ROTONDA WEST ASSOCIATION, INC.
Budget & Finance Committee
Minutes - February 9, 2007

PRESENT: Bruce Miller (Chair), Hank Artz, Lois Burger, Bud Nill, and Fred Warner

OTHERS: Joseph & Claudette Romano, George Krabbe, Nick Gizzi, Margie & John Carroll, Michael Bullerdick, President and Ted Penland, Vice President First Community Bank, and Tom Madsen, RWA Manager

Chair Bruce Miller called the meeting to order at 2PM.  A quorum was present.

Also present were Michael Bullerdick, President and Ted Penland, Vice President of First Community Bank.  Chair Bruce Miller indicated to them that the Association would be interviewing other banks and that the Association planned on doing so annually.  Bruce indicated that he was both pleased and disappointed about the increase in the interest rate on our Money Market account.  Pleased because it had increased to 4.5%, but disappointed that it had taken a meeting to get this more advantageous rate instead of it simply being applied to a good customer.

President Bullerdick indicated that First Community was a local bank with approximately $475 million in assets showing growth in both assets and income.  First Community has been associated with RWA for 3 ½ to 4 years, and first became associated when they were the winning bank in a survey of banks to finance the first proposed Community Center building.  He indicated that First Community had financial advisory services and that they should be offering these services to the RWA.  He further indicated that First Community could make a line of credit available to the RWA at prime or slightly below prime.  This would be secured by an interest in the Association’s receivable.

President Bullerdick also indicated that he could provide a nightly sweep of our checking account, but stated it is not in place yet.  He indicated that this would draw a very low interest rate and that the sweep amount was included in the $100,000 FDIC insured amount.  The CDARS program pushed title to the amount in CDs to other institutions, extending the effective insurance coverage to well beyond $100,000.

After the First Community presentation, the Manager presented the month-by-month cash flow projection for 2007, with recommendations for CDARS investments.  After discussion, Chair Bruce Miller asked that all money movements be suspended until after the February 14 meeting of the Board.

The next meeting will be Thursday, February 22 at 2PM.

The meeting adjourned at 4:10PM.