The Board of Directors (BOD) for Hawthorn Park held a Budget Workshop Special Meeting on Tuesday, October 2, 2007. Here are the topics and highlights of the meeting. 

Please note:  These are not the official meeting minutes.  The official minutes are recorded by Stephanie Chapman Property Manager, and are archived at the offices of Sentry Management.  Ray Dalto, Director - Assistant Secretary, also maintains a file of the official minutes.

 Attendees
Board of Directors:
    Ray Dalto (present)
    Lee Fioretto (present)
    Mike Hogan (present)
    Frank Maruca (present)
    Frank Miles (present)
    Art Stadlin (present)
    Pat Whitesel (present)
Sentry Management
    Stephanie Chapman (present)
Other interested residents of Hawthorn Park -- None.

AGENDA 

1.    Call To Order
2.    Establish Quorum
3.    Proof of Notice
4.    New Business -- 2008 Budget Discussion & Preparation

Expenses:  Stephanie Chapman, Property Manager, prepared an expense budget by line item for 2008 to use as a starting point for discussions.  She already built into the numbers the price increases announced and expected from our suppliers.  This was very helpful.  Here is a summary of Board decisions on the expense line items:

Line 5250 - $1,150 - Pest control, Scotts contract.
Line 6035 - $3,600 - General maintenance, includes backflow inspections contract and sidewalk repairs.
Line 6040 - $16,500 - Lawn service, McIver contract.
Line 6100 - $1,150 - Fertilizer, Scotts contract.
Line 6120 - $500 - Irrigation repair.  Budget cut significantly due to switch from pump to reclaimed water.
Line 6220 - $1,800 - Landscape entrance, beautification.

Line 6240 - $10,000 - Tree trim and removal.  Includes catch up on Sections A and B in the Common Grounds Maintenance Plan.

Line 6340 - $2,200 - Lake maintenance, Lake Doctor contract.
Line 7910 - $3,800 - Electric, FPL.
Line 7920 - $1,825 - Water.  Significant increase over past years due to switch to reclaimed water.

Line 7950 - $35,500 - Cable TV, Bright House contract renewal.  Since the previous meeting on 9/27/07, Pat Whitesel was able to negotiate better terms with Bright House:  A 2-year contract held at today's price with no price increases for two years.  A motion to renew the Bright House contract was approved by a vote of 6 to 1.  (Art Stadlin voted not to renew.)  The budget amount shown is about $2,200 less than the previous year's budget because the 2008 budget number is based on 2007 projected actual spend.

Line 8020 - $5,520 - Property management fee, Sentry contract.
Line 8040 - $445 - Postage.  Amount based on 2007 actuals.
Line 8060 - $1,330 - Copies, printing, supplies.  Amount based on 2007 actuals.
Line 8082 - $600 - Consultations.  Amount shown is about a fourth of 2007 actuals, but the swale project is mostly behind us.
Line 8100 - $2,000 - Legal expenses.  Almost double last year's budget, but a lot less than we actually spent in 2007.
Line 8120 - $4,015 - Insurance.  About a ten percent increase.
Line 8142 - $350 - Fees, dues, licenses, tax return.
Line 8160 - $200 - Phone and fax, Sentry.
Line 8390 - $61 - Annual corporate report.

Line 9260 - $9,000 - Contingency Fund.  As decided at the previous meeting, Pat and Ray discussed with an attorney, Stephen Thomson, the interpretation of the new HOA rules signed into State Law in 2007 as they relate to Reserve Funds.  Long story short, counsel advises that we do not need to hire a Reserve Study, and our Contingency Fund is not a Reserve Fund as defined by the new law.  However, our budget mailing will need to use State specified language to alert our Association members to this distinction.  The Board accepted Mr. Thomson's advice.  After an extended discussion on the risk of a Special Assessment and the desired balance in the Contingency Fund, a decision was made to make it about $9,000.  This is about $3,000 less than the Contingency Fund balance prior to the SWFWMD mandated swale rebuild project.

On the income side:
Line 4060 - $185 - Late charges.
Line 4100 - $50 - Interest on operating fund bank account.
Line 4340 - $150 - Interest on reserve fund bank account.
Line 4401 -  $200  - Rental application fees.
Line 4440 - $50 - Fees for copies of CC&R documents.

Line 4020 - $101,200 - Assessments, dues.  This works out to $1,100 per year per property, payable in two installments of $550, and represents a 10-percent dues increase.  The Board discussed how it might hold dues at 2007 levels.  With the cable TV contract matter already voted and settled, there were really only two decisions:  Shall we have a Contingency Fund or not, and shall we do tree trimming?  The Board believes both must be funded, so the 2008 budget with a dues increase was approved.

Please note:  The exact budget numbers shown on this web page are believed accurate, but may be adjusted slightly in the final printed budget.  (Income and expenses must balance to the penny.)  An official budget for 2008 will be provided on paper to all property owners.

5.    Next Meeting -- Stephanie assured us that everything was on track (time line, mailings) to make the 11/29/07 Annual Meeting a success.  The next regular monthly Board meeting will be held as planned on 10/25/07.
6.    Adjournment
 

[This page last updated 10/6/2007]