VILLAS AT FALLS RUN, A CONDO

FINANCE COMMITTEE MINUTES

July 28, 2010

Attendance:

Dorothy Fields, Chair, Nancy Garner, Board Treasurer, Sanya Warren-Ham, Board Secretary, William Hackbarth, Mary Ann Hackbarth, Ethel Valois

Minutes from May 26, 2010:

Reviewed and approved.

New Items for 7/28/10:

Items in regard to financials:

The May 2010 financials were reviewed.  Financials for June 2010 will be reviewed at our next meeting.  Increase in assessment receivable due to three more condo owners being added to the delinquency list.  General repairs to equipment and units were charged in error to the building maintenance account and Nancy had them reclassified to general repairs. The Reserve study has funds allotted for irrigation equipment so the $2,000 cost to replace the irrigation clock will come out of reserves.

Reconciliation of the BB&T Reserve bank account was accounted for as of

June 30, 2010.

Sanya provided the committee with an updated contract listing.  The removal of bushes on Harborton covering sensor lights has been completed. The contract with Tru Green will not be renewed for next year.  They agreed that the project is too large for them to handle.  Bids for ground maintenance for 2011 are currently being solicited.

Again, future maintenance projects were discussed to help minimize excess revenues over expenses at year end. The painting of shutters, concrete repair and repairing more roof vents were discussed.  As of the June 30, 2010 financials, we have a year to date surplus of $18,290.

The update on the use of well(s) for watering lawns:  Upon further study, the area being considered for the well is looking more doubtful.  The meeting between the Well Committee, Davidson Well Drilling and members of the BOD brought up issues that should also be addressed by Stafford County.  Hopefully, after the meeting, with the county, Well Committee and some board members, the fate of the well will be decided.

Investments:  We had two certificates of deposits mature in July and one maturing in August.  It has been recommended and the board agreed that 25% of investments be corporate bonds and the remaining 75% be invested in FDIC insured certificates of deposit. All future bonds purchased will be Ginny Mae(s) which are government guaranteed. According to current informative articles, interest rates are to remain flat until sometime in 2012.  Unfortunately, nonprofit companies, organizations, etc. cannot get the same deals as individuals. The committee suggested moving money from our BB&T Reserve Account to a different money market account paying slightly more interest.  Nancy will check into this possibility.

Budget for 2011:  A new reserve study is due in 2011. The new study will be more realistic as to the current interest rates being earned on investments. The new contracts for snow removal and lawn care are needed.  We should have a snow contract in place by the end of September 2010.  One question is whether to budget for a termite contract that costs from $60,000 to $90,000 or to budget for individual cases.  Nancy will contract regular contractors for any price increases for next year. Also since there is a lack of interest of the condo owners to serve on the board or on committees and some of the condo owners currently serving wishing to step down, we are asking Jeffery Charles to include the cost of a dedicated full time certified property manager to oversee our operations.  This manager would be paid by the Association but for pay purposes will be listed as an employee of a property management company.

The next Finance Committee Meeting will be a 2011 Budget on Wednesday, September 8, 2010 at 1:00 PM. depending on the availability of budget information.  Our regular meeting will be on Wednesday, September 29, 2010 at 1:00 PM.

Respectfully submitted,

Mary Ann Hackbarth