welcome to the olde ivy 2010 townhomes annual meeting
TRANSCRIPT
Welcome to the Olde Ivy 2010 Townhomes
Annual Meeting
Olde Ivy at Vinings Townhomes AssociationAnnual Meeting
November 10, 2010 7:00 PMClubhouse
Welcome Scott Schuck
Establish Quorum Ken Baggs
Approval of 2009 minutes Scott Schuck
Election of 2010 Officers Ken Baggs
President’s Report Scott Schuck
Financial Reports Jerry Crow Property Manager’s Report Ken Baggs
Questions Scott Schuck
Election Results Ken Baggs
Closing Remarks Scott Schuck
Adjourn
Social
Townhomes BOD
Scott Schuck- President
Keiffer Phillips – Vice President
Melinda McDonald - Secretary
Jerry Crow – Acting Treasurer
2011 Townhomes BudgetAccount # Description 2011 Budget 2010 Budget Variance
6310 Assessment Income 381,600$ 367,200$ 14,400$ $10 increaseInitiation Income 3,060$ 3,600$ (540)$ Owner Interest Income 500$ 1,200$ (700)$ Other 100$ 100$
6340 Late Fee Income 2,000$ 3,000$ (1,000)$ Total Income 387,260$ 375,000$ 12,260$
7010 Management Fees 22,800$ 22,800$ -$ 7011 Master Association Expense 122,400$ 108,000$ 14,400$ $15 per unit per month increase7145 Tax Preparation Fee 300$ 275$ 25$ 7160 Legal Fees 2,000$ 2,000$ -$ 7162 Legal Fees Reimbursed (400)$ (400)$ -$ 7250 Bank Charges 240$ 360$ (120)$ 7260 Postage 480$ 480$ -$ 7270 Printing & Reproduction 300$ 300$ -$ 7320 Office Supplies 500$ 500$ -$ 7380 Misc G & A 60$ 60$ -$
General and Administrative 148,680$ 134,375$ 14,305$ 7430 Federal Income Tax -$ 1,000$ (1,000)$ No taxable income in 20107440 State & Local Income Tax -$ 200$ (200)$ No taxable income in 20107450 Other Taxes & Fees 50$ 30$ 20$ 7480 Insurance 92,000$ 92,000$ -$
Taxes and Insurance 92,050$ 93,230$ (1,180)$ 8940 Trash Removal 21,960$ 21,960$ -$ No increase
Utilities 21,960$ 21,960$ -$ 9114 Exterior Repairs 12,000$ 20,000$ (8,000)$ reconfig repairs vs roofing9121 Roofing Repairs 13,000$ 5,000$ 8,000$ reconfig roofing vs repairs9125 Gutter Cleaning 4,000$ 4,000$ -$ 9180 Plumbing 1,000$ 5,000$ (4,000)$
Maintenance and Services 30,000$ 34,000$ (4,000)$ 9610 Termite Bond 5,200$ 4,900$ 300$ 5% inc9620 Pest Control 3,756$ 3,756$ -$
Pest Control 8,956$ 8,656$ 300$ Total Operating Expense 301,646$ 292,221$ 9,425$
Net Operating Income 85,614$ 82,779$ (1,278)$
Capital Expenditures98XX Painting 99,300$ 85,400$ 13,900$ Phase II paint. All decks & patios
99,300$ 85,400$ Capital Reserves
9910 Transfer to Capital Reserves 79,200$ 64,800$ 14,400$ 99XX Transfer to Checking (Paint & decks) (99,300)$ (85,400)$ (13,900)$ 9990 Interest Income on Reserves (1,200)$ (1,200)$ 9990 Transfer Reserve Interest 1,200$ 1,200$
Capital Reserves (20,100)$ (20,600)$ Net Income 6,414$ 17,979$
As you will notice, our operating expenses have increased $9,425.We have increased our Reserve Contribution to $55 per unit per month.Your dues for 2011 will increase to $265.00 per month.
Budget Comments
Roofing
Roof Repairs Per Unit/Per Year Note2006 744$ 6.20$ 2007 2,670$ 22.25$ 2008 7,435$ 61.96$ 2009 15,738$ 131.15$ $11,438 occurred after September rain2010 9,545$ 79.54$ as of 09/30
R oof R epairs
$-$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000
2006 2007 2008 2009 2010
Barry Laughon
770-384-1851
Are things getting better?
• Not a YES or NO answer!
• Historic low interest rates!
• 50 % of the buyers are moving up!
• 24th consecutive year to year decline in WD.
• 23rd consecutive year to year decline in EXP.
Atlanta OverviewSeptember 2010
Increased sales in 34% of the zip codes!
All zip codes experienced a decline in value!
Best Zip Codes 30080, 30024, 30223!
31% of Atlanta homes are under 100K!
22% of Atlanta homes are under 50K!
Olde Ivy September 2010
• Total sales 2010 – 10 total units!
• 1 Patio Home – $410K
• 3 Townhomes – $257K
• 6 Manors – 2bdrm $213.5 – 3 bdrm $275K
• 0 Lofts sold so far this year!
Supply and Demand!months
Current market!• You must price ahead of the market!
• It’s a beauty pageant!
• Buyers shop in price tiers!
• You’re either IN or OUT of the market!
• If priced right you don’t get low ball offers!
• Updates and remodels are essential to sale!
• Values - approximately 30% less than peak!
Your HOA is very important!
• Maximum 30% renters to owners ratio!
• Diligent in collecting delinquent HOA fees.
• Must have adequate reserves!
• Budgets for capital maintenance!
• Monthly HOA dues must stay reasonable!
When will the market return?
• Once we hit bottom – 5 to 6 years!
• Foreclosures & Job concerns are the biggest problems.
Your HOA is very important!
• Maximum 30% renters to owners ratio!
• Diligent in collecting delinquent HOA fees.
• Must have adequate reserves!
• Budgets for capital maintenance!
• Monthly HOA dues must stay reasonable!
Delinquency ReportUnit Name Amount Current 30 Days 60Days 90 Days Comments
55.62$ 55.62$ 95.82$ 95.82$ 10.95$ 10.95$
172.55$ 24.45$ 148.10$ 3,845.24$ 255.00$ 255.00$ 3,335.24$
Totals 4,180.18$ 441.84$ 255.00$ 3,483.34$ Payment Plan
Cash - Checking 32,603.35$ Cash - Money Market Reserves 307,550.50$
Total Assets 340,153.85$ ===========
Current Liabilities:Prepaid Dues Payable 12,889.28$
Current Liabilities 12,889.28$ ===========
Reserves:Reserves Unallocated 307,550.50$
Total Reserves 307,550.50$ ===========
Equity:Retained Earnings 25,931.81$ Current Year Net Income(Loss) (6,217.74)$
19,714.07$
Total Liabilities And Equity 340,153.85$ ===========
Assets
Liabilities & Equity
Olde Ivy at Vinings THA Inc.Balance Sheet
10/31/2010
As of 10/31 Unit costGen & Administrative 88.29$ Taxes & Insurance 35.03$ Trash Removal 17.10$ Maintenance 18.00$ Pest Control 11.70$ Reserve Contributions 45.00$ Cash 27.17$
Total 242.29$
Capital Improvements 73,270$
Townhomes
Townhomes Unit cost
Pest Control, $11.70
Reserve Contributions,
$45.00
Cash, $27.17
Gen & Administrative,
$88.29
Taxes & Insurance, $35.03 Trash Removal,
$17.10
Maintenance, $18.00
Townhomes Financial ModelPlan Year 2011 3.0%
Inflation Factors 100.00% 103.00% 106.09% 109.27% 112.55% 115.93% 119.41%
Reserve Item UnitsBegin in
YearInflated cost
2011 2012 2013 2014 2015 2016 2017Roofs-Replace Phase 1 (2000) 0 Building B 7 2014 27,448 29,994 Building G 5 2014 23,587 25,774 Building F 6 2014 21,785 23,805 Building A 4 2014 19,385 21,182 Building E 6 2015 22,847 25,715 Building C 3 2015 11,458 12,896 Building D 4 2015 15,664 17,630 Building H 6 2015 24,566 27,649 Building P 5 2016 47,638 55,225 Building I 4 2016 16,451 19,071 Building N 3 2016 14,600 16,926 Roofs-Replace Phase 2 (2001) 0 Building M 3 2015 13,027 14,662 Building O 6 2015 57,165 64,340 Building L 8 2015 31,370 35,307 Building K 4 2016 16,773 19,444 Building J 6 2016 23,070 26,744 Building S 5 2016 23,587 27,344 Building T 6 2017 57,165 68,258Roofs-Replace Phase 3 (2002) 0 Building U 7 2016 66,693 77,315 Building X 6 2016 23,070 26,744 Building V 7 2017 27,448 32,775 Building Y 6 2017 23,070 27,547 Building W 3 2017 13,027 15,555Pressure Washing-Phase 1 53 2013 5,404 5,734 Pressure Washing-Phase 2 38 2014 3,875 4,234 Pressure Washing-Phase 3 22 2015 2,243 2,525 Exterior painting-Phase 1 53 2010 100,446 116,444 Exterior painting-Phase 2 38 2011 72,018 72,018 85,993Exterior painting-Phase 3 29 2012 54,961 56,610 Treat Decks and patios 120 2008 27,282 27,282 29,812 32,577
20 year plan requirement 2,116,331$ Total expenses in real $ 99,300 56,610 5,734 134,801 200,724 385,257 262,70420 year plan, in 2011 Dollars 1,188,103$ Expenses in 2011 $ 99,300 54,961 5,404 31,157 2,243 190,208 162,846
(Next 20 yrs) Reserve Balance at EOY $299,442 $338,030 $456,684 $475,412 $435,363 $224,556 $63,36705/31/15 542,465 351,693 339,107 456,684 520,695 542,465 508,345 267,064
Operating Budget baseline for 2011 294,446$ 06/30/30 $11,342 $259,139 $290,438 $348,376 $398,711 $355,167 $137,700 $12,871Operating Balance forward from 2010 12,000$
Reserve contribution per unit per mo 55 65 85 105 110 120 70Interest rate 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Minimum reserve balance 20,000$ # Units 120 120 120 120 120 120 120Maximum reserve balance 300,000$ Monthly Reserve Contribution 6,600 7,800 10,200 12,600 13,200 14,400 8,400
Total Budgeted Income 387,260 396,000 424,800 460,800 496,800 511,200 475,200Legend Prior year surplus(deficit) 10,000 23,614 22,735 12,757 608 7,606 4,663
Ordinary Inputs Total inflow 397,260 419,614 447,535 473,557 497,408 518,806 479,863Economic Assumptions Budgeted Operating Expenses 294,446 303,279 312,378 321,749 331,402 341,344 351,584
Summary Data Total Reserve Payments 79,200 93,600 122,400 151,200 158,400 172,800 100,800Deficit Total Outflow 373,646 396,879 434,778 472,949 489,802 514,144 452,384
Surplus Anticipated Surplus/Deficit 23,614 22,735 12,757 608 7,606 4,663 27,479Projected dues 265.00 275.00 295.00 320.00 345.00 355.00 330.00
What If…Plan Year 2011 3.0%
Inflation Factors 100.00% 103.00% 106.09% 109.27% 112.55% 115.93% 119.41% 122.99% 126.68% 130.48%
Reserve Item UnitsBegin in
YearInflated cost
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Roofs-Replace Phase 1 (2000) 0 Building B 7 2014 27,448 29,994 Building G 5 2014 23,587 25,774 Building F 6 2014 21,785 23,805 Building A 4 2014 19,385 21,182 Building E 6 2015 22,847 25,715 Building C 3 2015 11,458 12,896 Building D 4 2015 15,664 17,630 Building H 6 2015 24,566 27,649 Building P 5 2016 47,638 55,225 Building I 4 2016 16,451 19,071 Building N 3 2016 14,600 16,926 Roofs-Replace Phase 2 (2001) 0 Building M 3 2015 13,027 14,662 Building O 6 2015 57,165 64,340 Building L 8 2015 31,370 35,307 Building K 4 2016 16,773 19,444 Building J 6 2016 23,070 26,744 Building S 5 2016 23,587 27,344 Building T 6 2017 57,165 68,258 Roofs-Replace Phase 3 (2002) 0 Building U 7 2016 66,693 77,315 Building X 6 2016 23,070 26,744 Building V 7 2017 27,448 32,775 Building Y 6 2017 23,070 27,547 Building W 3 2017 13,027 15,555 Pressure Washing-Phase 1 53 2013 5,404 5,734 6,846 Pressure Washing-Phase 2 38 2014 3,875 4,234 5,056Pressure Washing-Phase 3 22 2015 2,243 2,525 Exterior painting-Phase 1 53 2010 100,446 116,444 Exterior painting-Phase 2 38 2011 72,018 72,018 85,993 Exterior painting-Phase 3 29 2012 54,961 56,610 67,595 Treat Decks and patios 120 2008 27,282 27,282 29,812 32,577 35,597
20 year plan requirement 2,116,331$ Total expenses in real $ 99,300 56,610 5,734 134,801 200,724 385,257 262,704 67,595 6,846 40,65320 year plan, in 2011 Dollars 1,188,103$ Expenses in 2011 $ 99,300 54,961 5,404 31,157 2,243 190,208 162,846 54,961 5,404 31,157
(Next 20 yrs) Reserve Balance at EOY $292,407 $316,523 $391,761 $337,982 $217,845 ($87,619) ($271,123) ($259,518) ($187,164) ($148,617)05/31/14 425,606 344,678 326,051 391,761 425,606 371,716 251,334 (54,619) (238,123) (187,164) (148,617)
Operating Budget baseline for 2011 294,446$ 06/30/17 ($310,723) $252,121 $276,177 $323,259 $297,582 $177,747 ($127,219) ($310,723) ($299,118) ($252,918) ($188,217)Operating Balance forward from 2010 12,000$
Reserve contribution per unit per mo 55 55 55 55 55 55 55 55 55 55Interest rate 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Minimum reserve balance 20,000$ # Units 120 120 120 120 120 120 120 120 120 120Maximum reserve balance 300,000$ Monthly Reserve Contribution 6,600 6,600 6,600 6,600 6,600 6,600 6,600 6600 6,600 6,600
Total Budgeted Income 387,260 381,600 381,600 381,600 381,600 381,600 381,600 381,600 381,600 381,600Legend Prior year surplus(deficit) 10,000 23,614 22,735 12,757 6,592 35,594 74,537 123,721 183,453 254,048
Ordinary Inputs Total inflow 397,260 405,214 404,335 394,357 375,008 346,006 307,063 257,879 198,147 127,552Economic Assumptions Budgeted Operating Expenses 294,446 303,279 312,378 321,749 331,402 341,344 351,584 362,131 372,995 384,185
Summary Data Total Reserve Payments 79,200 79,200 79,200 79,200 79,200 79,200 79,200 79,200 79,200 79,200Deficit Total Outflow 373,646 382,479 391,578 400,949 410,602 420,544 430,784 441,331 452,195 463,385
Surplus Anticipated Surplus/Deficit 23,614 22,735 12,757 6,592 35,594 74,537 123,721 183,453 254,048 335,833Projected dues 265.00 265.00 265.00 265.00 265.00 265.00 265.00 265.00 265.00 265.00
Property Manager’s Report
We Need Volunteers!!!
Questions & Answers
Election Results
Closing Remarks
Please stay for our social gathering