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Minutes of the Banana Bay Condominium Association
Board Budget Meeting
WEDNESDAY, November 29, 2017

Call to Order: The meeting began at 1:00 pm in the clubhouse.

Establish Quorum: Board president Barbara Peterson, VP Clyde Hoover and Treasurer Craig Smith began the meeting. Secretary April Scott arrived later. Director Steve Winn could not attend. 20-unit owners attended.

Approve Minutes of Last Board Meeting: Clyde motioned to approve the minutes of the November 3, 2017 meeting as written. Craig seconded, all in favor. These minutes will be posted on the website.

Financial Report: Michelle reported that as of October 31st, the Operating bank account has $12,634, but owners prepaid $74,273, so in reality, the association has a negative current balance in operating, but the final special assessment payment is due December 1st, so will bring that account to a healthier number. The various Reserve accounts have a balance of $643,978. Year to date, the expenses are $54,299 more than income, but, again, the final special assessment payments due December 1st will help bring that loss down. Seven owners have still not made their 2nd Special Assessment payments, and we still have one unit is serious arrears, and it is in foreclosure. Total accounts receivable are $54,430. The property insurance appraisal must be re-done every 3 years, and must be done in 2018. Worthy & Associates will be doing the work in January.

Owner Discussion about 2018 Proposed Budget: There were questions about the reserve analysis and the pooled reserves program. Todd Foley, who prepared the report, was in attendance to answer questions. While a “fully funded” reserve fund would, in reality, have to be the value of all needed funds, the pooled reserve shows all expected work to be done over the next 20 years and shows projections that all work can be done with the funding that is saved. As long as projected life estimates are correct, and components’ life expectancies aren’t compromised, the funds will be available to cover the costs to repair or replace, thus considered “fully funded” based on how pooled reserves are derived.

The insurance agent brought in a new company, Frontline, as an option, because they were $10,000 per year less expensive, with the same coverage and same 5% hurricane deductible. Because of this savings, the monthly fee per unit was able to stay at a $10 increase instead of an expected $16 per month increase.

There was discussion about windows, and especially glass enclosure windows installed by owners. The association obtained a legal opinion on these a few months ago. They are always the owner’s responsibility to maintain and replace.

Final Board Approval of 2018 Budget: There being no further questions, Todd was thanked for his time and he left. Craig motioned to approve the budget as mailed to all owners, at a $10 per month increase, for a $470.00 per unit per month assessment for 2018. Clyde seconded, all in favor.

Other New Business Unknown at Time of Mailing: April has met with pool resurfacing companies, and will meet with one more today. Once all bids are in, the board will discuss and decide on a company to re-do the clubhouse pool.

Barb said that Paul Dupre has purchased the materials to start the guttering on the midrises. There was discussion about how they will be installed, and Paul will bring his prototype soon. A resident stated that having gutters or an awning over the equipment rooms would be helpful.

It was noted that the solar light option around the townhomes was investigated and will not be bright enough for safety, so other options are being discussed.

Adjournment: There being no further business to discuss, the meeting adjourned at 1:40 pm.

Respectfully Submitted,

Michelle Davis, CMCA, AMS, LCAM #17226
Community Association Manager
Reconcilable Differences, Inc.