Report 2007

Wekiva Golf Villas Homeowners Association, Inc.
PO Box 915501, Longwood, FL 32791-5501
Annual Meeting February 19, 2008
Treasurer’s Report for Calendar Year 2007

2007 income from dues and late charges plus interest from secure short-term certificates of deposit was sufficient to meet expenses, leaving a modest balance of $685 which was added to reserves. Collection of dues from owners was generally good but we are dealing with several cases of repetitive past due accounts. There were no major capital expenditures and operating expenses came in as projected. Higher than anticipated maintenance costs, primarily costs associated with painting and repairs to perimeter walls and changing-rooms, were partially offset by a slight decrease in insurance premium. A professional property appraisal to determine replacement value for insurance purposes was authorized and funded. This resulted in a reduction in insurance requirements, due in large part to coverage now accurately reflecting WGVHA ownership of the perimeter wall to only that portion adjacent to the pool Lot 41.

2008 budget will be impacted by a substantial increase in landscape maintenance expense. This is due to the necessity to change the current landscape contractor who has not performed as required, both in terms of work and insurance requirements. By careful control of repair and maintenance costs and with no capital expenditures we anticipate being able to break even in 2008. However, with varying degrees of priority, the pool needs to be re-decked, the adjacent fence replaced, the parking lot resurfaced and other minor cabana improvements, the funding of which would fully deplete reserves. Thus, to replenish the draw down of reserves to pay for these projects and to compensate for increases in landscaping expenses and inflation your Board has decided, as stipulated in the Articles of Association, to increase dues by 5% (retroactive to 1st Quarter 2008). This will add $900 to reserves in 2008. We foresee the need for a similar percentage increase in 2009.

Attached is the 2008 budget and 2007 audited financial statement prepared by our accountant, which is summarized below:

2007 Income $18,236
2007 Expenses $17,551
Funds added to reserve in 2007 $685 (excludes accumulated depreciation)
Reserves 12/31/2007 $24,058 (excludes prepaid insurance)

Prepared by John Carter
WGVHA treasurer