Franklin Trace HOA Meeting

June 5th, 2012

FTHOA Board of Directors

Carlton BaleRebecca Coats Barry Griffin Sharon Neal

Ryan Roberson Terri Roberson

www.franklintrace.com

FTHOA Management

Kirkpatrick Management Companywww.ekirkpatrick.com

General ManagerJoseph Winship

(317) 558-5347

Association Property Manager Kevin Patterson

(317) 558-5341

FY2012 Successes• Addressed issues with

homeowner complaints concerning the quality of work of landscape contractors

• Fixed Southport road drain pipe issue– Expected “for good”!

• Replaced broken and stolen signs• Significant progress on unified

covenant’s• Formalized architectural approval

process• Negotiated mailbox purchase deal

• Reviewed quality of service expectations with contractors

• Board action on pond fountains– General homeowner

responsibility and the responsibility of homeowners living on the ponds

• Fixed issue with common area irrigation and water meter expense

• Addressing expected cost increases in several areas

Mail BoxesEstes Designswww.estesdesigns.com(317) 899-2203470 S. Mitthoeffer RoadIndianapolis, IN 46229

Mailbox Solutionswww.mailboxsolutions.com(317) 460-101010999 Rutgers Lane Fishers, IN 46038

Otto’s Streetscape Solutionswww.ostreetscape.com(317) 886-44002449 E. Main Street, Greenwood, IN 46143

FY2012 Homeowner Issues

• Quality of contractor/landscaping performance

• Homeowners adhering to covenants• Security• Maintenance of common areas

– Including trees, lighting, pond water, etc.

2013 Franklin Trace Objectives• Continue improvement in overall maintenance and appearance of the community

– Common areas and Southport entrance• Finalize covenant unification with minimal spending

– Potential for one final mailing• Address Aristocrat pear tree pruning

– Potential for horrible results if homeowners take it upon themselves• Cover increases in irrigation expense and increase in electricity expense

– Electricity cost up 14.5% over the next two years (announced April 2012)– Water up 26% 2010 through 2013 (approved in February 2011)

• Ensure homeowners are protected from expected upcoming maintenance costs and unplanned/unbudgeted expense (increase reserve fund to match community needs/expectations)

– Two of three pond pumps are more than eight years old• More than $5,000 to replace not including installation

– Pond contamination issues if city is required to address– Recover HOA dues in a timely period– Address drainage issues when/if they arise– Address security issues when/if they arise

HOA Fee Trend

•3.2% annual increase over three years•3.2% annual increase over the last eight years

Franklin Trace Fiscal Year 2012/2013 Proposed Budget July 2012 - June 2013

Based on 94 Lot Owners

Semi Annual Fees $300 $280 $245 $330

Ending June 30 2010 2011 2012 2013EXPENSES Actual Actual Forecasted BudgetManagement Fees 3,470$ 4,800$ 4,944$ 5,100$ Professional Fees 1,429$ 1,783$ 1,060$ 1,500$ Administrative 959$ 253$ 300$ 300$ Postage 315$ 212$ 300$ 300$ Web-Site -$ 463$ 179$ 200$ Electricity 10,687$ 12,756$ 13,950$ 15,500$ Water Expense 972$ 608$ 145$ 1,200$ Snow Removal 3,446$ 2,644$ 2,400$ 2,800$ Sprinkler Maint 936$ 413$ 500$ 800$ Irrigation Repair 200$ -$ -$ Mowing & Edging 7,810$ 5,125$ 4,200$ 5,800$ Mulch 2,484$ 7,586$ 5,183$ 3,300$ Bed Maintenance -$ 1,785$ 942$ 900$ Landscape Improvements 1,500$ Fert./Grub/Weed/Aerate/Turf -$ -$ -$ 1,625$ Tree Care/Removal/Replace -$ 1,415$ -$ 2,000$ Pruning -$ 630$ 720$ 1,000$ Native Tree Pruning 5,500$ Edging -$ -$ 40$ Pond/Fountain Maint 8,869$ 4,690$ 3,683$ 4,000$ Pest Control -$ 650$ -$ 800$ Common Area Maint 176$ 1,114$ 1,000$ 1,000$ Street Signs 185$ 328$ 618$ 600$ Insurance 1,999$ 69$ 644$ 700$ Contingency -$ -$ -$ 5,643$ Total Expense 43,937$ 47,324$ 40,808$ 62,068$

Franklin Trace- Spring Bloom

Poorly Pruned Pear Trees- What We Want to Avoid

Franklin Trace- Front Entrance

HOA Board Members

• 2013 BOD (agreed to remain)– Barry Griffin- President– Ryan Roberson- Vice President– Terri Roberson- Treasurer– Rebecca Coats- Secretary– Carlton Bale- Member– Sharon Neal- Alternate

• 2013 Nominee– Jason Bell

Back Ups

Franklin Trace Fiscal Year 2012/2013 Proposed Budget July 2012 - June 2013 (without native tree pruning)

Based on 94 Lot Owners

Semi Annual Fees $300 $280 $245 $298

Ending June 30 2010 2011 2012 2013EXPENSES Actual Actual Forecasted BudgetManagement Fees 3,470$ 4,800$ 4,944$ 5,100$ Professional Fees 1,429$ 1,783$ 1,060$ 1,500$ Administrative 959$ 253$ 300$ 300$ Postage 315$ 212$ 300$ 300$ Web-Site -$ 463$ 179$ 200$ Electricity 10,687$ 12,756$ 13,950$ 15,500$ Water Expense 972$ 608$ 145$ 1,200$ Snow Removal 3,446$ 2,644$ 2,400$ 2,800$ Sprinkler Maint 936$ 413$ 500$ 800$ Irrigation Repair 200$ -$ -$ Mowing & Edging 7,810$ 5,125$ 4,200$ 5,800$ Mulch 2,484$ 7,586$ 5,183$ 3,300$ Bed Maintenance -$ 1,785$ 942$ 900$ Landscape Improvements 1,500$ Fert./Grub/Weed/Aerate/Turf -$ -$ -$ 1,625$ Tree Care/Removal/Replace -$ 1,415$ -$ 2,000$ Pruning -$ 630$ 720$ 1,000$ Native Tree PruningEdging -$ -$ 40$ Pond/Fountain Maint 8,869$ 4,690$ 3,683$ 4,000$ Pest Control -$ 650$ -$ 800$ Common Area Maint 176$ 1,114$ 1,000$ 1,000$ Street Signs 185$ 328$ 618$ 600$ Insurance 1,999$ 69$ 644$ 700$ Contingency -$ -$ -$ 5,093$ Total Expense 43,937$ 47,324$ 40,808$ 56,018$