bob Haring as a new alternate member of the committee.

Old Business –

Chair Drabant introduced Des Flanigan, Chair of PC and turned the floor over to Mr. Flanigan who presented the results of the 2008/2009 Survey. A copy of the questions with applicable responses are provide in Attachment 1. 

The 2010 Budget guidelines draft was discussed.  Attachment 2 is the revised guidelines that have consensus approval of the committee and will be forwarded to the Board of Directors by the Finance Committee Chair.

The 2010 Budget Presentation Schedule was presented.  J. Walsh, the golf liaison indicated he will not be able to attend on that date. In addition, the Clubhouse was scheduled for a Wednesday which is a business day. The General Manager will revise the schedule to correct the conflicts. The revised schedule will be distributed to members of the committee. Attachment 3 is the revised schedule. 
 
 New Business— There was no new business

Liaison Reports— Chairman Drabant deferred presentation of the liaison reports because of the late hour.

Open Discussion —

D. Chidlow pointed out a recent change to the Property Owners Association Act which states ”any member of an Association has the right of disclosure for the top 5 paid employees whose salary exceeds $75,000”.

The General Manager stated that proposed capital expenditures for 2010 will be included in the budget and addressed during the budget reviews. The planned capital expenditures for an additional four(4) years will be made available to the Planning Committee for development of the full five(5) year Capital Plan.

The meeting was adjourned at 9:30 PM

Respectfully submitted, Doug Chidlow, Secretary

Attachments     1. -- 2009 PLANCOM Survey Results 
                        2. -- 2010 Budget Guidelines FC revised.
                        3. -- 2010 Proposed Budget Presentation Schedule

Minutes of LOWA Finance Committee Meeting
August 3, 2009

Chairman J. Drabant called the regular monthly meeting of the Finance Committee to order at 7:02 PM

Members present were Doug Chidlow, Boggs Wright, Dave Lemay, Doug Rogers alternates Dave McKee, and Joe Takacs, R.C. Haring, and PC committee Liaison D. Strain.  Members absent were Terry Hileman and alternate Jim Walsh
 
Board members in attendance: committee Liaison Bruce Kay, Bill Wilson, Tom Sheridan, Margaret Darby, and Jeff Flynne

LOWA staff member present was Ted Wessel.

Members Bernie Patton, Desmond Flanigan, Sue Merna, and Maureen Otero.

The agenda was amended to add an item that addressed the proposed amendment to the LOWA Bylaw which addressed the format and content of committee charters.  The agenda was approved as amended.

The June Minutes were approved.  

Chairman Drabant reported that he had attended the Committee Chairman Orientation meeting.

Old Business –

Chair Drabant addressed the issue of the 2010 Budget Guidelines and pointed out that none of the recommendations of the Finance Committee were adopted by the BOD.  It was pointed out by Director Kay that the bad debt allowance was reduced from $50,000 to $28,000 before the guidelines were ultimately approved at the 1 August 2009 BOD meeting.

Member Harry Walsh addressed the issue of amenity subsidy and the overall impression that the membership does not appear to understand how the assessment is used.  A motion was made and seconded that a subcommittee of Finance Committee convene to review the budget allocation and develop a series of articles for the Lake Currents explaining how the assessment is used.  The motion was unanimously approved.  Mr. Walsh will chair a subcommittee consisting of members J. Takacs, D. Chidlow, and B. Wright.

The Chairman discussed the various issues presented at the Committee Chairman Orientation.  The orientation included a major presentation by the association lawyer.  Points covered included.

1.     Format and content of minutes.

2.     Criteria for executive sessions.

3.     Tape recording of meetings.

4.     Use of e-mail in committee related activity.

5.     Liaison reports

6.     A change to the LOWA Bylaws covering committee charters.

Chairman Drabant addressed the bylaw change being proposed.  A standard format is being proposed that will provide for committee specific issues to be addressed.  There were mixed reviews by committee members on the content of the bylaw change.

 New Business

Liaison Reports—

Reports were made on the following:
McKee reported regarding the Clubhouse Committee
Takacs reported regarding the M&E Committee
Rogers reported regarding the Golf Committee and provided membership statistics.  
Chidlow reported regarding the Pools and Fitness Committee
Wright reported regarding Lake Users Committee
H.Walsh reported regarding the Legal and Compliance Committee
LeMay reported regarding the Communications Committee.
J. Walsh reported separately regarding the Equestrian Center. (Copy provided to the committee by separate means.)

Open Discussion —

D. Chidlow expressed concern that the most recent copy of the Reserve Study component listing still contains information that is incorrectly documented.  Of particular concern was the fact that there were inconsistencies between the procurement year, the Service Life allocation and the First Replacement Year (FRY) calculation.  These inconsistencies make calculation of a valid backlog impossible. 

The General Manager stated that proposed capital expenditures for 2010 will be included in the budget and addressed during the budget reviews. The planned capital expenditures for an additional four(4) years will be made available to the Planning Committee for development of the full five(5) year Capital Plan.

The meeting was adjourned at 8:25 PM

Respectfully submitted, Doug Chidlow, Secretary

Attachments     1. -- 2009 PLANCOM Survey Results 
                        2. -- 2010 Budget Guidelines FC revised.
                        3. -- 2010 Proposed Budget Presentation Schedule

Minutes of LOWA Finance Committee Meeting
September 8, 2009

 Chairman J. Drabant called the regular monthly meeting of the Finance Committee to order at 7:00 PM

Members present were Doug Chidlow, Boggs Wright, Terry Hileman Doug Rogers, and Harry Walsh, alternates Dave McKee, Jim Walsh, R.C. Haring.. PC committee Liaison D. Strain was absent.  Members absent were Dave Lemay and alternate Joe Takacs
 
Board members in attendance: committee Liaison Bruce Kay, Tom Sheridan, Margaret Darby, Neil Buttimer, Jeff Flynne and Director-elect Olive Kelly.

LOWA staff member present was Ted Wessel.

Members Bernie Patton, Desmond Flanigan, Susan Wright, and Bill Mason.

The agenda was approved.

The August Minutes were approved. 

Chairman Drabant reported that he had received a proposal from the Chairman of the Pools and Fitness Committee that address the issue of closing one pool with the ultimate objective of building and enclosed or heated pool.

Old Business –

Harry Walsh introduced the draft article for the Lake Currents regarding amenity subsidies.  Chair Drabant indicated he would like to further review the article and amend it if necessary and provide feedback to Mr. Walsh.  Doug Chidlow suggested that the words “Assessment dues” be changed to read  “assessment” since there has never been the word ‘dues’ associated with the assessment.  Further the use of Cost Centers is not accurate.  They are “Operations Centers”.  It was also pointed out the categories of Salary and Reserves are not accurate and that categories could be changed to show categories of “security”, “maintenance”, and “administration and communications/community service”  added..  

GM Wessel provided an update of the status of the reserve study.  Doug Chidlow requested clarification of what “future” in the guidelines meant with regard to road CTR and was assured that the CTR for roads would go to road reserve in 2010.

 New Business

The Chairman solicited comments from the committee members regarding the Vision Plan.  He recommended that individual recommendations should be submitted to the BOD.  Mr. Chidlow made several comments regarding the technical accuracy of the plan.  Of particular concern were issues addressing CTR, reserve balances, senior housing, the campgrounds, and political representation.  Chairman Drabant offered an appropriate alternative to the existing plan.  A consensus to endorse the Drabant draft could not be achieved.  It was asserted by the attending BOD members that the deadline for submission of comments would be extended until November 2009.  It was decided that the committee would review the alternative and consider it for adoption as a FC position for submission after the next meeting.

Liaison Reports—Liaison reports were not heard.

Open Discussion —

D. Chidlow attempted to get information regarding the potential for a loan from the State.  It was disclosed by Director Kay that the board had decided not to pursue this 4 to 5% loan over 15 years since it was their opinion that it was not in the best interest of the membership.

Desmond Flanigan asserted for the clarification of Director Buttimer that there would be a 5 year plan.

The meeting was adjourned at 8:25 PM

Respectfully submitted, Doug Chidlow, Secretary

Minutes of LOWA Finance Committee Meeting
October 5, 2009

Chairman J. Drabant called the regular monthly meeting of the Finance Committee to order at 7:03 PM

Members present were Doug Chidlow, Boggs Wright, and Dave Lemay, alternates Dave McKee, Jim Walsh, R.C. Haring and Joe Takacs; and advisor Bill Mason.. PC committee Liaison D. Strain was present.  Members absent were D. Rogers, T Hileman and H. Walsh.

Board members in attendance: committee Liaison Olive Kelly, Tom Sheridan, Jeff Flynne and President Bruce Kay.

LOWA General Manager Ted Wessel was present.

Members Don Walters, Desmond Flannigan, and Susan Wright attended.

The agenda was approved.

The September minutes were approved. 

Chairman  reported that he had received and distributed the revised Bylaw covering committee charters and wanted members to review it and be prepared to discuss it at a future meeting.  He reported that the budget hearings had been deferred one month and a schedule would be provided when it became available.  The anticipated final version of the Reserve Study has not been received. 

Old Business –

The Chairman introduced the first of two articles for the Lake Currents addressing the distribution of assessment resources.  The article discloses the percentage and dollar amount of subsidy for the various operations centers and reserves for the recently completed budget year 2008.  The 2008 audit was the source document for this article.  A second article addressing the budgeted distribution of the 2009 assessment will be prepared for a subsequent edition of Lake Currents.

A Vision Statement was introduced by Chairman Drabant and offered as a replacement for the Draft Vision Plan under consideration by the Board.  The Vision Statement was modified and adopted as the Finance Committees proposal as the baseline document for long range planning.  On a motion by Chidlow seconded by Wright and approved unanimously the Vision Statement was proposed as a replacement document for the draft Vision Plan and the approved Vision Plan of 2003.  A copy is provided as Attachment 1.

In order to assure that the board of directors draft Vision Plan not be adopted as published in the 28 August 2009 Lake Currents a series of motions were introduced that define changes required to the draft plan should the board elect to pursue that format.  Attachment 2 is a record of motions for change that were adopted by the committee. 

New Business—

Director Kelly made a presentation regarding the dam project financing.  She was not in a position to provide details on the nature of the Stellar One commitment, the terms of payment on the contract, or the details of the estimates that comprise the $5.11M costs identified by the board in its authorization. She stated that details would be published in the Lake Currents as soon as they are available. 

Liaison Reports—

Liaison reports provided as follows:
M&E – Joe Takacs
Lake Users – Boggs Wright
Equestrian  – J. Walsh 
Pools – Doug Chidlow

Open Discussion — There was no open discussion.

The meeting was adjourned at 8:33 PM

Respectfully submitted, Doug Chidlow, Secretary

Minutes of LOWA Finance Committee Meeting
November 2, 2009

Chairman J. Drabant called the regular monthly meeting of the Finance Committee to order at 7:03 PM

Members present were Harry Walsh, Doug Rogers, Doug Chidlow, Boggs Wright, and Dave Lemay, alternates Dave McKee, Jim Walsh, R.C. Haring and Joe Takacs; and advisor Dave Francis. PC committee Liaison D. Strain was present.  Members absent were T Hileman and Advisor Bill Mason.

Board members in attendance: Tom Sheridan, Jeff Flynn and Margaret Darby.

LOWA General Manager Ted Wessel was present.

Members Don Walters and Susan Wright attended.

The agenda was approved.

The October minutes were approved. 

Chair reported that the budget-hearing schedule has been revised and hearings will be held during the mornings of the seventh through 11 December 2009.  Hard copies and electronic copies for those wishing them, will be made available to the members of the committee on 1 December.  The format would include two years of prior actual historic information (2007&2008); current YTD and budget information (2009); and the proposed 2010 budget information.  

Old Business –  There was no old business.  

New Business

Dave McKee provided recommended changes to Bylaw Article 5 under consideration by the BOD including the Rowland amendment to the Article.  A motion was made to adopt the amendments and forward them as recommended revisions to the bylaw change.  A motion was made, seconded, and approved to amend the motion and delete the Rowland amendment from consideration with this Article change. The motion as amended was approved.  Attached is a copy of the changes proposed by the Finance Committee which will be forwarded to the BOD.

Liaison Reports—

Liaison reports provided as follows:
M&E – Joe Takacs
Equestrian  – J. Walsh 
Golf – Doug Rogers
Lake Users – Boggs Wright
Pools – Doug Chidlow
Security – Harry Walsh
Clubhouse – Dave McKee

Open Discussion —

Ted Wessel announced that an AGM for operations was hired.  His expertise includes budgeting and marketing of golf operations.  He is a LOW resident.

There were questions regarding the purpose of the FC liaison to the various committees. In conjunction with that question, the Chairman asked each member and alternate to provide their opinion regarding the purpose and function of the FC.  He encouraged all members, alternates and advisors to monitor budget execution of their OC by reviewing the monthly financials.

The meeting adjourned at 8:25 PM

Respectfully submitted, Doug Chidlow, Secretary

LOWA Finance Committee Minutes
March 1, 2010

Call to order: The meeting was called to order by Vice-Chair Wright at approximately 7PM.

Attendance
Members attending              Member absent                     Guests present
D. Rogers (voting)                  J. Drabant (voting)                 T. Sheridan (board)
B. Wright (voting)                  D. Chidlow (voting)               M. Darby (board)
H. Walsh (voting)                   D. Strain (PC liaison)             J. Flynn (board)
T. Hillman (voting)                D. LeMay (voting)                 T. Wessel (GM)
D. McKee (alternate)                                                             R. Martin (AGM)
J. Walsh (alternate)                                                                D. Walters
R. Haring (alternate)                                                              S. Wright
J. Takacs (alternate)
D. Francis (alternate)
O. Kelly (board liaison)

Agenda  The agenda was approved unanimously on a motion by McKee.

Minutes  No minutes from previous meetings were approved.

Old Business
Finance Committee Charter

The following are the motions that were made concerning the draft Finance Committee revised charter.  All of the motions passed.  All of the votes were unanimous (three (3) for and zero (0) against).

1.  Motion by McKee to approve the draft.

2.  Motion by H. Walsh to replace the words “draft the” with “review the draft” in II.A.  (Additional minor editing in document by McKee for consistency.)

3.  Motion by Hillman to delete II.B.

4.  Motion by Rogers to delete II.F.

5.  Motion by Takacs to delete clause “/ committee” from II.C.

6.  Motion by McKee to add “The Finance Committees should have seven (7) voting members.”

7.  Motion by McKee to add “The Finance Committee should quarterly prepare a report for the community on the status of the LOWA finances.”

8.  Motion by McKee to add “The Finance Committee should review and make recommendations to the board concerning a new or updated reserve study annually.”

9.  Motion by McKee, amended by Hillman to add “The Finance Committee should review the draft of the annual audit and make recommendations to the board as necessary.”

There was no New Business.

Open Discussion
There was considerable discussion concerning the revised committee charter bylaw, particularly when a voting member’s term ends.

The meeting was adjourned at approximately 8:40PM by Wright. 

D. McKee, Acting Secretary

LOWA Finance Committee Minutes
April 5, 2010

Call to order
The meeting was called to order by Vice-Chair Wright at approximately 7PM.

Attendance
Members attending              Member absent                     Guests present
D. Rogers (voting)                  O. Kelly (board liaison)         T. Sheridan (board)
B. Wright (voting)                                                                  R. Martin (AGM)
H. Walsh (voting)                                                                   D. Walters
J. Takacs (voting)                                                                   S. Wright
D. McKee (voting)                                                                 N. Buttimer (board)
J. Walsh (voting)
D. LeMay (voting)
R. Haring (alternate)
D. Francis (alternate)
D. Strain (PC liaison)

Election of Officers
Chair: Wright nominated by McKee; J. Walsh nominated by Rogers; LeMay, McKee,             Takacs, and Wright voted for Wright.  Wright elected.
Vice-Chiar: LeMay nominated by McKee; J. Walsh nominated by Rogers; McKee,             Wright, Takacs, and LeMay voted for LeMay.  LeMay elected.
Secretary: McKee nominated by Rogers, elected by acclamation.

Agenda  The agenda was approved unanimously on a motion by Rogers.

Minutes  Minutes from the following meetings were approved unanimously on a motions by Rogers:      January 2010
                        January 21, 2010
                        March 2010
Note: There was no February meeting.

Old Business  --  None

New Business

Dam Project Financing  --  Director Sheridan announced that the $900 special assessment refund could be applied to the 2010 annual assessment upon written request.

Where do we go from here?

1.  Wright discussed status of revised charter.

2.  There was a discussion of what should be done with Germanna Highway property.  Wright appointed an Ad Hoc subcommittee of LeMay, McKee, and H. Walsh to draft a recommendation to the board.

3.  McKee asked about the status of the electronic copy of the board approved reserve plan.  AGM Martin said there was a plan to distribute a “pdf” formatted version.

4.  LeMay asked about utility cost reduction.  AGM Martin described the electric audit that had been performed.

5.  Francis discussed presentations of financial results to the board and the finance committee.

6.  Director Sheridan made several comments about the budget process including:
            1.  Replacement capital for the budget had been approved by the finance committee in that the committee approved the new reserve study.
            2.  There had been a special study done several years ago on how to fund the road reserves.  The current fees are now not sufficient.
            3.  The major expense items facing the association over the next several years include front gate and associated traffic changes, improvements involving the clubhouse pool area, golf course irrigation, and Holcomb building modifications.

The meeting was adjourned at approximately 8:40PM by Wright. 

D. McKee, Secretary

LOWA Finance Committee Minutes
May 3, 2010

Call to order
The meeting was called to order by Chairman Wright at approximately 7PM.

Attendance
Members attending              Member absent                     Guests present
B. Wright (voting)                  R. Fast (alternate)                   T. Wessel (GM)
H. Walsh (voting)                                                                   T. Sheridan (board)
J. Takacs (voting)                                                                   S. Wright
D. McKee (voting)                                                                 M. Darby (board)
J. Walsh (voting)                                                                    J. Flynn (board)
D. LeMay (voting)                                                                 M. Hill (PC)
R. Haring (alternate)                                                              J. Zukowski (P&F)
D. Francis (alternate)
D. Strain (PC liaison)
O. Kelly (board liaison)
A. Harteveld (S&S liaison)

Agenda  The agenda was approved unanimously on a motion by McKee.

Minutes  Minutes from the April meeting was approved unanimously on a motion by Takacs.

Chairman Comments
Wright commented on the liaison assignments and requested that the members review the monthly financials, with emphasis on data from their liaison assignments.

Old Business
1.  Review of draft finance committee charter.
Motion by McKee to approve McKee’s version of the draft.  Motion passed unanimously with the following amendments that passed unanimously:
a.  Motions by Takacs and McKee to I. changing back to the phrase “Annual Budget” and replace “review” with “review and comment on”.
b. Motion by Takacs to II. A to add phrase “and comment”.
c. Motion by Takacs to II. C to add phrase “prepared by the General Manager”.
d. Motion by Takacs to II. D to replace with “The Committee will prepare a written list of any and all recommended changes to the proposed annual operating and capital budget and will forward the list to the General Manager and the Board of Directors.”
e. Motion by Wright to II. E to replace with “Working with the General Manager, the Committee will review and comment on the financial portion of the Five Year Plan.”
f. Motion by Francis to II. F to restore to Sheridan’s version.
g. Motion by McKee to II. G to remove word “such”.
h. Motion by Francis to II. H to restore to original version.
i. Motion by McKee to II. I replace with “The Committee should review and make annual recommendations to the Board and General Manager concerning a new or updated reserve study.”
j. Motion by McKee to II. J to add phrase “and General Manager”.
k. Motion by McKee to II. M to remove.
2. Report of ad hoc committee on the Germanna Highway house.  Motion by H. Walsh to recommend holding on to house, amended by J. Walsh to reevaluate in one year.  Passed 3 for, 2 against (for H. Walsh, J. Walsh, & Takacs; against LeMay & McKee).

New Business   Discussion only, no motions.

The meeting was adjourned at approximately 9:10PM by Wright. 

D. McKee, Secretary

LOWA Finance Committee Minutes
June 7, 2010

Call to order
The meeting was called to order by Chairman Wright at approximately 7PM.

Attendance
Members attending              Member absent                     Guests present
B. Wright (voting)                  J. Takacs (voting)                   T. Wessel (GM)
H. Walsh (voting)                                                                   T. Sheridan (board)
D. McKee (voting)                                                                 N. Buttimer (board)
J. Walsh (voting)                                                                    J. Flynn (board)
D. LeMay (voting)                                                                 L. Frame 
R. Haring (alternate)                                                              D. Chidlow
D. Francis (alternate)                                                             R. Shope
R. Fast (alternate)
D. Strain (PC liaison)
O. Kelly (board liaison)

Agenda
The agenda was approved unanimously on a motion by McKee, amended by Wright to add insurance to old business.

Minutes
Minutes from the April meeting were approved unanimously on a motion by McKee.

Chairman Comments
Wright commented on the Treasurer’s meeting, investment committee, and a field trip to view a golf irrigation system.  Bob Fast was introduced as a new alternate.

Old Business
1.  There was discussion of the Board approved finance committee charter.
2.  After discussion by Haring, H. Walsh made the following motion, amended by multiple individuals that passed unanimously: “The Finance committee recommends to the Board that an insurance working group be established, including a member of the Finance Committee, to evaluate the Association’s insurance and recommend options to the Board”.

New Business
1.  The July meeting will be held on July 5, 2010.
2.  The tentative budget schedule for FY 2011 was distributed. 
3.  Drafting of the FY 2011 budget guidance was discussed.
4.  The Treasurer presented the Spillway Project expenditures.
5.  The Treasurer stated that the draft April 2011 financial report would be available before June 18, 2010.

The meeting was adjourned at approximately 8:40PM by Wright. 

D. McKee, Secretary

 

Regular monthly meeting of LOWA Finance Committee Minutes
July 5, 2010

Call to order
The meeting was called to order by Chairman Wright at approximately 7PM.  Alternate R. Haring was made a voting member for the meeting to make a quorum.

Attendance
Members attending                Member absent                       Guests present
B. Wright (voting)                  J. Takacs (voting)                   R. Shope
D. McKee (voting)                 H. Walsh (voting)                   S. Wright
J. Walsh (voting)                    D. LeMay (voting)
R. Haring (alternate)              R. Fast (alternate)
D. Francis (alternate)
O. Kelly (board liaison)
D. Strain (PC liaison)
A. Harteveld (S&S liaison)

Agenda
The agenda was approved unanimously on a motion by J. Walsh

Minutes
Minutes from the June meeting were approved unanimously on a motion by McKee.

Chairman Comments
Wright commented on the Treasurer’s meeting (subjects included refund from special assessment, slow collections of annual assessment, financial reports and software, and “old” new capital). 

Old Business
D .LeMay will head up preparing the guidance document for the annual budget.  

New Business
1.  The Treasurer presented the revised financial reports.  There was considerable discussion of additional data needed by the committees.
2.  The Treasurer stated that the draft audit report would be available for the Finance Committee before the August 18, 2010 board meeting.
3.  There was discussion of the personnel changes in the LOWA finance department.  A. motion by J. Walsh to create a sub-committee to explore the feasibility to outsource LOWA accounting functions, passed unanimously.  The sub-committee will consist of J. Walsh and Francis.
4.  There was a brief discussion of the draft LOWA procurement documents.
The meeting was adjourned at approximately 9:00PM by Wright. 

The next meeting will be Monday, August 2nd.  The September meeting will be re-scheduled, probably for the 7th.

D. McKee, Secretary

Minutes of Regular monthly meeting of LOWA Finance Committee
August 2, 2010

Call to order
The meeting was called to order by Chairman Wright at approximately 7PM. 

Attendance
Members attending                Member absent                       Guests present
B. Wright (voting)                                                                  R. Shope
D. McKee (voting)                                                                 T. Wessel (GM)
J. Walsh (voting)                                                                    R. Martin (AGM)
H. Walsh (voting)                                                                   L. Cole (DOF)
J. Takacs (voting)                                                                   M. Darby (Board)       
D. LeMay (voting)                                                                 T. Sheridan (Board)                
R. Haring (alternate)                                                              N. Buttimer (Board)
R. Fast (alternate)                                                                   M. Hill (Planning)
D. Francis (alternate)                                                             D. Chidlow                 
O. Kelly (board liaison)                                                         D. Walters
D. Strain (PC liaison)                                                             D. Rogers
                                                                                                J. Drabant
                                                                                                T. Musatow
                                                                                                A. Payne
                                                                                                L. Frame
                                                                                                D. Flanigan
                                                                                                T. Thompson
                                                                                                B. McCellan

Agenda
The agenda was approved unanimously on a motion by McKee

Minutes
Minutes from the July meeting were approved unanimously on a motion by McKee.

Chairman Comments
Wright introduced the new Director of Finance, Larry Cole.

Old Business
1. Report on Accounting Outsourcing   
J. Walsh reported on his meeting with the General Manager regarding outsourcing accounting.  Discussion included is Jonas capable of satisfying finance’s requirements, if not, is there a product available that will satisfy the requirements, and outsourcing of accounting.  J. Walsh’s Jonas comments are attached.                                              

2. Draft Budget Guidelines 
LeMay has prepared a rough draft and is requesting suggestions.  The draft will be discussed at the September meeting.

3. New Capital Project Sunset Rule
Haring discussed the expiration of approved funding for capital projects.

New Business
1. Proposal to Replace Golf Course Irrigation System  
There was considerable discussion of the proposed replacement involving committee members, board members, management, and guests.  The committee passed two motions as follows:

1. Motion by J. Walsh that “The Finance Committee recommends to the Board of Directors that the Board authorizes an independent organization to perform an engineering study to evaluate the irrigation system to be completed within 45 days with a cost not to exceed $7,000.”  Passed unanimously.

2. Motion by Takacs that “The Finance Committee recommends to the Board of Directors to postpone consideration of the upgrade to the irrigation system until the Board receives a business plan that has been reviewed by the Planning and Finance Committees.  The plan should include needs justification, financial considerations, and how this upgrade fits into the long term golf course plan that ensure the golf course remains in good condition.”  For: McKee, Takacs, H. Walsh, LeMay.  Against J. Walsh.

2. June Financial Reports
Kelly reported that Jennifer Parkinson has been hired as the new accountant and discussed the June financial reports.

The meeting was adjourned by Wright at 8:40

The next meeting will be Tuesday, September 7, 2010

D. McKee, Secretary

Regular monthly meeting of LOWA Finance Committee October 4, 2010

Call to order  The meeting was called to order by Chairman Wright at 7 pm. 

Attendance
Members present              Members absent                Guests present
B. Wright (voting)                  T. Wessel (GM)                      R. Shope
J. Walsh (voting)                    D. Francis (alternate)             J. Flynn
H.Walsh (voting)                    R. Fast (alternate)                  L. Cole
J. Takacs (voting)                  A. Harteveld (S&S liaison)       D. McKee
D. LeMay (voting)                 J. Quimper (alternate)            
R. Haring (voting)                  D. Strain (PC liaison)
D. Chidlow (Advisor)
O. Kelly (board liaison)

Agenda:  Motion by R.C. Haring seconded by Harry Walsh to approve the agenda. Motion was approved unanimously.

Minutes:  Minutes for the Sept 2010 meeting were approved unanimously, as amended, by Jim Walsh second by Harry Walsh to delete D. Lemay and R. Fast as members attending.

Old Business:
Update on accounting procedures – Nothing to report.  Larry Cole gave a report on how Jonas is working for him.  

Draft Budget Guidelines – Passed to board.  Budget hearing should be in December.

Procurement procedures - Discussion ensued on who is responsible in receiving and reviewing bids from vendors and how the bids evaluated.  Question: should a formal review take place and should it be triggered by a specific dollar amount?  Harry Walsh asked that this item be kept on the agenda for next month and will work on verbiage for the committee to review policy.

Proposal to replace golf course irrigation system was discussed. It was reported that the GM was not moving forward with the RFP.

New Business:

FY 2011 Budget Developments – Nothing to report.

August Financials – Larry Cole is reviewing the decline in amenity revenue to identify the major reasons for those declines. It was discussed that the decline in revenue may be due to changes in fees, the economy, declining usage rates or to some extent all of these factors.

Liaison reports

Golf – Revenue is down and annual memberships are slowly declining.

Lakes – The liaison is encouraging members to get members of the committee more involved
 in capital projects.

Youth – Reported that the committee is well run and working on a number of projects.

Open Discussion: Open Discussion:  Board advisor Doug Chidlow is concerned the board is not doing an adequate review of the financial analysis portion of the reserve study before initiating their planned reserve.

With the approval of the committee chairman, Advisor Doug Chidlow made the following motion: To recommend to the Board of Directors to defer action on the Reserve Policy until a detailed  financial analysis of  the dam/road/replacement reserve has been accomplished. Motion passed 3-2.

The chairman adjourned the meeting at 8:43 pm.

The next meeting is scheduled for November 1 at 7:00PM.

D. Francis, Secretary

Regular monthly meeting of LOWA Finance Committee November 1, 2010

Call to order  The meeting was called to order by Chairman Wright at 7:03 pm. 

Attendance
Members present              Members absent                 Guests present
B. Wright (voting)                  T. Wessel (GM)                      R. Shope
J. Walsh (voting)                    R. Fast (alternate)                 D. McKee
H. Walsh (voting)                   A. Harteveld (S&S liaison) 
J. Takcas (voting)                  R. C. Haring (voting)
J. Quimper (alternate)            D. LeMay (voting)
D. Chidlow (Advisor)
O. Kelly (board liaison)
D. Francis (alternate)   
D. Strain (PC liaison)

Agenda:  Motion to approve the agenda.  Motion was approved unanimously.

Minutes:  Minutes for the October 2010 meeting were approved unanimously, as amended adding “reserve policy” at the end of Chidlow’s comments during Open Discussion.

Old Business:
      
Update on Accounting System – Wright reported on his recent finance meeting with GM, Treasurer and Director of Finance.  Main meeting topics included:

                        Increase in LOW Accounts Receivable
                        Impact of Accounting and Finance employee turnover
                        2011 budget development procedures. 

Outsourcing:  J. Walsh reported that no new discussions had been held with the GM concerning the current accounting systems. The Committee discussed possible procedures for and impacts of outsourcing the LOW Accounting and Finance systems. No action taken.

BOD Adopted Budget Guidelines – B. Wright distributed the approved budget guidelines and noted that the BOD removed the proposed condition that the BOD must approve the filling of new positions.

Procurement procedures – LOW procurement procedures were discussed.  A motion was made and seconded: That the Finance Committee recommend as a part of the procurement procedures for RFPs exceeding $250K that the GM establish an Ad Hoc committee composed of LOW members with relevant expertise to help develop, review and evaluate the RFP’s.  Motion failed.

New Business:

FY 2011 Budget Review Schedule and Process:  Proposed 2011 budget will be delivered to the Finance Committee at least one week in advance of FC review. The Finance Committee will meet each day between December 8-10 (location and time to be announced) to develop questions about the proposed budget for submission to the GM for his review and comment. The Finance Committee will meet on January 3rd to discuss GM’s responses before forwarding to the comments to the BOD for consideration.

Monthly Payment option: Motion by H. Walsh: Recommend that the BOD approve a sub-committee of the Finance Committee to evaluate the feasibility of instituting monthly assessment payments. After extensive discussion, the motion passed unanimously.

Liaison reports:

Treasurer’s Report:  O. Kelley provided financial highlights. Amenities overall are not meeting budget.  In addition, uncollected assessments are higher than in past years. Kelley discussed the high number of foreclosed homes and the difficulty and impact of collecting assessment from those homes.   

Lake Users Committee: The new chair for LUC is Julie Wilson.

Golf Committee: The golf committee may consider a vote at the November meeting recommending to the Board that a referendum take place asking the association membership to open membership of the golf course to outsiders on a limited basis.  The vote has not been taken yet.  Also we are exploring the possibility of an intern to develop a marketing plan. No recommendations have been made at this time. 

M and E: Work is starting on a new water main. LOW Maintenance has cleared 24 lots. Security cameras are being relocated in response to specific vandalism incidents.  Work is beginning to replace the tennis court fences.

Open Discussion: Committee advisor D. Chidlow reviewed and discussed the budget shortfalls caused by reduced revenue and a significant increase in operating costs for nearly all amenities and expressed concerned about the changes made last year in the fee-structure that are contributing to the significant reductions in fee income.   

The chairman adjourned the meeting at 9:25 pm.

The next meeting is scheduled for December 8th at 9:00 A.M.

D. Francis, Secretary

Regular monthly meeting of LOWA Finance Committee January 3, 2011

Call to order  The meeting was called to order by Chairman Wright at 7:00 pm. 

Attendance
Members present                Members absent                    Guests present
B. Wright (voting)                    R. Fast (alternate)                    Bob Shope
J. Walsh (voting)                      A. Harteveld (S&S liaison)        Dave McKee
H.Walsh (voting)                      Dave LeMay (voting)                Doug Rogers
J. Takacs (voting)                   Joe Quimper (alternate)            Neil Buttimer
D. Chidlow (Advisor)                                                                Don Walter
O. Kelly (board liaison)                                                             Mike Hill
D. Francis (Voting)                                                                   Margaret Darby
D. Strain (PC liaison)                                                                T. Wessel (GM)
R. C. Haring (voting)

Agenda:  Motion to approve the agenda.  Motion was approved unanimously.

Minutes:  Minutes for the November meeting were approved as amended.  There were no formal minutes for the December meeting due to the budget hearings.  The motions developed during those hearings were accepted and approved for discussion.

Old Business:
The Committee reviewed and discussed the motions developed by the Committee following the budget hearings with the following results.  The complete list of motions as amended and expanded is attached and becomes a part of these minutes.  Only these actions relating to the changes, new motions and/or reaffirmation of the original motions are included as follows.

1. New Motion: Harry Walsh, Second by RC Haring
Recommend that the BOD direct the General Manager reduce utility expenses by 10 percent during 2011. Passed 4 to 1.

Chair was passed to RC Haring.

2. New Motion: Boggs Wright, Second Dave Francis
Recommend that the 2011 budget for contractual testing services in Environmental Resources budget be reduced from $64,410 to $15,000.  The proposed 2011 budget number reflects a full regimen of testing in case of an environmental crisis.  The spending through November 2010 is only $10,259.  Recommend that some additional contingency funds for testing be added to the operational reserves in case of an emergency. Passed unanimously.

Chair passed back to Boggs Wright

3.  Amended Motion: Harry Walsh, Second RC Haring
Motion to reaffirm Finance Committee support for Motion  #212/9/10, and report same to BOD.  Original motion was reaffirmed and amended to include placing vending machines in the Woods Center for use during appropriate hours. Passed. 4 to 1.

4. Amended Motion: Motion # 3, 12/9/10, was amended as follows: Recommend to the BOD that golf and swimming fees be returned to 2009 levels and that tennis fees be reviewed to correct any inequities and to increase revenues.  Passed as amended.  One opposed.

Chair was passed to RC Haring.

5. New Motion: Boggs Wright, Second Harry Walsh.
Recommend that the proposed budget increase of $10,000 in labor costs for the Club House be removed from the budget and that labor costs in 2011 be maintained at current levels due to declining revenues. Passed unanimously.

6. New Motion: Boggs Wright, Second Dave Francis
Recommend that the BOD conduct a review of the total 2011 budget as presented and that the annual assessment be set at or below the 2010 assessment. Passed unanimously.

Chair passed to Boggs Wright.
Two motions developed by the Finance Committee on 12/10/10 were not considered and will be addresses at the February agenda.

New Business:  No new business.

Liaison reports:

Treasurer’s Report:  O. Kelley provided financial highlights. Kelley discussed the high number of foreclosed homes and the difficulty and impact of collecting assessment from those homes.   

The chairman adjourned the meeting at 9:40 pm.

The next meeting is scheduled for February 7th at 7:00 P. M.

D. Francis, Secretary

Regular monthly meeting of LOWA Finance Committee February 7, 2011

Attendance
Members present                Members absent                   Guests present
B. Wright (voting)                    Dave Francis (voting)               Don Walters
J. Walsh (voting)                      Olive Kelly (BOD Liaison)        Bob Shope (BOD member)
H.Walsh (voting)                      Robert Fast (alternate)            Dave McKee (BOD member)
J. Takacs (voting)                     Joe Quimper (alternate)          Doug Rogers
D. Lemay )voting)                                                                    Lee Frame
R. C. Haring (voting)   
D. Chidlow (advisor)
D. Strain (PC liaison)

The meeting was called to order by Chairman Wright at 7:00 pm. 

Agenda:  Motion to approve the agenda by D. Lemay, second by H. Walsh.  Motion was approved unanimously.

Previous Meeting Minutes:  January 3, 2011 minutes were accepted as written.
Jim Walsh proposed a change to the January 25, 2011 minutes as follows: Motion:  Recommend that the budget as presented by the GM be forwarded to the community and to the BOD for approval. 
A motion to approve both meeting minutes by H. Walsh, second by D. Lemay, vote to accept the minutes was unanimous.

Chairman comments: Boggs Wright welcomed guests and made comments concerning his most recent meetings with the GM and the BODs on the 2011 budget where he passed on the Finance Committee’s comments on the most recent budget. The Board is expected to approve the current budget the 16th of February.

Old Business:

Monthly Assessment payments.  B Wright researched LOWA regulations stating that the BODs currently have authority to allow quarterly and semi-annual payments but not monthly.
H. Walsh began the discussion by pointing out that using monthly LOWA assessment payments  would be convenient to LOWA members. How to handle the payments internally or by a bank or other financial institution would require additional research. Also, the question remains if the cost to do this is acceptable. It was suggested that Boggs write a summary of the FC position on this issue and the FC proposal, and e-mail them to a member of the board so the issue can be put on the board’s agenda at the nest meeting.

New Business:

Expanding LOWA Golf and Clubhouse Revenues. J. Walsh began the discussion by pointing out that the Golf Committee was in favor of opening our course to outside use for tournaments and special events. The same could be said for the clubhouse.
Motion: Jim Walsh, Second by Bob Haring: The Finance Committee recommends that the Board of Directors develop a comprehensive plan to open the use of specific LOWA amenities such as Golf, Clubhouse, Equestrian Center, Pools, and Tennis to non-LOWA residents. This plan should include, but not be limited to, a referendum on the issue, a fee schedule, marketing plan, and written legal opinion from the LOWA attorney as to the legality of such a plan.

Discussion:

J Walsh pointed out that the Golf Committee is in favor of opening the LOWA golf course to non-residents to increase revenues. He also pointed out that there currently is no marketing plan at LOWA residents or non-residents.

L. Frame pointed out that other parts of Orange County are providing these services and with a planned approach LOWA could begin to draw our share of such activity using such amenities as Golf, Clubhouse, Tennis, and Equestrian. The problem is that there currently is no consensus at the Lake to support the use of our amenities for outside activities.

Motion was approved unanimously.

LOWA investment policy.  Since O. Kelly, was not present at the meeting, J. Walsh requested that the FC be given an opportunity to talk directly with O. Kelly prior to the FC take a position on the Policy. B Wright suggested the since O. Kelly, author of the LOWA Investment Policy was not present for the meeting, that any member comments be presented directly to her or to other board members via e-mail.

Liaison reports were presented for Planning, Youth Activities, Golf, and M&E.

The chairman adjourned the meeting at 8:35 pm.

The next meeting is scheduled for March 7th at 7:00 P. M.

J. Takacs, Acting Secretary

Approved Minutes LOWA Finance Committee
April 4, 2011

Attendance
Members present                Members absent                  Guests present
B. Wright (voting)                    Robert Fast (alternate)           Dave McKee (BOD member)     
J. Walsh (voting)                     D. Lemay (voting)                    Larry Cole
H.Walsh (voting)                                                                      Tom Sheridan
J. Takacs (voting)                                                                    Doug Rogers
R. C. Haring (voting)                                                                Suzie Takacs
D. Chidlow (alternate)                                                              Lee Frame
D. Strain (PC liaison)                                                                Dave Ketch
Brenda Conway (Advisor)                                                         Susan Wright
Olive Kelly (BOD Liaison)                                                         Ralph E. Hancock
Joe Quimper (alternate)

The meeting was called to order by Chairman Wright at 7:00 pm. 

Agenda:  Motion to approve the agenda.  Motion was made to amend the proposed agenda to eliminate discussion concerning recent BOD action to remove General Manager.  The proposed amendment was passed unanimously and then the motion to pass the amended agenda was passed unanimously.

Chairman comments: Boggs Wright mentioned that he will not attend the May meeting and that the Vice Chair will preside.

Old Business:

Monthly Assessment payments.  Boggs Wright discussed the last BOD agenda on the proposed change allowing monthly payment of assessments.  Because there are so many unanswered questions about the change, Boggs established a subcommittee of the Finance Committee charged with studying the requirements and impacts of monthly assessment payments.  Two major questions, among others, to be answered are: Will monthly payments negatively impact cash flow and, should collection be kept in-house or out sourced? The subcommittee will develop a report for presentation to the BOD.  The committee members are:  Harry Walsh and Brenda Conway and Boggs Wright will assist. No date was established for completion of the report.

Due to recent management changes, Boggs suggested that discussions about lessons learned about the past budget development and review process be postponed until a later date.

New Business:

Security RFP:  The RFP has been released to a number of interested security firms.  AGM Elton Rupp has primary responsibility for coordinating responses to the RFP.  A small subcommittee has been established to review responses and recommend qualified candidates to the BOD.  Elton Rupp will review the technical responses and Larry Cole, CFO will evaluate the financials.

February Financials:  Olive Kelly reported that at this time the budget is on track to produce a $50 to $100K positive variance by year end.

Doug Chidlow reported on a number of positive and negative variances to the budget and requested that Larry Cole identify causes of over spending in Maintenance ($19K in contracts) and Roads ($18K in asphalt) OC’s   Additionally a breakout of the expenditures for Grounds contracts in February was requested.  Doug also again reported the high cost per serving at the Club and Fareways  restaurants.  He noted that expenses exceeded sales at the club by 20.1% and at Fairways by 42.5%. 

Liaison Reports:

Golf Committee: Jim Walsh reported that the Golf Committee will make recommendations about what should be done with the Fareways.  He also reported the good news that the Fire and Rescue annual tournament is returning to LOW and the Goofers are returning to LOW.

ECC: Dave Francis reported the ECC Committee and management are re-emphasizing the need to clean up vacant and trashy lots.

Planning Committee: Darrow Strain reported that the new member survey was distributed with the annual assessment package.

Open Discussion:

Doug Chidlow presented the following issues regarding the February 2011 update of the Replacement Reserve Study.  Doug voiced concern that the study did not take into account inflation or interest earned income and that is inconsistent with the Dam and Roads reserve studies. The Dam and Roads studies should be revised to show the same 0% assumptions as the current Replacement Study.  Some of the same equipment in the fitness center (OC 202) procured in different years shows up with different ELs.  Doug also recommended that a trade in value could be considered on certain equipment to make up any apparent shortfall in available CTR.

The chairman adjourned the meeting at 8:50 pm.

The next meeting is scheduled for May 4 at 7:00 P. M.

David Francis, Secretary

Approved Minutes of Regular monthly meeting of LOWA Finance Committee May 2, 2011

Members present               Members absent                    Guests present
D. Lemay (voting)                    Robert Fast (alternate)            Dave McKee (BOD member)
J. Walsh (voting)                      B. Wright (voting)                    Larry Cole
H.Walsh (voting)                                                                      Doug Rogers
J. Takacs (voting)                                                                    Andy Harteveld
R. C. Haring (voting)                                                                Bob Shope (BOD Member)
D. Chidlow (alternate)                                                              Darrow Strain (PC Liaison)
Olive Kelly (BOD Liaison)                                                        Neil Buttimer
Joe Quimper (alternate)

The meeting was called to order by Vice Chair D. LeMay at 7:00 pm. 

Agenda:  Motion made to approve the agenda.  The unanimous approval.

Minutes: Motion made and April minutes approved unanimously as submitted.

Old Business:

Doug Chidlow questioned the $14,000 spent on lot clean-up and whether or not the BOD had specifically approved the expenditure by lot.  In response, Larry Cole outlined how the budgeted monies for tree work and lot clean-up were allocated and provide details about specific expenditures by private lot, LOW owned lots and the Golf Course.  Last fall 10 private lots were cleaned and 47 LOW owned lots were contracted to be cleaned.  All but 13 have been completed.
 
New Business:

Investment Policy Comments:  Jim Walsh made a presentation about the proposed changes to the LOW investment policy that is in the second reading stage of consideration. He stated that the current investment policy serves LOW well and should not be changed. He outlined the provisions of the policy changes as proposed and pointed out that investments in FDIC insured accounts posed little to no risk to LOW investments.  The current investment climate makes shorter term investments desirable but as the investment climate improves longer term investments will improve returns.  Accordingly, he proposed that the LOW investment policy should not limit investments to a 2 year term. 

Motion by Jim Walsh: That the Finance Committee recommends to the BOD that the current investment policy be maintained and that the FDIC limit is changed from $100,000 limit to the maximum protection allowed by the US Government.  No second to the motion offered…motion failed.

Motion by Joe Takacs: That the Finance Committee support the proposed changes to the investment policy as written with one exception.  Section C: … investments that exceed two (2) year terms require approval by the investment committee and the BOD.  Motion carried with 4 to 1vote.

March Financials:  Olive Kelly reported that finances are on track to generate a possible $90,000 positive variance to budget.  She pointed out that conditions can change and that additional cost savings or expenses may occur before the end of the year.  The Committee discussed what happens to year-end the positive variances. Questions voiced included: Are surpluses added to the reserves and if so which reserve accounts?  NOTE:  The Finance Committee will follow-up to determine how year-end positive variances to the budget are handled.  Olive commented that the surpluses could be added to a contingency account. Further discussion about how positive variances are handled with the door let open for further consideration and discussion prior to year-end.

CTR Review:  Larry Cole reported that the $350,000 capitalized costs for the proposed indoor pool should have been expensed when the decision to not construct the pool was made. Past years retained earnings will be adjusted accordingly.    

Doug Chidlow suggested that a common base to determine values for traded in equipment should be established to ensure the money going into the CTR is the actual amount needed. Doug again reported the high cost per serving at the Club and Fareways  restaurants.  He noted that expenses exceeded sales at the club by 20.1% and at Fairways by 42.5%. 

Liaison Reports:

Golf Committee: Jim Walsh reported that AGM Rob Martin is establishing a committee to look into all aspect of the Fareways operation and will report findings to the BOD during the second meeting in May.  Joe Quimper noted that the committee should focus on the people not using Fareways versus only people who do use it to determine why people are not using the facility.

Lakes Committee: The Committee is beginning to take a close look at cost/revenue finances.

Open Discussion:  Doug Chidlow reported that he attended the most recent Pools Committee meeting and discussed several issues involving contracted versus LOW direct hire life guards and management staff.

The Chair adjourned the meeting at 9:03 pm.

The next meeting is scheduled for June 6 at 7:00 P. M.

David Francis, Secretary

Minutes Regular monthly meeting of LOWA Finance Committee June 6, 2011

Members present                     Members absent               Guests present
D. Lemay (voting)                    Robert Fast (alternate)            Dave McKee (BOD member)
J. Walsh (voting)                                                                      Larry Cole
H.Walsh (voting)                                                                      Doug Rogers
J. Takacs (voting)                                                                    Jack Walker
R. C. Haring (voting)                                                                Bob Shope (BOD Member) 
D. Chidlow (alternate)                                                              Darrow Strain (PC Liaison)
Olive Kelly (BOD Liaison)                                                        Suzie Takacs
Joe Quimper (alternate)                                                           Jon Anderson
Brenda Conway  (Advisor)
Boggs Wright (Chair)
David Francis (Voting)

The meeting was called to order by Chairman Wright at 7:00 pm. 

Agenda:  Motion made to approve the agenda.  Unanimous approval.

Minutes: Motion made and May minutes approved unanimously as submitted.

Old Business:

Harry Walsh reported on progress made to determine the practicality of monthly assessments. An RFI is being prepared to collect information from potential contractors to help prepare an RFP should the Board decide to take further action.

New Business:

Larry Cole, Chief Financial Officer, reported that the annual financial audit will begin next week, Most of the preparation work has been completed but some adjustments are still in the works. The audit report will be submitted to the Board on August 17. The Finance Committee will be present for that presentation.

Olive Kelly, LOWA Treasurer, reported on the April financial statements.  She presented preliminary results for several cost centers and stated that 83 percent of the annual assessments have been collected to date.  

Larry Cole informed the Committee that a letter speaking to any significant budget variables will be issued soon.

Doug Chidlow, Finance Committee member, questioned several items in the April budget report and pointed out that the Club House and Fareways restaurants were running significant negative variances.

Liaison Reports:

Lakes: The Lakes Committee spent considerable time working with safety and security issues.  He noted that the head of USSA and a security officer attended the meeting which is a welcome and beneficial change from past practices.  Presented was a detailed report about patrol procedures for the lake and LOW.

Discussion about environmental testing on the lake was welcomed.  It was also reported that some vandalism still occurs on boats docked at the large and small marinas.

Equestrian: Reported that the Committee members are keenly area of the bottom line and are working hard to improve revenues and reduce costs.

Planning: Reported on several potential projects at the Club House, the Fitness Center and for the roadway and LOW signs.

M & E: Reported on potential changes to the compactor sight and the possible problems associated with such a move.  It was noted that under the proposed redistricting plans, that LOW will be represented by two county supervisors instead of one as is the case now.

The Chair adjourned the meeting at 8:17 pm.

The next meeting is scheduled for June 5th at 7:00 P. M. in the Woods Center.

David Francis, Secretary

 

Minutes Regular monthly meeting of LOWA Finance CommitteeJuly 5, 2011



Members present                 Members absent                  Guests present
D. Lemay (voting)                    Robert Fast (alternate)            Dave McKee (BOD member)     
J. Walsh (voting)                                                                      Larry Cole
H.Walsh (voting)                                                                      Doug Rogers
J. Takacs (voting)                                                                    Bob Shope (BOD Member)     
R. C. Haring (voting)                                                                Darrow Strain (PC Liaison)
D. Chidlow (alternate)                                                              Suzie Takacs                 
Brenda Conway (Advisor)                                                         Jon Anderson               
Jim Logan (Alternate)                                                               Andy Harteveld (S&S liaison) David Francis (Voting)                                                              Olive Kelly (BOD Liaison)    
Joe Quimper (alternate)
Boggs Wright (Chair)                                                                

The meeting was called to order by Chairman Wright at 7:00 pm. 

Agenda:  Motion made to approve the agenda.  Approved unanimously. 

Minutes: June minutes approval postponed to July meeting.

Boggs Wright opened the meeting and reported that LOWA payroll has been outsourced to PayChek, Ltd.  PayChek may at some future time provide administrative support, retirement account management, and some HR services.

Old Business:

Harry Walsh reported that a letter had been sent to a number of companies requesting information about potentially outsourcing collection of the assessments.  Several responses were received with information that will be used to prepare a presentation to the BOD. He also reported that Larry Cole prepared a cash flow model that indicated monthly payment of assessments is doable from a financial standpoint.

New Business:

Boggs Wright reported that the Finance Committee will be reconstituted in September and that he and Harry Walsh will be off the committee.  He also introduced Jim Logan who has submitted an application to serve on the Finance Committee as an alternate. 

Boggs Wright reported that the audit hearings are scheduled for August 17th.  The Finance Committee will be present to review and ask questioned.

Boggs Wright reported that the audit has begun, field work is complete, and we are awaiting a preliminary report.  Each member of the FC will receive a copy of the preliminary report.

Joe Quimper commented on last year’s budget guidelines and whether or not they had actually been followed.  Boggs Wright requested volunteers to review the guidelines and the results.  Joe Quimper and Harry Walsh will review and report results at the August meeting.

Olive Kelly reported on May financials. 60 lots have still not paid t he special Dam assessment.

Liaison Reports:

Lakes: The Lakes Committee spent considerable time discussing water quality testing to determine the overall health of the lake.  The Committee is also looking at revenue and expenses on boat storage rental.  The Committee should soon have enough information to make a recommendation about how to better manage boat storage rentals.  Also, both marinas are scheduled to be rebuilt in 2014.

Equestrian: Reported that the Committee members are keenly area of the bottom line and are working hard to improve revenues and reduce costs.

The Chair adjourned the meeting at 8:30 pm.

The next meeting is scheduled for August 1, 2011 at 7:00 P. M. in the Woods Center.

David Francis, Secretary

Approved Minutes
Regular monthly meeting of LOWA Finance Committee August 1, 2011

Attendance

Members present                 Members absent               Guests present
D. Lemay (voting)                    Brenda Conway (Advisor)     Dave McKee (BOD member)          
H.Walsh (voting)                      J. Walsh (voting)                   Larry Cole
J. Takacs (voting)                                                                  Doug Rogers
R. C. Haring (voting)                                                             Darrow Strain (PC Liaison)
D. Chidlow (alternate)                                                           Olive Kelly (BOD Liaison)    
David Francis (Voting)                                                          Jack Walker
Jim Logan (Alternate)                                                            Bob Johnson                             
Joe Quimper (alternate)                                                         Marie Johnson  
Boggs Wright (Chair)                                                             Susan Wright 
                                                                                               Pete Rainey

The meeting was called to order by Chairman Wright at 7:00 pm. 

Agenda:  Motion made to approve the agenda.  R.C. Haring introduced a motion to amend the agenda to remove the presentation by the Civil War Study Group.  Motion was seconded.  Motion Failed. 

Minutes: June and July minutes approved.

Old Business:

Harry Walsh presented findings concerning the proposal to allow monthly payments for assessments.  (Presentation is attached and made a part of these minutes.) After considerable discussion with input from members, Larry Cole and Olive Kelly, the following motion was made and seconded.

Motion: Move that the Finance Committee chair petition the BoD to consider the proposal to implement monthly payments of assessments at a public BoD meeting or workshop.

Motion passed unanimously. 

Joe Quimper and R.C. Haring reported on the subcommittee’s progress on the FY 2012 Budget Guidelines, which are in final revision. It is scheduled for discussion and suggestions at the FC September 12 meeting with copies distributed to members in advance.

Larry Cole reported that the financial audit is mostly completed with a few items to be cleaned up. The report will be presented to the BoD on August 17th and all FC members are invited to attend that meeting.

New Business:

Pete Rainey of the Civil War Study Group presented a proposal requesting that the FC recommend that the BoD approve the installation of three interpretive signs within LOW that designate important locations pertaining to the Battle of the Wilderness that took place within LOW.

Motion by Dave LeMay: Move that the Board approve funding for acquisition and installation of interpretive historical signs designed by the Civil War at LOW Study Group on Association property at Spotswood Park, Maintenance- Woods Center parking lot area, and Cornwallis beach."

Motion failed.

Boggs Wright discussed transition planning for the new FC to be reconstituted in September.  He and Harry Walsh will leave the committee.  Boggs reported that Robert Fast has resigned from the FC. 

Larry Cole reported on June Financials. He noted that the report contained a number of penciled notes that he and staff are currently working to address and remove.  He also reported that staff is looking into several revenue items at the Pro-Shop.

Doug Chidlow questioned unusual variances in payroll lines for OC’s 401 and 402. 

Liaison Reports:  No Reports were presented.

Open discussion:

Boggs Wright was thanked for his service to LOW and the FC committee during the past year and was appropriately recognized by a hearty round of applause.

The Chair adjourned the meeting at 8:57 pm.

The next meeting is scheduled for September 12, 2011 at 7pm in the Teen Center located in the Community Center.

David Francis, Secretary

Meeting Minutes of LOWA Finance Committee
October 3, 2011

Members present                  Members absent                  Guests present
D. Francis (Chair)                     None                                       D. McKee (BOD Member)
R.C. Haring (Voting)                                                                P. Rowland (BOD Member)
J. Takacs (Voting)                                                                   L. Cole (LOWA Finance)
D. Chidlow (Voting)                                                                T. Sheridan (Planning Liaison)
B. Conway (Voting)                                                                J. Flynn (LOWA Member)  
D. Lemay (Voting)                                                                 J. Trach (LOWA Member)
J. Logan (Voting)                                                                  A. Seigel (LOWA Member)
P. Rainey (Alternate)                                                            J. Quimper (LOWA Member) 
                                                                                                
The meeting was called to order by Chairman Dave Francis at 7:00 pm. 

Agenda:  Motion made to approve agenda by B. Haring; second by P. Rainey.  Motion passed.

Minutes: August meeting minutes were reviewed.  Motion to approve minutes by D. Chidlow; second by B. Haring. Motion passed.

Old Business:

D.Chidlow made a motion to amend the proposed Five Year Capital Plan with the following four motions:
 
“Move that the a list of non-priced items be removed from the plan;
Move that a list of cost prohibitive items be removed from the plan;
Move that a list of projects that lack merit be removed from the plan; and
Move that a list of projects incorrectly classified as new capital be removed from the plan.”

During the discussion phase of the motion, J. Logan moved that any further discussion of the proposed Five Year Capital Plan be tabled until more information is provided by Planning, the BOD, and the GM. This motion was seconded by J. Takacs and passed with one dissenting vote.
  
New Business:

J. Flynn proposed a resolution before the Finance Committee as follows:

  "The Finance Committee supports placing the highest priority on including in the 2012 operating and maintenance support and out-year new capital budgets, and funding necessary to mitigate Keaton’s Lake water quality problems."  Second by P. Rainey. Motion passed. 
Open discussion: None.

The Chair adjourned the meeting at 9:05 pm.

The next meeting is scheduled for November 7, 2011 at 7:00 in the conference room on the lower level of the Holcomb Building

Joe Takacs, Secretary

 

Minutes Regular monthly meeting of LOWA Finance Committee November 7, 2011

Members present                  Members absent       Guests present
D. Francis (Chair)                     None                            D. McKee (BOD Member)
R.C. Haring (Voting)                                                    B. Shope (BOD Member)
J. Takacs (Voting)                                                        J. Walsh (BOD Member)
D. Chidlow (Voting)                                                     D. Rogers (M&E Liaison)
B. Conway (Voting)                                                      T. Sheridan (Planning Liaison)
J. Flynn (Alternate)                                                      A. Hardeveld (SSCOM Liaison)
D. Lemay (Voting)                                                       N. Buttimer (LOWA Member)
J. Logan (Voting)                                                         S. Wright (LOWA Member)
P. Rainey (Alternate) 
B. Wright (Advisor)

The meeting was called to order by Chairman Dave Francis at 7:00 pm. 

Agenda:  Motion made to approve agenda by D. Chidlow; second by D. Lemay.  Motion passed.

Minutes: October meeting minutes were reviewed.  Motion to approve minutes by D. Chidlow; seconded by D. Lemay. Motion passed.

Old Business:

A motion was made by R. Haring to un-table the D.Chidlow motion to amend the proposed Five Year Capital Plan, which had been tabled by the Finance Committee at the October meeting; second by J. Takacs. The motion passed. Discussion of the Proposed 5 Year New Capital Plan commenced under New Business.
  
New Business:

The following 6 Planning Committee Motions for inclusion in the FY2012 budget were discussed and a vote taken as listed:

1.         Expand existing Clubhouse Bar / Lounge from 340 sq. ft. to 770 sq. ft., add a Horseshoe Bar and a deck connecting to existing Clubhouse deck.  Add new bar entrance to deck area and staircase from new deck to dock area.  This expansion is projected to double sales revenue over a three year period and produce an annual incremental $52,000 savings to the Clubhouse subsidy.

            B. Haring made a recommendation to disapprove spending $194,000 for a          clubhouse bar upgrade in 2012, J. Takacs seconded the motion.

            P. Rainey amended the motion, seconded by J. Flynn as follows:

            Recommend that the clubhouse bar extension be deferred from 2012 subject to             reconsideration, in a future planning year, if contained in a major comprehensive           and specific overall clubhouse upgrade plan. Fund an Architectural & Engineering study and apply for construction permits for first phase, in 2012 for the entire clubhouse upgrade project to be funded in future years.

            This amended motion passed unanimously.

2.         Pave a safe extension of the walking trail from the Main Dam area, up Sleigh Ride hill to the Large Marina which will provide access to walking trails to Sweetbriar and Hollyfield parks.  This will eliminate the unsafe use of Lakeview Parkway to reach these destinations.

            B. Haring recommended the expenditure of $7000 and the approval of this project         as written, seconded by D. Chidlow.

            This motion passed unanimously.

3.         Purchase a tractor with front loader for use at the Equestrian Center. The increasing attendance at pony camps, horse shows and riding lessons require increased maintenance and movement of the riding rings. The current tractor is undersized for this work and a larger tractor is required.  The addition of the front loader would increase productivity.

            B. Haring recommended approval of the initiative but not spending $20,000 for the purchase of a new tractor when sufficient assets are already available in LOWA. D. Chidlow seconded the initial recommendation. D. Chidlow then modified the initial recommendation to provide support to the Equestrian Center from Maintenance and Environmental Division which already has sufficient tractor assets to provide this service. This motion was seconded by J. Logan.

This motion, as amended, passed unanimously.

4.         Pave with asphalt the area adjacent to the putting green, creating better drainage in the space used for cart staging, and event staging, Also add landscaping  to enhance the surrounding area.
 
            D. Chidlow recommended this project be handled in-house by Maintenance and             Environmental Division using “Tar & Chip” to be funded using operations budget             funds. Second by J. Takacs. D. Chidlow also recommended disapproval of          spending $14,630 for asphalt paving of this area. J. Takacs seconded the motion.

            This motion passed unanimously.

5.         Expand the use of the LOWA website by purchasing modules which will add interactive member functions.  Members could access their accounts, make reservations/payments.

            D. Chidlow recommended approval of this project and the expenditure of funds. The motion was seconded by J. Takacs.

            This motion passed unanimously.

6.         Add refreshment Centers at Clubhouse and Sweetbriar pools to enhance members’ experiences.  Additional beverage and snack selection improvement over current inconsistent vending machines.

            J. Takacs recommended the implementation of in-house refreshment centers be             delayed until the Operations AGM can obtain bids from outside vendors to                                determine the cost of contracting for similar services and equipment. This motion                      was seconded by B. Haring.       
            
            B. Haring amended this motion to disapprove expending $10,000 to purchase                            vending machines and supporting infrastructure for the pools. This motion was             seconded by J. Logan.

            This motion, as amended, passed unanimously.

The following Planning Committee Motion for inclusion in the FY2013 budget was discussed and a vote taken as listed:

The purchase of an AM Message and Emergency advisory system was conditionally approved with the consideration the proposal be forwarded to the recently announced Ad Hoc Committee for determining Front and Back Gate (sign) Communications. If the Committee decides it is a useful and economic substitute for front and back gate signs, it should be forwarded to the Board for 2012 consideration. If the Committee decides otherwise, then the Planning Committee recommends denying approval for 2013.

J. Logan made a motion to consider this proposal. J. Takacs seconded the motion.

A motion was then made to amend this motion to recommend disapproval by J. Takacs.
It was seconded by D. Lemay.

This motion, as amended, passed unanimously.

Open discussion: None.

The Chair adjourned the meeting at 9:05 pm.

Meetings are scheduled for December 6, 7, & 8 2011. The December 6 meeting is at 9:00 am in the community center. The 7th and 8th meetings are at the Woods Center at 9:00 am.

Joe Takacs, Secretary, 11/28/11

MINUTES of the LOW Finance Committee
December 19, 2011
Community Center/Computer Room

Call to order: 
Chair David Frances called the meeting to order promptly at 7 p.m. Four voting members were present, and the Chair activated two alternates to voting status for this meeting. Members and guest are listed as follows - -

Members in attendance:                                        Members not in attendance:
David Francis, Chair                                                   Jim Logan, Voting
RC Haring, Vice Chair,Voting\Acting Secretary           Joe Takacs, Voting
 Doug Chidlow, Voting                                                 Dave LeMay, Voting 
Brenda Conway, Voting                                                Guests:
Boggs Wright, adviser                                                   Bob Shope,  LOW BoD
Jeff Flynn, Alternate\ activated voting member              Dave McKee,  LOW BoD
Pete Rainey, Alternate\ activated voting member          

Approval of the Agenda:
Motion to approve as distributed by D. Chidlow, seconded P. Rainey. No discussion, motion passed unanimously.

Approval of the Minutes:
The Minutes of the regular November, 2011 meeting were distributed. Motion to approve by P. Rainey, seconded by B. Conway.  Passed unanimously.

Chairman Comments:
Members then the chair briefly indicated what they considered the most important issues to be resolved at this meeting.

New Business: 2012 Budget Recommendations to the G.M. and BoD

1.     Draft motions from 3-day Budget Sessions. List provided by and motion made by Doug Chidlow, seconded by R. Haring. Two pages of recommendations by Operations Center and account number with supplemental pages of rational were examined and individually voted upon by F.C. Twenty 29 recommended changes to the budget were evaluated, 7 received “not to recommend” vote results, and 5 were edited, simplified and passed.

The 22 surviving recommendations were then “advanced” to the main motion, and voted upon in aggregate. Passed unanimously, and posted to the Minutes as Attachment 1.

2.      Evaluation of Funding Requirements for New Capital, 2012-2016

FC has been evaluating how new capital proposals might be funded, such as those found in the current Five Year New Capital Plan. The likely impact on the association annual assessment is of particular interest. As a result the FC study group produced a spread sheet financial model, which would be a close approximation of assessment increases needed to support the new capital funding requirements.
MOTION: To refer the FC staff study (described above) to the BoD for its review and evaluation with the idea of an FC presentation of it for wide audience member comments at a FY2012 Workshop (well prior to the FY2013 budget review schedule). Motion by P. Rainey, seconded by R. Haring. Motion passed unanimously, and posted to the Minutes as Attachment 2.

3.      Keaton Lake related motions

Previously FC generated a motion to the BoD that Keaton Lake remediation be given a highest priority in the FY2012 operational and capital budgets. To support that goal, the following motions were made by P. Rainey, seconded by R. Haring.

o    The FC recommends the GM’s budget and BoD avoid raising the presently projected FY2012 assessment based on the very tentative Keaton Lake remedial cost information available at this time. Passed unanimously.

o    That an amount of $100,000 of capital reserves be allocated to (or set aside) and designated for Keaton Lake remediation. Motion passed unanimously.

o    Property dam insurance, currently listed at an annual cost of $27,000, be cancelled only after and based on an engineering review of the insured loss coverage. Amended/edited during discussion, then passed unanimously.

o    Restore historical vacancy adjustment, often called “salary savings due to unfilled vacancies”, of $20,000. (See line 5013 in 2011 budget). It is a positive cash flow entry, and thus a -$20,000 (negative expense) reduction in total salary expense. PASSED unanimously.

o    Reduce Club House payroll costs from 10.4 to 6.4 percent of sales income, estimated at $20,000. Passed unanimously.

o    Two other budget cost-savings proposals were introduced and discussed, but not approved by the FC.

  (4)  Attachments
            a/s 
Budget Recommendations
Memo to Board re: budget 
Proposed budget cuts

R.C. Haring, acting secretary

*  An F.C. regular meeting is called for Monday, January 9,  7 p.m. at the Holcomb Building. Except for agenda items required to open the meeting, the GM and Senior Staff present the revised budget. (See FY12 Budget Schedule.)

Minutes of Special Budget Review meeting 
of LOWA Finance Committee
January 9, 2012

Members present                  Members absent                 Guests present
D. Francis (Chair)                     P. Rainey (Alternate)              P. Roland (BOD Pres)
R.C. Haring (Voting)                                                                B. Shope (BOD Member)
J. Takacs (Voting)                                                                   D. McKee (BOD Member)        
D. Chidlow (Voting)                                                                 J. Walsh (BOD Member)
B. Conway (Voting)                                                                  T. Sheridan (Planning Chair)
D. Lemay (Voting)                                                                   N. Buttimer (Planning Liaison)
J. Logan (Voting)                                                                     P. Rodenberg (LOWA GM)
J. Flynn (Alternate)                                                                  L. Cole (LOWA Dir Finance)
B. Wright (Advisor)                                                                  E. Rupe (LOWA Maint AGM)
                                                                                                D. Walters (LOWA Member)                                                                                                    N. Goodwin (LOWA Member)
                                                                                                S. Wright (LOWA Member)
                                                            
The meeting was called to order by Chairman Dave Francis at 7:00 pm. 

Agenda:  Motion made to approve agenda by B. Haring, seconded by D. Chidlow.  Motion passed.

Minutes: December 19, 2011 meeting minutes were reviewed.  Motion to approve minutes by D. Chidlow; seconded by J. Logan. Discussuion requested by B. Haring. Item 4, page 2 proposed to be tabled for future discussion. Motion to amend the minutes by D. Chidlow, seconded by B. Haring. Motion passed.

Old Business:  None.

New Business: 
The General Manager’s FY2012 proposed budget was presented to the Finance Committee by the LOWA GM (Phil Rodenberg). The Gm was assisted in the presentation by the LOWA  Finance Director (L. Cole) and the LOWA Maint AGM (E. Rupe).

The FC had provided recommendations to the budget that would have supported an overall increase in the proposed FY2012 LOWA assessment of 2.5% and $100,000 for Keaton’s Lake restoration in the FY2012 budget.

The proposed Gm’s FY2012 budget did not accept the Finance Committee’s budget recommendations.

Open discussion: None.

Motion to adjourn the meeting by B. Haring, seconded by J. Logan. The Chairman adjourned the meeting at 8:16 pm.

A special meeting to review the GM’s budget recommendations is scheduled for January 24, 2012.

Joe Takacs, Secretary, 01/18/2012

Approved Minutes of Special Budget Review meeting of LOWA Finance Committee on January 24, 2012

Members present                     Members absent                      Guests present
D. Francis (Chair)                     D. Lemay (Voting)                   D. McKee (BOD Member))
R.C. Haring (Voting)                J. Flynn (Alternate)                  O. Kelly (BOD Member)
J. Takacs (Voting)                     P. Rainey (Alternate)                J. Drabant (LOWA Member      
D. Chidlow (Voting)                                                                 D. Walters (LOWA Member)
B. Conway (Voting)                                                                  T. Sheridan (Planning Chair)
J. Logan (Voting)                                                                     L. Cole (LOWA Dir Finance)
                                                                                                S. Takacs (LOWA Member)
                                                                                                B. Tabor (LOWA Member)

The meeting was called to order by Chairman Dave Francis at 7:00 pm. 

Agenda:  Motion to approve agenda by B. Haring, seconded by J. Logan.  Motion passed.

Minutes: January 9, 2012 meeting minutes were reviewed.  Motion to approve minutes by J. Logan, seconded by B. Conway

Motion: B. Haring, Second by J. Takacs.  To postpone all normal FC business to March 2012 regular meeting.

 Motion passed unanimously.

Old Business: None.
  
New Business:

Motion: Jim Logan Second,  Brenda Conway:  Support installation of a fence on Route 601.  Motion amended by consent to recommend that BoD commission a study to determine need and feasibility for an additional property fence along the Route 20 LOWA property line and that any monies left over from 601 fence installation be applied to the installation of Route 20 fence.  

Motion passed unanimously.

The following motions modify Finance Committee budget recommendations previously submitted to the General Manger for consideration.

Motion: Doug Chidlow, Second: Robert Haring:   OC306) $5,820 Roof replacements now reflected in the operations budget should use replacement reserve funds. Additionally, move the cost for ADA and park rest room roofs at $6,040 to replacement reserve.

Discussion:  Accounting changes were made several years ago and the time and cost to investigate and change accounts is prohibitive.  Money is not lost but in different accounts.

Motion did not pass: Vote 3 to 1.

Motion: Doug Chidlow, Second:  Joe Takacs:, Equestrian (OC301) Remove $20K for tractor and loader. 

Discussion: We have a management team that is being paid to give us optimum service for our investment.  Have the maintenance manager provide a schedule that reflects use of their tractor and then move the tractor to the Equestrian Center where the equestrians can schedule their work and provide the tractor to maintenance when the maintenance schedule demands it.

Motion did not pass: Vote 3 to 1

Motion: Doug Chidlow, Second: Jim Logan:  Environmental Resources. (OC 303) Add ($12,000) Income for lot cleaning payback.

Discussion:  The policy is that the BOD will direct the staff to clean up lots determined to be unsightly and that the lot owner will defray the cost.  The work is being authorized on the assumption that the cost will be borne by the lot owner.  As it appears in the budget, the cost is being borne by the membership.  By not showing the recovery anticipated by the policy, the budget is essentially voiding the policy.  Revenue, if collected may be received in future accounting periods.

Motion did not pass: Vote 3 to 1

Motion: Doug Chidlow,  Second: Robert Haring: Environment Resources OC 303 Cancel dam insurance only after engineering based review.  An estimated savings of $29,000.

Discussion: Dam insurance was justified based on the need to work on the dam per planned directed upgrade.  History of earthen dams suggests that chances of a dam failure not associated with overtopping is negligible.  We are being too safe with no justification.  Annual inspections continue to be positive with very few deficiencies.A low annual insurance cost per lot versus cost of replacing dam from catastrophic failure justifies continuing insurance.

Motion did not pass: Vote 2 to 1 with on abstention

Open discussion:

Motion: D. Chidlow,  Second: Robert Haring: To not support a Pool Committee recommendation to charge non-pool members, who are members of the LOWA Swim team,  a $25 fee to swim in LOWA pools.

Motion: B. Haring, Second: B. Conway. Table action on the motion pending clarification of the Pool Committee recommendation.

Motion passed unanimously.
 
Motion to adjourn the meeting by B. Haring, seconded by J. Logan. The Chairman adjourned the meeting at 8:16 pm.

 Next scheduled Finance Committee meeting to be held in March 5, 2012 at 7:00 pm at the Holcomb Bldg.

Joe Takacs, Secretary, 02/06/2012

Minutes Special Budget Review meeting of 
LOWA Finance Committee
May 29 2012

Members present                     Members absent                      Guests present
D. Francis (Chair)                     B. Conway (Voting)                  B. Shope (BOD Member)
R.C. Haring (Vice Chair                                                                        D. McKee (BOD Member)
J. Takacs (Secretary)                                                                 J. Walsh (BOD Member)
D. Lemay (Voting)                                                                   P. Rodenberg  (LOWA GM)
J. Flynn (Voting) )                                                                    L. Cole (LOWA Dir. Finance)
J.Logan (Voting)                                                                      O. Kelly (FC BOD Liaison)
M. Musatow (Alternate)                                                                        T. Sheridan (PC Chair)
N. Goodwin (Alternate)                                                             S. Takacs (Guest)
N. Bielmeyer (Alternate)                                                           S. Wright (Guest)
P. Rainey (Advisor)                                                                   D. Chidlow (Guest)
B. Wright  (Advisor)                                                                 J. Spadaro (Guest)
                                                                                                R. & C. McMillan (Guest)         
                                                            
The meeting was called to order by Chairman Dave Francis at 7:00 pm. 

Agenda:  B. Haring made a motion to approve the agenda, second by J. Takacs.  Motion passed.

Minutes:  A motion to approve minutes by J. Takacs, second by D. Lemay.  Motion passed.

Old Business:  None.

New Business:

A motion was made by B. Haring, second by J. Takacs, to approve the LOWA Finance Director’s proposed upgrade of the LOWA Phone system using COMCAST’s fiber optic equipment installation, a new phone system, internet access at 20/20 mbps, with LOWA inter-office communication at 50/50 mbps. Motion passed.

A motion was made by D. Lemay, second by J. Flynn, to fund the proposed LOWA communication system upgrade as new capital. In addition, recommend that a bank loannot be used to fund this project. Motion passed

A motion to adjourn the meeting was made by J. Takacs, second by J. Logan. The Chairman adjourned the meeting at 8:55 pm.

Next meeting is scheduled for Monday, July 2, 2012 at 7:00 pm at the Holcomb Bldg.

Joe Takacs, Secretary, 05/31/2012

Meeting of Finance Committee
September 4, 2012

Members present                     Members absent                      Guests present
D. Francis (Chair)                     P. Rainey (Advisor)                   B. Shope (BOD Member)
R.C. Haring (Vice Chair                                                                        D. McKee (BOD Member)
J. Takacs (Secretary)                                                                 L. Brown (BOD Member)
N. Goodwin (Voting)                                                                O. Kelly (FC BOD Liaison)
J. Flynn (Voting)                                                                      L. Cole (LOWA Dir. Finance)
J. Logan (Voting)                                                                     S. Takacs (Guest)
M. Musatow (Alternate)                                                                        B. Tabor (Guest)
B. Conway (Voting)                                                                  S. Wright (Guest)
N. Bielmeyer (Alternate)                                                           A. Siegel (Guest)
C. McMillan (Alternate) 
B. Wright (Advisor)
R. Delio (Advisor)

The meeting was called to order by Chairman Dave Francis at 7:00 pm. 

Agenda:  A motion to approve proposed agenda made by N. Goodwin, second by B. Conway.  Motion passed.

Minutes:  A motion to approve the minutes made by J. Takacs, second by B. Conway. Motion passed.

Old Business:

An update on the “New Capital” plan progress, an update on the Purchasing and Contracting Program update, and the current status of the Keaton’s Lake Program update were put on hold until the next Finance Committee meeting in October.

A motion to approve the proposed 2013/2014 LOWA Budget Guidelines, August 29, 2012, was made by J. Logan, second by B. Conway. Discussion ensued and detailed modifications proposed, and unanimously approved by the Finance Committee.

New Business:

Election of new Finance Committee Officers include:

B. Haring nominated to Chairman by J. Takacs, second by J. Logan. The vote is unanimous;
J. Flynn nominated to Vice Chairman by D. Francis, second by J. Logan. The vote is unanimous; and
J. Takacs nominated by affirmation to Secretary by D. Francis. The vote is unanimous.

A motion to adjourn was made by J. Takacs, second by B. Conway. The meeting was adjourned at 9:18 pm.

Next meeting is scheduled for Monday, October 1, 2012 at 7:00 pm in the Holcomb Bldg Lower Level.

Joe Takacs, Secretary

Minutes of Finance Committee Meeting
November 5, 2012

Members present                     Members absent              Guests present
R. C. Haring (Chair)                  B. Conway (Voting)                B. Shope (BoD Pres.) 
J. Flynn (Vice Chair)                  D. Francis (Voting)                D. McKee (BoD Vice Pres.)
J. Takacs (Secretary)                 K. Brooks (Advisor)              O. Kelly (Bod Treas/FC Liaison)
N. Goodwin (Voting)                                                                L. Brown (Bod Director)
J. Logan (Voting)                                                                    L. Cole (LOWA Dir. Finance)
N. Bielmeyer (Alternate)                                                         K. True (LOWA Asst Controller
M. Musatow (Alternate)                                                           T. Sheridan (PC Chair)
R. Delio (Advisor)                                                                   J. Spadaro (Lakes Liaison)
P. Rainey (Advisor)
B. Wright (Advisor)
A. Siegel (Advisor)

The meeting was called to order by Chairman Robert Haring at 7:00 pm. 

Agenda:  J. Takacs made a motion to approve the agenda, second by J. Flynn.  Motion passed.

Minutes:  J. Takacs  made a motion to approve the minutes, second by J. Flynn. Motion passed.

The FC chair comments included distribution of and brief comments on: a. Proposed Budget Guidelines approved on October 6th; b. Budget development meeting with Operations Centers on October 12th; c. BoD retreat on October 4th, also BoD meeting & workshop on October 17th; d. W.E.G. immediate spending authorization; e. General Manager’s proposed amenity fee schedule; f. Planning Committee ‘s “New Capital” recommendations; g. Treasurer’s meeting on October 25th; h. Capital Planning (joint-committee) Working Group meeting on October 29th; and i. Current Finance Committee Liaison Assignments (eligible alternates will be advanced to voting member status in December (for all sessions) of the budget meetings).

Old Business:

Review of the existing documentation on Purchasing and Contracting Policies and Procedures is complete. LOWA has not formally implemented them. The FC subcommittee on this issue will publish an executive summary (for FC review and approval) that will recommend: a. The BoD formally implement a policy on purchasing and contracting; and b. The LOWA GM implement the procedures based on the BoD policy guidance.

The Director of Finance provided a report of LOWA’s  October 2012 financial status to include a report on the clubhouse member’s lounge which shows that the new facility has improved the revenues of the clubhouse overall. The Director of Finance is working to develop reports to ascertain the impact the new lounge has on the increase in revenues and any increase in profit that can be attributed to the bar as well as other parts of the clubhouse.

New Business:

B. Wright provided a status update to the committee on the W.E.G.project(s) implementation.

The current amenity fee schedule was briefly discussed. The final fee schedule will be developed after detailed review of the proposed fee schedule by the GM, LOWA Operations centers, and the BoDs.

A motion to adjourn the meeting was made by J. Takacs, second by J. Flynn. The meeting was adjourned at 8:36 pm.

Next meeting is scheduled for Monday, December 3, 2012 at 7:00 pm at the Holcomb Bldg, lower level.

Joe Takacs, Secretary, 11/11/2012

Minutes of Regular Monthly Meeting of LOWA Finance Committee (FC)
December 10, 2012

Members present                     Members absent                 Guests present
R. C. Haring (Chair)                 D. Francis (Voting)                  L. Cole (LOWA Dir. Finance) 
J. Flynn (Vice Chair)                N. Goodwin (Voting)                T. Sheridan (PC Chair)
J. Takacs (Secretary)                 B. Wright (Advisor)                D. Roger (PC Member)
J. Logan (Voting)                     K. Brooks (Advisor)                  J. Zwickl (PC Member) 
N. Bielmeyer (Alternate)           R. Delio (Advisor)                     R. Anderson (PC Member)
M. Musatow (Alternate)                                                             J. Spadaro (Lakes Liaison)
P. Rainey (Advisor)                                                                   L. Cumming (Guest)
A. Siegel (Advisor)                                                                   
                                                
The meeting was called to order by Chairman Robert Haring at 10:00 am. 

Agenda:  The agenda was presented to the Committee by B. Haring, FC Chair. Agenda was accepted. The single purpose for this meeting is to discuss then approve or disapprove all Finance Committee motions generated as a result of the General Manager’s budget presentation conducted 4-6 December 2012.

Recommendations:  J. Takacs made a motion, second by J. Logan that that the Finance Committee review the following recommendations and vote to approve/disapprove each of them in turn:

Recommend the association management consider authorizing member use of fewer credit cards to lower expenses. Finance Committee Motion to approve is unanimous

Recommend verification of the reported cost information of clubhouse beer sales/cost projections which are not in line with industry standards. Finance Committee Motion to approve is unanimous.

Recommend evaluation of the top-heavy management structure at the clubhouse by the GM and Board of Directors. Motion to approve is unanimous.

Recommend the Birchside Circle Culvert replacement be “sourced” from the appropriate replacement reserve. Finance Committee Motion to approve is unanimous.

Recommend association policies and evaluation procedures on capital leasing be clarified and proposed, then referred to the Board of Directors for approval. Finance Committee Motion to approve is unanimous. 

Recommend that (a) the annual camper space fee be raised to $1200 to cover electric and RSA charges for that camper space and (b) the daily fee remain unchanged at $25. Finance Committee Motion to approve is unanimous.

Recommend golf amenity fees be raised as follows: increase annual family fees by $200, increase annual single person fees by $100, and increase LOWA club pass fee by $50. Finance Committee Motion to approve is unanimous.

Additional Committee Motions

J. Flynn made a motion,  second by M. Musatow to recommend that the Board establish a budget goal to increase the annual assessment no more than 1 ½ percent in the regular component FY2013 budget cycle excluding any costs for WEG implementation. The Finance Committee deferred this motion to the end of this Finance Committee meeting. Subsequent discussion at the end of this session resulted in unanimous approval of this motion.

J. Takacs made a motion, second by J. Logan to approve the $80,000 Clubhouse capital proposal to upgrade main floor-level restrooms (and modernize adjacent space). Finance Committee vote to approve is unanimous.                         

J. Flynn made a motion, second by M. Musatow, that the Board approves funding for the “LOW Truck Wash Facility”, an unfunded capital proposal by the Facilities Manager. Finance Committee vote to approve is unanimous.

J. Takacs made a motion, second by M. Musatow that the Board reaffirms its published rules and policies concerning “What is New Capital.”  Finance Committee vote to approve is unanimous.

J. Takacs made a motion, second by M. Musatow to delete $33,067 for dam insurance. Finance Committee vote to approve failed.

J. Takacs made a motion, second by M. Musatow that the Board funding should be continued at a level of not less than $80,000 annually for five (5) FYs, or until the GM indicates this particular reserve funding is no longer required. Finance Committee vote to approve failed.

J. Takacs made a motion, second by M. Musatow to accept portions (not specified here) of the “GM’s Proposed Budget” as written. Finance Committee vote to approve failed.

J. Takacs made a motion, second by J. Logan to establish Personnel-HRM “Wellness” to non-member employees. Finance Committee vote to approve failed.
A motion to adjourn the meeting was made by J. Takacs, second by J. Logan. The meeting was adjourned at 12:20 am.

Please note that the next meeting is scheduled for Thursday, January 3, 2013 at 7:00 pm at the Holcomb Bldg, lower level.

Joe Takacs, Secretary

Minutes Budget Hearing Follow-On Monthly Meeting of LOWA Finance Committee (FC)
January 3, 2013

FC Members present           FC Members absent              Guests present
R. C. Haring (Chair)                 D. Francis (Voting)                   L. Cole (LOWA Dir. Finance) 
J. Flynn (Vice Chair)                A. Siegel (Advisor)                   J. Walsh (BoD)
J. Takacs (Secretary)              B. Wright (Alternate)                D. McKee (BoD)
J. Logan (Voting)                                                                     O. Kelly  (BoD, FC Liaison)
N. Bielmeyer (Voting)                                                              J. Spadaro (Lakes Liaison)
M. Musatow (Voting)                                                               L. Cumming (Guest)
N. Goodwin (Voting)                                                                M. Rugless (Guest)
R. Delio (Voting)                                                                      P. Rodenberg (LOWA GM)
                                                                                                R. Martin ( LOWA Ops AGM)
PC Members Present                                                           S. Gray (Guest)
T. Sheridan (PC Chair)                                                            R. Hancock (Guest)
D. Rogers (PC Member)
N. Buttimer (PC Member)
P. Licata  (PC Member)                                                                                                 
R. Anderson (PC Member)                                                                                           

The meeting was called to order by FC Chairman Robert Haring at 7:00 pm.

Agenda:  J. Takacs motioned to approve the agenda, second by J. Flynn.  The Agenda was modified to delete presentation of previously proposed FC Budget Balance Recommendations. Motion to approve the agenda as modified passed.
 
Minutes:  J. Takacs motioned to approve  FC minutes dated December 10, 2013, second by M. Musatow. Motion passed.

New Business: 
Phil Rodenberg, LOWA GM, presented the most current, revised budget to both the Finance and Planning committees.
It included recommendations from the Planning Committee that were merged into the GM’s budget presentation on 24-26 December 2012.

The GM’s 3 January 2013 budget presentation included proposed Finance Committee Budget Balance Recommendations listed in Finance Committee’s December 10 2012 Meeting minutes. Finance Committee Recommendations are reflected in the summary presentation document shown in Attachment 1. (GM’s Proposed 2013-2014 LOWA Budget-Response to Finance Committee Recommendations – Adjustments to Budget Proposal as of January 4, 2013).

Attachment 2, Lake of the Woods Association, Inc. – FY 2013-2014 Summary Operation Budget, CTR, and Capital Budget, reflects the total budget’s income and expenses, and shows the latest 2013 member assessment based on that budget.

A motion to adjourn the meeting was made by J. Takacs, second by M. Musatow. The meeting was adjourned at 8:10 pm.

The next meeting is scheduled for Monday February 4, 2013 at 7:00 pm at the Holcomb Bldg, lower level.

Joe Takacs, Secretary

LOWA Finance Committee (FC) Minutes
February 4, 2013

FC Members present           FC Members absent            Guests present
R. C. Haring (Chair)                 D. Francis (Voting)                  L. Cole (LOWA Dir. Finance) 
J. Flynn (Vice Chair)                A. Siegel (Advisor)                  T. Sheridan (PC Chair)
J. Takacs (Secretary)              N. Bielmeyer (Voting)              P. Logan (Guest)
J. Logan (Voting)                     P. Rainey (Advisor)                D. Walters (Guest)
M. Musatow (Voting)                                                               R. Hancock (Guest)      
N. Goodwin (Voting)                                                                W. Halpin (Guest)
R. Delio (Alternate)                                                                  
B. Wright (Alternate)                                                                
                                                                                                
The meeting was called to order by FC Chairman Robert Haring at 7:00 pm. Chairman Haring continued activation of FC Alternates to voting for the duration of the budget process scheduled to be completed February 20, 2013.

Agenda:  J. Takacs motioned to approve the agenda, second by N. Goodwin.  The Agenda was modified to review and approve the proposed FC Charter under New Business. Motion passed. A second change to wording under Old Business was made by Chairman Haring, second by J. Flynn. The Agenda was modified to include wording changes to 5.a. Confirm new committees as follows: Finance Committee Charter suggested revisions, and change under New Business, 6.d. to 6.e. Liaison Reports .Motion passed.
Motion to approve the entire Agenda passed.

 Minutes:  M. Musatow motioned to approve the FC minutes dated January 3, 2013, second by J. Logan. J. Takacs noted that the date for the next meeting at the end of the minutes that was missing has been corrected. Motion passed.

Old Business:

Confirmation of Finance Committee (FC) Subcommittees as follows:
FC Charter (suggested Revisions) – R. C. Haring, and J. Takacs
FY2014 Budget Guide lines - R. Delio, N. Bielmeyer, and N. Goodwin (added)
Capital Leasing Policies and Procedures – J. Flynn, R. Delio, and J. Logan (as noted, this committee includes T. Sheridan (PC Chair) as well.
A motion to approve the subcommittees as listed was made by N. Goodwin, second by J. Flynn. Motion passed.

New Business:

A motion was made by J. Flynn, second by M. Musatow, to revise the current Charter for the Finance Committee (Attachment 1). Proposed FC member modifications to the Charter are shown in Attachment 2. These modifications were reviewed, modified, or accepted by the motions that follow and accepted by the committee. The proposed Charter as modified above is shown in Attachment 3.

1.     N. Goodwin made a motion, second by J. Logan, to leave paragraph II. 4 as originally written in attachment 1. Motion passed;

2.     R. Delio made a motion, second by M. Musatow, to modify the original paragraph II. 5, attachment 1 to read as follows” The Committee will review and comment on the financial portion of the Five Year Plan as developed by the General Manager.” and as shown in Attachment 3. Motion passed;

3.     R. Delio made a motion, second by M. Musatow, to not accept the changes to paragraph II. 6, attachment 2 and to rewrite the paragraph as follows “In conjunction with the Planning Committee, receive from the General Manager all requests for non-emergency capital expenditures exceeding $3,500 which were not provided for in the annual budget adopted by the Board for the fiscal year; Review and recommend to the Board the disposition of the results” and as shown in attachment 3. Motion passed.

4.     J. Takacs made a motion, second by J. Flynn to modify the proposed rewrite of paragraph II. 7 to read as follows: “Annually review the LOWA purchasing and procurement policies. Recommend changes which encourage competitive bidding in purchasing, outsourcing as an alternative, and in the case of capital assets, evaluate the cost benefit and availability of leasing.” Motion passed. This motion was then followed by a motion by N. Goodwin, second by M. Musatow, to simplify the paragraph to read as follows; ”Annually review the LOWA procurement policies and procedures and make recommendations.” Motion passed.

5.     J. Takacs made a motion, second by J. Logan to accept the changes to paragraph II. 10 to read “Respond to formal requests of the Board for financial advice or evaluation. The Committee may initiate financial management inquiries and evaluationprojects related to major budget issues, on its own. They must be approved by committee motion(s) as a matter of record in its minutes.”  Motion passed

6.     J. Flynn made a motion, second by J. Logan to not accept the proposed changes to paragraph III. 2 as described in attachment 2. Motion passed.

J. Takacs made a motion, second by N. Goodwin to postpone additional modifications, and final approval of the Proposed Finance Committee Charter (Attachment 3), to the next FC meeting to be held on March 4, 2013. Motion passed.

A motion to adjourn the meeting was made by J. Takacs, second by M. Musatow. The meeting was adjourned at 9:05 pm.

The next meeting is scheduled for Monday March 4, 2013 at 7:00 pm at the Holcomb Bldg, lower level.

Joe Takacs, Secretary, 2/11/2013

 

Minutes of LOWA Finance Committee (FC)
March 4, 2013


FC Members present                  FC Members absent                         Guests present
R. C. Haring (Chair)                      R. Delio (Alternate)                              L. Cole (LOWA Dir. Finance)
J. Flynn (Vice Chair)                      P. Rainey (Advisor)                             T. Sheridan (PC Chair)
J. Takacs (Secretary)                                                                                   O. Kelly (BOD Liaison)
J. Logan (Voting)                                                                                           D. Mckee (BOD)
M. Musatow (Voting)                                                                                      R. Hancock (Guest)
N. Goodwin (Voting)
N. Bielmeyer (Voting)
B. Wright (Alternate)
A. Siegel (Alternate)
D. Francis (Advisor)

The meeting was called to order by FC Chairman Robert Haring at 7:00 pm.  Chairman Haring presented a summary of the Board of Director’s meeting on Saturday, March 2nd, as well as the Treasurer’s meeting on Thursday, February 28th.

Agenda:  J. Flynn motioned to approve the agenda, second by N. Goodwin.  The FC Chairman proposed a modification to the agenda to move a “New Business” item on the discussion of FC Articles for Lake Currents to ”Old Business”.
Motion to approve the modified agenda passed.

Minutes:  J. Takacs motioned to approve the FC minutes dated February 4, 2013, second by J. Flynn. Motion passed.

Old Business:

J. Takacs presented the FC proposed charter that had been modified by approved motions at the last FC meeting on February 4, 2013. J. Takacs motioned to approve the Charter, second by M. Musatow. During the discussion, a motion was made by B. Wright, second by N. Goodwin to remove Section III, paragraph 2 of the proposed FC charter. This paragraph states that “The Finance Committee should have seven (7) voting members.” The LOWA Board passed a revision to the current LOWA BYLAWS at their March2, 2013 meeting which allows committee’s chairman latitude in establishing the number of voting members up to seven (7), and as many alternates and advisors as needed. With this bylaw change, a Committee Charter only needs to specify voting member numbers if that number exceeds seven (7). Motion passed.

A second revision to the FC Charter was proposed by N. Goodwin, second by B. Wright to revise paragraph II. 6 to read “In conjunction with the Planning Committee, receive from the General Manager all requests for non-emergency capital expenditures exceeding $3,500 which were not provided for in the annual budget adopted by the Board for the fiscal year; review and make recommendations to the Board. Motion passed. A vote was then taken to accept the FC charter as revised (Attachment 1). Motion passed.

New Business:

R. C. Haring made a motion, second by M. Musatow to table any further activity on FC articles for “Lake Currents” pending discussions between FC Chairman and the Board President. Motion passed.

N. Goodwin made a motion, second by J. Flynn to have the FC Chairman present to the Board President the FC’s concern that the Finance and Planning Committees have an obligation and responsibility, as required by their charters and LOWA by-laws, to review and make recommendations concerning use of any excess reserve funds on unfunded capital expenditures in excess of $3500. Motion passed.

A motion to adjourn the meeting was made by J. Logan, second by N. Goodwin. The meeting was adjourned at 8:38 pm.

The next meeting is scheduled for Monday April 1, 2013 at 7:00 pm at the Holcomb Bldg, lower level.

Joe Takacs, Secretary
 

LOWA Finance Committee (FC) Minutes
April 1, 2013


FC Members present                FC Members absent                    Guests present
R. C. Haring (Chair)                    N. Goodwin (Voting)                      L. Cole (LOWA Dir. Finance)
J. Flynn (Vice Chair)                    J. Logan (Voting)                           J. Walsh (BoD Pres)
J. Takacs (Secretary)                 R. Delio (Alternate)                        D. McKee (BoD VPres)
M. Musatow (Voting)                   D. Francis (Advisor)                      O. Kelly (BoD Liaison)
N. Bielmeyer (Voting)                                                                           W. Halpin (S&SC Liaison)
B. Wright (Temp. Voting)     
A. Siegel (Alternate)     
       
The meeting was called to order by FC Chairman Robert Haring at 7:00 pm.

Agenda:  J. Flynn motioned to approve the agenda, second by B. Wright. Motion passed.

Minutes:  J. Takacs motioned to approve the FC minutes dated March 4, 2013, second by J. Flynn. Motion passed.

Old Business:

There were no motions relative to Old Business.

Discussions relevant to Old Business included:

1. Non-resident LOWA employee use of  LOWA amenities approved by the Board;
2. The FC Charter approved at the last Finance Committee meeting in March;
3. Status of the FY13 Proposed Capital Budget; and
4. The management approved "Schedule of Reserve Study Activities (by date)" which was distributed to all present, and discussed at length. The Reserve Study review will be done at summer meetings, including a public workshop in May and  a review of the schedule of Reserve Study activities in the Fall of this year.

New Business:

There were no motions relative to New Business.

Discussions relevant to New Business included:

1. Reserve Study updates and the Finance Committee’s involvement;
2. A briefing by the LOWA Dir. Finance, L. Cole to the Finance Committee on his summary report of  “LOWA Operation Center Income Statements Relative to Budget” and “February 2013 vs. 2012 LOWA Balance Sheets”;
3. The Safety and Security Board approved 3-year contract; and
4. A discussion and update on long term capital planning reports and responsibilities of Planning and Finance Committees, especially related to the original July 1, 2013 completion date.

A motion to adjourn the meeting was made by J. Takacs, second by J. Flynn. The meeting was adjourned at 8:42 pm.

The next meeting is scheduled for Monday May 6, 2013 at 7:00 pm. The location is yet to be decided.
Joe Takacs, Secretary, 4/4/2013
 

LOWA Finance Committee (FC) Minutes
May 7, 2013


FC Members present         FC Members absent                               Guests present
R. C. Haring (Chair)             J. Flynn (Vice Chair)                              L. Rucker (BoD Member)
N. Goodwin (Voting)             B. Wright (Alternate)                              M. Rugless (BoD Member)
J. Takacs (Secretary)           D. Francis (Advisor)                              D. McKee (BoD VPres)
M. Musatow (Voting)                                                                              O. Kelly (BoD Liaison)
N. Bielmeyer (Voting)                                                                            T. Sheridan (Planning Chair)
J. Logan (Voting)                                                                                   R. Hancock (Guest)
A. Siegel (Alternate)                                                                              D. Greene (Fitness Committee Chair)
R. Delio (Alternate)       

The meeting was called to order by FC Chairman Robert Haring at 7:00, pm who declared a quorum was present.

Agenda:  J. Takacs motioned to approve the agenda, second by M. Musatow. Motion passed.

Minutes:  J. Takacs motioned to approve the FC minutes dated April 1, 2013, second by N. Bielmeyer. Motion passed.

Old Business:

There were no motions relative to Old Business. The schedule report by the Director of Finance was removed from the agenda due to his absence.

A discussion led by O. Kelly concerning the long term financial planning working group in progress. It includes the Board Treasurer, Dir. of Finance, several members of the Finance Committee, as well as the Chair of the Finance and Planning Committees. Its meetings are advertised and open to the member public.

New Business:  Discussions relevant to New Business included the following:

The new Security Contract was updated by O. Kelly. It was represented by the 3-year contract fees at $580,000 for FY2013, $640,000 for FY 2014, and $659,000 for FY2015. Thus it commits LOWA to $1.8 Mil toward Security for the next three years.

Long term capital planning working group is finalizing a policy statement for Board consideration, and continues to support efforts in developing and completing the five year capital plan.

The Planning chair provided a summary on its efforts to develop 25 year long term capital planning for LOWA, and its continuing exchange of information with the Orange County Planning Commission for the same period.

Dan Greene, Chair of the Fitness Committee, provided the Finance Committee a briefing on Fitness Center plans for its upgraded-extended facility (in place) beginning in the current Five Year capital plan, and operating budget.

A motion was made by J. Logan, second by N. Goodwin to resubmit (without changes) the March 2013 Finance Committee approved Charter. The result was a 3-3 tie, which the Chair declared as a “did not pass” result.

By consensus of the FC voting members present, the FC Chair is asked to discuss any Board or GM concerns with the FC Charter, and resolve any “acceptable changes” in wording so that a revision of the proposed FC Charter may be placed before the Board for review and approval at its next business meeting.

A motion to adjourn the meeting was made by J. Takacs, second by J. Logan. The meeting was adjourned at 8:42 pm.

The next meeting is scheduled for Tuesday June 4, 2013 at 7:00 pm. The location is the Clubhouse lower level.
Joe Takacs, Secretary
 

  Approved Minutes LOWA Finance Committee (FC)
August 5, 2013


FC Members present         FC Members absent      Guests present
R. C. Haring (Chair)                   B. Wright (Alternate)         L. Rucker (BoD Sec)
J. Flynn (Vice Chair)                 R. Delio (Voting)                 M. Rugless (BoD Member)
J. Takacs (Secretary)               D. Francis (Advisor)          D. McKee (BoD VPres)
M. Musatow (Voting)                G Reese (Alternate)           O. Kelly (BoD Liaison)
J. Logan (Voting)                                                                  L. Cole (Dir Finance)
N. Bielmeyer (Alternate)                                                       T. Sheridan (Planning Chair)
A. Siegel (Alternate)                                                             J. Hutchison (Guest)
R. Anderson (Alternate)                                                      R. Hancock (Guest)
     
The meeting was called to order by FC Chairman Robert Haring at 7:00, pm who declared a quorum was present.

Agenda:  J.Takacs motioned to approve the agenda, second by N. Bielmeyer. Motion to approve the agenda passed.

Minutes:  J. Takacs motioned to approve the FC minutes dated July 1, 2013, second by M. Musatow. Motion passed.

Reconstitution Procedures: J. Takacs made a motion to approve the proposed FC Reconstitution Procedures, second by J. Flynn. Motion passed. Procedures are shown in attachment 1.

Old Business:

Annual Audit is underway as is the LOWA reserve study.

A report by the FC Subcommittee on its “due diligence” review of the Board’s subcommittee on the proposed addition of A&Ks “over 55” housing was presented. The Due Diligence Report indicates:
1) There is no contractual content, no details, no date, or no official signature;
2) There is no public statement on the purpose or duration of the Ad Hoc committee, which was appointed by the President of the Board. Even though it was promoted as senior housing in design, many of the A&K documents, such as filed with Orange County, contradict statements of the Ad Hoc committee;
3) There is no readily available credit rating (such as D&B) on A&K. Monsour, as representative , is not listed as owner of the property, though his statements about being the developer are accepted as accurate;
4) The A&K property was recently found by Orange County Treasurer to be billed as “agricultural”, and not as R-4 (since 1998). Substantial past due taxes are the likely result. It is far more serious that the property was found to contain a lake (requiring State Permits and inspections), which had never been approved to exist. Documentation of this serious environmental situation will be provided as an Appendix to the FC report; and
5) A&K Development terminated its interest in the ”conceptual proposal” by e-mail in the same format as the original letter, which has been verified as dated August 2, 2013.
After discussion by the committee over the need for this review and the submission of the report to the board, a motion to submit the report to the board was made by J. Logan, Second by J. Flynn. The motion, after active discussion by the committee, was approved by a vote of 4 to 2. The basic report and the initial cover letter are shown as attachment 2.
                                                                                                                                 
New Business:

Refer to HOA, By Laws, D.2 Committee Meetings Shall be Open to the General Membership. The citation and heading clearly indicates committee activities and regular work under way are covered in information availability to association members. A discussion arose concerning the "actual" availability of important financial information to which members are automatically entitled. For example in the case of Planning Committee's recent 1-page announcement (at an Board meeting) on Proposed New Capital Projects, the website containing details and justification for spending ($813,000) is RESTRICTED ACCESS subject to the approval of the Planning Committee chair. As a result, for all practical purposes, Board members, the GM and staff, Finance Committee as well as the general association membership do not have open access to new capital proposal information, such as evaluation and benefits analysis, which is required (in the proposal process).

The FC Annual Report is submitted to the committee for review and to the Board as required. See attachment 3.

The reconstitution Procedures for selecting the 2013/2014 Finance Committee officers was initiated.

J. Takacs nominated J. Logan to FC Chairman. No other nominees were offered. The vote to approve J. Logan was unanimous.

J. Takacs nominated J. Flynn to be FC Vice Chairman. No other nominees were offered. The vote to approve J. Flynn was unanimous.

J. Takacs nominated Roger. Anderson to be FC Secretary. No other nominees were offered. The vote to approve R. Anderson was unanimous.

A motion to adjourn the meeting was made by J. Takacs. The meeting was adjourned at 8:56 pm.

The next meeting is scheduled for Monday September 2, 2013 at 7:00 pm. The location is the Community Center new conference room.
Joe Takacs, Secretary
 

Approved Minutes LOWA Finance Committee (FC)
September 9, 2013


FC Member Present                       FC Members absent           Guest present
James Logan (Chair                           J Flynn (V Chair)                       Tom Sheridan (planning)
Roger Anderson (Secretary)            D Francis (Advisor)                    Dick Delio (BOD)
N Bieimeier ((Voting)                                                                             Olive Kelly (BOD)     
M Musatow (Voting)                                                                              Mike Rugless (Liaison)
G Reese (Alternate)                                                                              Susan Wright
A Siegel (Voting)                                                                                   C Vican
B Wright (Voting)

The Meeting was called to order by F C Chairmen Jim Logan at 7:00 PM. Quorum present

Agenda; R Anderson motioned to approve, second by N Bieimeyer

Members of the committee introduced themselves and so did the guest.

August minutes were approved by Mike Musatow, seconded by Boggs Wright.

Roger gave a short talk on the Equestrian situation explaining some of the finances involved with it staying where it is or moving to the Goodwin-Leach property. He just touched on some of the pros and cons. A more detailed presentation needs to be done.

Finance Chairman has sent out the committee Charter and would like to have any comments e-mailed to him.

We discussed whether to invite differ committees to attend the meetings. We agreed it best to have a member attend their meetings and report back to finance.

Procurement Policy was discussed and copies of original and GM’s revision were passed out for members to take home and read. Any changes e-mail J Logan.

Boggs Wright gave an update on Keaton’s Dam and the ditches. Question was asked why ditches could be done for $12.00 per lineal ft. but to daylight the 13th fairway it would cost $400.00 a lineal ft. Hope to have an answer next meeting.

Meeting was adjourned at 7:45 p m
 

Approved Minutes LOWA Finance Committee (FC)
October 7, 2013


FC Member Present                                   Guest Present
James Logan (Chair)                                      Jim Walsh (BOD)
J Flynn (V Chair)                                            Louisa Rucker (BOD)
Roger Anderson (Secretary)                          C Vican
N Bieimeyer (Voting)                                      M Vican
M Musatow (Voting)                                                                   
G Reese (Alternate)
A Siegel (Voting)
B Wright (Voting)
Stan Lasover (Alternate)
R C Haring (Advisor)
Mike Rugless (Board Liaison)

The meeting was called to order by F C Chairman Jim Logan at 7:00 PM. Quorum Present

Jim requested adding item to the Agenda about Board meeting on 10-2-2013.

Secretary added to the Agenda.
Motion made to approve minutes by J Logan, seconded M Musatow. 
Motion to approve Agenda was made by Boggs Wright second by Andy Siegel..

Motion was made by B Wright and seconded by A Siegel to ask the Board to reschedule Miller –Dodson to give another presentation of the Draft Reserve Study Report at the next BOD meeting. Vote was unanimous.

R C Haring gave opinion on how the study was done.

Treasures report was given by Mike Rugless (Board Liaison)

Request for Monthly Budget reports to be sent electronically to the Finance Members.

Budget guidelines were discussed and any changes should be sent to J Logan by Wednesday for a Draft to be sent to the BOD

Request to have the budget put on Excel spread sheet and sent electronically to members.

Copies of the Five Year study were handed out and would like members to rate items and send comments to Jim to relay to the BOD.
Member comments were taken and questions answered.

Meeting was adjourned at 8.05 PM

The next meeting is scheduled for Monday November 4, 2013 at 7pm. The location is the Community Center new conference room.
Roger Anderson, Secretary, 10/12/2013
 

Approved Minutes LOWA Finance Committee (FC)
November 4, 2013


FC Member Present                               Absent                                             Guest
Jim Logan  (Chair)                          Mike Rugless  (Board Liaison)       Olive Kelly (BOD)
J Flynn (V Chair)                                                                                            Jim Hutchison (BOD)
Roger Anderson (Secretary)                                                                      Tom Sheridan(Chair Planning)
N Bielmeyer (Voting)                                                                                    Bill Halpin (S  & SC Liaison)
M Musatow (Voting)                                                                                       John Trach (Planning)
A Siegel (Voting)                                                                                            C Vican & M Vican
B Wright (Voting)                                                                                               Jim Drabant
Stan Lasover (Alternate)                                                                                 John Undari
R C Haring (Advisor)                                                                                      Pat Berry & Alan Berry
                                                                                                                            Ted & Lynn Cryblskey
                                                                                                                             Allen Gwaltney
                                                                                                                              Chuck Handy

Meeting was called to order by F C Chairman J Logan at 7:00PM. Quorum Present

Norm Bielmeyer asked that discussion of proposal by Planning Committee be added to the agenda.   Mike Musatow Second.     Vote unanimous,

Approval of agenda, vote unanimous

Approval of minutes, vote unanimous

Budget Guidelines. vote unanimous

It was brought up about special meeting of the BOD for the Miller Dotson Report that by HOA Law it was to be advertised 10 days before the meeting so members of the community would know about it and could attend. A Motion to this effect was sent to the BOD asking the BOD that a new meeting should be scheduled to allow the membership to hear the Miller-Dotson report and ask questions but we did not get any response.

Olive Kelly responded that the BOD never got the motion which was sent by Board Liaison Mike Rugless .

B Wright requested this be presented to the BOD again. The community should have the right to hear what was in the report being  there is a matter of spending 27 million dollars over the next 30 years.

The Planning Committee was looking at getting a 2.2 million dollar loan without going thru the Finance Committee. The loan would be to escalate the work on both lakes rather then going by the M D Report. Tom Sheridan explained it later in the meeting.

Jim Logan had received an e-mail from Jim Walsh that we would not be getting tenant fees from now on..

The Finance Committee has been having a hard time getting information from the BOD and the GM about different items that affect the budget.

We agreed that a special meeting is needed before the budget hearings on December 3, 4 and 5 to go over the G M’s budget.

Motion was made to have the meeting November 26, 2013 at 6pm at the Woods Center. Motion by A Siegel, second be B Wright. Vote was unanimous.

Member of the audience gave his opinion of the WEG study and the need to address the problems with the Lakes as soon a possible. He said the Lakes Committee has gone over all of the WEG report and feels that it is better to proceed with the plan now rather than follow the way Miller Dotson had outlined in their report.

B Wright made a motion to send the BOD a message that Finance believes the Lakes should be top priority in the coming budget. Seconded  by  R. Anderson . After discussion no vote was taken.

R Anderson made motion to adjourn at 8:45 pm.
Roger Anderson (Secretary)
 

Minutes of LOWA Finance Committee (F C),
December 2, 2013


F C Members Present                      Absent                                           Visitors
James Logan (Chair0                      Mike Rugless BOD Liaison        Olive Kelly (BOD)
J Flynn (Vice Chair)                                                                                    Jim Hutchison (BOD)
R Anderson (Secretary)                                                                             Larry Cole (D Finance)
N Bielmeier (Voting)                                                                                  Bill Halpin (S & S)
M Musatow (Voting)                                                                                    Tom Sheridan (C Planning)
G Reese (Alternate)
A Siegel (Voting)
B Wright (Voting)
Stan Lasover (Alternate)
R C Haring (Advisor)

   The meeting was called to order at 7:05 by F C Chairman Jim Logan.  There was a quorum present.        
   Meeting was changed to a Session in order to continue to the budget hearing in order for the Finance Committee to make recommendations from Session.
   Tennant fees were discussed and Referendum for voting. Meeting is to be held December 10, 2013 at the Community Center. Change voting from Sections to 50 + 1 of Association.
   Budget is close to last year except for loss of Tennant Fees.
   Committee went thru the budget Department by Department to see what question we would have for the G. M.. There were only about six questions. Raises were to be 2%, 1% across the board and 1% divided by the Employees yearly review. Depreciation was missing on some of the report.  Clubhouse FICA was high, but was due to tips paid. Selling prices at Fairways was low and needs to be adjusted after 1st of the year.
   This Session recessed at 8:15 pm. Next Session is to be continued Thursday December 5, 2013 at 9:00 am.

   Second Session was called to order at 9:00 am December 5, 2013. Finance and Planning were present to ask questions. Administration, Security, Communication, Fitness, Equestrian, Pools, Community, Pro Shop, Clubhouse and Fairways were reviewed.
   Session was called to recess at 2:30 pm, to be continued December 6, 2013 at 9: am.
   Session was called to order at 9:00 am with Finance and Planning were both present. Maintenance, Roads, Grounds, Golf, Fee Schedule and Capital Spending  were presented for review. All questions have been answered. We will give our recommendations to the G M at the next Session.
   Session was recessed at 11:30 am.
Meeting of 13 January, 2014 was called to order at 7:00 pm in the Woods Center. Chairman Jim Logan informed the Committee that all the previous session was completed.
Vote was taken and minutes were approved unanimously.
Roger L Anderson (Secretary)
January 14, 2014

Minutes LOWA Finance Committee
January 13, 2014


Members Present                       Members absent                 Guest
Jim Logan (Chair)                        N Bielmeier (V)                     Cliff Wilkes (Rules)
J Flynn (V Chair)                           M Musatow (V)
Roger Anderson (Sect.)              A Siegel (V)
B Wright (V)                                   G Reese (Alt.)
Robert Haring (Advisor)              Stan Lasover (Alt.)
                                                        Mike Rugless (Liaison)

Meeting was called to order at 7:00 pm by Chair Jim Logan. Quorum was present.

Minutes for the December meeting were approved.

Discussion was on looking at other HOA’s budgets to see how they compare with ours. Restaurant was one topic that was discussed in length. We need to look at how other restaurants in the area with the similar income are run as far as food and labor cost against profit. We should not compare ours with other HOS”s because difference in population of HOA.
We need to look at how the gratuity is handled as to the labor. Look at the number of days open and hours per day. Look at the Alcohol sales, cost and % of cost to sales Labor and overhead as % of sales.

We are going to check on the industry standards for the operations of labor and other cost. The subsidy charged as a % of sales.

The other big expense is the Golf Course. We need to look at the number of rounds played per day, 9 holes and 18 holes. Look at the fees, annuall membership and characteristics, daily fees and seasonal changes. Golf operations cost as a % of the sales. Golf maintenance cost as a % of sales. The Subsidy charged as a % of sales.

Equestrian, most do not have so nothing to compare it to.
Pools: any fees or are they completely subsidized. Internally manage or are they externally managed
Fitness Center: Yearly fees, size of facility compared to number of members.

There was discussion on how to improve income of the Golf Course. Need to stay within the rules of the Association.

Meeting was adjourned at 8:10 pm.
Roger l Anderson (Secretary)
January 24, 2014
 

Minutes LOWA Finance Committee
February 24, 2014


Members Present                   Members absent                   Guest
Jim Logan (Chair)                    N Bielmeier (V)                      Tom Sheridan (Planning)
Roger Anderson (Sect.)          Jeff Flynn (V)
Mike Musatow (V)                     A Siegel (V)
B Wright (V)                                Stan Lasover (Alt.)
G Reese (Alt)                             Mike Rugless (Liaison)
R C Haring (Advisor)

Meeting was called to order at 7:00pm by Chair Jim Logan. Quorum was present.

Agenda for February 24, 2014 was approved.

Minutes for January 13, 2014 meeting were approved.

  BOD wanted Finance to look at all of the subsidies and see how they compare to other HOA’s. Jim contacted some of them and reported the results at the meeting. Most do not have a restaurant where as we have two. Fawn Lake’s is owned and run by the developer and the members are buying it at $250.00 per lot until it is paid for. Some of the others are leased to outside people and they pay rent to the HOA. The Lounge brings in 25% of our income so we need to look at keeping it open 7 days a week. Some of the other HOA’s could not believe we are open the hours we are.

Look at getting the restaurant run by outside person, no rent for the building but they would be required to pay utilities, electric, gas and pay employees. This was brought up by the BOD years ago and agreed that was the way to go. That was the last it was heard of.
   LOWA is one of the largest HOA’s in the State of Virginia.

   Tennis we only have 47 lots that are using the facility which give us $4200.00 per year income. Last year we had one guest for $5.00. It may be worth making this a free amenity and just keep the courts in playable condition.

   Golf Course, most are not owned by HOA’s and are par 3 like Aquia Harbour. To play 18 holes you play the course twice from different tees

    Equestrian Center, It was brought up that we should look into having someone come in and do the camps, that way we not need to own any horses. The kids could go elsewhere for lessons. We have 16 horses that people here at the Lake own that are boarded at different places plus in the last two months we have had 2 people with 2 horses each that were looking to board but wanted pasture. That would amount to a minimum of $7600.00 per month.  Trail rides were also discussed and suggested that the GM meet with the Park Manager and see if we could get more trails to ride on. We would need to get different horses than the ones that are used for camp.

   Property on Rt. 20: Look at buying property or getting a larger buffer between it and Section 6 houses. Zoning is now for building 600 storage units that would be open 24 hours a day. Planning was asked to look at different options.  Motion was made to ask the Supervisors to secure a hundred foot buffer with a 6 foot privacy fence from the rear of the Library to the open field. Motion was seconded.

   Meeting was adjourned at 8:10 pm.

Roger L Anderson (Secretary)
February 24, 2014

Minutes LOWA Finance Committee
March 11, 2014


Members Present                    Members Absent                       Guest
Jim Logan (Chair)                     J Flynn (V Chair)                          Eldon Rucker
Roger Anderson (Sect.)            B Wright (V)                                  Bill Halpin (S & SC Liaison)
N Bielmeier (V)                          Mike Rugless (BOD Liaison)
M  Musatow (v)
G  Reese (Alt.)
A Siegel (V)
Robert Haring (Advisor)

   Meeting was called to order at 7:00 pm by Chairman Jim Logan. Quorum was present.
   Capital Reserve Policy Group discussion was added to the agenda. Agenda was approved.
  
Minutes for February 24, 2014 meeting were approved.
   The following information on subsidies was presented for the BOD to look at. The subsidy paper was modified by rewriting paragraph one and deleting one paragraph (#4 which renumbered the letter). The changes were approved and the letter passed unanimously to be sent to the BOD as the final project.

The LOWA Board of Directors has tasked the Finance Committee to review annual subsidies in an effort to see if subsidies were at a reasonable level or to find ways to reduce expenses. The Board of Directors gave this Committee no direction as to how to complete this task.

The Committee started this task by visiting or calling the General Managers of Aquia Harbor, Fawn Lake, Lake Caroline, Lake Land’Or, and Lake Monticello. Although each had some like amenities, none was comparable to LOWA. Some had golf courses that were owned or not owned by the HOA. Several had club houses with limited service others had closed theirs due to high costs. In fact, talking to each HOA was like trying to match apples and oranges.

The Committee also called Keiter Certified Public Accountants and Consultants and spoke to John Kent about finding other avenues to balance the costs of subsidies. Mr. Kent agreed to do research without cost. After three weeks Mr. Kent returned our call and explained that he could find no information that could assist us based on the size and amount of amenities at LOWA.

Based on the above the Committee decided to look at each LOWA amenity to see if their subsidy could be reduced or a suggestion to increase income.

1. Tennis Court- The tennis court has 47 yearly members and in the past year has collected $5.00 in guest fees. The amenity is locked and available only to these 47 lot owners. This year the cost to resurface the courts is $59,000 which does not represent maintenance. It is also noted that the courts were resurfaced two years ago. This amenity does not have sufficient participation to justify the cost of upkeep. Other HOA’s with tennis courts resurface their courts every 10 years and are open to all. With an annual income of $4205 it is recommended that the courts be treated as other amenities such as the basketball and volleyball courts and be open to all and maintained as in playable condition.

2. Clubhouse- The clubhouse is currently open 30 hours a week and requires a subsidy of about $250,000 to $300,000 per year. Just credit in reducing the subsidy is a credit to Joey. However, the Committee recommends that the clubhouse be open 40 hours a week. Monday through Thursday the clubhouse should serve a one item menu such as the hamburger night that was popular in the past. Other nights would have a fried chicken, spaghetti, or maybe a fish night from 4:00pm to 9pm. Dessert and beverages would be extra. The lounge would be open from 11:00am to 9:00pm, seven days a week. From Monday to Thursday the dish of the day would be the only food item available. This would decrease food costs and reduce personnel. Friday through Sunday would keep the current menu and hours. Since the clubhouse does not require the display of an owner’s card to serve and there has been found ample evidence that visitors only need to tell the gatehouse that they are going to the clubhouse, the clubhouse should continue to serve visitors as this will increase sales. However, if the person is not accompanied by an owner or tenant, the clubhouse will charge a 5% surcharge. All persons or parties asking to be seated must show their LOWA card so that the server can add the 5% surcharge for a non-member.

3. LOWA Boat Slips- The Committee recommends that the Board of Directors continue to increase pontoon slips to meet demands. This is a good source of revenue.

4. Clubs- There appears that there are sufficient meeting rooms to meet the needs of clubs. However, a number of clubs meet up to four times a month. Clubs should ask for one meeting place a month to allow all other clubs to be assured that there is sufficient meeting space. Requests for space should be made no later than the last week of the prior month. Clubs can request additional meeting times once the other clubs requests are processed. To cut maintenance costs, clubs should be charged a reasonable charge for usage of the room. This provision does not include the BOD, GM, and standing committees who will continue to have priority on meeting rooms at no cost.

5.  Lower Level of Clubhouse- It is recommended that the lower level of the clubhouse space to be redirected to a meeting place for members. At the lower part three coin operated pool tables can be installed. The upper level could be used as a meeting place with tables, television sets, pin ball machines and other such entertainment devices. Soda machines and other vending machines could also be installed. Thoughts about having a state keno game also available. No one under 18 would be admitted and a LOWA card reader such as the on at the fitness center door would be installed. This suggestion would produce income and give adult members a place to go during the day. Due the age of our residents, this space is sorely needed.

6. Thought should be given to installing two virtual driving ranges in the pro shop. The virtual driving ranges would also allow golfers to play virtual golf courses. Fees should be in line with play at other golf courses.

7. LOWA has always allowed outside sports groups to use our fields and pools as a good neighbor policy. However, this has also increased maintenance costs that increase the subsidy fees. Some thought by the BOD to charge a nominal fee for this usage should be considered.

8. Use of LOWA’s gas grill should require a minimum $25.00 cost for usage. This would cover the cleaning and gas. Delivery and pick-up would remain free.

9. The parks should be enjoyed by owners and tenants without charge ( only if tenant fees equal to owners is continued. If tenant fees are abolished, tenants will be prohibited from using amenities).
   The present Capital Reserve Policy Group is involved in revisions to the policy statement for Board approval. At present the Finance Committee does not have a representative in this Group.
   Motion was made that the Board appoint a member of the Finance Committee selected by the Committee to serve with the Group. Motion was passed unanimously.
   Meeting was adorned at 7:50 pm.
Roger L Anderson (Secretary)
March 17, 2014
       

Minutes LOWA Finance Committee
April 7, 2014


Members Present                 Members  Absent           Guest
Jim Logan (Chair)                  R C Haring (Advisor)        Tom Sheridan (Planning)
J Flynn (V Chair)
Roger Anderson (Sect.)
Mike Rugless (Liaison BOD)
N Bielmeier  
M Musatow
G Reese (Alt)
A Siegel
B Wright

Meeting was called to order at 7:00 pm  by Chair Jim Logan. Quorum was present.

Agenda for April meeting was approved.

Minutes for March meeting were approved.

Mike Rugless gave his report that the budget should come out about even by the end of the year. Also that the number 1 and number 3 referendums most likely would not pass and that number 2 would not be decided on before May 3.

Need to have Larry at the next meeting to explain how the revenue is entered into the accounts. As of now some of it shows as being income before the monies have been collected.

Committee thanks Stan Lasover for his service to the Finance Committee.

The Finance Committee was informed by the GM that the BOD would be considering a $15,000 non-budgeted expense for security cameras. This will be discussed at the April 16th BOD meeting.

Andy Siegel was appointed to the Capital Reserve Policy Group.

It was brought up that we can do better with our investments of CD’s by going with Investment  Banks  that  give higher returns with 30 day notice  no penalty for withdrawal.

Meeting was adjourned at 8:05 pm.
Roger L Anderson (Secretary)
May  5, 2014

Minutes LOWA Finance Committee
May 5, 2014


Members Present                     Members Absent                                      Guest
Jim Logan (Chair)                    Mike Rugless (BOD Liaison)                 Jim Hutchison (BOD)
J Flynn (V Chair)                                                                                             Larry Cole (Comptroller)
Roger Anderson (Sect.)                                                                                Bill Halpin S & S (Liaison)
N Bielmeier                                                                                                       Dan Greene (Fitness)
M Musatow
G Reese (Alt)
A Siegel
B Wright
Jim Drabant (Alt)
R C Haring (Advisor)

   Meeting was called to order at 7:00 pm by Jim Logan (Chair) Quorum Present.

  Jim Drabant was welcomed to the Committee
   
  R C Haring’s presentation of the Fitness Committee was added to the agenda.
 
  Agenda passed as amended unanimously

  April minutes were passed unanimously.

  Larry Cole had been asked by the Committee to answer a few questions on how different items were handled in the finances of LOWA.  All the questions were answered to the satisfaction of the Committee.

   The Committee would like to have 3 years of back actual budgets to compare with the present budget and noting any changes over 10%. Larry informed us that that should not be a problem.

   We would like to have a copy of all wages paid to hourly and salary personal An e-mail will be sent to the GM requesting that we have this before the next budget hearing. This information was always available before.

   R.C. gave a presentation on the Fitness Center. Membership is still growing and the need for more space is becoming an issue. They have looked at a new way to configure the layout of the building to gain about 500 more sq. ft. This can be done with a minimum of expense. That would give them enough space to expand the workout area to cover for the next five or plus years.
   Motion was made to make Andy Siegel the designated representative to the Capital Reserve Policy Group. Motion was seconded and vote was taken that was unanimous.

Meeting was adjourned at 8:40 pm
Roger L Anderson (Secretary)
          

LOWA Finance Committee
June 2, 2014


Members Present                     Members Absent                             Guest
Jim Logan (Chair)                    Mike Rugless (BOD Liaison)        Jim  Hutchison (BOD)
J Flynn (V Chair)                        A Siegel                                            Jon Anderson (BOD)
Roger Anderson (Sect.)            G Reese                                           Bill Halpin S &SC)
N Bielmeier                                                                                            Tom Sheridan (Planning)
M Musatow
B Wright
Jim Drabrant (Alt)
R C Haring  (Advisor)

Meeting was called to order at 7:00 pm by Jim Logan (Chair) Quorum Present.

Agenda approved and passed unanimously.

Minutes approved and passed unanimously.

   It was suggest that it be noted in the minutes that BOD Liaison Mike Rugless has been absent 7 out of 10 meeting. This has not been any help to the Finance Committee as far as communicating with the BOD as far as suggestions.

   Fairway’s Restaurant was the topic for the evening. The discussion was on why they are showing a $69,000.00 loss for the year. The Committee went over the figures and came up with the opinion that the problem is in management. The overhead is out of line with the food cost. The price of food needs to be raised to offset some of the loss.

   It was suggested that maybe the BOD and the G M should look at going to an outside vendor to run the operation.  There were several ideas brought up as far as ways to increase revenue such as serving meals later in the evening and maybe look into getting an ABC license so drinks could be served. It was also said that it needs to have a gas stove that should have been installed when it was built. We have two commercial dishwashers and serve food on paper plates. Now the grill closes at 3:00 pm and Fairway’s at 4:00 pm. The inventory needs to be checked more often to ensure that if cost rise the manger can adjust the cost.  Many people have said that they would eat there if it was open latter in the evening. Sysco has many good meals that are easy to prepare and do not need a chef to do them. The other thing is the atmosphere of the building that would need to be changed at a later date.

   It was suggested that we need to start running all of the amenities like they are a business .We cannot just keep raising the assessment to cover the losses.

   All departments should be required to meet theirs and must justify increases.

Meeting was adjourned at 8:00 pm.
Roger L Anderson, June 3, 2014
 

Minutes LOWA Finance Committee
July 7, 2014


Members Present                            Members Absent                              Guest
Jim Logan (Chair)                             Mike Rugless (BOD Liaison)            Jim Hutchison (BOD)
Roger Anderson (Sect.)                    Jeff Flynn (V Chair)                           Larry Cole (Comptroller)
N Bielmeier                                                                                                  Nigel Goodman (BOD Candidate)
M Musatow                                                                                                  Rick Rave
A Siegel
B Wright
G Reese (Alt. 1)
Jim Drabant (Alt. 2)
R C Haring (Advisor)

Meeting was called to order at 7:00 pm by Chair Jim Logan. Quorum Present.

Agenda was passed and approved.

Minutes were approved and passed as written’

Topic for the evening was the guidelines for the Budget for the FY 15-16.

Payroll was an item that needs to be reviewed especially in the upcoming budget. The Finance Committee asked Larry Cole (Finance Director) if he could provide them with a copy of the last three years. We would like to have a copy of the wages that employees are paid in general as per position. The Committee would also like the reserve income of a total of the employees above $75,000 per year which fits into the budget planning.

The Committee is trying to put all of the language into perspective for the guidelines. The Amenities need to be shown separately to the assessment.. Finance Committee expects to have all the guidelines put together at the next meeting.

The LOWA appears to provide members with an assessment which compared well with Va. HOA’s of our size.

Meeting was adjourned at 8.25 pm
Roger L Anderson (Secretary) July 22, 2014





 

Minutes LOWA Finance Committee

August 4, 2014


Members Present                            Members absent                      Guest
Jim Logan (Chair)                             J Flynn (Vice Chair)                   Louisa Rucker (BOD)
Roger Anderson (Sect.)                     B Wright (V)                              Jim Hutchison (BOD)
N Bielmeier (V)                                                                                    Jo Ann Zwickl
M Musatow (V)
G Reese (V)
A Siegel (V)
Jim Drabant (Alt.1)
Robert Haring (Alt. 2)
Mike Rugless (BOD Liaison)

Meeting was called to order at 7:00 pm by Chair Jim Logan. Quorum was present. Report from Mike Rugless was added to the Agenda.

Agenda was approved unanimously.

Minutes for the July 7, 2014 meeting were approved unanimously.

   Mr. Rugless delivered a short report on the solid financial health of the Association and discussed potential changes. Copies of the Budget Guidelines were passed out for review. Everyone was given a period to read them and then started a discussion on what needed to be changed. Financial statements must be e-mailed to each member in PDF and Excel format.

   A consensus of the committee members formed concerning the great importance of metrics for departments and operations centers, including benefits of amenities, number of users or those paying membership fees, including subsidy cost per member served. In addition, several years of comparable, prior operating data should be required in evaluating the upcoming FY budget components.

   After lengthy discussion an amended motion to approved proposed Budget Guidelines was accepted and passed unanimously.

We also need to look at long term financial planning of the future revenue

   Elections for the coming year were held with the following results,
Roger Anderson   Chair
Mike Musatow   Vice Chair
Robert Haring   Secretary

Gary Reese becomes voting (from alternate) on September 8, 2014. Robert Haring was moved to alternate at the BOD meeting on August 2, 2014.

Meeting was adjourned at 7:45 pm.

Roger L. Anderson (Secretary) August 5, 2014

 

 

 


 

 

 

 

Minutes of the LOW Finance Committee
Meeting of September 8, 2014
at Woods Center


I. The meeting was called to order promptly at 7:00 p.m. by Departing chairman, Jim Logan.
   A. He announced a re-constitution election for the Committee occurred at its August meeting with the following officers elected - - Roger Anderson (chair), Mike Musatow (Vice Chair), R.C. Haring (Secretary).
   B. A quorum was present, and attendance recorded.
       (1) Voting and alternate members. Roger Anderson, Mike Musatow, R.C. Haring, Norm Bielmeier, Jeff Flynn, Gary Reese, A. Siegel, Jim Drabant. (Absent: Boggs Wright.)
       (2) Liaisons & guests. Mike Rugless  (Board president), Jim Logan (term expires). Absent: JoAnn Zwickl (Board liaison).

II. With Roger Anderson accepting the chairmanship, he asked for committee action on the propose September Agenda, and August Minutes.
    A. MOTION to approve (as distributed) by Gary Reese, seconded by Norm Bielmeier. Motion passed unanimously.
    B. MOTION to accept the August MINUTES. Made by Reese, seconded Bielmeier. Passed unanimously.

III. Comments from the Chair, then Vice Chair - -
      A. Roger Anderson reported on the Planning Committee meeting of August, and its proposed Towne Hall meeting on new capital.   
      B. Jim Drabant is taking the lead in revising the annual Budget Guidelines, which are due to the Board at its next regular business meeting.
      C. Voting members who miss three [3] scheduled meetings of the Finance Committee are automatically moved to alternate status. Of course, “common sense” will be applied under this rule.
       D. F.C. members are expected to take on liaison assignment (or comparable committee work), and report to the Finance Committee on a regular basis. Discussion followed.
        E. Liaison and related assignments are as follows - -
      Clubhouse, Tennis      Mike Musatow
     Communications, M&E   Jeff Flynn
      Equestrian, Safety & Sec.  Roger Anderson
      Purchasing & Contracting,
       Fitness, Pools        R.C. Haring                
       Golf-Fairways, Budget      Jim Drabant
        Lakes. W.E.G.        Boggs Wright
        LCC, Rules                  Gary Reese
         Planning         Andy Siegel
         Purchasing & Contracting Norm Bielmeier

IV. New Business (discussion). Topics of particular interest before and during the annual Budget Review.
    A. Details from recent audits, reserve study particulars especially since the Replacement Reserve annual draws are so very large.
    B. Importance that Finance Committee (and the Board) set principal annual goals, especially a maximum allowable annual assessment (or percent change in it).
    C. The issues of renter responsibilities, rental charges (to the property owner) are continuing unresolved matters of serious financial proportions.
    D. RFP development & respective committee involvement.
    E. Improved and more timely review of capital and replacement reserve plans and proposals.
    F. Financial Committee role is drafting annual “Business Conditions” reports to the Board.
    G. There is a general concern that LOW Committees, representing amenities and operations centers, are not much consulted during the budget process, even though its members typically are best “connected” to the member community.

V. Meeting adjourned at 9:50 p.m.
R. C. Haring, Secretary
 

 Lake of the Woods H.O.A. MINUTES OF THE Finance Committee
October 6, 2014 at the Community Center


The October monthly meeting of the Finance Committee was called to order by its Chair, Roger Anderson at 7 p.m. having established a quorum.

The following voting members and alternates of the committee were present: Roger Anderson, Mike Musatow, R.C. Haring, Gary Reese, Andrew Siegel, Boggs Wright, Jim Drabant. Members absent: Jeff Flynn, Norm Bielmeier.Board Liaison: Jo Ann Zwickl present; Director of Finance, Larry Cole absent.
Guests: Board members – Jim Hutchison, Olive Kelly, Louisa Rucker, Mike Ruggless. Guests - Tom Sheridan (Planning), Doug Rogers (EAC), and Lee Frame.
MOTION to approve the Agenda (distributed by e-mail). Made by Reese, seconded Drabant, passed unanimously.
MOTION to approve the September MINUTES by Reese, seconded Drabant - - discussion followed on minor corrections, including liaison assignments. Agreed upon amendments to the motion as accepted corrections passed, then the main MOTION (with corrections) pass unanimously.

Comments by the chair centered on the role of the Finance Committee in advising the Board promptly, but over a wider range of financially related topics and issues.
Comments by the Board liaison (Jo Ann Zwickl) focused on regular and closer work the Finance Committee, which represents a special talent pool with background in a wide range of financial areas. This work starts, of course, with the proposed Budget Guidelines, then in prompt order the public hearings on the GM’s proposed budget.
Status of the proposed Budget Guidelines. Motion to approve by Reese, seconded by Musatow in order to proceed with discussion. After a wide range of comments, a consensus arose concerning which was the latest version of the proposed Guidelines (each should be dated as revisions occur), and accepted in principle Director Zwickl’s typed suggestions. These conditions were accepted to amend the main motion. The main motion was passed unanimously (and included directions that Jim Drabant would produce the final document).
New and Upcoming Business

Committees and staff start work on operating budget requests on October 9th.
For the most part, the preparation and Budget Hearings detailed time line are “on schedule”.
The release of the Boards retreat document, called “12 Board Goals”, has been distributed to committee members and the audience. While recognizing those statements probably are a work-in-progress, Finance Committee members made comments and observations concerning Nos. 2, 3, 4, 11. This review is also referred to the November meeting Agenda.

Liaisons reports were delivered for Equestrian, Pools, Fitness, Legal & Compliance. 
 
Proposed New Business (not already addressed above) - -

GM’s Replacement Reserve proposal, which will be discussed by the Board before the November committee meeting.
Carryover topics, e.g., review of RFPs, regional Business Conditions update to become a regular annual effort, issues of respective committee and member involvement in the budget proposal and review process.

Adjournment at 8;45 p.m. 
R. C. Haring, Secretary

Lake of the Woods H.O.A. MINUTES OF THE Finance Committee
November 3, 2014 at the Community Center


The November monthly meeting of the Finance Committee was called to order by its Chair, Roger Anderson at 7 p.m. having established a quorum.

The following voting members and alternates of the committee were present: Roger Anderson, Mike Musatow, R.C. Haring, Norm Bielmeier, Jeff Flynn, Boggs Wright, Jim Drabant. Members absent: Andrew Siegel, Gary Reese.Board Liaison: Jo Ann Zwickl present; Director of Finance, Larry Cole (or Comptroller) - absent.
Guests: Board members – Jim Hutchison, Mike Rugless, Larry Morlan, Nigel Goodwin. Guests - Tom Sheridan (Planning), and Nancy King (Golf C.) Ralph Hancock
MOTION to approve the Agenda (distributed by e-mail). Made by J. Flynn, seconded Drabant, and passed unanimously.
MOTION to approve the September MINUTES by Musatow, seconded Drabant - - discussion, then the MOTION passed unanimously.

Comments by the chair - -

Apparently the Board approved Budget Guidelines were approved, but no final edition copies distributed to the Finance Committee. He asked for committee volunteers to take the lead on a Finance Committee CHARTER (revision, proposal). 

Comments by the Board liaison (Jo Ann Zwickl) focused the budget process, which led to an extensive discussion. This work starts, of course, with the proposed Budget Guidelines, then in prompt order the public hearings on the GM’s proposed budget. She clarified Board action (to not approve) the recent “Replacement Reserves position paper, which would have resulted in a large increase in the annual assessment. Consensus of the Finance Committee is that current operations center budget proposals (format) does not provide sufficient prior annual financial data for short term trends, or valid year to year comparisons.

 On the matter of “Tenant Regulations III” the Finance Committee expressed serious reservations, which led to the following MOTION by Boggs Wright, seconded by Mike Musatow. That - -

Any final document on this subject must clearly (without contradictions) make it entirely clear that property owners are responsible for rental-tenant fees.
Current regulations are “misnamed”, and should be changed.
The matter should be referred (with Finance Committee motion) to the Rules Committee, copy to G.M.

Liaison reports were delivered.

Additional audience questions – none.

Adjournment at 8:45 p.m. 
R.C. Haring, Secretary
 

MINUTES of the Finance Committee
January 5, 2015 @ Community Center


The January monthly meeting was called to order at 7:30 p.m. by Mike Musatow, acting Chair [Vice Chair] as Roger Anderson was on an announced absence.

The following members well present: Mike Musatow, R.C. Haring, Gary Reese, Andy Siegel, and Richard Deleio, Dave McKee, plus Board liaison JoAnn Zwickl. Absent: Roger Anderson, Norm Bielmeier, Jeff Flynn, Boggs Wright, Jim Drabant. Guests: Phil Rodenberg (G.M.), and Mike Rugless (Board), Larry Cole (Director of Finance), Rob Martin (AGM).
A revised Agenda was distributed. Also, copies of the General Manager’s “Response to Recommendations of the Finance Committee” [from annual Budget Hearings], dated 1/1/2015. It included a 2-page itemization of the resulting changes in the proposed FY budget.

 After brief discussions, MOTION to accept the revised Agenda was made by Gary Reese, seconded by R. Deleio. Motion passed.
MOTION to accept the draft Minutes of Sessions 1-6 of the Budget Hearings . Made by Deleio, seconded by Reese, and motion passed.
The General Manager was introduced to reply to nine (9) recommendations. Discussion followed, and focused almost entirely on Numbers 1, 2, 8 and 9.

On #1 the cost of gasoline (next fiscal year) began with mixed views. Then a consensus arose that gas-price forecasting was sufficiently uncertain that the budget entry should be ample [to cover higher prices from today’s all-time low]. 

4-B. On #2 the cost of goods sold at Fareways focused on two
Issues. First, pricing with particular reference to employee discounts [not available to Association home owners]. Second, food retailing common (probably “best”) practices require regular inventories, e.g., at least daily compared to monthly.

4-C On #8 increasing the Family membership price at the Fitness Center, there was a wide-ranging discussion about differences in pricing amenities. The rationale to increase family membership prices was based on “offsetting capital costs of new equipment, and contributing to the Engineering Study”. Historically, new capital spending never occurred, except from ACCT.202, which is the Fitness Center account. Replacement capital spending was funded internally until quite recently. Though not a major expense, it was more than offset by regular annual ACCT.202 “earned surplus”. Engineering study cost (share) suggestion, though quite small in dollar terms, is without precedence.
The committee consensus was that an Amenity Pricing Policy [across programs and activities] is needed for consistent application.
On #9 the committee consensus [without supporting MOTION] is the Germanna House has served its original purpose; and that it should be sold [is a real estate asset disconnected from today’s operational concerns].

The Appendix table of proposed budget changes were reviewed and found consistent and helpful.
MOTION to adjourn (by consensus).

Adjournment at 8:10 p.m.
 
R.C. Haring, Secretary

Regular monthly meeting of the LOWA Finance Committee
Community Center, February 2, 2015; 7PM


Call to order
Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.

Attendance
Members attending                    Members absent               Guests present
R. Anderson                              M. Musatow                      Jim Hutchison
G. Reese                                    R. Haring                         M. Rugless
J. Drabant                                  N. Bielmeier                      L. Cole
D. Deleio                                   A. Siegel
D. McKee                                  B. Wright
J. Zwickl (Board Liaison)          C. Clevenger

Agenda:  Motion by Reese to approve the agenda was unanimously approved.

Minutes of January 5th meeting: Motion by Deleio to approve the January 5 minutes was unanimously approved.

Welcome new member: Anderson welcomed new member Dave McKee

Comments from the chair
Anderson stated that there will be reassignments of committee liaisons and reports from the liaisons will be part of each future Finance Committee meetings.

Comments from BOD Liaison
Anticipate all future Treasurer’s meetings will be open to the residents. The February 19 and the March (date TBD) Treasurer’s meetings will be held in the Lower Level of the Clubhouse. Additional information will be published.
Board of Directors will consider a motion to instruct the Finance Committee to develop a definition and policy for cash surplus.
 
Comments from Director of Finance Larry Cole
401K audit report will be presented to the Board on February 18, 2015.
The Director discussed the changes made to the Virginia 401K program.
The proposed transfer of $100,000 from road fee to Reserves is not in compliance with the Reserve policy; therefore, contributions to the Reserves will be decreased by $100,000.
Mr. Cole suggested the monthly financial package be reviewed and any questions be sent directly to him for response.
The proposed new Manager position for Fareways has been removed from the budget.
Next year’s budget will contain three years of actuals.

Old Business
Finance Committee Members liaison assignments:
Committee                        Liaison
Clubhouse                       Musatow
Communications              Deleio
Equestrian                        R. Anderson
Fitness                             R. Haring
Golf & Fareways             J. Drabant
Lakes                               B. Wright
LCC                                 G. Reese
M&E                               N. Bielmeier
Planning                          D. Deleio
Pools                               R. Haring
Rules                               G. Reese
Safety & Security            D. McKee
Tennis                              C. Clevenger         

New Business
There was discussion on the authority of Security personnel and who is authorized to make traffic stops.
 
Direction of Finance Committee
Suggestion was made that the committee Chair send a request to all committee members for suggestions on what direction the Committee should take and areas of possible analysis.

Guest Comments:  None

The meeting was adjourned by Chair Roger Anderson at 8:32PM

The next scheduled monthly meeting is at the Community Center at 7:00 P.M., Monday, March 2, 2015
 
J. Drabant, Recording Secretary 2/4/2014
 

     Regular Monthly meeting of the LOWA Finance Committee
   Community Center for March 2, 2015

 
Call to Order
 
Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.
 
Attendance
 
Members Present              Members Absent                     Guests Present
Anderson                            C. Clevenger                           J. Hutchison
Reese                                  R. Deleio                                  M. Rugless
Drabant                                                                                  L. Cole
Musatow                                                                               O. Kelly
Haring                                                                                    N. King
Bielmeier                                                                               R. Hancock
Flynn                                                                                      P. Rodenberg
Siegel                                                                                     L. Cummings
McKee
Wright
Zwickl (Board Liaison) 

Agenda
Motion to approve agenda was approved.
 
Minutes of the February 2nd meeting  Motion to approve the February 2 minutes was approved.
 
Comments By the Chair
The Chairman stated that he has been approached by several individuals inquiring why the Finance Committee has not looked into having a professional Management Company take over the Management responsibilities of Lake of the Woods.
 
Comments from Board Liaison
Ms. Zwickl commented on the proposal to change the three Reserve Funds policies into one as shown in the proposed new Reserve Policies Document.
Two items will be on the Board agenda at the next meeting

Bar Code Deactivation
Road fee transfersIt was recommended that the Finance Committee read the Golf Course Business plan. Ms. King will forward a copy to the FC Secretary and it will be distributed to the Finance Committee members.
 
Comments from the Director of Finance.
Mr. Cole stated that there were no questions sent to his attention so he had no comments.
 
Old Business--Liaison Reports
Golf Course- The Golf Committee discussed numerous approaches to increase play, revenue and encourage return play by users.
The Golf Maintenance Superintendent indicated that with increased mowing and cutting the grass shorter would cause more wear an increase expense due to the need to replace equipment.

                                            Current Year        Prior Year            
Key Measures                         YTD                     YTD        Variance
Rounds Played                        15,891                  16,490        (671)
Daily Green Fees                    134,264                139,058      (4,794)
Daily Cart Fee                         54,484                  60,341        (5,858)
Annual Membership                159,254                177,357      (18,112)
Merchandise Sales                 39,889                  50,878        (10,990)
 
Fitness Center-  There is a concern about equipment performance and the need for constant repair.
There is a shortage of pamphlets and that is being addressed
 
Rules -  They are addressing the issue of Fire Pits and open fires.
 
LCC-  They are addressing the need to acquire voting machines
 
Equestrian Center- 110 lessons have been lost because of the weather.
No other reports were given
 
New Business
 
 Proposed New Reserve Policies.
 
Historical documents were distributed to committee members to provide background into some of the work done by a previous committee established to develop comprehensive reserve policies in addition to other financial aspects. The work was never completed in its entirety.
 
There was extensive discussion on a variety of subjects related to the proposed new policies. As the discussions progressed, it became clear that the Finance Committee could not do justice in its review based on the number of concerns and issues relating to the Proposed New Reserve Policies within the time allocated for the review. It was suggested that the committee should have been involved from the beginning in the development of the New Reserve Policies.
 
It was determined that there should be no need to rush the Board of Directors for their approval of the proposed New Reserve Policy document. It will have no effect on the approved Budget for the upcoming year. In addition, time should be taken to address all Financial, Accounting and Management issues that may require attention.
 
Therefore, the following two motions were made, seconded and pass by the committee:
 
MOTION: That the proposed draft new Reserve Policies be submitted to a Committee to consist of members from the Board, General Manager and appointees from the Finance and Planning Committees for the purpose of preparing a recommendation for structuring reserves and their placement in the budget.
 
MOTION: That the terminology INFRASTRUCTURE IMPROVEMENT RESERVE be changed to read NEW ASSET AND IMPROVEMENT FUND.
  A. Siegel will meet with the Director of Finance and General Manager to discuss CASH SURPLUS. A. Siegel will keep the Finance Committee advised on the discussions.
 
End Of Term - Jeff Flynn’s term on the Finance Committee end with this meeting. He was recognized for his contribution to the Committee and service to Lake of the Woods.
 
Meeting was adjourned at 8:40 p.m.
 
Next meeting will be at 7 p.m., April 6, 2015 at the Community Center.
 
 J. Drabant, Secretary 
 

 Special Meeting of the LOWA Finance Committee
 Community Center on March 30, 2015

 
Call to Order
 
Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.
 
Attendance
 
Members Present                    Members Absent               Guests Present
R.Andersen                              C. Clevenger                    J. Hutchison
G. Reese                                                                        M. Rugless
J.Drabant                                                                        L. Cole
D. McKee                                                                       O. Kelly
R. Haring                                                                        L. Morlan
N. Bielmeier                                                                    T. Sheridan
A. Siegel                                                                         L. Rucker
B. Wright
D. Delio                                                                             
J. Zwickl
 
Agenda
Motion to approve agenda was approved.
 
Minutes of the March 2nd meeting.  Motion to approve the March 2 minutes was approved.
 
Comments By the Chair
The Chairman stated that the intent of this meeting is to give the entire Finance Committee the opportunity to comment on the proposed new policies that the Finance Subcommittee has worked on. After the review and with a motion on each, the policies will be passed on to the new Policy Work Group for their review and comments.
 
Old Business
The Repair and Replacement Reserve Fund Policy was discussed and several changes were recommended and accepted by the committee.
The following motion was made.
 
Motion: To approve the draft of the Repair and Replacement Reserve Fund Policy as amended.   Motion passed.
 
The New Assets and Improvement Policy was discussed and several recommendations for change were made and accepted by the Committee.
The following motions were made.
 
Motion: Where the term Infrastructure Improvement Reserve appears, New Assets and Improvement Policy was accepted as the new term.  Motion Passed.
 
Motion: The term Construction and Renovation Fees is to replace the term Road Fees. Motion Passed.
 
The Contingency Fund Policy was discussed and after several differing points of view became apparent during the discussion, the following motion was made.
 
Motion: The draft continue as a Draft and be forwarded to the new Policy  Work Group for consideration.  Motion Passed
 
The Finance Committee chair asked each of the following to serve on the new Policy Work Group and they accepted. O. Kelly, J. Zwickl, T Sheridan, D. Delio, Larry Cole, A. Siegel.
 
There was considerable discussion on Minimum Unrestricted Operating Cash surplus and it was agreed that it and the Contingency Policy would be addressed by the new Policy Work Group for resolution and recommendations. The conclusions are to be presented to the Finance Committee at the April 6th meeting.
 
Comments from the Director of Finance. The Director presented his document on Operating Cash Surplus and entertained several questions. There will be additional discussion on the subject at the new Policy Work Group meeting.
 
New Business
 
Procurement Policy: Possible areas of interest would be Decision Flow Charting, Project Management Practices, and RFP’s with review of contract funding.
 
Motion: An annual subcommittee to be established in accordance with the Finance Committee Charter to evaluate the current Policies and Procedures related to Purchasing and Contracting and report its recommendations to the Finance Committee, for its May 2015 meeting.
Motion Passed
 
The Chair approved the following subcommittee members: N. Bielmeier, R. Haring, B. Wright from the Finance Committee.
 
The special meeting of the New Work Group is Scheduled for Monday, April 6, 2015 at the Lower Level Clubhouse at 10 AM.
 
Meeting was adjourned at 9:10 p.m.
 
The next meeting will be at 7 p.m., April 6, 2015 at the Community Center.
 
J.  Drabant, Secretary

Regular Monthly meeting of the LOWA Finance Committee
Community Center on April 6, 2015

 
Call to Order.  Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.
 
Attendance
 Members Present                    Members Absent                     Guests Present
R. Anderson                                                                               M. Rugless
G. Reese                                                                                    L. Cole
D. Delio                                                                                      O. Kelly
J. Drabant
R. Haring                                                                                    R. Hancock
N. Bielmeier                                                                               J. Flynn
A. Siegel                                                                                     M. Musatow
D. McKee                                                                                   T. Sheridan
C. Clevenger
A. Zwickl (Board Liaison)
 
Agenda. Motion to approve agenda. Agenda was approved.
 
Minutes of the March 30th meeting. Motion to approve the March 30th minutes. Minutes approved.
 
Comments By the Chair
The Chairman introduced Candace Clevenger a new Alternate to the Finance Committee.
 A brief summary of the new Policy Committee’s findings at this mornings meeting and their recommendations back to the Finance Committee.
 
Old Business
There were several discussion points on the recommendations the Policy Committee presented back to the Finance committee culminating in the following motions. These motions are directed at the existing Reserve Policies approved by a Board of Directors.
Motion:       That three separate policies, Repair and Replacement, Contingency and New Assets and Improvement, be maintained and not one policy. Motion passed
Motion:       Road fees will continue to be income for the budget (and operating) purposes and for determining the net expense for calculating the Annual Assessment.     Motion Passed
Motion:       The New Assets and Improvement Policy will be modified to indicate that “ the Board may provide in the Annual Budget for funding for new assets an amount equal to the budgeted Construction Fees (prior named as Road Fees) or an amount higher or lower based upon its discretion.        Motion Passed
Motion:       The current Repair and Replacement policy will be modified to exclude the sentence which states “the cash from Road Fees will be transferred from Operating Cash to the Restricted Cash for the Repair and Replacement Reserve”    Motion Passed
 
In addition, the Policy Committee recommended the following:
A policy needs to be developed on how to handle the excess cash received over cash distributed at the end of the fiscal year. Finance Director Larry Cole will work on the proposed policy.  The Committee will review and discuss at the April 20th meeting.
In addition, a policy needs to be developed on maintaining a Minimum Operating Cash Balance and a means to determine what the balance should be.

Additional points of discussion:
1. The practice of paying unpaid obligations of the current year with the following years cash constitutes a violation of the Associations Bylaws.
2. All new assets acquired each year continue to be transferred to the Repair and Replacement reserves annually and included in the new annual updated report.

3. It was suggested that the Association Management should publish a financial forecast plan which would include the dollars with a breakdown by lot assessment contribution to be part of the five year capital spending plan. All future proposed spending plans must have equal disclosure with assessment requirements published in all public media.

4. Consideration should be given to the development of a strategic plan to set forth a viable and cost effective approach of address the possible future needs of the community while keeping in mind the impact on current and future assessments.

5. An Analysis of Excess Cash chart was distributed and discussed. The data from 2008 to 2015 indicated that with the exception of 2012, there has been a year end surplus in the approved budget which would suggest overfunding.

6. A second chart indicating “Calculation of Excess of Cash Revenue over Expenses” was distributed and discussed.

7. A document with the definition of Acid-Test Ratio and an attached chart  illustrating a LOWA Acid-Test was distributed.
  
8. The following was taken from a draft Golf Committee presentation to be given to the BOD; “We have consistently requested lower fees for the golf course in order to compete with Meadows Farms and Rapidan Golf Courses.  To our dismay, these requests are often ignored by the Finance Committee.”  It was discussed and determined that this was never brought before the Finance Committee. The Golf Committee Chair, present at the meeting, stated she would remove it from the presentation.

9. There was some discussion on the concept of a Town verses an HOA.

10. There were several comments concerning the way people were treated in the Golf Pro Shop. 

Comments from the Director of Finance.
The Director of Finance distributed a chart “Forecasted Balance Sheet Analysis based upon the February 28, 2015 Balance Sheet” on the Year End calculation of cash surplus or deficit and made his presentation to the Committee. There was a period of Q&A and clarification of the data.
 
Meeting was adjourned at 8:35 p.m.
 
Next scheduled Finance Committee meeting will be at 7 p.m., May 4, 2015 at the Community Center.
 
Jim Drabant, Finance Committee Secretary
 
 

 Regular Scheduled Meeting of the LOWA Finance Committee
  Community Center   7PM on  May 4, 2015

 
Call to Order
 Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.
 
Attendance
 Members Present                    Members Absent                     Guests Present
R. Anderson, Chair                                                                 J. Hutchinson                                                              
G  Reese                                                                               T. Sheridan
J.  Drabant, Sec. & Vice Chair        
D. McKee                                                                        
R. Haring                                                                             
N. Bielmeier                                                                          
A. Siegel                                                                                  
B. Wright
C. Clevenger
J.  Zwickl (Board Liaison)                                                     
 
Meeting was called to order at 7PM with a quorum being present.
 
Motion to approve agenda. Motion Approved.
 
Motion to approve the minutes of the April 20 meeting. Motion Approved.
 
Chairman’s Comments
 This meeting is to bring you up to date on the work that has been done on the response to the General Managers Restatement of the Reserve and the Policy Work Group. In addition, open discussions on any subjects the committee wishes to comment on.
 
Special Work Group
 The Policy Work Group has been discussing a number of subjects relating to LOWA cash surplus and deficit.
The definition of cash surplus or (surplus of revenue over expenses).
Establish how the computations to determine surplus or deficit should be done.
Do not use next years funds for this years obligations.
The new Policy is to define the computation to determine surplus or deficit.
Cash was taken out of operations and placed into restricted reserves causing a short fall in cash and a deficit.
All Construction and Renovation Fees(Road Fees) should be kept in the cash fund.
Reserve funds are moved at the discretion of the Board of Directors.
The Director of Finance will develop a draft Unrestricted Operating Cash Policy for the next Workgroup meeting. 
Bad Debt
 
There was considerable discussion on Bad Debt. Bad Debt will eventually be written of but only after there is a Foreclosure action taken against a property owner.
 
The Foreclosure action begins with a 30 day delinquency letter followed by a 60 and 90 day letter. Last year there were 6 properties placed into Foreclosure. These 6 properties with noncollectable funds will be written off.(there were comments on what the term “uncollectable funds” means.)A common term is “noncollectable Funds”.
 
Vice Chair: The chair stated that at the present time the Secretary is also filling the role as Vice Chair.
 
Procurement Policy
 The Finance subcommittee will conduct an annual review of the Procurement Policy and its application as included in the Finance Committee’s Charter.
 Motion: Conduct a statistical review of the Procurement Policy and it application through random sampling.
 Motion Passed
 
Golf Course Irrigation System
 There were several questions concerning the new irrigation system at the Golf Course.
Why were the repairs to the new system done by Golf Maintenance and not the contractor?
Is LOWA ever reimbursed for labor and/or parts?
What is the warranty period on parts and labor?
During repairs, it was discovered that there was dirt/gravel in the pipes. Was this brought to the attention of the contractor and was LOWA reimbursed? 

Finance Committee Charter
The Charter was turned into the Board in December 2014 and no action was taken. At a Board meeting in April, several questions were asked by a member of the Board and the GM.
 
The Chair sent a Memo to the Board the day before the meeting addressing each question. The Board’s decision was to leave the Charter as it stands.
 
Some Board members stated they did not receive the Memo which was sent by e-mail. The Memo was sent two additional times after the meeting and received no response from the Board Secretary. The General Manager finally responded with the following note: “We got it. Have a good weekend”
There was no acknowledgement that an email was received.
The Finance Committee Charter is important and the members should be concerned. The Board members present at the meeting during the Charter discussion did not express any objections.
 
Motion: The Finance Committee requests the Board meet with the Finance Committee as a Committee of the whole to discuss the charter.
Motion Passed
 
Comment By Board Liaison
 The Board Liaison restated what the Finance Committee was tasked to do, i.e., to address the Restatement of the Policies by the GM and nothing more.
 
Meeting was adjourned at 8:15 p.m.
 
The next meeting is May 18, 2015 in the Presidents room at the Clubhouse at 7PM
 
J.Drabant, Secretary

 Regular Scheduled Meeting of the LOWA Finance Committee
  Clubhouse Presidents Room on May 18, 2015

 
Call to Order
 Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.
 
Attendance
 Members Present                    Members Absent                     Guests Present
R. Anderson                               D. Delio                                     L. Cole
G. Reese                                                                                    L. Morlan
J. Drabant                                                                                   T. Sheridan
D. McKee                                                                        
R. Haring                                                                             
N. Bielmeier                                                                          
A. Siegel                                                                                  
B. Wright
C. Clevenger
J.  Zwickl (Board Liaison)                                                    
 
Agenda: Motion to approve agenda was made and approved.
 
Finance Committee’s Response to GM’s Restatement of Reserve Policies
 
Gary Reese addressed the Finance Committee’s draft response the Board of Directors concerning the General Managers Restatement of the Reserve Policies. After a general discussion of the content, it was agreed that items “g” and “h” would be withheld pending a review by the Policy Working Group.
 
Motion:  Approve the draft response to the General Managers Restatement of the Reserve Policies but withhold Items “g” and “h” until a response is received from the Policy Working Group. Motion passed.
 
Open Discussion
 
Issues facing LOWA.
There was a general discussion concerning LOWA property values, what potential buyers may be using as a criteria when choosing to purchase property at the Lake.
It was also pointed out that there are a number of different property owner segments here at LOW, i.e., on the Lake, Golf Course, off Lake and Weekenders.
It was suggested that there be a joint meeting between the Finance and Planning Committees to discuss issues that the Association is currently facing and what may be expected in the future.
 
It was agreed that a meeting be tentatively planned for July by the Finance Committee and the Chair of the Planning Committee who was present at the meeting.
 
New Business
 
Open discussion on the proposed Draft of the “Unrestricted Operating Cash Policy” were as follows:
1.
2.
3.
 
There was concern expressed over funding a deficit from “another Reserve” which was not defined in the document.
Motion: Accept the “Unrestricted Operating Cash Policy” with the Finance  Committee changes. Motion passed.
 
Letter To Finance Committee Chair
There were several comments concerning the letter sent to the Finance Committee Chair by a member of the Board of Directors. Concerning the letter, the following action was taken by the Finance Committee.
 
Motion: Move that the Finance Committee adopt a resolution of confidence in or chair. In doing so,the committee recognizes the words used, the intent, which was not personal towards anyone, but a general statement of purpose, and the fact that an apology was immediately made and accepted.
 Motion Passed
 
Meeting was adjourned at 8:35 p.m.
 
The next meeting location to be announced.
 
J. Drabant, Secretary
 

FINANCE COMMITTEE MEETING MINUTES
Regular Scheduled Meeting of the LOWA Finance Committee
Community Center, June 1, 2015

 
Call to Order
 
Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.
 
Attendance
 
Members Present                    Members Absent                 Guests Present
R. Anderson  Chair                                                               L. Cole
G. Reese                                                                            J. Hutchinson
J. Drabant  Secy./Co-Chair                                                   T. Sheridan
D. McKee                                                                             M. Rugless
R. Haring    
N. Bielmeier
A. Siegel
B. Wright
C. Clevenger
J.  Zwickl (Board Liaison)
 
Agenda
 Motion to approve agenda for the June 1 meeting.  Motion Approved.
 
Motion to approve minutes of the May 4, 2015 meeting. Motion Approved.
 
Motion to approve minutes of the May 18, 2015 meeting. Motion approved.
 
Comments by the Chair
 Chair announced that Dick Delio has resigned from the Finance Committee.
 
Old Business
 
There was discussion on the revised motion originally proposed by Mr. Reese at the May 18 meeting. The discussion included such topics as, developing a process to get younger property owners involved in the governance of Lake of the Woods, establish a plan and distribute to the younger group of owners, methods of gathering data to better address the concern of lack of attendance, and participation in committee and Board meetings.
 
There were a number of possible contributing factors for the lack of participation mentioned. The conclusion was that in order to get the reasons first hand, the best approach would be one on one communications or possibly a survey. It was mentioned that texting appears to be a communication of choice with the younger set.
 
The Board Liaison pointed out that other committees were attempting to determine how to get better participation from the younger residents.
 Motion: To approve the original motion by Reese as redrafted and amended. (below) Motion Passed
 
Whereas, Lake of the Woods consists of many communities, which for the purpose of this motion, are identified as retired members who reside in Lake of the Woods, working families with or without children, who reside in Lake of the Woods, and those who are owners of houses or lots but do not reside in Lake of the Woods.
Whereas,  the working families of Lake of the Woods have separate, identifiable needs and obligations from the other two communities, and
Whereas, working families are underrepresented in the governance of Lake of the Woods, and their needs and obligations are not entirely known or recognized by the Lake of the Woods, and
Whereas, the Lake of the Woods General Manager, and Board of Director should be familiar with the needs and obligations of the working families so that these may be fairly considered in the setting of policies, assessments, etc., and
Whereas, members of working families should be strongly encouraged to participate the governance of Lake of the Woods, and this encouragement may involve a better  allocation of the time required to govern Lake of the Woods as well as better scheduling of events  and committee meetings, etc.,
 It is, accordingly, moved that the Finance and Planning Committees convene as a Committee of the Whole for the purpose of identifying the needs and obligations of the working families who reside in Lake of the Woods, and further determine how the members of the community can be energized to fully participate in the governance of Lake of the Woods to include participation in committees and the Board of Directors, recognizing that these may require a re-examination of the allocation of time between committee members, the General Manager and the Board of Directors in order to give members of working families a fair opportunity to participate at all levels, and, it is further moved that a working group consisting of members of the Finance, Planning and Communications committees be formed to establish appropriate steps  and a way forward to accomplish this initiative.
Motion: Appoint a sub-committee from Finance to investigate possible approaches to establish a process for involvement of Younger residents of LOW.  Motion passed.

Chair asked the following members to be the subcommittee and they accepted. G.Reese, B. Wright and A. Siegel
Motion: The tentative joint meeting between the Finance Committee and the Planning Committee on July 6 has been postponed until the Finance sub-committee reports their findings to the Finance Committee. Motion passed.

Charter
There was a discussion on the Boards review and decision on the proposed changes made by the Finance Committees. The Board voted to make no changes to the charter and leave it as is. The Finance Committee felt they would not attempt to resubmit any changes and made the following motion.
    Motion: Move that the Charter be left as it is and the Finance Committee will pursue any issues they deem appropriate.  Motion Passed
 
Cash Surplus
There was discussion on the apparent misunderstanding concerning of how the cash surplus will be applied for the current and future budgets.
     Motion: There should be no bias as to how New Construction and Renovation fees( Road Fees) or any other source of revenue should be applied. Motion passed with one no vote
 
Comments by Board Liaison
 
Suggested the Finance Committee investigate Bank interest rates. The Committee felt they did not have the authority to do so and that it was the responsibility of the Association’s Treasurer.
    Audit will start July 15 and expected to end that that same week.
    The General Manager has been tasked to look into the cost associated with having a year round leaf pickup program for the association.
 
Meeting was adjourned at 8:30 p.m.
 
The next meeting will be July 6, 7PM at the Woods Center.
 
Jim Drabant, Vice Chair/Secretary
 

Regular Scheduled Meeting of the LOWA Finance Committee
Community Center  July 6, 2015

 
Call to Order
 
Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.
 
Attendance
 Members Present                    Members Absent                  Guests Present
R. Anderson  Chair                                                               L. Cole
G. Reese                                                                            J. Hutchinson
J. Drabant, Secy./Co-Chair                                                   T. Sheridan
D. McKee                                                                           N. Goodwin Haring
N. Bielmeier
A. Siegel    
B. Wright
C. Clevenger
J.  Zwickl (Board Liaison) 
 
Agenda      Motion to approve agenda for the July 6 meeting.  Motion Approved.
 
Motion to approve minutes of the June 1 meeting as amended. Motion Approved.
 
Comments by the Chair
 There was a meeting on the front gate congestion issue and the possible of installing  a blinking caution light to allow left turns, installing a third gate and a re-configuration of the front entrance were discussed.
 
Old Business
Report on the  Procurement Policy
 
There was no report on the review of the Procurement policy by Norm
Bielmeier. The subcommittee did not hold a meeting to date. The subcommittee scheduled a meeting for Wednesday July 8 to discuss and evaluate the Procurement Policy. They plan to have a report ready for the next Finance Committee meeting.
 
It was suggested that there should be additional focus on the lack of qualified Project management within Lake of the Woods to conduct and manage projects large or small. Some members of the administration had attended a introductory class on project management, but was not of such a level to allow for proper management of a project.
 
Energizing Younger Residents
 There was discussion on the revised document to consider what approach should be taken to reach the younger families in LOW to get involved in the governance of the association. It was suggested that a number of internet sites are available for distribution such as several Facebook sites could be used to get a line going on the concept to help determine why the lack of involvement and possible suggestions for improvements.
 
The process could involve three steps: 1. Publish on Facebook and other services and collect the responses. 2. Have a general meeting to have residents openly direct their concerns/comments/suggestions directly to the Board. 3. Report to the board on conclusions. It was recognized that using unofficial sites is not the normal procedure.
 
It was suggested that the only comments that would be received would be negative and of questionable value. The general feeling was that if a dialog was started, there would be a wide range of comments that could lead to a meaningful dialog and the effort would get straight forward comments. 
 
There was some hesitation by guests present to support this effort. It was stated that this should not go forward without board approval. The committee agreed to seek the Board permission before going forward. If the Board refused permission than it would be one less effort made to get the younger residents involved.
 
Motion.  A motion was made for a consensus of the committee members to go forward with the concept. The motion passed.
 
Board Meeting on Reserve Policies.
 The Board of Directors will hold a meeting this Tuesday July 7, 9am at the Wood Center to discuss the Reserve Policies. Members of the Finance Committee should plan to attend.
 
Financial Statement Review
 There was a lengthy discussion on the recent article in Lake Current stating (we have met our financial obligation for the year). There was exception take to the statement because of a number of outstanding financial obligations and no funds to cover them. This resulted in a question of the statements accuracy.
 
It was suggested that a explanation should be offered to the resident explaining the discrepancy and what corrective action will be needed. It was explained by the Committee Liaison and Director of Finance that it will be addressed at the proper time.
 
Comments By Board Liaison
 The Treasurers meeting may be changed to the fourth Monday of the month. An announcement will be made when confirmed.
 There has been some preliminary discussion with Orange County concerning the possibility of a Sports Complex at this end of the County
 
Open comments
 There was a question concerning the Temporary Ordinance allowing SCOPS to issue county tickets for speeding violations in LOW. The Temp. Ordinance will expire in December of this year and will have to be made permanent on or before it expires in order to continue the practice.
 
Meeting was adjourned at 8:26 PM
 
The next meeting will be August 3, 7PM at the Community Center.
 
Jim Drabant, Vice Chair/Secretary

FINANCE COMMITTEE MEETING MINUTES
Regular Scheduled Meeting of the LOWA Finance Committee
Community Center, Aug 3, 2015

 
Call to Order
 
Chairman Anderson called the meeting to order at 7PM after observing a quorum was present.
 
Attendance
Members Present                           Members Absent           Guests Present
R. Anderson Chair                          G .Reese                        L. Cole
J Drabant Secy./Vice Chair              D. McKee                       T. Sheridan
N. Bielmeier                                    B. Wright                        J Hutchinson
A Siegel                                          L. Bowyer                      M. Rugless
R. Haring                                         C. Clevenger                  M. Perez
J.  Zwickl (Board Liaison)   
 
Agenda
Motion to approve agenda for the Aug. 3 meeting.  Motion Approved.
 
Motion to approve minutes of the July 6 meeting. Motion Approved.
 
Comments by the Chair
The county is discussing the construction of a Sports Complex at this end of the County and the question was: What effect will it have on the LOW Board of Directors Goal to establish on inside LOW. J. Hutchinson stated that a Sports Complex is in the County plan for 2019.
 
 Business Items
 
Year End Financials
The Director of Finance (Larry Cole) stated he has reviewed the draft audit report and it looks about the same. There were some changes made by LOWA Management. There will be an Audit presentation on August 18th during the Board meeting.
 
There will be a RFP sent out for a search for a new audit company. It was stated that this was a practice by LOWA to change Auditors every several years.
 
Cole gave a summary of the process used by the Audit firm while conducting their audit.
 
OLD BUSINESS
 
Review Budget Guidelines
The committee concluded that the Budget Guidelines developed last year were intended to eliminate the need to rewrite them every year. The Board made several changes last year and the Committees opinion was they will remain the same for this year. There was a comment made by the Board Liaison, who stated that the economic analysis should be submitted by September 1st. The committee felt that was an artificial and short time frame and felt there was no need for such a deadline.
 
There was some discussion that consideration should be given to add a statement as to how to advise the Board of Directors on how the deficit or surplus should be addressed.
 
Reserve Policies
There was some discussion on some suggested verbiage changes in the Definition Section.
 
Procurement Review Status Report
A letter was sent to the General Manager and the Board of Directors concerning the Committee’s attempt to review the policies and procedures on procurement. It was stated that the General Manager would review several documents, but there was no indication that the material would be provided to the Finance sub-committee for review. It was also stated that the Board had access to all the material. The Finance committee was not provided access to the documents.
 
MOTION: The Finance sub-committee review the Procurement Policy Procedures in their entirety and report to the Finance Committee on its findings and recommendations.
Motion Passed
 
NEW BUSINESS
 
RFP For Pools & Fitness Center
Only three members present had read the RFP distributed by the General Manager which led to a limited discussion.
 
General comments were that the RFP was in a questionable format and it was unclear just what was expected for a “Conceptual Design” and limited definition on the deliverables expected. Bielmeier will attempt to identify any existing format/s for past RFPs and make recommendations to the Finance Committee for submission to the General Manager and Board.
 
New Assets & Improvement Form.
There were several changes made to the form (in red) and submitted to the sender.
 
Five Year Plan Timeline
There were several additions to the Timeline that allowed the Finance Committee to be fully involved in the process. The suggestions (in red) were returned to the sending party for inclusion in the Timeline.
 
General Comments
There has been no response from the Board on the Finance Committees request to pursue “Energizing Younger Residents” effort.
 
There was some discussion concerning the restoration of low ditches. There were several questions concerning the project. If the Maintenance Department is responsible for maintaining the Common Areas, why are we paying approx. $60,000 per mile for an outside contractor? If the restoration project is part of the Lakes effort, should the outside contractor be limited to reconstruction of the direct feeds into the lake and Low Maintenance schedule all other ditch restorations? Why would funds be put into the R&R reserve when once the lake feed restoration is completed all ditch maintenance should be a normal maintenance effort?
 
It was suggested by board members present that the questions be asked of the Maintenance Super. for answers.
 
Election of Officers
Roger Anderson was re-elected as Chair
Jim Drabant a Vice Chair
The position of Secretary will be addressed at the next Committee meeting.
 
Meeting was adjourned at 8:00 PM
 
The next meeting will be Monday August 31, 7PM at the Community Center.
 
Jim Drabant, Vice Chair/Secretary
 

September Meeting of the LOWA Finance Committee
Community Center on August 31, 2015

 
CALL TO ORDER
 Chairman Anderson called the meeting to order at 7:02 PM after observing a quorum was present.
 
 ATTENDANCE
 Members Present                  Members Absent                     Guests Present
R. Anderson  Chair                  J.  Zwickl (Board Liaison)           L. Cole
J Drabant  Vice Chair               B. Wright                                 T. Sheridan
N. Bielmeier                                                                           J. Hutchinson
A Siegel                                                                                 M. Rugless
R. Haring                                                                                M. Perez
G. Reese                                                                                O. Kelly
D. McKee Secy                                                                       R. Hancock
L. Bowyer
 
AGENDA
 Motion by Siegel to approve agenda for the Aug. 31 meeting.  Motion approved unanimously.
 Motion by Drabant to approve minutes of the Aug. 3 meeting.  Motion approved unanimously.
  
COMMENTS BY THE CHAIR
 
OLD BUSINESS
Report on Procurement Policies:
Bieimeier suggested improvements to the policy including responsible and responsive bidders, more competition, lease/buy analysis, and financial capability analysis.
     
NEW BUSINESS
How to Recover Financial Shortage
Reese made a motion that the Finance Committee recommends to the Board that the “Operating Cash Shortfall” be handled as a priority item, that a joint committee be formed to analyze the situation, all possible budget items be considered in the analysis, and a report be prepared within a year.
Siegel made an amendment to the motion that the time frame be changed to 15 months.  The amendment passed with Haring voting against.
After discussion Reese agreed to draft a Statement of Work for the Committee to consider.
There was consensus that the Committee should start work without further input from the Board.
No vote was taken on the main motion.
 
Assessment of Economic Conditions
Anderson will draft a statement based on the outline in the bylaws to be presented at the Oct. 3 Board meeting.
 
Look at Reserves Distribution
Drabant agreed to handle this item.
 
COMMENTS
 
ADJOURNMENT Reese made a motion to adjourn.  The Chair not observing any objections, the meeting was adjourned.
  
The next meeting will be Monday October 5, 7PM at the Community Center.
 
Dave McKee, Secretary

Finance Committee Meeting MINUTES
 in Community Center  October 5, 2015


CALL TO ORDER.  Chairman Anderson called the meeting to order at 7:00 PM after observing a quorum was present.

ATTENDANCE
Members Present          Members Absent                 Guests Present
R. Anderson  Chair          L. Bowyer                             L. Cole
B. Wright                        J. Drabant  Vice Chair           T. Sheridan
N. Bielmeier                                                               J. Hutchinson
A Siegel                                                                    L. Knight
R. Haring                                                                  M. Perez
G. Reese                                                                   L. Rucker
D. McKee Secy                                                          T. Wessel
J.  Zwickl Board Liaison                                              M. Musatow
C. Clevenger                          

AGENDA
Motion by Reese to approve agenda for the Oct. 5th meeting.  Motion approved unanimously.
Motion by Reese to approve minutes of the Aug. 31st meeting.  Motion approved unanimously.

COMMENTS BY THE CHAIR     Chair commented on the increase to $100 for contractor barcodes.

OLD BUSINESS
Review Assessment of Economic Conditions
    After suggested modification, the paper will be sent to the Board.
Review of Unrestricted Operating Cash Policy (Recommendations to the BOD on how to handle shortfall)
      Motion by Siegel to recommend to the Board that at the end of the fiscal year the New Construction funds be sequestered into the operating funds until the 402K has been repaid.  Motion passed with Wright, Biemeier, Siegel, and Anderson voting for and Reese and Haring voting against. 
2016- 2020 as Forwarded to BOD and GM:
      The motion to resubmitted to the Board the marked up (in red) copy was unanimously approved.

NEW BUSINESS
Reserve Study (minimum amount, clarification has been omitted from the Reserve Study Summary).
   Will be handled by Drabant.
Budget tracking assignments of Committee Members
    The following assignments were made:

Boggs               Administration
Andy                 Oversee all
Jim                   Clubhouse and Golf
Robert               Fitness and Pools
Norm                 Communications, Security, and Community Activities
Gary                  ECC
Roger                Equestrian and Capital Spending

COMMENTS:
Treasurer Zwickl announced that the Treasurer’s meeting will be held immediately following the Investment Committee meeting on the last Monday of the month at 1 PM.  The next meeting will be held at the Woods Center.

The next Finance Committee meeting will be Monday, November 2, 2015 at 7PM in the Community Center.

ADJOURNMENT. Reese made a motion to adjourn.  The Chair not observing any objections, the meeting was adjourned.
Dave McKee, Secretary
 

FINANCE COMMITTEE MEETING MINUTES MINUTES
November Meeting of the LOWA Finance Committee
Community Center on November 2, 2015

 
CALL TO ORDER
Chairman Anderson called the meeting to order at 7:00 PM after observing a quorum was present.
 
ATTENDANCE
 Members Present                 Members Absent                     Guests Present
R. Anderson  Chair                  L. Bowyer                                T. Wessel
J. Drabant  Vice Chair             C. Clevenger                            M. Rugless
B. Wright                                G. Reese                                T. Sheridan
N. Bielmeier                                                                          O. Kelly
A Siegel                                                                  
R. Haring                                                                         
D. McKee Secy                                                               
J.  Zwickl Board Liaison                                                 
          
AGENDA
 Motion by Haring to approve agenda for the November 2nd meeting.  Motion approved unanimously.
 Motion by Haring to approve minutes of the October 5th meeting.  Motion approved unanimously.
  
COMMENTS BY THE CHAIR     There were no comments by the chair.
  
OLD BUSINESS
 New committee charter
Motion by Wright to resubmit existing charter.  Amended by Siegel to postpond to December meeting.  Motion as amended passed with Siegel, Biemeier, Haring, and Drabant for with Wright against.
 
Review reserve study
There was a discussion of various reserves, do certain items belong in the replacement reserves, and definition of replacement reserves.  It was recommend that Zwickl, Siegel, and Drabant get together with Larry Cole to work out the details of these items.
 
NEW BUSINESS
Preparation for Budget Hearings
There was discussion that the Finance Committee needs two weeks to review the draft budget before the hearings.
 
Third gate funding
There was a discussion of the funding for the third gate.
 
Procurement
Motion by Biemeyer to accept the procurment report, as modified, prepared by the procurement subcommittee.  Motion approved unanimously.  The report is attached to the minutes.
 
Fitness center
Haring presented data on the headcount and the attendance at the fitness center.
 
COMMENTS:
 Bob Haring annouced he was resigning from the Finance Committee because of the time demands of his new activities.
 
The next Finance Committee meeting will be Monday, Decemer 7th, 2015 at 7PM in the Community Center.  The budget hearings will be held on December 9, 10, and 11.
 
ADJOURNMENT
The Chair observing that there was no additional business, adjourned the meeting at 8:45PM.
 
Dave McKee, Secretary
 

MINUTES
Budget Hearing Meeting of the LOWA Finance Committee
Community Center on December 9, 10, & 11, 2015

 
CALL TO ORDER
Chairman Anderson called the meeting to order at 9:04 AM on Wednesday December 9, 2015 after observing a quorum was present.  There was a quorum present during the entire meeting.
 
ATTENDANCE
Members Present               Members Absent                  Guests Present
(during at least part
of the meeting)
R. Anderson  Chair                    A Siegel                           Many guests present
J. Drabant  Vice Chair                                                       during various times
B. Wright
G. Reese
N. Bielmeier
C. Cleveger
D. McKee Secy
O. Kelly
J.  Zwickl Board Liaison
 
PRESENTATION.   On each day there were presentions on the draft budget items.
 
COMMENTS BY THE CHAIR
The chair made welcoming comments before turning the meeting over to the General Manager.  The chair stated that after the Friday budget hearing presentations, the committee would remain in session to prepare the committee’s recommendations.
 
OLD BUSINESS.  There was no old business.
  
NEW BUSINESS
After the Friday presentations the Committee meet to discuss questions and recommendations.  The questions and recommendations are attached.
 
COMMENTS.   There were multiple comments during the budget presentations.
 
ADJOURNMENT
It was moved by Drabant and passed unnamimously that the meeting be adjourned at 1:40 PM on Friday December 11, 2015.  It should be noted that at the end of each days presentation the committee resessed and did not adjourn.
 

Dave McKee, Secretary

MINUTES
December Meeting of the LOWA Finance Committee
Community Center on December 7, 2015

 
CALL TO ORDER
Chairman Anderson called the meeting to order at 7:00 PM after observing a quorum was present.
 
ATTENDANCE
Members Present                  Members Absent                        Guests Present

R. Anderson  Chair                    C. Cleveger                                L. Cole
J. Drabant  Vice Chair                                                                S. Wright
B. Wright                                                                                   R. Handcock
G. Reese
N. Bielmeier
A Siegel
D. McKee Secy
O. Kelly
J.  Zwickl Board Liaison
 
AGENDA
Motion by Wright to approve agenda for the December 7th meeting.  Motion approved unanimously.
 Motion by Wright to approve minutes of the November 2nd meeting.  Motion approved unanimously.
 
COMMENTS BY THE CHAIR
The Chair stated that the budget hearing will start on Wednesday December 9, 2015 and conclude on Friday December 11, 2015  The chair stated that after the Friday budget hearing meeting, the committee will remain in session to prepare the committee’s recommendations.
 
OLD BUSINESS
Review committee charter
Motion by McKee to approve the revised Finance Committee Charter as amended.  Motion approved unanimously.
Motion by McKee to approve the revised “PARAGRAPH TO BE POSTED ON LOWA WEBSITE” as amended.  Motion approved unanimously.
 
NEW BUSINESS
Funding for third gate
Motion by Wrights that the Finance Committee recommends to the Board that the third gate be financed using a special assessment.  Motion approved unanimously.
Motion by Reese that the Finance Committee recommends to the Board that the best way to unite the community on the matter of a third gate is to have a vote of the membership.  Motion approved unanimously.
 
Assignments for budget hearings
The chair made the following assignments for the budget hearings:
 
Boggs Wright:   Administration
Roger Anderson:  Security, Pools, Fitness, & Equestrian Center,
Jim Drabant:  General Maintenance, Roads, Grounds, Golf-ProShop, Golf- Maintenance, Golf-Fareways, & Clubhouse
Norman Bielmeier: Communications & Community Activities.
Dave McKee:  Capital Spending Plan
Gary Reese:  Environmental Resources
Olive Kelly:  Capital Spending Plan, Reserve Study & Capital Reserves.
Andrew Siegel:  Fee Schedule, Summary of the Operating and Capital Budgets including the calculation of the proposed assessment, & CTR Funding.

Look at Rent to Own Contracts
There was a discussion of rent to own contracts, particularly for the new security boat.  L. Cole committed to get the details on the agreement and send the info to the Chair.
 
COMMENTS
 
ADJOURNMENT.   The Chair observing that there was no additional business, adjourned the meeting at 8:45PM.
 
Dave McKee, Secretary
 

MINUTES  January Meeting of the LOWA Finance Committee

 Community Center,    January 4, 2016

 
 
CALL TO ORDER
 Chairman Anderson called the meeting to order at 7:00 PM after observing a quorum was present.
  
ATTENDANCE
 Members Present                 Members Absent                     Guests Present
R. Anderson  Chair                N. Bielmeier                              L. Cole
J. Drabant  Vice Chair           G. Reese                                   N. Goodwin
B. Wright                                                                               R. Handcock
A Siegel                                                                                 D. Heiser              
D. McKee Secy                                                                      P. Rodenberg
O. Kelly                                                                                  J. Graves             
C. Cleveger                                                                             J. Zukowski
J.  Zwickl Board Liaison                                                            N. Buttimer
                                                                                                E. Porter
                                                                                                L. Brown
    
AGENDA
 Motion by McKee to approve agenda for the January 4, 2016 meeting.  Motion approved unanimously.
 Motion by McKee to approve minutes of the December 7, 2015 and Budget Hearing meetings.  Motion approved unanimously.
 
COMMENTS BY THE CHAIR
 The Chair stated that the meeting would start with a review of the responses to  the questions and answers from the Budget Hearing.
 Motion by Cleveger to change the wording on the paragraph posted on the LOWA website.  Motion died because of the lack of a second.
 
OLD BUSINESS
 
Review questions and answers from Budget Hearings
 
There was considerable discussion of the Budget Hearing Questions and Recommendations response by management.  There were no changes made by management in the postions taken in the written response.  There was a agreement by management to consider certain items.
 
The committee agreed to hold a special meeting on Monday, January 11th at 2PM at the Community Center to come up with a finance plan for the 2016 new capital projects as part of the committee’s particpation in the Five Year Capital Plan process.
 
Review RFP on Pool/Fitness Center
 
A revised RFP will be available on the front page of the website by January 6th.  (This is an update to the information presented at the meeting.)  There was not enough time at the meeting for a detailed discussion of the RFP, but it was mentioned.
 
Review Front gate issue and Funding
 
There was not enough time at the meeting to have a full discussion of this item, but it was mentioned several times during the review of the responses to the questions and answeres.
 
NEW BUSINESS    There was no new business on the agenda
 
COMMENTS
 
ADJOURNMENT    The meeting was adjourned at about 9:35PM on a motion by Drabant.
 
Dave McKee, Secretary

Special  Meeting of the LOWA Finance Committee
Community Center, January 11, 2015

 
CALL TO ORDER
 Chairman Anderson called the meeting to order at 3:00 PM after observing a quorum was present.
 
ATTENDANCE
 Members Present             Members Absent                      Guests Present
R Anderson  Chair             B. Wright,  Advisor                     L. Cole
J Drabant Vice Chair         N. Bielmeier                               P. Rodenberg
A Siegel                           D. McKee                                  N Goodwin
O Kelly                                                                             T  Sheridan
G Reese                                                                           C Brewer
C Clevenger                                                                      H Brewer
J Zwickl, Board Liaison                                                      B Wemmerus
 
AGENDA
 Motion was made and seconded to approve agenda for the Jan. 11th meeting.  Motion approved unanimously.
 Motion was made and seconded to approve minutes of the Jan. 4th meeting.  Motion approved unanimously.
 
COMMENTS BY THE CHAIR
    Chair commented on the purpose of the meeting.
 
OLD BUSINESS
Finance Committee’s recommendations to finance the 2016 new capital projects.
Point of Sale System                                   $50.000
Third Gate Construction                              $480,000
Harpers Ferry to HF Mail Station Trail           $   5,000 
The general Manager presented to the Finance Committee three funding options for the Front Gate Project.
 
Funding Options
Option 1
Use a hybrid methodology whereby part of the funding is from internal sources and part of the funding is from external sources.  For example: specify funding from established Reserves as follows or some other combination:
          R & R Reserve                                         $ 100,000
          NAIR                                                       $ 100,000
          NCRF                                                      $ 100,000
          External Financing                                    $ 180,000
 
Option 2
Fund the entire amount with external financing to be repaid over five years with a $100,000 annual principal payment plus annual interest funded through future Assessments.
 
Option 3
Fund the entire project from the R & R Reserve.  The Reserve policy allows the R & R Reserve to drop below the minimum required balance but the shortfall must be restored to the R & R Reserve within two budget cycles.  During those two budget cycles the funding sources for restoring the shortfall will be through Contribution to Reserves through the Assessment of $42 per lot each of the two years or, if New Construction and Renovation Fees are sufficient, some of the shortfall may come from NCR Fees.
 
There was serious discussion concerning what impact the proposed $2,141,500 New Capital Spending plan will have on future assessments and how those proposed projects will be funded.
 
There was a suggestion made that all New Capital spending be suspended until the budget shortfall is resolved.
 
The Committee recommended that items #1 and #3  be funded from current budget funds.
The Committee felt it had already addressed item #2 the Third Gate funding by proposing a special assessment already submitted to the Board.
 
It was felt that all items were addressed which took care of the Boards request for recommendations to fund the 2016 New Capital projects.
 
ADJOURNMENT    A motion was made to adjourn the meeting.
 
Meeting was adjourned at 3PM.
 
NOTE:
 The General Manager stated that he felt he did not have the opportunity to present an additional Third Gate funding option to the Committee before the meeting was adjourned. After discussion with the committee members, the Chair called a meeting.
 
MEETING  CALLED TO ORDER AT 3:10 PM
 
Old Business Continued
Phil Rodenberg and Larry Cole presented their 4th funding option. After extensive discussion, and based on the assumptions presented by Phil Rodenberg and Larry Cole, the Finance Committee agreed on the following to be submitted to the Board of Directors as their financing recommendation.
 
New Third Gate Financing
 The Finance Committee was asked by the BOD to propose financing options for the three proposed projects listed in the 1st year of the 5 Year FY 2016 - FY 2020 Capital  Plan.  While the Finance Committee still opposes this project in its current form as not addressing the underlying problems of access by vendors, etc., nevertheless after reviewing the 3 financing options presented by the GM the committee voted to recommend to the BOD an alternative option as follows. This is assuming the BOD chooses to go forward with the project with property owners’ approval.
 
NAIR (New Asset & Improvement Reserve)  NCRF (New Construction & Renovation Fees)
 
$125 K                                                $400 K (Estimate funds FY 15-16)
-   40 K(Fairways)                                  -100 K (For Operating Expense)
$  85  K                                                -   80 K (set aside by vote of the BOD  
                                                                          the BOD for Cash Reserves)                                                          
  $220K                                                  $220 K (move to NAIR by vote of the
$305K Balance                                                   BOD in Aug. of 2016)
 
The NAIR would then provide available cash of $305,000 that could be used to fund the proposed third gate. That would leave a balance of $175,000 to be financed by a one-time Special Assessment of $41.
 
The Finance Committee recommends to the BOD that the third gate project, including detailed costs, be put before the community members for a vote to approve or disapprove the proposed project. The Finance Committee has taken the path of a Special Assessment since this increase in dues would be project sensitive and would terminate upon completion of the project with any surplus funds being returned to the membership.  Increasing dues through the CTR would potentially create a permanent increase and this the Finance Committee adamantly opposes.
 
Motion was made to adjourn the meeting.
 
Meeting was adjourned at 4:46 PM.
 
j. DrabantVice Chair, Finance Committee
 

MINUTES of the February Meeting of the LOWA Finance Committee
Community Center, February 1, 2016

 
CALL TO ORDER
 Chairman Anderson called the meeting to order at 7:00 PM after observing a quorum was present.
 
ATTENDANCE
Members Present                         Members Absent                           Guests Present

R. Anderson  Chair                         N. Bielmeier                                   L. Cole
J. Drabant  Vice Chair                    G. Reese                                        J. Hutchison
O. Kelly                                         B. Wright, Advisor                          R. Handcock
A Siegel                                         C. Cleveger                                    L. Rucker
D. McKee Secy                                                                                    T. Sheridan
J.  Zwickl Board Liaison                                                                          R. Kunka
  
AGENDA
   Motion by McKee to approve agenda for the February 1, 2016 meeting.  Motion approved unanimously.
    Motion by McKee to approve minutes of the January 11, 2015 special committee meeting.  Motion approved 3-0-1.  McKee abstained.
 
OLD BUSINESS
    Review and make recommendations for the final four years of the five year plan.
     There was considerable discussion of funding of the various reserves with emphisis on not spending money from a reserve if the money is not in the designated reserve.
      Motion by Siegel that the Finance Committee recommend to the Board that the assessment per lot be increased by $25.00 each of the next two years, the funds to be added to the New Asset & Improvements Reserve, that this money would be used to pay for the third gate, and that the third gate project be delayed until fiscal year 17-18.
         Motion by Kelly that the motion be amended to the Finance Committee recommend to the Board that an additional $100,000.00 be added to the New Asset & Improvements Reserve.  Motion died 2-3-0.  Yeas – Kelly & Siegel; Nays – McKee, Drabant, & Anderson.
         Original motion passed 3-2-0.  Yeas – McKee, Seigel, & Anderson; Nays  --  Kelly & Drabant.
 
NEW BUSINESS    There was no new business on the agenda
 
 COMMENTS
 
ADJOURNMENT     The meeting was adjourned at about 9:05PM.
 
 Next meeting will be on March 7, 2016 at 7PM in the Community Center.
 
Dave McKee, Secretary

FINANCE COMMITTEE MEETING MINUTES
March Meeting of the LOWA Finance Committee
Community Center, March 7, 2016

 
CALL TO ORDER
Chairman Anderson called the meeting to order at 7:00 PM after observing a quorum was present.
 
ATTENDANCE
Members Present                          Members Absent               Guests Present
R. Anderson  Chair                         N. Bielmeier           
J. Drabant  Former Vice Chair         G. Reese
O. Kelly New Vice Chair                  C. Cleveger
A Siegel
D. McKee Secy
J.  Zwickl Board Liaison
B. Wright Advisor
 
AGENDA
   Motion by McKee to approve agenda for the March 7, 2016 meeting.  Motion approved unanimously.
    Motion by McKee to approve minutes of the February 1, 2016 committee meeting.  Motion approved unanimously.
    Anderson announced that Drabant was resigning as vice-chair.  McKee nominated Kelly.  Kelly was approve as vice-chair unanimously.
 
OLD BUSINESS
 Review Final Budget:
      Zwickl stated that funds for the third gate are in the capital plan, but the third gate has not been funded.
      Kelly will prepare suggested modifications to the capital expense activity report.
 There was considerable discussion of the process and the RFP for the fitness center upgrade.
 
NEW BUSINESS
Review Survey for the Third Gate:
    There was considerable discussion of the third gate survey.  Most of the opinions stated were negitive on the survey.
 Review Woods Center Contract:
       This item was discussed before the meeting started.
 Review of the NCR fee:
       There was a brief discussion of the New Construction and Renovation fee.  This item was postponed to a future meeting because of the lack of data.
 Golf Course Contract:
       This item was not discussed
 Discuss changing meeting time to 1st Monday @ 3:00PM:
       Motion by Kelly to change meeting time to 1st Monday at 3:00PM.  This motion failed unanimously.
  
COMMENTS: Kelly presented a draft of a recruiting article for the committee for the Lake Currrents and Facebook.  The committee agreed on the article.
  
ADJOURNMENT: Motion by Drabant to adjourn.  Without objection the meeting was adjourned at 9:10PM.
 
Next meeting will be on April 4, 2016 at 7PM in the Community Center.
 
Dave McKee, Secretary

MINUTES April Meeting of the LOWA Finance Committee
 Community Center,   April 4, 2016

 
CALL TO ORDER
     Chairman Anderson called the meeting to order at 7:02 PM after observing a quorum was present.
 
ATTENDANCE
 Members Present                          Members Absent                           Guests Present

R. Anderson Chair                                                                                  T. Sheridan                  
J. Drabant                                                                                                L. Cole               
O. Kelly Vice Chair                                                                                 F. Rokosz                     
A. Siegel                                                                  
D. McKee Secy
G. Reese                                                                                          
C. Clevenger
J.  Zwickl Board Liaison
N. Bielmeier Alternate
B. Wright Advisor                                                                                                                                                                                                                                      
AGENDA
 Motion by McKee to approve agenda for the April 4, 2016 meeting.  Motion approved unanimously.
 
Motion by McKee to approve minutes of the March 7, 2016 committee meeting.  Motion approved unanimously.
 
There were no comments from the Chair.
 
 
OLD BUSINESS
      Third Gate:  Drabant presented a report on the Town Hall meeting on the third gate.
  
NEW BUSINESS
   Report of Pool/Fitness Ad Hoc Committee:    Drabant and Clevenger discussed the activities of the Pool/Fitness Ad Hoc Committee.
   New Construction and Revovation Fee Rates:  Motion by Drabant, passed unanimously, to recommend to the Board that the fees not be changed.
    Capital Spending Report   Kelly made serveral suggestions to changes to the Capital Spending Report  and the Capital Spending Plan Summary Report.
        Discussion of the time limit of funding unrestricted cash balance:
 Cole discussed the time limit of funding unrestricted cash operating balance and  the payback analysis timeline.
       Report of delinquency rate:
        Based on a discussion at the Treasurer’s meeting, there was a discussion on how to report the assessment delinquencies.
 
 COMMENTS
  
ADJOURNMENT.   Motion by Drabant to adjourn.  The meeting was adjourned at 8:35PM.
 
 Next meeting will be on May 2, 2016 at 7PM in the Community Center.
 
 Dave McKee, Secretary

                                                

MINUTES May Meeting of the LOWA Finance Committee
Community Center, May 2, 2016

 
CALL TO ORDER
Chairman Anderson called the meeting to order at 6:58 PM after observing a quorum was present.
 
ATTENDANCE
 
Members Present                        Members Absent                 Guests Present
R. Anderson Chair                        A. Siegel                             T. Sheridan
J. Drabant                                                                              L. Cole
O. Kelly Vice Chair                                                                 R. England
D. McKee Secy
G. Reese
C. Clevenger
J.  Zwickl Board Liaison
B. Wright Advisor
N. Bielmeier Alternate
F. Rokosz Alternate
C. Bohling Alternate
 
AGENDA
Motion by McKee to approve agenda for the May 2, 2016 meeting.  Motion approved unanimously.
   Motion by McKee to approve minutes of the April 4, 2016 committee meeting.  Motion approved unanimously.
 
There were no comments from the Chair.
 
OLD BUSINESS
 
Liaison Assignments:
The following liaison assignments were approved
Roger Anderson                  Equestrian Center, Environmental Control    
Olive Kelly                           Capital Spending Programs including the Reserve Study Analysis Report, Investments, Clubhouse
Jim Drabant                         ProShop/Golf, Golf Maintenance, Fareways
Dave McKee                        Safety and Security
Gary Reese                          Legal and Compliance, Rules
Candace Clevenger            Administration, Community and Youth Activities
Andrew Siegel                    Chair a small group to develop funding plans to meet the five year projected capital spending needs, including the funding of operations budget on a longer term basis.
Frank Rokosz                       Balance Sheet, Statement of Revenue and Expense
Norman Bielmeier             Assist with Community and Youth Activities
Carolyn Bohling                  Pools, Fitness
Ralph England                     Maintenance and Ecology          
Boggs Wright                       Officiates in an advisory capacity
 
NEW BUSINESS
   Germanna House:
   Motion by McKee: I move that the Finance Committee recommends to the Board, that the Board instruct the General Manager to not lease the property located at 3409 Germanna Highway when the current lease expires and instead to list this property for sale.
   Motion failed 3 to 3; for Anderson, Drabant, & McKee; against Kelly, Reese, & Clevenger. 
   Motion by Reese: I move that the Finance Committee recommends to the Board, that the Board instruct the General Manager to initiate a market study of the 3409 Germanna Highway property and surrounding area to determine if the property should be sold at this time.
   Motion passed unanimously.
 
Budget Guidelines: The budget guidelines for 2017-2018 were discussed.
 
March Financials: The March financials were briefly mentioned.
 
IGM Contract: The current and future IGM contract was discussed
 
COMMENTS
 
ADJOURNMENT.   Motion by Drabant to adjourn.  The meeting was adjourned at 8:35PM.
    Next meeting will be on June 6, 2016 at 7PM in the Community Center.
 
Dave McKee, Secretary
 

MINUTES
June Meeting of the LOWA Finance Committee
Community Center, June 6, 2016

 
CALL TO ORDER  Vice Chair Kelly called the meeting to order at 7:00 PM after observing a quorum was present.
 
ATTENDANCE
 Members Present                  Members Absent                          Guests Present

J. Drabant                                                                                     L. Cole                
O. Kelly Vice Chair                                                                      R. Hoe                
D. McKee Secy                                                                             T. Sheridan
G. Reese                                                                                        R. Anderson
C. Clevenger                                                                                 J. Quimper
A. Siegel                                                                                         M. Tait
F. Rokosz                                                                                       R. Hancock 
J.  Zwickl Board Liaison                                                              M. Rugless
B. Wright Advisor                                                                         B. Rugless
N. Bielmeier Alternate                                                                  M. Musatow
R. England Alternate                                                                        
C. Bohling Alternate
 
AGENDA   Motion by McKee to approve agenda for the June 6, 2016 meeting.  Motion approved unanimously.
 
Motion by McKee to approve minutes of the May 2, 2016 committee meeting.  Motion approved unanimously.
 
COMMENTS FROM VICE CHAIR
Kelly stated that Anderson was no longer a member of the committee.  She also stated that she didn’t think his removal from the committee, by the Board of Directors, should be discussed at the committee level.  She encouraged members who may have additional questions or concerns to direct them to the Board.
Motion by Reese to elect a new chair passed 5 to 1; for Reese, Drabant, Rokosz, Siegel, and Clevenger; against McKee.
Nomination by Reese of  Kelly to be chair.  Kelly elected unanimously.

COMMENTS FROM BOARD LIAISON
Zwickl stated that the General Manager had started a market study of the 3409 Germanna Highway property.
 
OLD BUSINESS
Discussion by Siegel to develop a 10-year funding plan to meet capital spending and operating budget needs.  Kelly will request a meeting with the General Manager for Siegel and herself to discuss the matter.
Kelly called on Drabant and Clevenger for a progress report on the Ad Hoc Committee for the Pool/Fitness Center/Outdoor Recreation Complex.  Drabant deferred to Clevenger.  Clevenger lead a discussion of the status.  The consultant’s next report is expected in July, with the input from the Ad Hoc Committee.   The report will be available for the start of the 2017-2018 budget cycle.  There was also discussion of the status of the Sweetbrier pool.
 
There was a discussion of the Budget Guidelines for Fiscal 2017-2018.  Kelly committed to submit the Budget Guidelines to the Board by Sept. 1, 2016.  Rokosz agreed to prepare a draft of the Assessment of Economic Conditions which will be incorporated into the Guidelines. Kelly will prepare a draft of the Budget Guidelines and requested suggestions from the committee members before the next meeting.
 
NEW BUSINESS.  There was no new business

COMMENTS.  There were no comments.
 
ADJOURNMENT.  Motion by Clevenger to adjourn.  The meeting was adjourned at 8:17PM.
 
Next meeting will be on July 6, 2016 at 7PM in the Community Center.
 
Dave McKee, Secretary
 

MINUTES of the July Meeting of the LOWA Finance Committee
Community Center, July 6, 2016

 
CALL TO ORDER
 Chair Kelly called the meeting to order at 7:00 PM after observing a quorum was present.  Kelly, later in the meeting, made Bohling and Biemeier voting members for this meeting.
 
ATTENDANCE
 Members Present               Members Absent                       Guests Present
J. Drabant                           C. Clevenger                               T. Sheridan
O. Kelly Chair                      F. Rokosz                                    R. Hoh                   
D. McKee Secy                                                                      S. Wright
G. Reese                                                                                R. Anderson
A. Siegel                                                                                 L. Morlan, Board
J.  Zwickl Board Liaison                                                             
B. Wright Advisor                                                                         
N. Bielmeier Alternate                                                                 
R. England Alternate                                                                        
C. Bohling Alternate
 
AGENDA
 Motion by McKee to approve agenda for the July 6, 2016 meeting.  Motion approved unanimously.
 
Motion by McKee to approve minutes of the June 6, 2016 committee meeting.  Motion approved unanimously.
 
COMMENTS FROM CHAIR
Kelly made several comments followed by the members making short comments on their backgrounds and experience with considerable mention of previous committee experience.

OLD BUSINESS
Review Draft of Budget Guidelines
    Motion by McKee to approve the draft guidelines
Items 1 – 3 no changes
Item 4 – phrase “including funding for future capital projects” was removed
Item 5 – 7 no changes
Item 7b added by Reese

“Amenities shall be evaluated by the General Manager on a rotating basis such that two amenities shall be evaluated per budget year.  In the evaluation of the amenities the following items shall be considered: actual cost of the amenity per budget year; subsidies required; number of members using the amenity per year; frequency of use and any other points of consideration believed to be relevant.  The General Manager shall share the results of the evaluations in a timely manner with the Board of Directors, the Planning Committee and the Finance Committee.”
    Motion by McKee to change item 8 to
“Percentage increase in the salary pool, if any, should not exceed the percentage increase in the Consumer Price Index.”
      Motion passed; for – McKee, Reese, Drabant, Bielmeier;  against – Bohling, Siegel

Items 9 – 12 no changes

     Motion by Reese to change item 13 to
“The General Manager should develop an open completive bid process to maintain the golf course, including consideration of an in-house maintenance program”
    Motion passed; for – McKee, Reese, Bohling, Drabant, Bielmeier;  against –Siegel

Item 14 – word “Recommend” replaces phrase “Consideration should be given to”
    Motion by Siegel to add new item

The April 30, 2016 operating cash deficit should be repaired by sequestering all new construction fees to the operating budget until the deficit is cured.”
   Motion passed; for – Reese, Bohling, Drabant, Siegel, Bielmeier;  against – McKee
   Motion as amended passed unanimously.

Brief overview on proposed 10-year Funding Plan
There was a discussion of the 10-year funding plan with a discussion of a joint Planning Committee, Finance Committee, and General Manager project.

NEW BUSINESS
General remarks from Committee Members/Liaisons
    There were no comments of liaison assignments.

Review Preliminary Fiscal Year Financial Report (4/30/16)
     A summary of operating center revenue and expenses document was distributed and discussed.

Review Carryover Capital Projects
    A report detailing the carryover capital projects was distributed.  There was a discussion of the need to adjust the Reserve Analysis Report to reflect the pending Board approval projects.  The projects totaled approximately $569,000 at close of business on 4/30/16.

Review Funding of the Wood Center Capital Project
    A Woods Center capital projects – final report was distributed and discussed.

Request ideas for August Agenda
    The Chair requested suggestion for the August agenda.

COMMENTS:  There were no comments.
 
ADJOURNMENT:  Motion by Reese to adjourn.  The meeting was adjourned at 8:47PM.
 
Next meeting will be on August 1, 2016 at 7PM in the Community Center.
 
Dave McKee, Secretary
 

LOWA FINANCE COMMITTEE MEETING
August 1, 2016,    Community Center

 
Call to order:

Chair Kelly called the meeting to order at 7:02 PM after observing a quorum was present.

ATTENDANCE:
Members Present                             Members absent                   Guests Present
J. Drabant (voting)                               F. Rokosz                           T. Sheridan
O. Kelly, Chair                                                                               R. Hoh
D. McKee, Secretary                                                                      W. Logan
G. Reese (voting)                                                                            R. Anderson
A. Siegel (voting)                                                                             D. Ketch
C. Clevenger (voting)                                                                        R. Handcock
J. Zwickl, Board Liaison
B. Wright (Advisor)
N. Bielmeier, (alternate)
R. England (alternate)
C. Bohling (alternate)

AGENDA:
  Motion by McKee to approve agenda for August 1, 2016 meeting.  Motion approved unanimously.
  Motion by McKee to approve minutes of the July 6, 2016 committee meeting.  Motion approved unanimously.
                           
COMMENTS FROM CHAIR AND TREASURER:
  Kelly announced that the Annual Report has been submitted to the Board.  Copies were distributed at the meeting.
  Zwickl announced that the renewed insurance policy will cost less than the previous year.

OLD BUSINESS:
  Approve Final Draft of FY2016-2017 Budget Guidelines:
    Motion by McKee to approve FY2016-2017 Budget Guidelines.
    Motion by McKee to change item 4 as follows:
“The Repair and Replacement Reserve should be funded at the beginning of the budget year in conformance with the level as stated in the Reserve Study.”  Motion approved unanimously.
    Motion by Siegel to remove item 8.
    Motion failed 2-3: For: Siegel, Clevenger; Against: Drabant, Reese McKee
    Motion as amended, with additional editorial changes passed unanimously.

NEW BUSINESS:
   Review May Financial Reports:
   Cash and Investments, Balance Sheet and Reserve Analysis.
   These items were discussed briefly by Chair.
   Review FY2017-2018 Projected Replacement Projects per Reserve Study Report:

It was pointed out that the reserve study information that was distributed to the committee was for FY2018-2019.  The Fy2017-2018 information will be distributed at a later date for future review.  There was a general discussion on Reserves.  Kelly stated that she announced at the Treasurer’s meeting that the Finance Committee wishes to get more involved in the process of the annual update of the Miller Dodson Reserve Study Report.

   Review New Construction and Renovation Fee Policy (NCRF)
   Administrative Resolution 2015-1 (Reserve Policy) was distributed.  There was a general discussion mostly on NCRF.
   Review Unrestricted Operating Cash Policy (UOCP) Section under “Responsibility”.

Administrative Resolution 2015-3 UOCP and a report on Cash Forecast for Payback Analysis/Timeline were distributed.  Larry Cole, Director of Finance made the presentation.  He reported that based on cash position at April 30, 2016 the net NCRF balance of $301,695.80 is available for Board action.

After some discussion, Siegel made a motion that the Board applies the full amount to the operating cash shortfall thus reducing it to zero. The motion was amended as follows:

“Move to recommend to the Board that the FY2015-2016 net NCRF balance of $301,695.80 be transferred to the Repair and Replacement Reserve Account. It was further recommended that the proceeds from the insurance company for the damaged Sweetbriar Pool be deposited to the Repair and Replacement Reserve Account. Both amounts should be used to cover the cost of re-building the Sweetbriar Pool. Any excess should be applied to the UOC to reduce the Annual Operating Shortfall.  Motion approved unanimously.

COMMITTEE LIAISON REPORT:  None

COMMENTS FROM AUDIENCE:  None

ADJOURNMENT:  The meeting was adjourned at 8:48PM.
 
Next Meeting:  Wednesday, September 7, 2016, 7:00PM, Community Center
 
Olive Kelly, Committee Chair


Minutes of the Regular monthly meeting of LOWA Finance Committee
Community Center, September 7, 2016, 7:00 pm

 
Call to order:
Chairperson Kelly, observing that a quorum was present, called the meeting to order at 7PM and announced that if anyone were taping the meeting they needed to notify the Committee Chair.  Carolyn Bohling was elected voting member for this meeting. 

Attendance                         
Members Present:              Members Absent                Guests Present
O. Kelly, Chair                                                                 T. Sheridan
J. Drabant, voting                                                            J. Zukowski, BOD
G. Reese, voting                                                             S. Wright
D. McKee, voting                                                             P. Powell
C. Clevenger,voting                                                          L. McKinney
F. Rokosz, voting
C. Bohling, voting
R. England, alternate
J.  Logan, alternate
P. Schubert, alternate
B. Wright, advisor
N. Bielmeier, advisor
 A. Siegel, advisor 
J.  Zwickl, Treasurer/BOD Liaison

Agenda:
Motion by Bohling to approve the agenda for September 7, 2016.  Motion approved unanimously.

Minutes
There was some discussion regarding the minutes from the August meeting on the decision of the “unrestricted cash”.   The minutes from the August meeting were approved, as amended, with 4 Yeas, Clevenger, Bohling, Rokosz, Kelly, 2 Nays, McKee, Drabant and 1 Abstention, Reese

Chair Comments.
Ms. Kelly outlined the activities since the last meeting. Certificates of appreciation were given to committee members from the Civic Club reception on August 10.  Ms. Kelly met with the General Manager and the Treasurer regarding the Budget Guidelines. After a few minor changes, the Budget Guidelines will be presented to the new Board of Directors for approval on October 1st.  Ms. Kelly also met with the General Manager and the Chair of the Planning Committee to discuss the Five Year Capital Spending Plan in view of the upcoming budget cycle.

Recognition of New Board Liaison and New Committee Members:
Ms. Kelly welcomed Ms. Zwickl back as our Board Liaison and congratulated Ms. Zukowski on her election to the Board and appointment as Board Secretary.
The Finance Committee now consists of fourteen members. As there were a number of new members, we went around the table and introduced ourselves.

Unfinished Business:      None

New Business
Election of Officers
McKee nominated Kelly as Chair.  The motion passed 5 Yeas, 2 abstentions, Drabant and Kelly. Drabant nominated Reese as Vice Chair.  The motion passed 6 Yeas, 1 abstention, Reese.  Kelly elected Bohling as Secretary.  Kelly thanked the committee for its vote of confidence and reminded the committee of its responsibility to the membership and the Board.

Review the Joint Finance and Planning Committee Meeting of August 30, 2016.
A discussion ensued regarding the function and responsibilities of the Joint Finance and Planning Committee.  Further guidance is needed from the new Board of Directors.  A discussion ensued regarding a more open communication with the LOWA membership on the clubhouse pool, fitness center complex.  A discussion ensued regarding other projects that will need funding in the next several years, and the impact that will have on the assessment, longer term.   A discussion ensued on polling the membership for their input.

Motion by Reese that the Finance Committee provides the Joint Committee with a statement setting forth the proposed capital expenditures approved by the Board of Directors over the next 5-10 years.  Motion passed unanimously.
 
Review the FY2015-2016 Audit Report
A discussion ensued regarding obtaining a final copy of the Audit Report.  
Motion by Rokosz that the Finance Committee obtains a final copy of the Financial Statements and the Management Report.  The motion passed unanimously.

General Discussion of the role and function of the Finance Committee.
A discussion ensued regarding the role of the Finance Committee and the Finance Committee Charter.   
Motion by Reese that the Board of Directors permit the Finance Committee to have published in Lake Currents and other forums a letter or statement approved by the Finance Committee, reflecting its approved positions.  Motion passed unanimously.

A discussion ensued regarding the Procurement Policy.  A suggestion was made to revisit the topic again at a later date.

Adjournment:  The meeting was adjourned by Kelly at 8:40PM.
 
C. Bohling, Secretary
Approved 10/3/2016

Minutes
Regular monthly meeting of LOWA Finance Committee
Community Center, October 3, 2016, 7:00 PM

 
Call to order:
Chairperson Kelly, observing that a quorum was present, called the meeting to order at 7:00 PM and announced that if anyone were taping the meeting they needed to notify the Committee Chair.

Attendance
Members Present:                              Members Absent:                        Guests Present:
O. Kelly, Chair.                                    F. Rokosz, voting                        T. Sheridan, Planning         
J. Drabant, voting                               P. Powell, voting                           B. Hoh, BOD
G. Reese, voting                                 B. Wright, advisor                        L. Brown
D. McKee, voting                                                                                  L. Cole, Dir. Finance
C. Bohling, voting                                                                                 J. Zukowski, BOD
R. England, voting
J. Logan, voting
P. Schubert, voting
J. Toler, voting
L. McKinney, voting
J. Flynn, alternate
N. Bielmeier, advisor
A. Siegel, advisor
J.  Zwickl, Treasurer/BOD Liaison

Agenda: Motion by Reese to approve the agenda for October 3, 2016.  Motion approved unanimously
  
Minutes:
Motion by Bohling to approve the minutes of the September 7, 2016 meeting.  Motion approved unanimously.

Chair Comments:
Kelly welcomed new members, Toler and Flynn, and thanked Directors Zukowski and Hoh, for attending.

Board Liaison Comments:
Zwickl congratulated new committee members.  She stated that the Finance Committee Charter amendment increasing committee to 13 voting members has been approved and other charter amendments to be approved at next meeting of BOD.  

Unfinished Business:
Kelly discussed the status of the Joint Finance/Planning Committee regarding the Clubhouse Pool Complex.    The Board has put a delay on the project and set a goal to review new plans, examine site issues, explore covered pool, and explore more affordable options for the proposed project.  A discussion ensued regarding the Committee’s response to the Board on the joint committee assignment.  The Finance Committee agreed to send a memo to the Board no later than October 15, 2016 stating its views concerning potential funding methods when the Board has arrived at a decision with regard to the approval of the clubhouse pool project, its size and cost; its timing etc. 

Review Charter:
There was a discussion regarding when it is appropriate for the Finance Committee to make comments in the Lake Currents regarding financial issues.

McKee moved to revise Charter  Paragraph II (13) to reflect “any proposed contract over $25,000 to be reviewed and recommendations made by Finance Committee”,  Reese seconded, motion passed unanimously. 

There was a discussion regarding paragraph 1, first sentence, changing the wording from contemplated to required.

McKee moved to delete “members” and “alternates” from Paragraph III (3) and reword to “members of the Finance Committee cannot serve on the Planning Committee”, seconded by Reese, passed unanimously.
  
Membership List and Liaison Assignments:
Kelly reviewed membership list and liaison assignments.  Schubert reassigned to Communications from Fitness.  Flynn volunteered to take Fitness.  Bielmeier assigned to review   Subsidy.

New Business:
Kelly went over the August 31, 2016 Financial Statement.  Cole clarified certain items on the statements.  Cole stated that there are 50 to 100 projects each year, some get completed and some are carried over into the following year.

General Discussion:
Kelly encouraged Finance Committee members to familiarize themselves with the Miller Dodson Reserve Study Report because it will be an important tool during the budget review process in December.

Discussion initiated by L. Brown regarding cost over- run on the reconstruction of Sweetbriar Pool.  Kelly stated that the extra costs reflect design enhancements that were not present in the original pool.  RFP for Sweetbriar pool to be issued in October.

Adjournment: The meeting was adjourned by Kelly at 8:45 PM.
C. Bohling, Secretary
Approved November 7, 2016
Amended December 5, 2016

Minutes Regular monthly meeting of LOWA Finance Committee
Community Center, November 7, 2016, 7:00 PM

 
Call to order:
Chairperson Kelly, observing that a quorum was present, called the meeting to order at 7:05 PM and announced that if anyone were taping the meeting they needed to notify the Committee Chair.  McKee stated he would be taping the meeting.

Attendance
Members Present:                              Members Absent:                       Guests Present:
O. Kelly, Chair                                    J. Logan, voting                          T. Sheridan, Planning
J. Drabant, voting                               P. Schubert, voting                      B. Hoh, BOD
G. Reese, voting                                B. Wright, advisor                        J. Zukowski, BOD
D. McKee, voting                               N. Bielmeier, advisor                     L. Morlan, BOD
F. Rokosz, voting
C. Bohling, voting
R. England, voting
P. Powell, voting
J. Toler, voting
L. McKinney, voting
J. Flynn, alternate
A. Siegel, advisor
J.  Zwickl, Treasurer/BOD Liaison

Agenda:
Motion by Reese to approve the agenda for November 7, 2016.  Motion approved unanimously

Minutes:
Motion by Reese to approve the minutes of the October 3, 2016 meeting.  Objection by McKee.  Motion by Reese to approve the minutes excepting the items McKee is unhappy with.  Motion passed.
 
Chair Comments:
Kelly welcomed BOD members and other guests in attendance.

Board Liaison Comments:
Zwickl commented that Carl Clawson was re-elected to the BOD.  Discussion regarding the Management letter from the Auditors.  Also discussed fraud avoidance and the need to review the Auditor’s comments on internal controls.  Zwickl also gave an update on the Sweetbriar Pool.

Unfinished Business:
Kelly announced that the Amended Committee Charter was approved at the October 19 BOD meeting with a few exceptions.  Discussion ensued regarding the exceptions. (Distributed new charter).

New Business:
Kelly announced that the Budget hearings are scheduled for December 6, 7, and 8.  Distributed Presentation Schedule and the FY 2017-2018 Budget Calendar. Committee members need to familiarize themselves with their assigned cost center budget as well as the proposed Five Year Capital Spending Plan, and the Miller Dodson Reserve Study, in preparation for the Budget Hearings.

Review Annual Assessment History:
Rokosz shared a report he compiled showing a 10-year comparison of the LOWA annual assessment (dues) increase with that of the Consumer Price Index (CPI) from 2006 to 2016.  Discussion ensued regarding the high rate of increase of the assessment compared to the rate of inflation over the 10-year period.  The data shows that increase in the assessment grossly exceeded the increase in Inflation.

Review FY2015-2016 Subsidy.
Rokosz will be taking a closer look at the subsidy data in order to provide the committee with a more realistic comparison at a later date.

General Discussion:  None

Adjournment: The meeting was adjourned by Kelly at 8:40 PM.
Submitted by: C. Bohling, Secretary
Approved December 5, 2016
 

Minutes Regular monthly meeting of LOWA Finance Committee
Community Center, December 5, 2016, 7:00 PM

 
Call to order:
Chairperson Kelly, observing that a quorum was present, called the meeting to order at 7:03 PM and announced that if anyone were taping the meeting they needed to notify the Committee Chair.  No one taped the meeting

Attendance
Members Present:                   Members Absent:                  Guests Present:
O. Kelly, Chair                         J. Logan, voting                     R. Hancock
P. Schubert, voting                  J. Drabant, voting                  B. Hoh, BOD
G. Reese, voting                     B. Wright, advisor                 L. Cole, Director of Finance
D. McKee, voting                   J. Flynn, alternate                                                                                       
F. Rokosz, voting
C. Bohling, voting                                                                                                                     
R. England, voting
P. Powell, voting
J. Toler, voting
L. McKinney, voting
A. Siegel, advisor
J.  Zwickl, Treasurer/BOD Liaison

Agenda: Motion by Reese to approve the agenda for December 5, 2016.  Motion approved unanimously

Minutes: Motion by Reese to approve the minutes of the November 7, 2016 meeting.  McKee nay, others aye.   Motion passed.

Kelly welcomed BOD and other  members in attendance.

Kelly discussed McKee’s objections to the October minutes.  Reese moved that reference to motion by McKee in the October minutes be removed.  No objections.

Kelly gave an update on Sweetbriar Pool.

Zwickl presented auditor’s management letter, a discussion ensued regarding said letter.  Cole clarified some procedures for handling checks etc.

Kelly asked if anyone had questions regarding budget hearings beginning tomorrow.  Discussion followed regarding budget hearings and the need for long range capital planning.

Adjournment: The meeting was adjourned by Kelly at 8:06 PM.
C. Bohling, Secretary
Approved January 2, 2017
 

FC Minutes – Budget Hearings
Finance & Planning Committee Joint Budget Hearings of LOWA Fiscal 2017-2018 Proposed Budgets
Community Center:  

Tuesday, December 6, 2016 from 9:00 AM to 5:00 PM
Wednesday, December 7, 2016 from 9:00 AM to 5:00pm
Thursday, December 8, 2016 from 9:00 AM to noon

Finance Committee Chair, Olive Kelly called the meeting to order at 9:00 AM, welcomed everyone present and made the following opening remarks:
The primary purpose of these meetings will be to review the projected revenue and expenditures for fiscal 2017-18 and to determine if the numbers are reasonable, practical and justifiable.  In short, we need to understand what impact the proposed budgets will have on the members assessment next year.  The committee is expected to present its recommendations to the Board of Directors no later than February 4, 2017.  Hopefully, our input will assist in helping to put together an overall budget that is sound and fiscally responsible.

Finance Committee Members  in attendance:
Olive Kelly, Gary Reese, Dave McKee, Carolyn Bohling, Ralph England, Jim Logan, Peggy Powell, Pam Schubert, Lisa McKinney, Judy Toler, Boggs Wright and Norm Bielmeier. Absent:  Jim Drabant, Andy Siegel, Jeff Flynn and Frank Rokosz.

Planning Committee Members in attendance. Tom Sheridan, Neil Buttimer, Allie Felder, Doug Rogers, Michael Tait and Pat Licata

Members of the Board in attendance: Larry Morlan, Leighton Cumming, JoAnn Zwickl, Bob Hoh, Jennifer Zukowski, and Carl Clawson.

LOWA Senior Management Team in attendance: Phil Rodenberg, Larry Cole, Roy Mayberry and Jessie Graves

Other Attendees:   Various members of the community

Phil Rodenberg, General Manager,  began the review  process by introducing  the fee schedule followed by: Administration, Security, Pools, Fitness, General Maintenance, Roads, Grounds, Environmental Resources, Equestrian, Communications, Community Activities, Clubhouse, Golf-ProShop, Golf Maintenance, Golf-Fareways and concluded with the Capital Spending Plans.

At the end of the Hearings, the Finance Committee went into executive session to summarize its findings.  Outlined below is a summary of the Committee’s comments and recommendations:

General Comments:
For future consideration,  the FC recommends investigating a new software system that has a module for budgeting which is capable of monthly data entry for revenue and expenses that more accurately reflects cyclical swings (due to hours of operation, winter month variances, special event revenue estimates, etc.).   Viewing capability of the entire budget cycle would allow for correction of line item variances immediately and not at year end (showing the appropriate month the actual revenue or expense is incurred.  New system should have the capability of report writer to include percentages of month to date and year to date percentage of actuals as a percentage of budget columns.  This allows the budget person the ability to see anomalies in a timely manner.

Administration: 
FC recommends that the GM  takes a closer look at the salary increase of the total budget which is more than $160,000 or about 4% compared to the CPI of 1.6%. The level of increase is not fully justified.

Clubhouse:
The conservative increase in revenue is understood as future banquet bookings were not available at the time of budget preparation.
The percentage of the salary pool should remain at 1.6% for 2017-2018 to reflect the 1.6% consumer price index amount.  We would also recommend that the Controller provide the salary analysis he performed which shows by category the number of employees, hours worked, and amounts for the current year and 2017-2018.  It would ensure better insight on how each category affects the total salary line.  It would also provide insight into which category the $43K overrun through October 2016 applies.  

There is a concern on the committee that the 44 part time workers are excessive.  The above analysis would provide the Board with the justification/scheduling of 44 part time employees.  If the number of part timers is reduced, the associated benefits’ cost would also decrease.

A question was raised regarding the Clubhouse Schedule.  The committee would like to see justification for only using the Clubhouse for five days a week.   It is a beautiful facility and seems underutilized if only available on five of seven days a week.  Is this based on historical attendance figures and cost analysis, i.e., the number of members using the facility on those days does not justify the cost of goods and staff?  There are currently a manager and two assistant managers who could be scheduled to cover a seven day per week operation, if determined to be viable, supplying sufficient management presence.

If the line item for discounts includes donations, it is recommended that a separate account be opened in Jonas for donations to provide more accurate reporting of these expenses.

There is a concern that groups with small attendance are not being accommodated due to scheduling difficulties.   The committee feels this issue is causing disgruntled members and that a method to accommodate these groups needs to be investigated and implemented.

Three items for commendation are:
  • Renegotiation of the propane contract with Amerigas for a significant savings on propane costs;  
  • Year over year improvement in the subsidy required for the operation of the clubhouse facility.   It is hoped that with further analysis, and perhaps reduction of the number of part time employees required to run a first class operation, the clubhouse facility could become subsidy free.
  • We recognize the efforts of the new chef in the reduction of food costs and the use of fresh products instead of frozen items.  This is not only cost beneficial, but it is also a more healthy approach for the members utilizing the dining room and grill room.
Fareways:
The Board needs to review the revenue projections for the Fareways operation for next fiscal year.   It is always a positive step to have increased goals with regard to revenue, if justified; but without a definitive marketing plan in place, nor its development at the time of budget preparation, we feel the revenue estimates are not realistic and overstated for the next fiscal year.  

The Board should require a better training program for the part time workers on the service staff.    Proper etiquette in greeting, order taking, and attire should be emphasized.  One of the goals for this next fiscal year is efficiency.  This is a must as customers wait far too long to receive their orders.   This issue will cause members to avoid eating at the facility instead of frequenting it more often to help increase the revenue goals.  There is always a choice for members’ attendance; and since we hope to make the Fareways a profitable, or at a minimum break-even amenity, an efficient, fully engaged and polite wait staff will make members want to return more often to use Fareways.

The Board should monitor increased attendance and revenue goals so a plan for new kitchen equipment will be acted upon swiftly if the attendance/revenue justifies these expenditures.

The Board needs to consider a full time manager presence at the Fareways.  This oversight would ensure better service and more efficient operations.   The new position could be reconsidered for the budget; or a suggestion was made by one of the committee members that if scheduling at the clubhouse permitted, one of the assistant managers could oversee the Fareways’ operations.  This would save the addition of a new employee, and utilize the expertise of a currently trained manager with the skill set for this type of operation. 

It was suggested that pizza should be added to the existing menu.  This would attract the younger members and their families as the Fareways is a less formal setting for meals.  The addition of pizza would help to generate new revenue; and perhaps could be used as marketing tool for pizza nights.

With the addition of a new assistant general manager, a marketing plan for increased attendance/revenue needs to be developed very quickly.
There needs to be continued ordering synergies between the Clubhouse and the Fareways to achieve continued and improved cost savings on food and beverage items.

Committee members feel this amenity is a priority for the Board’s attention.   If members drop their interest in obtaining meals and attending events scheduled at the Fareways due to past issues, it will be difficult to get them to give the Fareways a second chance.   This will severely hinder any marketing plans.  It is felt that with the right marketing plan and proper management, it could become a self-sustaining amenity, thus reducing the assessment.

Golf Operations:
Because the net revenue year-to-date is down substantially, there is a concern on the committee that the proposed revenue and expenses for 2017-18 are not realistic.   The Board needs to consider a new business plan with a focus on how best to turn this important amenity around with the aim in reducing the very large subsidy. A revised fee schedule may also help to improve revenue.

Communication:
FC recommends continuing publication of The Lake Currents twice a month.  While we commend management for implementing Constant Contact weekly blasts and looking into reaching the membership via web posting of The Lake Currents, we feel that many of the LOW membership depend on the distribution of the paper as a source of information throughout the lake. In addition, sales of advertising and classified ads can help to substantially reduce the cost of publication/distribution.

Tennis/Racquet Club Transition
LOWA is repurposing two tennis courts to appeal to our pickle ball players and combining tennis and pickle ball into a newly renamed “Racquet Club”.  We do not see the need to lower the rates.  We recommend the new Racquet Club use the current amenity rates already in effect for the Tennis Club.

Community Activities (Youth):
FC recommends that a separate line item be set up in the operating budget for “Youth Activities”.   A  Youth program seems to be in place and this would also help to highlight the Board’s goal to develop and implement a plan to improve teen activities.  Funding for youth oriented programs should be clearly identified.

General Maintenance and Roads:
FC recommends that the Board considers the construction of a Vehicle & Equipment Storage Barn at the Shoosmith Compactor Yard in 2017-18.  This project is already included in FY 2018-19 capital spending plan.  Moving it up one year would enhance maintenance and the useful life of costly equipment.  This project could be funded from NAIR.

We need to re-evaluate the effectiveness of adding three part time attendants to the 9.9 Maintenance Areas.  The proposed additional funding does not seem to justify the additional work load.

Capital Spending:
Equestrian:
FC recommends that a cost benefit analysis be done to justify spending $150,000 on a “Covered Ring”.

Community Activities, reserve #267 CC Athletic Pads, $16,000.
 FC recommends deferring to out years.  The Pads appear to have more useful life.  Perhaps an improved method of attaching the pads to the walls would prevent them from falling down when the room is in use.

Maintenance, reserve #483 & 484 Condenser $3,800 and AHU 2.5 Ton $4,200
FC recommends deferring replacement until it becomes necessary (no longer working).

Security:
FC recommends that the Association purchase a license plate reader for the visitor’s lane at the front gate.  This item can be funded from New Capital Reserve.
Approved 2/6/17
 
 

 Minutes Regular monthly meeting of LOWA Finance Committee
Community Center, January 2, 2017, 7:00 PM

 
Call to order:
Chairperson Kelly, observing that a quorum was present, called the meeting to order at 7:00 PM and announced that if anyone were taping the meeting they needed to notify the Committee Chair.  No one taped the meeting

Attendance
Members Present:                      Members Absent:                      Guests Present:
O. Kelly, Chair                            J. Toler, voting                           L. Morlan, BOD
J. Drabant, voting                       P. Schubert, voting                    J. Zukowski, BOD
G. Reese, voting                        J. Flynn, alternate                      P. Rodenberg, GM           
D. McKee, voting                       J. Zwickl, BOD                           C. Guzek, AGM                 
C. Bohling, voting                       F. Rokosz, voting                       L. Cole, Director Finance              
R. England, voting                                                                       R. Mayberry, Finance
P. Powell, voting                                                                          B. Hoh, BOD
L. McKinney, voting                                                                     Laurie Brown
R. Haring, alternate                                                                      Tina Marangi
A. Siegel, advisor                                                                         Barry Menniti
B. Wright, advisor                                                                         Suzie Wright
J. Logan, voting                                                                           Leslie LaVenita
 
Agenda: Motion by Reese to approve the agenda for January 2, 2017.  Motion approved unanimously

Minutes: Motion by Reese to approve the minutes of the December 5, 2016 meeting.   Motion passed.
Kelly welcomed Board Members, General Manger and Sr. Staff and other LOW members in attendance.
Morlan acted as a substitute for Zwickl, due to her illness.

Unfinished Business:
Kelly stated that the primary purpose of the meeting was to discuss FY 2017-18 proposed budgets with the Management Team, following 3 days of budget hearings in early December. 

Issues discussed based on Committee’s Comments and Recommendations:
  • The Jonas accounting software. 
  •  Employee salary increases.  
  •  Golf cart leases.
  •  Establishing fees for the Racquet Club.
  •  Setting up separate funding for youth activities. 
  •  Funding for new pole barn at Shoesmith.
  •   Doing a cost benefit analysis before building a covered ring for the Equestrian center
Committee Motions:
  1.  Logan moved to ask the GM for the salaries of all employees earning over $70,000 per year to see if the salaries are in range and a part of the budget review process. Seconded by McKee. Motion passed unanimously. 
  2. Powell moved to keep the Pickle Ball fee the same as they have been for tennis.  Seconded by McKinney.  Motion passed unanimously. 
  3. McKee moved that the Finance Committee recommends to the Board to instruct the General Manager to not lease the property located at 3409 Germanna Highway when the current lease expires and instead list the property for sale.  Seconded by Reese. Motion passed5 ayes: McKee, Drabant, England, Powell, Logan, 1 abstain: Reese and 3 Nays: Kelly, Bowling and McKinney.
  4.  Reese moved that the Finance Committee examines the potential of having LOWA charge an annual fee for docks that are anchored or built out from private property into LOWA property, to wit, lakes. Motion to be considered at next meeting of the Finance Committee.
New Business:
    Kelly distributed a draft copy of an article titled “A brief overview of LOWA Restricted Cash Reserve Accounts” to be discussed for publication purposes.  After brief comments, Powell suggested tabling the discussion for the next committee meeting.

General Discussion: Jim Drabant announced his resignation from the Finance Committee effective immediately.

Adjournment:   Meeting was adjourned by Kelly at 9:20pm.
Submitted by:  C. Bowling, Secretary
Approved 2/6/17
 

Minutes
Regular monthly meeting of LOWA Finance Committee
Community Center, February 6, 2017, 7:00 PM

 
Call to order:
Chairperson Kelly, observing that a quorum was present, called the meeting to order at 7:00 PM and announced that if anyone were taping the meeting they needed to notify the Committee Chair.  No one taped the meeting

Attendance
Members Present:                       Members Absent:                        Guests Present:
O. Kelly, Chair                             N. Bielmeier, Advisor                   L. Morlan, BOD
J. Toler, voting                             J. Flynn, Alternate                       J. Zukowski, BOD
G. Reese, voting                         D. McKee, voting                          B. Hoh, BOD      
F. Rokosz, voting                                                                           Cliff Wilks                          
C. Bohling, voting                                                                           T. Sheridan         
R. England, voting                                                                          Laurie Brown
J. Logan, voting                                                                             Suzie Wright
P. Powell, voting                                                                                                                                      
L. McKinney, voting
P. Schubert, voting                                                                                                                   
R. Haring, alternate                                                                                                  
A. Siegel, advisor                                                                                                                      
B. Wright, advisor                                                                                                                                                  
J. Zwickl, BOD Liaison                                                                                                              

Agenda:
Motion by Reese to approve the agenda for February 6, 2017.  Motion approved unanimously

Minutes:
Motion by Reese to approve the minutes of the January 2, 2016 meeting.   Motion passed.
Motion by McKinney to approve the minutes of the December 6, 7, and 8 budget hearings.  Motion passed.
Kelly welcomed Board Members, Committee and members in attendance.

Unfinished Business
There was a discussion regarding the Independent Auditor’s Letter of 9/20/16 on internal accounting controls.  Rokosz volunteered to author a recommendation to Management on how they may resolve the issues in question.
There was a discussion regarding articles for publication in the Lake Currents.   The following topics were suggested for future articles: LOWA Restricted Cash Reserve Accounts, The Increasing Assessment, History of the Assessment, The Role of the Finance Committee, Capital Spending Plans, Process and Procedures in Developing the Annual Budgets.
There was a motion by Rokosz to submit the article regarding reserves for publication in the February 17 Lake Currents.  Seconded by Bowling.  Motion passed.
There was a discussion regarding the budget schedule and the possibility of having the calendar adjusted to ameliorate the effect on the Thanksgiving and Christmas holidays.
There was a discussion regarding the possibility of having the results of the Finance Committee budget hearing presented directly to the Board in future years, instead of to the Management Staff.

There was a motion by Reese that the Finance Committee create  and appoint a special committee to explore new income streams for LOWA  to include, but not be limited to dock fees,  and to report its findings to the Finance Committee  for a full Committee review and discussion and possible recommendations to the Board of Directors.  Seconded by Logan.  Motion passed with 9 ayes, Kelly abstained.
Kelly reported that the Board awarded the Golf Maintenance Contract to IGM. Unanimous approval from the Management Working Group and the Board of Directors.
  • Fiscal 2017  $403,407
  • Fiscal 2018  $409,458
  • Fiscal 2019  $415,600TOTAL $1,228,465
New Business:
Kelly gave a brief update on the Jonas Computer Software.   Management is now looking into the possibility of upgrading the system.
Liaisons made reports of their respective committee meetings.  Guests were afforded the opportunity to make comments.

Adjournment: The meeting was adjourned by Kelly at 8:35 PM
Submitted by: C. Bohling, Secretary
Approved 3/6/2017
 

Minutes Regular monthly meeting of LOWA Finance Committee
Community Center, March 6, 2017, 7:00 PM

 
Call to order:
Chairperson Kelly, observing that a quorum was present, called the meeting to order at 7:00 PM and announced that if anyone were taping the meeting they needed to notify the Committee Chair.  No one taped the meeting

Attendance
Members Present:                     Members Absent:                      Guests Present:
O. Kelly, Chair                           N. Bielmeier, Advisor                 B. Hoh, BOD
J. Toler, voting                           G. Reese, voting                       J. Zukowski, BOD
J. Flynn, alternate                       D. McKee, voting                     L. LaVenuta        
F. Rokosz, voting
C. Bohling, voting
R. England, voting
J. Logan, voting
P. Powell, voting
L. McKinney, voting
P. Schubert, voting
R. Haring, alternate
A. Siegel, advisor
B. Wright, advisor
J. Zwickl, BOD Liaison
 
Agenda: Motion by Rokosz to approve the agenda for March 6, 2017.  Motion approved unanimously

Minutes: Motion by Powell to approve the minutes of the February 6, 2017 meeting.   Motion passed.
  Kelly welcomed Board Members present, committee members and other guests.
   Zwickl expressed her appreciation to Finance and Planning committees for their help with the budget process.
   Kelly congratulated the Board for reducing the proposed assessment increase from 3.6 to 1.2%.

Unfinished Business:
   There was a discussion regarding goals for the remainder of the year and the need for a longer term funding plan. 
   There was a discussion regarding the procurement policy.  Members were asked to bring their comments to the next meeting.
   There was a discussion regarding the auditor’s letter on internal controls.  Rokosz is in the process of drafting a recommendation for management and Board approval.
   There was a discussion regarding the recent articles in Lake Currents having to do with the assessment.  Finance Committee decided to write an article expressing its views on the assessment, as a follow-up.  Boggs Wright graciously volunteered to write the article for publication in the Lake Currents.    
   There was a consensus from the committee for him to proceed.
There was a discussion regarding forming a working group to explore new revenue sources.  The decision was tabled due to Reese’s absence.

New Business:   None
   Liaisons reported on their respective committees.

Adjournment: The meeting was adjourned by Kelly at 8:55 PM.
C. Bohling, Secretary
Approved 4/3/2017