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COMMUNITY NEWS | FOUR SEASONS BREEZE | NOVEMBER 2014 5 The Finance Committee is Watching Our Money By Leighton McLaughlin The Finance Committee has four areas of responsibility to make sure that Four Seasons stays financially healthy while making sure that the facilities are kept up and the bills are paid. All final financial decisions are made by the HOA Board. "We make recommendations, they finalize," said Noel Myers, committee chairperson. "The Board can do three things with what we send them. They can accept it, reject it or send it back to us to change." 1. The committee sets budgets. Right now it budgets for front yard maintenance and Springdale maintenance. The master budget is still prepared by builder K. Hovnanian Homes but administered and monitored by the committee and the Board. Just last month, the committee found where a master budget reduction could be made, which resulted in a $5 drop in membership dues. Only at build-out will the total budget be in the HOA's hands. Because K. Hovnanian will build no more Springdale homes and will provide front yard maintenance for no new homes, it is finished with them and turned them over to the HOA. 2. The committee reviews all HOA expenditures over $500. Those are usually large projects like special landscaping and the like. Those payouts have usually come before the committee for approval before being made. "We compare the expense to the budgeted amount and if there is a discrepancy, we ask about it," said Myers. 3. The committee reviews the monthly financial statement from Euclid Management, the company hired by the builder to manage association business. Again, expenses are compared to budgeted amounts. Particular attention is paid to reserve accounts to make sure money will be available in the future to maintain the community. Each year an outside firm does a reserve study to ascertain the health of the reserves. It was the last such study that revealed the chance for the dues reduction. 4. The committee makes investment recommendations. "We have over $4 million on hand and we need to invest it to increase revenue," said Myers. Right now all HOA money is invested in short-term certificates of deposit. Because of today's extremely low interest rates long- term investments are avoided so the HOA can act quickly if the Federal Reserve should suddenly raise rates. The association has a very conservative investment policy, said Wayne Staples, treasurer of the Board. "No risky investments, only CDs and U.S government paper." "By far, the majority of income is from the homeowner assessments," said Myers. But, there is other income: Bistro and Salon rents, rental of Lodge facilities by private parties, fees from homeowners delinquent in paying dues and the investments, he said. When he was congratulated for overseeing a reduction in dues, Myers said, "We try. We have a good committee." Dues GoinG Down! story paGe 21

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