CROSS CREEK COMMUNITY ASSOCIATION, INC.

                                            MINUTES

                     BUDGET MEETING OF THE BOARD OF DIRECTORS

                                    October 14, 2010

President Maranto called the meeting to order at 9:01 A.M.

Quorum established:

Directors Present:         Maranto, Unglaub, Basczcuk, and Zernzach

Members:   7   

Other:                Mike McCulloch, Superintendent

The notice of this meeting and a copy of the proposed budget for 2011 were mailed or hand delivered to owners of record on or before October 1, 2010. 

President Maranto entertained a motion to dispense with the reading of the prior meeting’s minutes. Unglaub so moved; seconded by Baszczuk. All in favor.

President Maranto briefed the members on the relationship with Visions Golf Management (formerly S&S) and how if affected this year’s operations. He noted that our contract with S&S that was transferred to Visions was for a term of 5 years ending in 2010, but that as of January 1, 2010 our club took over nearly all of the responsibilities and assumed total financial control while retaining Visions in an advisory management capacity at a reduced rate of compensation. At the end of September, the golf revenues were about $25,600 or almost 7% less than 2009. Mike, our superintendent, has done a great job in paring our expenses, but our net income is still some $20,000 less than 2009. Our other cost centers (Restaurant, Clubhouse, Common Grounds, etc.) have improved over 2009. The Theme Nights and opening for dinner have resulted in the restaurant gross income as of end September being some $58,000 or 42% higher than 2009 although the net was only about 10% better than last year. Our year-to-date financial position for the cost centers is almost $6,500 worse than 2009, but when we include other income and expenses, e.g., membership fees, surveillance expense, waste water treatment, etc. we are more than $15,000 ahead of budget.

President Maranto turned the floor over to Treasurer Unglaub who recognized the Budget Committee this year consisting of John Rousseau, Bev Gjertson, Pat O’Hagan, and Steve Ostman. He provided each member with a breakdown of the expenditures anticited for 2011 (see attached). He also noted that the waste water treatment was nearly 25% of our monthly assessment, and while some may not agree with our selling the plant, it was important to remember that it did provide for the complete renovation of the clubhouse in 2003 for $688,200. In addition, while we are paying $24.16 a unit for the waste treatment, it was not uncommon for a modest priced home in Lee Country to be paying as much as $40 or more.

The fee for the golf course will amount to $24 a month and may at first seem high, but one must consider what it adds to the appearance in Cross Creek and the extra value it places on the properties not unlike a large green lawn in a back yard up north. This might cost as much as $20.00 a week to mow, fertilize, and weed as well as to add new trees and bushes, etc.                                                                                   

Our reserves at the end of this year will amount to about $893,642.00. It’s also interesting that building these reserves required over $ 35,000 to be added each year since we started funding them and this also covered ongoing expenditures, e.g., replacing mowers you see on the green and fairways that run over $25,000 each; the renovation of the entrance two years ago at a cost of $175,000, and the new pump station last year at a cost of $100,000.      

Treasurer Unglaub summarized by reporting the Board has done an exceptional job this year keeping down expenses. The Master Board monthly assessments for 2011 will increase by $1.00 over 2009, to a new rate of $102.00 per unit, per month.

Unglaub requested a motion to approve the 2011 Budget.

Motion was made by Unglaub, seconded by Baszczuk, that the Proposed Budget, $102.00 per unit per month, be adopted for Cross Creek of Fort Myers Community Association for the year 2011. Aye votes Maranto, Unglaub, Baszczuk, and Zernzach. Carried Unanimously.

President Maranto opened the floor to members for any questions or comments.

Several members complimented the Board on the wonderful job they are doing. A few questions were raised from the floor and answered by the Board including a status report on the pigs and vultures.

Motion was made by Unglaub, seconded by Baszczuk to adjourn the meeting. Carried Unanimously. Meeting adjourned @ 9:18 A.M.                               

Respectfully Submitted,

                                                                                         Frank Maranto