Budget & Finance Committee

Minutes of meeting held Monday, July 21, 2008

9:30 a.m. the Overlook Party Room

 

Pursuant to notice previously given, a meeting of the Budget & Finance Committee was held on Monday, July 21, 2008 at 9:30 a.m. in the Party Room.

 

Committee members present:  Bob Moreland, Chairperson; Jerry Page, Vice Chairperson; Gordon Calvert; Jesse Kaiser; Cecil Uyehara; Sumner Katz; Paul Amyot; and Barry Tossman.

 

Committee members absent:  Edward Alexander.

 

Also attending:  Beverly Chaconas, Property Manager; Bernard Silverstein, Board of Directors Treasurer.

 

  1. Call to Order – Mr. Moreland called the meeting to order at 9:30 a.m.

 

  1. Sign-In - Mr. Moreland asked all visitors to sign in.

 

  1. Approval of Agenda – The agenda was approved as presented.

 

  1. Approval of Budget & Finance Committee meeting minutes of May 19, 2008 – The minutes were approved as presented.

 

  1. Old Business –

 

  1. New Business –

 

a.         Review of financials period ending May 31 and June 30, 2008 – The committee reviewed May and June 2008 financials.  All questions and concerns were discussed and the committee accepted the financials as presented.

 

b.         Management presentation of 2009 Budget Worksheets – Mrs. Chaconas reviewed with the committee the 2009 budget worksheets that she prepared for Administrative, Common Elements Maintenance, Utilities and other expenses for the building.  She also provided 2009 expenses from L.W.  Mrs. Chaconas will provide L.W. Accounting Department a spreadsheet with the agreed upon expenses.  A draft copy of the 2009 budget will be discussed at the August 25th B & F meeting and forwarded to the Board of Directors to be approved for distribution to unit owners at their August 28th meeting. 

 

            The committee discussed contribution to the Replacement Reserve.  It was decided that the interest earned from investments would be included in the contribution necessary for funding.  Total contribution from unit owners would be $138,000 annually and the interest earned, approximately $28,978.  The total $166,978 would be very close to the recommend annual contribution of $167,648.  Mr. Page also stated that to date, the Replacement Reserve is approximately $40,000 over funded.  Mr. Moreland announced that this item would be reviewed each year to make sure that the contributions to the reserves are in accordance with the Replacement Reserve Study.

 

c.         Contingency Fund – The committee agreed that because the Contingency Reserve balance at the end of June was $56,379, and considering the additional funds to be added during the last six months of 2008, it will not be necessary to further fund the Contingency Reserve in 2009.

 

  1. Open Forum –

 

  1. Adjournment – There being no further business to come before the committee, the meeting adjourned at 12:45 p.m.

 

 

 

 

                                                                        _________________________________

                                                                        Bob Moreland, Chairperson

                                                                        Budget & Finance Committee