ROTONDA WEST ASSOCIATION, INC.
Budget/Finance Committee
Minutes - June 28, 2007

Present: Bruce Miller, Chair., Claudette Romano, Hank Artz, John Carroll and Lois Burger

Absent: Bud Nill and Fred Warner

Management: Dianne Brophy, Secretary

Other Members/Visitors Present: Donna & George Krabbe, Joseph Romano, Margie Carroll, John Sciandia, Nick Gizzi and Bruce Vermette.

Meeting was called to order by Chairman Bruce Miller at 2:00 pm. Roll call was taken. Minutes were approved as presented.

Chairman Miller thanked Claudette Romano for taking over the meeting when he was unable to attend.

Chairman Miller reviewed the finances. The expenses were $77,041.24 and our income was $51,563.00 leaving a deficient of $26,000. The reason for this is we are having a problem collecting our assessments. There are over 200 unpaid assessments. Also our transfer fees are down. We can account for our loss. We will have to keep a tight belt. Discussion followed. Chairman Miller asked for comments. John Carroll stated we are overspending now, but until I see the spreadsheet for the full year I don’t know where we will be at the end of the year. John Carroll stated we paid some bills earlier then expected. John Carroll also stated that assessment monies came in earlier than expected. Claudette Romano stated April our income is $893,738.00 and our expenses are $380,673.00 leaving a balance of $513,065.00. Discussion followed. John Carroll stated $30,000.00 more in expenses through April. Claudette Romano stated that the categories were not allocated the proper amount of money. Discussion followed regarding the budget. It was stated that the county owns 9 lots but they do not pay the assessments. But the budget included those lots as income. Also included as income to the budget is Credit Card fee Income, other income, interest income, transfer fee revenue and fining income. These monies should not be included in the budget, but a separate item called anticipated income. John Carroll suggested that the monies collected from other income not be entered into the budget until the next year when the money amount is accurate. Discussion followed. Hank Artz suggested that interest collected on the CD’s be rolled over to the next CD. Bruce Miller asked the committee if they would like to take out transfer fees, interest, RMC applications, fining, other and credit care fee income from income and put it into a new category called Anticipated Income for next year. All committee members agreed. Bruce Miller said he would like to bring the new category Anticipated Income to the Board of Directors next meeting. A motion will be made to approve this category (Anticipated Income) and to implement for the 2008 Budget

Bruce Vermette asked about increasing the budget every year. Lois Burger stated you cannot increase the budget more than 15% per year without going to the residents.

Hank Artz asked about changes to the budget. Discussion held on salaries. The monies that are not being paid to the previous manager are going into the contingency fund for legal expenses. There was discussion on assessments due from the County. They owe the association $4,372.00. There is discussion that perhaps negotiations can take place on the parcel of land across from the Oakland Hills Marina on Boundary Blvd. John Scandria said that a Demand Letter should be sent to the county. Joseph Romano stated that at the present time there are good relations between the county and the association. A demand letter could jeopardize this. John Carroll suggests a letter be sent to the county asking what are their intentions for these lots. Discussion followed. Chairman Miller asked George Krabbe, property committee chairperson, and Nick Gizzi if they could meet with him to write a letter asking for their intentions. Meeting scheduled for Monday, July 2nd at 10 am.

Chairman Miller asked the committee if they are pleased with the Englewood Bank performance. Committee said they are pleased. Chairman Miller stated that Wachovia Bank other banks are interested in working with us. He stated he would like to have them come in when we do the bank review process at the end of the year.

Chairman Miller started discussion on the 5 Year Plan - improve income/expense reporting. A lot can be done on that. GL numbers have been added. Discussion followed. John Carroll suggested that a special meeting be held to go over the budget item by item. Bruce Miller said he would like to see the cost of electricity at the Marinas in a separate GL number. They are now together in the community maintenance budget. There are a lot of items in the Community maintenance and they could be broken down further. Bruce Miller stated we could be more definitive on our reporting. Bruce Miller stated we need a workshop meeting. It was decided that July 20, 2007 at 9:00 am would be the meeting date and time. The meeting will be strictly for expense reporting and to look at each item to see what needs to be broken down.

Bruce Miller stated that interview process should start for the Reserve Study. He stated he would like to have three (3) companies come in and make a presentation. Bruce Miller asked if there is any money budgeted for a reserve study. Claudette Romano stated there is $11,000.

Chairman Miller stated that the committee needs to get a date to start the budget. Hank Artz stated the budgets should be in by the end of August and this committee could start working on them in September. Discussion followed. Bruce Miller said by August 30, 2007 all budget requests must be submitted. It was suggested that when the committees submit their budgets they should have their requests done by priorities. Have a summary list of what the committee wants by priority, projected cost and month to do project.

Chairman Miller said the next meeting will be July 26, 2007 at 2:00 pm.

Hank Artz stated that we need some policies and procedures for the CD’s. How are they treated in the reserve? What goes into the annual budget? How are they spread out? Discussion followed. Claudette Romano stated that a CD for $60,000 comes due plus interest on July 5, 2007. There are two (2) CD’s coming due in August. Both for $60,000 plus interest. The August 23, 2007 will be relegated for the Reserves and placed into another six (6) month CD. Two CD’s are also coming due in September. The September 5, 2007. CD for $65,000 will also be relegated for the Reserve and put in a 6 month CD. Claudette Romano stated we have $655,000 without interest now.

Next meeting will be July 26, 2007 at 2:00 pm

Meeting concluded at 3:25 pm

Dianne M. Brophy, Secretary