2. LeisureTowne Association, Inc. Welcome to the Budget Presentation for the Fiscal Year April 1, 2014 to March 31, 2015

3. Revenue Budget Estimated Budget 2014 2014 2015 Monthly Assessment $1,596,540 $1,596,540 $1,596,540 P/Y Operating Surplus $150,000 $150,000 $127,899 Recreation Committee $38,530 $43,144 $40,000 Reserve Contribution $216,480 $216,480 $270,600 Other Revenue $109,600 $133,866 $112,600 Total Revenue $2,111,150 $2,140,030 $2,147,639

4. Revenue Recreation Committee - Recreation Committee Income is offset by Recreation Committee Expenses $40,000 Miscellaneous – Interest income, late fees, legal fee collected, fines, private parties, etc. $52,600 Resale fees which are contributed to the Reserves $60,000

5. Expense The Budget consist of two types of expenses, these are: Salaries, Payroll taxes and benefits. Other expense- including professional fees, security, administrative, office, building's, grounds, pools, activities, etc

6. Expense First we will start with Salaries and Benefits

7. Salaries and Benefits Budget 2014Estimated 2014Budget 2015 Employee Salaries 363,948335,289369,452 Employee OT3,000 Total Salaries366,948338,289372,452 Payroll Taxes and Benefits 122,160115,936121,100 Total Salaries and Benefits 489,108454,225493,552 **Note: Salaries do not include management. You will see this information under Professional Fees.**

8. Salaries Continued Salaries include a increase of 1.5%. Benefits include all taxes and health, dental and worker comp insurance The employees are required to contribute to their health insurance plan with a 18-23% contribution of the premium. This is an increase from 10% in previous years

9. Staff photo’s

10. Expense Next we will review all other operating expenses of the Association

11. Utilities Expense Budget Estimated Budget 2014 2014 2015 $144,450 $117,620 $129,500 Water, Sewer, Electric, Heat, Cable, Telephone (including cell), Trash removal for all Association buildings and common grounds 2015 budget is based upon current usage and includes adding service at Village Green

12. Security Expense Budget Estimated Budget 2014 2014 2015 $275,842 $275,822 $293,671 Contracted entrance monitoring service for two entrances (Route 70 and Retreat Road), twenty- four hours a day, seven days a week Budget includes Security car expense and remote monitoring of alarm systems

13. Welcom e to LeisureT owne

14. Insurance Expense Budget Estimated Budget 2014 2014 2015 $89,000 $89,000 $88,500 Property, General Liability Insurance, Commercial Auto Insurance, Boiler & Machinery Directors & Officers Liability, Umbrella The budget for insurance has been reduced because of the sale of bus 7, and includes coverage for Old Forge Lake (This does not include employee coverage.)

15. Professional Fees Engineering-Legal-Audit Budget Estimated Budget 2014 2014 2015 $95,025 $83,002 $90,200 Engineering fees for all major projects Legal fee to provide legal opinion on day-to-day operations, collections and additional legal services, as needed Preparation of the annual audit and filing of the Federal Tax return by an independent Auditing firm

16. Professional Fee’s Management Budget Estimated Budget 2014 2014 2015 $183,860 $183,860 $178,291 The Management contract expires February 28, 2015

17. Administrative Expense Budget Estimated Budget 2014 2014 2015 $68,600 $64,101 $67,800 Educational training for Board and Staff Membership dues in trade organizations Coin copier expense for the Halls Coupon printing Payroll processing by a service provider Allowance for Direct Deposit Potential bad debit Other miscellaneous expenses

18. Contingency and Transition Budget Estimated Budget 2014 2014 2015 $125,000 $114,687 $115,000 Contingency is allowance for unexpected and unbudgeted expenses, expense from this account requires Board approval The current year to date the Board has approved expenses for bulkhead installation and unbudgeted truck repairs of $5000 Additional expenses expected are Village Green remodel Transition related expenses include Old Forge Dam 2015 budget for Contingency $75,000 2015 budget for Transition $40,000

19. Old Forge Dam

20. Office Expense Budget Estimated Budget 2014 2014 2015 $51,200 $50,378 $46,700 Stationery supplies, printing; postage, computer and copier expenses, and repairs to office equipment. Includes website hosting, LT Alert, document offsite storage

22. Grounds, Equipment & Maintenance Budget Estimated Budget 2014 2014 2015 $95,000 $83,002 $95,500 Contracted landscape services for open space, bed & flower maintenance, tree removal. Our staff mows all Halls, the Association Office, TOUCH, Village Green Park, the entrances to the Community Snow removal supplies Irrigation Purchase and repairs for equipment Waterways management

23. Old Forge Lake

24. Activities Expense Budget Estimated Budget 2014 2014 2015 $14,800 $15,308 $18,500 Repairs to billiard tables, maintenance agreements for audio/visual and fitness center equipment Supplies for recreational activities, library, table tennis, billiard rooms, and shuffleboard Bus rental for Recreation Trips, Christmas Day Dinner and Pool Party

25. Upgrade of Shuffleboard Courts

26. Community Property Buildings Maintenance Budget Estimated Budget 2014 2014 2015 $61,485 $64,680 $67,100 Pest control contracts, fire safety inspections, repairs, cleaning supplies, paper products for all community buildings. Maintenance agreements and repairs to the heating, air conditioning, and hot water systems. Lumber, paint, fencing, benches, gates, signs and repairs to outdoor structures Repairs to shuffleboard and horseshoe courts, fencing, general community maintenance as needed

28. Swimming Pools Budget Estimated Budget 2014 2014 2015 $51,020 $48,736 $52,475 The Pool management contract for both swimming pools Contract includes 6 extras days in September and open every Friday till 8, weather permitting for both pools Pool expenses include deck repair for Settlers and other repairs as necessary

30. Vehicle Expense Budget Estimated Budget 2014 2014 2015 $45,750 $42,554 $34,250 Fuel, repairs, maintenance and tires for bus and four trucks, 4 x 4 Kubota along with truck payment This account does not include insurance for the vehicles

32. Estimated Income Tax Budget Estimated Budget 2014 2014 2015 $1,000 $00.00 $1,000 Estimated Federal Income Tax on miscellaneous income such as: Replacement badges, rental for elections, Hall rental Recreation events, coin operated copiers at the halls, interest earned on all Association bank accounts

33. Reserve Contributions This account consist of two types of funding: Membership transfer fees which occur when a home is re-sold. This fee is $250 - $500 for every home The Reserve assessment will be $10 per month. This is based upon the current reserve study

34. Reserve Contributions Budget Estimated Budget 2014 2014 2015 $281,480 $295,722 $335,600 The budget includes $60,000 in transfer fees and $5,000 in interest income The Reserve Study was updated to include all lakes, pipes, buildings and waterways that have never been reserved for in the past Based upon the updated Reserve Study over the next few years the contribution towards reserves will increase significantly

35. Reserve Projects Completed Lining of pipe under Huntington Drive at Cedar Lake Inspection and repair of Cedar Lake Dam Replacement A/C units at Settlers Hall & Office Bulkhead replacement at Dorchester Drive Laurel Hall Pool deck replacement TOUCH roof replacement Replacement of Laurel Hall refrigerator & ice machine Paving sealcoat at Pineview Park and Settlers/Friendship Halls

36. Cedar Lake Pipe Lining Project

37. Laurel Hall Pool Deck Replacement

38. TOUCH ROOF

39. Dorchester Drive Bulkhead BeforeAfter

41. Laurel Hall New Refrigerator and Ice Machine

42. Reserve Projects for 2015 Pool - resurfacing Settlers if necessary, furniture at both pools Village Green - bathroom access and renovation & putting green Video and clean out of underground piping Remodel of Friendship Hall bathroom Upgrade or repair of Laurel Hall folding door Parking lot and common ground sidewalk repairs Waterway - valves, trash racks, bulkheads Replacement of 4 x 4 - current equipment does not meet carbon monoxide standard Old Forge Dam replacement

43. CAI Gold Star Presentation May 2013

44. Village Green

45. Village Green Renovation Design

46. Other Items to be Completed This Year Study of building security with cameras and card swipe systems Refurbish Village Green building Purchase of additional power tools Repair of Settlers pool deck Repair & upgrade shuffleboard and horseshoe courts Build a dam and settle with RealMark!

48. Monthly Assessment Effective April 1, 2014 The monthly assessment $69.00 Operating Fee $59.00 Capital Projects Fee $10.00 Operating Fee Revenue $1,596,540.00 Reserves Fee Revenue $ 270,600.00 Discounts: $1.00 month Direct Debit $12.00 year if dues are paid in full by April 8, 2014

49. Why the increase? The operating budget has not increased The reserve contribution has increased by $54,120 The Board is anticipating expenses for the transition of properties from RealMark and rebuilding of Old Forge Dam. Until the dam is rebuilt LeisureTowne has many unknown expenses. Once this is complete, the Association will be in a better position to maintain the expenses and budget.

50. Questions and answers At this time we will take your questions one at a time. (Three minute limit please!)

52. Approval of Budget After all questions have been answered the Board of Trustees will make a motion to approve the budget per Article III, Section 12 of the Amended By-laws

53. Motion I make a Motion to approve the 2014-2015 Annual Budget for Fiscal Year April 1, 2014 - March 31, 2015. The budget includes $127,899 of prior year income. Monthly Assessment effective 4/1/14 $ 69.00 The fee includes: Operating Fee $ 59.00 Reserve Fee $ 10.00 Pay by direct debit payment is $ 68.00 month Pay for entire year by April 8, 2014 payment is $816.00 ($12.00 savings)

54. Thank you for attending! Presented by the Board of Trustees LeisureTowne Association February 25, 2014