Villas at Falls Run

Finance Committee Minutes

November 9, 2006

Committee members in attendance:

Dorothy Fields, chair, Nancy Garner, Sanya Warren-Ham, Ethel Valois, William Hackbarth and Mary Ann Hackbarth.

Minutes from October 11, 2006

Reviewed and accepted.

New Items

Bill reported on current newspaper articles:  Although housing sales are down, the economy will probably remain good for a few years.  Social Security increase for 2007 will be 3.3%.  Heating bills are forecast to be lower this year.  The area continues to add new retail stores and restaurants, especially in Central Park.

Sanya had no report from the FRCA Finance Committee.

The 2007 budget was reviewed with recommendations to the BOD of a budget increase of 15% in 2007.  Approval is expected at the November 20^th BOD meeting.

New Business

Members of the BOD are receiving a CAI publication, “Common Ground”.  Nancy will share her copy with Finance Committee members.

Four Management Company bids for 2007 were received from the following companies:  Leggett and Norman, Koger Management, Armstrong Management Services and Jeffery Charles and Associates.  References are being checked for the company selected by the BOD.

Several bids are in for 2007 snow plowing.  One company withdrew their bid stating they thought the Villas would be better served using the same company as the FRCA.  The Goodfellers bid seems reasonable and is under review by the board.

In 2007 the Villas will take over management and maintenance of the Irrigation system.  Several bids were received.  The system has been shut down and winterized.  A rain gauge needs to be installed in time for the 2007 irrigation season.

Our insurance coverage runs from February to February and the board has requested 2007 bids from our current agent, Nationwide Insurance and State Farm.

Pest control and power washing was not included in the proposed 2007 budget.

The board has asked Jim Mason, of Mason and Mason, to give us the name of 3 engineer companies who can perform an invasive engineer study of our roofs.  Estimated cost of this study is $5000.  The BOD wants this study completed and to Del Webb by March 2007.

Delinquencies are low with a total of $1200 outstanding.  The board is working with residents to bring all delinquent accounts current.

The committee feels that our current management company should be overseeing Shenandoah’s work at least monthly.  Leaf collection needs to be scheduled.

Old Business

The 2005 audit has still not been completed nor have 2005 taxes been filed.  Koger recommends shifting retained earnings from 2005 to our Reserve account.  If we act within the 2 year timeframe we will owe no taxes.

The next Finance Committee meeting will be announced after the 2007 budget has been finalized and the new management company announced.

Respectfully submitted

Mary Ann Hackbarth