Contents
1. 2014 Financial Results
2. Live Well – Eldercare Independent Living Facility
3. 2015 Committee Assignments
4. ARB Administrator

The POA’s lawyer was in attendance for the entire meeting; including an Executive Session that lasted roughly an hour.

If you have not already done so, please read the Board summary found here:  Jan 2015 Splinters

It is a good summary and covers all items of importance that I would have included here. So I won’t repeat that information. Rather, my report below contains only some additional information on a few of the items covered in the Board’s report. Therefore, it will help a great deal to have read the Board’s summary before continuing any further.

1.  2014 Financial Results

As noted in the Splinters, 2014 ended with a surplus of roughly $31,000 compared to the budget. This occurred even after accounting for the Mt. Carmel Gate landscaping project and some expenses that were deferred from 2013 and not included in the 2014 budget. The deferred expenses related primarily to infrastructure maintenance.

There is one caveat to this $31,000 surplus; albeit a minor one. Roughly $30,000 to $35,000 of road work expenses was deferred from December 2014 to the 2015 budget year. This was done to avoid the inconvenience to residents that would have occurred if the work had been undertaken during the holiday period.

This work will be undertaken and paid for in 2015, but it is not in the 2015 budget. Therefore, two points are worth noting. First, had these amounts been expended in December, we would have essentially broken even for the year.

Second, if every dollar of the 2015 budget is spent; and these deferred road works are also completed; there will be a deficit at year-end of $30,000 to $35,000. But that deficit, if it does occur, will not have negative financial implications. The cash to cover the deficit would come from the Operating Reserve; because it represents cash that was not spent in 2014. In essence, this would be nothing more than a timing issue; and it would not impact the Reserve Account/Replacement Account (the reserve where we accumulate funds for major capital improvements).

But all of that is hypothetical. It is quite possible that these deferred road works can be completed without resulting in a shortfall at year end. It all depends on how overall POA operations pan out during the year. The only reason for mentioning it is to make clear that, if there is a deficit at the end of this year, it will not necessarily be a bad thing.

2.  Live Well – Eldercare Independent Living Facility

The Board summarized the proposed concept in the Splinters report. It is very early in the process, so it is unclear when or whether the Board intends to solicit overall community opinion on having this type of use in the cottages.

I have heard some residents question whether this type of business can legally be operated on the cottages property. That question was not discussed during the presentation. However, this was the first time the concept had been presented to the Board, and the amount of time allotted to the subject was very short.

While I can’t answer the question about the legality of the use, I can offer two items. First, the people presenting the concept commented that they would only want to operate the facility if the community generally found it to be an acceptable use. Second, I believe the “use” question is possibly addressed in Section 11.2.1 of the Covenants; which are on line and can be found here:  Covenants

3.  2015 Committee Assignments

The Board report noted that new assignments for 2015 were approved, but no list was posted with the Board papers. However, as of January 29th, it appeared that most of the new assignments (other than the Safety Committee) had been posted. They can be found here:  Committees

The Marketing and Realtor Relations Committee has now been split into two committees. We now have a separate Marketing Committee chaired by Joe Glasson and a separate Realtor Relations Committee chaired by Hayes Shimp.

4.  Additional Item – ARB Administrator

Several months ago, Cathy Klopfenstein indicated that she intended to retire. A person is being trained to replace her as the ARB administrator. A note in the manager’s report to the Board indicated that the new person, Jan Sammons, started training with Cathy on January 5th and will probably work with Cathy until early February. It is expected that she will work from 10-5 from Monday through Thursday each week.