Seven Lakes Homeowners AssociationAnnual Membership Meeting

Wednesday, March 26th, 2008 7:30 PMA.G Wright Middle School

Stafford, Va.

Call To Order The meeting was called to order at 7:45PM. All board members werepresent. It was determined that there was a presence of a quorum.

Election of New OfficersCandidates for the Board were given an opportunity to speak with the membership.Terrance J. Gleason, Phyllis Phillips, the Reverend Steven Emerson Scott, and ErnestTerrazas gave their remarks. Absent were Fiona Apple and Kevin Finnerty. Then votingin person and by proxy Phyllis and Ernest were elected by majority to fill the two emptyBoard positions. All the candidates were thanked for their willingness to serve thecommunity.

Reports:

President's Report Hank stated that he has initiated an audit with Bowling Franklin &Co. LLP which should take one month to complete. He also has initiated a Reserve Studywhich will estimate the repair and replacement costs over the period of a lifetime for ourassets. This study should be completed in 60-90 days. Hanks also reported on ourenforcement actions:

1. We are in litigation with Garrett to vacate easements.2. We have filed a temporary non-suit with Nortey regarding our recreational easementwhich has been in place since 1989 with Mr. Robinson. We will re-file with a newcounsel.3. Dam Access. We are negotiating a 99 year land lease for access. We may gain accesswith an injunction.

Treasurer's Report Bruce reported as of March 5th 2008 that we have $122,247.81 inour Reserve Funds with an Operating Fund of $26,899.77 for a balance of$149,147.58.We have an income of$18,554.76 with expenses of$5,380.07 for a net income of$13,174.69.

Secretary's ReportThe draft of minutes for March 29, 2007 were read and approved as amended.

Committee ReportsAmenities. Dawna reported the her committee has no plans for any new amenities.

ARC. Pierre Hollis reported his committee has noted 7 violations. Five homeownershave been contacted. ARC has also received two applications for work: 1. Propertyimpacted by water. 2. For a shed.

ECC. Dan McCluskey absent. Hank reported that McGovern's home is still underconstruction and the two other properties need to complete their landscaping.

Welcome. Tami reported that May 17this set for the Barbeque(2PM) and CommunityYardsale (8-12AM) with May 31st as an alternate rain date. The Holiday Party is set forDecember 19th2008.

Neighborhood Watch. No report.

Maintenance. Phyllis Phillips reported that Brinkman will be handling our landscapingcontract again.

Old Business: None

New Business: None

Adjourn A motion was made to adjourn the meeting. The motion was seconded andpassed unanimously. The meeting was adjourned at 9:40 PM.

Submitted by:

/ /1_ /:;"'-01

SEVEN LAKES HOMEOWNERS ASSOCIATION2009 BUDGET

2008Actual

2008 YTD 2009 2009INCOME Budget 10/31/2008 Budget Quarterly

Dues:In+~¢(.~ o~"~ m+, '& $84Regular Dues 66,240 65,852 0Dues Surplus Refund 0 0 0Interest 0 0 0Penalty Fees 0 1,985 0Other 0.00 925 0TOTAL 66,240 68,761 0

EXPENSES

Bad Debts 0 0 0Banking Fees 0 103 125Corporate 0 105 125Office 105 0 150Printing 630 124 749Postage 1,353 890 1,749Member Relations 4,450 2,087 2,648Miscellaneous 240 0 42Repai r/Mai nt. 3,850 1,856 2,230Grounds Maint. 25,110 13,938 26,860Dam Survey 0 0 0Snow Removal 0 0 0Electric 1.200 572 700AudiUAccntng 3,300 0 0Insurance 2,380 1,057.00 2,400Legal 15,000 6,793 15,000Software 0 157 250Operating Expense 0 639 720Fncl Mngmnt Fee 5,400 4,500 6,000Surveying 0 1,000 0Reserve Study Fund 2,600 1,000 0License Fees 35 0 25Taxes (Federal) 150 0 500Taxes (State) 100 97 125Income Tax Preparation 0 175 175Penalties & Interest 0 0.00 0TOTAL 65,903 35,092 60,573Operating Srpls (Dfct) 337 33,670 °

-,

SLHOA 2009 Budget Support Figures

Bad Debts

TOTAL, _

Banking Fees

TOTAL. _

Corporate

TOTAL. _

OFFICE SUPPLIES

PAPERPost Cards for Mailings

TOTAL. _

PRINTING

New Directories (250)X4 @ $ ,06/ ARC rules Reprint (220)X17 @ $ ,06

Board Meeting Notices 5 times @ $18.00Membership Notices 3 times

~::!I=~;:,Oil UVeta§e- civ(e"Labels $4.50 each 8 times ) (,500 Sfflsil Envelopes 4-V ~1000 #10 Window Envelopes6hrislill8s l='alLyNotice d ~~

TOTAL. _

$0.00

$125.00$125.00

$50.00$100.00$150.00

$63.00 \$236.00/

$80.00$34.00$69.00

$128.00$36,00$i.ae

$16.00• $98.0a-~

./

Page 2 AOf'"'llSLHOA ~udget Support Figures

POSTAGE

Quarterly Billing 4 X 180 @ $.42Delinquent Billing 2 X 45 @ $.42Board Meeting Notice (5)Membership Notices (3)General Correspondence (35)Certified Letters (20) @ $4.25Newsletter X 2 ($80.00)Budget Mailing ($.62)Directory Mailing ($.62)Bill Payment (average 200)P. O. Box RentalMail HandlingChristmas Party MailingARC Infraction Mailings (125)

$303.00$40.00

$378.00$227.00

$15.00$85.00

$160.00$112.00$112.00

$84.00$54.00$50.00$76.00$53.00

TOTAL, _ $1,749.00

MEMBER RELATIONS

Christmas PartySpring Party SuppliesNew Family Gift (average $20.00)

$4,000.00$2,087.00

$100.00$6,187.00TOTAL, _

Christmas DecorationsReplacement LightsPower Wash Obelisks

MISCELLANEOUS

TOTAL. _$42.00

REPAIR! MAINTENANCE

Capital AssetsGeneral Repairs & Labor

$630.00$1,600.00

TOTAL. _ $2,230.00

Page 3

SLHOA~Udget Support Figures

GROUNDS MAINTENANCEMulch (delivered & spread)Flowers - Spring/FallBush Hog Common Area 2 XMaintain existing horse trailsMowing, weeding, aerating,Removal of overgrowthChem Lawn

Lawn TreatmentTrees & Shrub

Tree RemovalTOTAL _

ELECTRICEstimated usage

TOTAL _

AUDIT/ACCNTNG

Preparation of Audit

TOTAL. _

INSURANCEDirectors/Officers/LiabilityProperty Liability

TOTAL _

LEGAL

Estimated Attorney Fees60 hrs. @ $250.00 per hour

TOTAL. _

SOFTWARE

TOTAL. _

$2,500.00$1,500.00

$18,360.00

$1,000.00$750.00

$2,750.00$26,860.00

$700.00

$700.00

$0.00

$1,036.00$1,364.00$2,400.00 .

$15,000.00

$15,000.00

$250.00

$250.00

Page 4

N>o1SLHOA .aoe&Budget Support Figures

OPERATING EXPENSE

TOTAL. _

ACCOUNTING SERVICES

Monthly fee $500.00TOTAL~ _

SURVEYING

TOTAL _

RESERVE STUDYAnalysis of Development Needs

TOTAL. _

LICENSE FEESCorporate Registration Fee

TOTAL, --_

Federal EstimatedState Estimated

INCOME TAX PREPARATION

TOTAL, _

PENALTIES & INTEREST

TOTAL _

$720.00

$720.00

$6,000.00$6,000.00

$0.00

$0.00

$25.00

$25.00

$500.00$125.00

$175.00

$175.00

$0.00

1/" /:;"-bY

SEVEN LAKES HOMEOWNERSASSOCIATION

1--1=-=1= I ~1===1===--=-r=--=t=--t=--=--=t=I===t I 2007 q 2007 ~ 2007 i=== F 2008 IIINCOME---- Budget Quarterly ----=- -as of - Proposed _

Dues 24-0ct Dues

~rDue~_ t------t--62,868~ $87 I l 62,727.001 -'-------1----==1= $95 j ICourt cost reimbursement-1-- 2,780.00 -\-.------1--- -Fines I I I I I 2,700.00

~terest ------+---1 --1 ~ 1,787.41Late paymentfees 250.251------+ ---f-------f--- ..--

Other reimbursed 458.30Disclosurepack.~__ 300.00 -+- I-TOTAL 62,868.30 71,002.96 -- --- I

IEXPENSES • •

0.00 0.00137.80 165.00 ===t==--56.00 -'-- 1225.00 1--- 375.00

253.00 890.007A7 <!? 12~

6,350.00,postage 1 --.I 1,520.30

1+-_ '-"--

Member relations I I" 4,450.00

Bad DebtsOfficeBankingfees

0.00105.00

1v1eetinglocationPrinting I I 698.00

Miscellaneous I I 240.003,580.00 =+ 2'214.10~ i' ~_ 500.00t= __ --+ ---I

3,600.00_ __--I---~~~~L--+-----+---;;;25;:-,'-:11;-;;0---;;.0:n0t----j--- - 15,866.16 22,610.00 - ---

Electric 1,200.00IAuditlA~~~g___ _ __ ~!~QO.OO ,Insurance 2,380.00Legal 1 1 12,000.001 1 1 21,497.681 1 1 15,000.00

License Fees ~ 35.00j I .~ 25.00~ I- + 25.00\-==,corporate fees/dues ---- 125]-0 -=_=__ 125.00. --=t==---'Taxes (Federal) 150.00 260.00 150.00Taxes State) 100.00 100.00

tenalties & Interest 0.00 0.001

ITOTAL 62,868.30 68,585.85

, I 1 - 1 I--t--- 1 -1-------+----+------1 ,

I --+--- I -+----+- I II--- 1 1 1 ----j I

II I I IIIII I I I

II!ij I I I I I I I I I i I

II !! I I I I !

I I I I I I I ' I II i

i I I, I ,I ! I I I I I T I

0_1'J...-09

SEVEN LAKES HOMEOWNERS ASSOCIATION6 Year Budget Comparison

2004 -2009Actual

2004 2005 2006 2007 2008 YTD 2009 2009 2008 Budget vs 2009 BudgetINCOME Actual Actual Budget Budget Budget 1013112008 Budget Quarterly $ Difference % Difference

Dues$84

Regular Dues 57,060 57,979 59,758 62,868 66,240 65,852 0 -66,240 -100.00%Dues Surplus Refund 0 0 0 0 0 #DIV/O!Interest 0 0 0 0 0 #DIV/O!Penalty Fees 404 0 0 1,985 0 0 #DIV/O!Other 125 0 0 925 0 0 #DIV/O!

TOTAL 57,689 57,979 59,758 62,868 66,240 68,761 0 -66,240 -100.00%

EXPENSES

Bad Debts 0 0 0 0 0 0 0 0 #DIV/OIBanking Fees 0 0 0 0 0 103 125 125 #DIV/O!Corporate 0 0 0 0 0 105 125 125 #DIV/O!Office 56 591 95 105 105 0 150 45 42.86%Printing 353 835 1,145 698 630 124 749 119 18.89%Postage 957 491 1,680 1,520 1,353 890 1,749 396 29.28%Member Relations 4,692 528 4,450 4,450 4,450 2,087 2,648 -1,802 -40.49%Miscellaneous 159 2,665 615 240 240 0 42 -198 -82.50%Repair/Maint. 460 2,100 3,580 3,580 3,850 1,856 2,230 -1,620 -42.08%Grounds Maint. 21,209 24,453 23,728 25,110 25,110 13,938 26,860 1,750 6.97%Dam Survey 0 0 0 0 0 0 0 0 #DIV/O!Snow Removal 120 0 0 0 0 0 0 0 #DIV/O!Electric 992 1,100 1,600 1,200 1,200 572 700 -500 -41.67%Audit! Accntng 2,550 300 3,300 3,300 3,300 0 0 -3,300 -100.00%Insurance 1,888 2,070 2,280 2,380 2,380 1,057 2,400 20 0.84%Legal 5,336 3,510 10,000 12,000 15,000 6,793 15,000 0 0.00%Software 0 0 0 0 0 157 250 250 #DIV/OIOperating Expense 0 0 0 0 0 639 720 720 #DIV/O!Fncl Mngmnt Fee 6,060 1,710 5,400 5,400 5,400 4,500 6,000 600 11.11%Surveying 0 0 0 0 0 1,000 0 0 #DIV/O!Reserve Study Fund 0 1,500 1,600 2,600 2,600 1,000 0 -2,600 -100.00%License Fees 25 25 35 35 35 0 25 -10 -28.57%Taxes (Federal) 0 0 150 150 150 0 500 350 233.33%Taxes (State) 0 2 100 100 100 97 125 25 25.00%Income Tax Preparation 0 0 0 0 0 175 175 175 #DIV/O!Penalties & Interest 0 0 0 0 0 0 0 0 #DIV/O!

TOTAL 44,856 41,880 59,758 62,868 65,903 35,092 60,573 -5,330 -8.09%Operating Srpls (Dfct) 12,733 16,099 0 0 337 33,670 0

1/- t Z> ())I

-1-

SEVEN LAKES POARESERVE STUDY

ITEM ESTIMATED REMAINING 3% INFLATION CURRENT COST OF FUTURE COST YEARL Y RESERVES SET ASIDELIFE FACTOR REPLACEMENT 3% INFLATION FOR FUTURE REPLACEMENT

COST OF REAL PROPERTY

720' STONE VENEER CMU WALLS 20 YEARS 1.806 $32,000 $57,792 $2,890NEAR

1 30BOLISK 20 YEARS 1.806 $11,200 $20,227 $1,011NEARII, ,

I

, PLAYGROUND SLIDE & SWING SET 5 YEARS 1.159 $7,000 $8,113 $1,623NEARI

I

VOLLEY BALL COURT 5 YEARS 1.159 $1,500 $1,739 $348NEAR

GAZEBO 10 YEARS 1.344 $4,500 $6,048 $605NEAR

FISHING PIER@ PLAYGROUNDPOND 5 YEARS 1.159 $3,000 $3,477 $695NEAR

ROCK RIP RAP PROTECTIONDOWNSTREAM DISCHARGEFROM PLAYGROUND POND 3 YEARS 1.093 $800 $874 $291/YEAR

CONCRETE AND STONE BRIDGEOVER DISCHARGE FROM

PLAYGROUND POND 20 YEARS 1.806 $28,000 $50,568 $2,528NEAR

STONE VENEERED WALLS ONTHE BRIDGE 10 YEARS 1.344 $18,000 $24,192 $2,419NEAR

,I

I WOOD BRIDGE PEDESTRIAN ANDI

1 HORSE CROSSING @ UPPER END,OF PLAYGROUND POND 10 YEARS 1.344 $8,250 $11,088 $1,109NEAR

I

ENTRANCE POND 30 YEARS 2.427 $22,000 $53,394 $1,780NEAR

ITEM ESTIMATED REMAINING 3% INFLATION CURRENT COST OF . FUTURE COST YEARL Y RESERVES SET ASIDELIFE FACTOR REPLACEMENT 3% INFLATION FOR FUTURE REPLACEMENT

COST OF REAL PROPERTY

J I~/'2-- -0 [1

- Z--

LANDSCAPING FRONT ENTRANCEINCLUDIG EXTERIOR DECORATIVE

POST 20 YEARS 1.806 $80,000 $144,480 $7,224IYEAR

UNDERGROUND SPRINKLERSYSTEM W/WELL PUMP 10 YEARS 1.344 $9,000 $12,096 $1,210IYEAR

LARGE LAKE DAM 100 YEARS 19.218 $82,000 $1,575,928 $15,759IYEAR"DAM" 8,300 CY.

7' DIAMETER CMP ASPHALTSPILLWAY PIPE 10 YEARS 1.344 $40,000 $53,760 $5,376IYEAR

HEAD WALLS FOR DISCHARGEII END OF SPILLWAY PIPE 10 YEARS 1.344 ...... ,. $11,000 $14,784 $1,478IYEARI

I,

6x6 TREATED WOOD RETAININGI, WALL AROUND DISCHARGE ENDOF 7' SPILLWAY PIPE 5 YEARS 1.159 $7,200 $8,345 $1,669IYEAR

16' x 16' RISER STRUCTURE 25 YEARS 2.093 $25,000 $52,325 $2,093IYEAR

20 STREET SIGN POSTS WITH IRONWORK 10 YEARS 1.344 $9,000 $12,096 $1,210IYEAR

- 5,280' OF FENCE @ FRONT ANDPLAY AREA 10 YEARS 1.344 $104,000 $139,776 $13,978/YEAR

SILT REMOVAL 20 YEARS 1.806 $88,000 $158,928 $7,946IYEAR

TOTAL: $592,117 $2,410,030 $73,242NEAR

• I