Beaver Lake Homeowners Association

2007 Annual Financial Report

Good News

• Expenses were $17,597 or 0.9% lower than last year

• Key drivers• Labor costs (salary, benefits, payroll taxes) $656, 174

– Down $18,231 or 2.7%– Short one job in the office for several months

Beaver Lake Homeowners AssociationLabor Costs

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$100.0

$200.0

$300.0

$400.0

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$700.0

2002 2003 2004 2005 2006 2007

Salaries, wages and benefits – Down 2.6% over the past four years

Consumer Price Index over same period – up 15%

Troy’sDeployment

Good News• Key drivers

• Repairs & Maintenance -- $299,934– Down $6,523 or 2.1%– Includes: Water and Sewer Plant, Roads, Common Areas, Pool

and Clubhouse, Equipment, and Contract Labor

Beaver Lake Homeowners AssociationRepairs and Maintenance

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$350.0

2002 2003 2004 2005 2006 2007

Repairs and Maintenance – up 8.0% over the past five yearsConsumer Price Index over same period – up 15%

Good News

–Interest Expense $146,624

–Down $11,364 or 7.2%

Beaver Lake Homeowners AssociationInterest Expense

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$160.0

2002 2003 2004 2005 2006 2007

Water Treatment Plant accounted for $124,206 or 85% or interest expense

Bad News

• Taxes (real estate & personal property) - $137,205– Up $22,341 or 19.4%

Beaver Lake Homeowners AssociationReal Estate and Personal Property Tax

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2002 2003 2004 2005 2006 2007

Taxes – up 82% over the past five yearsConsumer Price Index over same period – up 15%

Bad News

– Insurance -- $160,440•Up $17,677 or 12.3%

Beaver Lake Homeowners AssociationInsurance

$0.0$20.0$40.0$60.0

$80.0$100.0$120.0

$140.0$160.0$180.0

2002 2003 2004 2005 2006 2007

Insurance – up 89.6% over the past five yearsConsumer Price Index over same period – up 15%

Sources of Revenue -- 2007$1,957,914

Maint. Fees

Utility Fees

Murray Sewer

Utility Expansion

Meter Hookup FeesOther

Maint. Fees $1,135.3

Utility Fees $319.7

Murray Sewer $40.7

Utility Expansion $271.8

Meter Hookup Fees $87.8

Other $99.3

Where the Money Goes -- 2007$1,981,828

Labor

Deprec.Taxes

Interest & Fees

Insurance

Water & Sewer

Other

Labor $ 656.2

Deprec. $ 408.6

Taxes $ 137.2

Interest & Fees $ 177.7

Insurance $ 160.4

Water & Sewer $ 157.5

Other $ 284.2

Depreciation - $408,589Capital Budget -- $391,450

Excess Expenses over Revenue -- $23,914

How About Revenue?

Membership Dues – a 10-year history• 1999 -- $611.00• 2000 -- $611.00• 2001 -- $611.00 Membership dues have • 2002 -- $611.00 increased 13.0% over the• 2003 -- $641.60 the past 10 years. • 2004 – $641.60• 2005 – $657.64 The Consumer Price Index has • 2006 – $657.64 gone up 28% in that same period• 2007 -- $690.48• 2008 -- $690.48

Utilities at Beaver Lake

- Water and Sewer Rates – a 10-year history• 1999 -- $11.80• 2008 -- $17.41

– Special Assessments• 1999 -- $96.00 Utility Expansion Fee• 2008 -- $168.00 Utility Expansion Fee

Based on 3,000 gallon minimum

Cost of Living at Beaver Lake

-

–Total Association Costs•1999 -- $848.60•2007 -- $1,067.40

»+25.7% »Core CPI +28%

Utilities in Cass County

• Cass County Rural Water– $27.50 minimum + water usage– $2.76 per 1,000 gallons

• Monthly charge for 3,000 gallons-- $35.78• Annual Charge -- $429.36 (but no sewer)

• Annual Utility Cost (3,000 gallons per month)– Cass County Rural Water -- $429.36– BL (water & sewer) $208.02 + $168 (assessment)

• Total -- $376.92

History of Debt at Beaver Lake

• Phase II• 1998 – Wastewater Treatment Plant $1,200,000

– 2002 – Road Paving Project• Renegotiated WTP loan

– Old Balance $458,330– New Balance $800,000

– 2005 – Dredge– Old balance $475,930– New Balance $486,918 (Murray sewer - $265,000)– Current Balance $231,649

History of Debt at Beaver Lake

• Phase III• 2003 – Water Treatment Plant -- $3,246,791

Why we built the water plant!!Nebraska Clean Water Act RegulationsCapacity Issues – eliminate rationingRemove odor and taste from waterOld plant was deteriorating

Current Debt

• Water Treatment Plant $3,017,007• GMAC $12,757• Road/Dredge/Sewer Plant $231,649

»Total -- $3,261,414

Living at Other LakesCopper Dollar Cove

• Mill Levy – 1.927392• Association Dues

– A lots -- $1,519– Off lake -- $1,145

• No sewage treatment – sewage lagoon• Cass County Rural Water -- $429.36 (3,000 gallons)

• Cost of living – $100,000 -- $3,875.75 Beaver Lake $2,976.25 (-23.2%)– $350,000 -- $8,694.20 Beaver Lake $7,775.31 (-10.5%)

Living at Other LakesLake Wa Con Da

• Mill Levy – 2.696403 (SID – 0.767761)• Association Dues

– $300– Possible future assessment for dike work– Assessment in 2005 for dredging

• Cass County Rural Water -- $429.36 (3,000 gallons)

• Cost of living – $100,000 -- $3,438.21 Beaver Lake $2,976.25 (-13.4%)– $350,000 -- $10,220.35 Beaver Lake $7,775.31 (-23.9%)

Living at Other LakesBuccaneer Bay

• Mill Levy – 2.777394 (SID – 0.85002)• Association Dues – $300 for those who live on lake

– Golf memberships are additional

• Buccaneer Bay Debt (SRF Loan) -- $6,924,794• Water/Sewer $14.98 per month + $22 debt reduction assess.

– $443.76 annually (3,000 gallon minimum)

• Cost of living – $100,000 -- $3,521.15 Beaver Lake $2,976.25 (-15.4%)– $350,000 -- $10,464.64 Beaver Lake $7,775.35 (-25.7%)

Living in Other CommunitiesPlattsmouth

• Mill Levy – 2.352832• Association Dues

– None – But no lake• Plattsmouth Sewer & Water – billed by cubic foot

– 3,000 gallons would equate to $179.76 annually

• Cost of living – $100,000 -- $2,351.82 Beaver Lake $2,976.25 +26.6%– $350,000 -- $8,411.13 Beaver Lake $7,775.31 -7.6%

Living in Other CommunitiesMurray

• Mill Levy – 2.369625• Association Dues

– None – But no lake• Cass County Rural Water -- $429.36 (3,000 gallons)• Sewage – BLA --$216.48

• Cost of living – $100,000 -- $3,015.47 Beaver Lake $2,976.25 (-1.3%)– $350,000 -- $8,939.53 Beaver Lake $7,775.31 (-13.0%)

Capital Expenditures• Budget for 2008 -- $391,450

• $112,583 principle for Dredge/Road/WTP Loan• $119,527 principle on Water Plant Loan• $ 6,600 principle on truck loan

• $152,740 left for projects/maintenance– Water tower maintenance, Lift stations, water meters, dam site #2 sedimentation

project, seawall, one ton

• Budget for 2003 -- $473,186• $93,211 principle for Road/WTP Loan

– Computers, skid loader, clubhouse retaining wall, retrofit lift station, s water tower repainted, clubhouse renovation, boat ramp restroom, lift station warning system, sander/snow blade, water meters, access area docks, etc.