ROTONDA WEST ASSOCIATION, INC.
Budget & Finance Committee
Minutes
Thursday, August 30, 2007

Present: Bruce Miller, Claudette Romano, Hank Artz, Lois Burger John Carroll and Geoff Lorah, CPA

Absent: Bud Nill and Fred Warner

Management: Julie Pittman, Manager, Norene Kugler Assistant Manager and Dianne Brophy, Secretary

Other Members: George and Donna Krabbe, Margie Carroll, Joseph Romano, John Eisele, Nick Gizzi, Geoff Lorah and Carl Couture

Chairman Bruce Miller called the meeting to order. There are three (3) sets of minutes that need to be approved. July 26 approved as corrected. August 6 approved as corrected. August 23 approved as corrected.

Wachovia Bank Presentation:  Present are Sheilagh Stranieri, Financial Center Manager and Officer; Jamie Stone, Associate Relationship Manager Business Banking and Officer and Ronny Nunez, Assistant Vice President Sales Officer Treasure Services and Officer. Bruce Miller said they are here to tell us what they have to offer and explains a little about Rotonda West stating we are the largest HOA in Florida with 8,006 ½ lots within the circle. We have a million dollar ($1,000,000.00) budget that will go up. The majority of our income comes in at the beginning of the year from our yearly association fees. We invest in the CD’s program. The bulk of our interest comes in from our CD’s. Jamie Stone is the contact point person to make banking simple. Sheilagh Stranieri said she is the Manager of the Wachovia Bank branch located at Pine Street and McCall Road (776 and 775). I am your contact when you come into the bank. Ronny Nunez said he works in the treasury area within the bank. I work out of the Sarasota office.

Jamie Stone stated the presentation has three (3) parts. Jamie said we pride ourselves in three (3) key areas: people, service and ideas. People - we have any banking services needed. We pride ourselves on a personal relationship with our customers. Service - customer service is very important to us. Wachovia has been the number one bank in customer satisfaction for the past six (6) years. Locally we were rated number one in customer satisfaction and service.

Ideas: We are the fourth (4th) largest bank so we have a lot of products and services to offer our customers. Recent Achievements; The Sarasota and Manatee Counties Business Banking region ranked number one (1) in service, with a perfect customer service score (June 2007). Bruce Miller said I don’t see Charlotte County in there. Jamie Stone said Charlotte County is grouped in with Sarasota County. This area is under our team. Even though we are the fourth (4th) largest bank we are more like a community bank. We have local authority for rates. Bruce Miller said we could call our local bank and deal with the manager. Can this be done with your bank? Jamie Stone said yes. Bruce Miller said we deal with the bank’s manager a lot. So I could ask the manager the current interest rates on a one (1) year CD and I won’t have to listen to I’ll have to get back to you. I have to talk to someone about that. Jamie Stone said it depends; we always have promotions on CD rates. It may take a day or so to get back because our market president covers all the way from Bradenton to this market. There may be a little delay but they do have the authority to get those rates to you. Rates are definitely something we can call in. Jamie Stone said she is in this area quite a bit. Bruce Miller said we have established a small town relationship with the bank. We can call, go down and sit across from the manager’s desk and talk things through. We have done that quite often. We like that. We are constantly planning months ahead. We want to know what is going to happen down the line. We are requiring to getting an instant response to our questions. Jamie Stone said we would be more than happy to come to your office. You can schedule an appointment so I can make sure I am devoting the time that you need to review and answer any questions you might have. Ronnie Nunez said speaking with Julie the RWA does domestic and international wires. We have a system called Wachovia Connection. This system allows you to view all your accounts on line. Move money from account to account, stop payments all from the comfort of your office. Wachovia Connections will provide you with the necessary reports to manage effectively. We can notify you when an event happens. What that means is if an account falls below a certain point you will be notified. We can offer you what is called Advantage Interest Checking Account. This type of account caters to homeowner’s associations. The current rate we are paying now on this type of account is 4.84. That was the rate for July. You are earning 4.84 on any type of balance that you have. That would be your checking or money market account. Every time our rates change your rate will change. John Carroll said this sounds like a sweep. Ronnie Nunez said this is not a sweep. We will pay 4.84 at all times. No funds are being swept in or out. Geoff Lorah asked if there are any fees associated with transactions after so many deposits. Mr. Nunez said I understand you have a courier service. We have Remove Deposit Capture. With this system you can check at the desktop and electronically send images to the bank. The bank will provide the scanner. It allows you to deposit funds without leaving the office. You will create an electronic deposit ticket on line and transmit your deposit direct into the bank. One of the advantages is, our bank, you will have until 8:00 pm same day credit availability. Bruce Miller asked if there was a charge for the scanner. Mr. Nunez said there is a one time change of $700.00 for a scanner that can process up to 65 checks per minute. Mr. Nunez showed the committee the Account Analysis Pro forma report and explains the information. Jamie Stone said there are fees for the services. The service received from the Remote Deposit Capture is safer than having a courier come to the office, it is faster and it makes banking easier. No longer do you have to physically write out a deposit slip and add them up. Geoff Lorah asked if every check was an item or is the total deposit an item at the rate of $ .45. Jamie Stone said the check is an item. Julie Pittman said we do not pay fees at all. Jamie Stone said we need an analysis statement from your current bank so that we can make a proper presentation. By doing that we will be comparing apples to apples. Bruce Miller said for us to change to another banks they will have to offer us something better than what we now have. Mr. Nunez said every bank has fees. On your regular monthly statement they are not going to tell you what you are paying in for deposits. We are disclosing up front what are fees are. You will not see fees on our monthly statements. Mr. Nunez said federal requirements that every bank is required to maintain 10% of deposits. John Carroll asks if interest is made on the 10%. Mr. Nunez said no. Jamie Stone asked if you do obtain an analysis statement from Englewood Bank we would appreciate on opportunity to use that information so that we can present a more accurate proposal for you. Geoff Lorah said that he has two homeowner’s associations that use Wachovia Bank and are very happy with them and their services. The committee thanked the Wachovia team for their presentation.   Bruce Miller thanked the bank representative's fort their time and presentation.

Bruce Miller said that there will be no interruptions from the membership for the remainder of the meeting. Bruce Miller explained the paperwork that has been given out to the committee including monies requested for the 2008 budget. What we will do is take the 2007 budget and go line by line. The first one is GL 6000 Aquatic. Aquatic's has presented a 5 Year Plan. For 2008 Aquatics if request $194,150.00 for reserves. Claudette Romano asked Nick Gizzi if that was in addition to $82,000. Nick Gizzi said no. Claudette Romano said you have $82,000.00 in your reserve budget now. Nick Gizzi said I am asking for $194,150.00 including the $82,000.00 in the Reserve Budget. Discussion on the Aquatic Budget ensure. Bruce said $111,933.00. Claudette Romano said in operational expense you are requesting $169,973.00 that is including the contract for Florida Aquatics. Nick Gizzi said yes. The difference from the 2007 budget of $110,400.00 the difference is $59,575.00. Nick Gizzi said there are a lot of items in the budget such as maintenance of the boat and cleaning of appexes. You may decide that some funds will have to come from other budgets. Claudette Romano said all we wanted was what is going into your budget. Discussion followed. Claudette Romano suggested that a special budget workshop be held to separate aquatics budget.  Bruce Miller will meet with Nick Gizzi.

GL #6040 Bank Service Charge Budget for 2008 is $100.00 Nothing budgeted 2007

GL #6075 Beautification Budget for 2008 is $70,000.00. Budget 2007 was $60,000.00 Difference $10,000.00

GL #6200 Mowing-Canal Budget for 2008 $175,525. Budget for 2007 was $175,525.00. No difference.

GL #6300 Vacant Lots Budget for 2008 $128,000.00. Budget for 2007 was $128,000.00 No difference.

GL #6370 Specialty Budget for 2008 $86,380.00. Budget for 2007 was $86, 380.00. No difference.

GL #6400 Community Maintenance Budget for 2008 $114,578.00 Budget for 2007 $86,600.00 Difference $27,978.00.

GL #6700 Community Center Budget for 2008 $40,000.00. Budget for 2007 $19,950.00. Difference $20,050.00

GL #6800 Community Affairs (Volunteer Dinner) Budget 2008 $3,000.00 Budget for 2007 $3,000.00 No difference

GL #7000 Legal & Professional 2008 budget #30,000 Budget 2007 $20,000.00 Difference $10,000.00

GL #7001 Litigation Budget for 2008 $16,000.00 Budget for 2007 none difference $16,000.00

GL #7400 Corporate Tax Budget for 2008 $2,500.00 Budget 2007 $2,500.00 No difference

GL #7700 Office Equipment Budget for2008 $3,000.00 Budget 2007 $6,120.00 Difference minus $3120

GL #7800 Postage Budget 2008 $21,000.00 Budget 2007 $20,000.00 Difference $1,000.00

GL #7900 Printing Budget 2008 $3,500.00 Budget 2007 $3,000.00 Difference $500

GL #7950 Newsletter Budget 2008 $11,000.00 Budget 2007 $10,000.00 Difference $1,000.00

GL #8000 Annual Meeting Budget 2008 $23,000.00 Budget 2007 $22,400.00 Difference $600.00

GL #8100 Audit 2008 budget $8,000.00 budget 2007 $7,520.00 Difference $480.00

GL #8280 Finance Reserve Study $6,000.00 Budget 2007 $11,000.00 Difference - minus $5,000.00

Next meeting will be a workshop September 10, 2007 at 2:00 pm

Meeting concluded at 4:10 pm

Dianne M. Brophy, Secretary