Finance Committee Meeting Minutes

MINUTES OF MEETING OF LOWA FINANCE COMMITTEE
July 2, 2007 – Holcomb Building – CR

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.

MINUTES OF MEETING OF LOWA FINANCE COMMITTEE
August 6, 2007 – Holcomb Building – CR

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.

MINUTES OF MEETING OF LOWA FINANCE COMMITTEE   
September 4, 2007 – LLCH

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 LOWA Finance Committee Meeting
October 11, 2007 - Holcomb Building CR<

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 - Holcomb Building

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 - Holcomb Building

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 – Holcomb Building

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 - Holcomb Building

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 - Holcomb Building

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 - Holcomb Building

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 - Holcomb Building

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 LOWA Finance Committee Special Meeting
June 16, 2008 - Woods Center

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 LOWA Finance Committee Meeting
July 7, 2008 - Holcomb Building

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 - Holcomb Building

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 - Woods Center

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 - Holcomb Building

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 - Holcomb Building

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 - Holcomb Building

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