ROTONDA WEST ASSOCIATION, INC.
Budget/Finance Committee
Minutes - May 31, 2007

Present: Claudette Romano (Co-Chair), Hank Artz John Carroll and Fred Warner

Absent: Bruce Miller (Chair), Lois Burger and Bud Nill

Management: Dianne Brophy

Other Members/Visitors Present: Joseph Romano, Margie Carroll, Nick Gizzi, John Eisele, Donna and George Krabbe

The meeting was called to order at 2:15 by Co-Chairperson Claudette Romano and roll call was taken. Minutes were approved as written.

Review of Finances:

Co-chairperson Romano stated that money was transferred over from the money market account into the checking account. As of today we have $66,862.73 in the checking account and $251,003.25 in the money market account. A 3-month CD for $100,000.00 can be purchased at 5.09% from the Englewood Bank. A 9 month CD can be purchased for $100,000.00 for 5.5%. Claudette Romano asked the committee their thoughts on investing the $100,000.00 for three (3) months. If the $100,000.00 is invested in a CD we will have $151,003.25 in the money market account which will get us through June. John Carroll asked are all bills paid for May and June 1, 2007, leaving $251,003.25 in money market account. Claudette said yes. Discussion followed In June no CD’s are due. Money market interest is 4.41%. In July we will have $60,000.00 due in CD’s, August will have $120,000.00 due, September $65,000.00 and November we have two (2) $60,000.00 CD’s coming due. We also have another $60,000.00 CD coming due December 15th. That money should take us into January, when the assessment letter goes out, and money will be coming in.

John Carroll motions that $100,000.00 be put into a CD for 3 months at 5.09%. Seconded by Hank Artz. Motion carried.

Review of Finances:

Claudette Romano stated that Hank Artz prepared a 2007 RWA Budget Detail. Discussion ensued pertaining to discrepancies.

Co-Chairperson stated Norene Kugler and Louis Burger are in the process of balancing the Englewood Bank statements. Our accountant Geoff Lorah stated that it was good that Norene and Lois are working on the new bank and getting that working. He would try to come into the office next Thursday or Friday and check the damage for 2006. He will determine if it is worthwhile to go through 2006. The accountant is comfortable with his figures for the 2006 audit. The 2006 audit does not go through all the ledger accounts and monies that were spent. Discussion followed on what needs to be done.

There was discussion on Deed Restriction fines.

Claudette Romano states our average monthly bills are averaging $70,000 to $75,000 per month.

Hank Artz stated the Reserves should be removed so we cannot use them as cash. John Carroll agreed. Discussion followed. There was $209,000 in reserves. Between July, August and September we will have $245,000.00 coming due and another $245,000 coming due between November, December and February. With CD’s coming in and assessments in January, we may be able to keep $200,000 aside for our reserves so that we can have a 9 month or 12 month CD for 5.5 or 6%.

Nick Gizzi stated our Budget detail should match the numbers that Claudette Romano has expressed. Actual figures are needed. Discussion followed. John Carroll asked that the day the auditor comes in could that be a workshop? Claudette Romano answered yes.

Definition of Money in Reserves:

John Carroll stated the reserve is not a general fund. It is an emergency fund if the Board decides it. All monies in reserve should be specified for a certain expense. It should not be used for maintenance. An amount needs to be set for major expenses. Rules are needed. This is not a general fund. This is a reserve; money was put into this for a specific reason. The reserve also needs to be funded for projects. We cannot keep taking money from the reserve for incidentals. If there isn’t a project, money should not be put in the reserve fund. Claudette Romano said there is money in the reserves for Aquatic and Beautification. Reserves are for long-term projects. Maybe the reserves need to be reviewed. Discussion followed. John Carroll suggested that money should be put into Cd’s for projects then taken out when needed.

John Carroll asked how many people have not paid their annual fee. Claudette Romano stated approximately 312. In July this committee should be able to give an actual vs. budget report to the Board of Directors to let them know where they stand financially.

Nick Gizzi stated he would expect that within 2 to 3 months all the committees come in with their 5 year budgets. At this point we will have to decide if we want to do a reserve study. This committee should research the reserve study companies to see who the RWA should go with. Discussion followed. Nick Gizzi stated the more information we can provide for them the cost of the study could be lessened. Claudette Romano stated that $11,000 has been put aside for a reserve study. Discussion followed on the reserve study.

Next meeting will be on June 28, 2007 at 2:00 pm

Meeting concluded at 3:15 pm.

Dianne Brophy, Secretary