SAGHA

Annual Homeowners MeetingAugust 20, 2013

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Agenda Open Board Positions Resolution

Year in Review

Treasurer’s Report

Common Area Items

Results of Reserve Study

Stewardship & Seeding Projects

Social Committee

Other Committee Participation

Website Update

Election Results

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Open Board Positions “What does the board do”?...primarily:

Maintains common area Develop short term/mid term plans and hire/manage vendors to execute (reserve

study road map) Monthly “walk arounds” to identify any maintenance items and hire/manage

vendors to execute (Walk Around Checklist) Prepare annual budget for association for purposes of annual assessment calculation Communicate & collect annual assessments Handles administrative activities of the association

Payment of vendors Tax returns Annual report Provide information to buyers/sellers on property sales

Community Newsletters Annual Meeting of Homeowners

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Open Board Positions Need 3 volunteers to replace the board members

whose terms are expiring

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Year in Review Buckthorn & Phragmites removal supported by Lake County Stormwater

Management Grant

Total cost: $8,995.00

Grant amount: $4,447.50

Wetlands Burn

Reserve Study completed

Committees established

Common Area Walk Around Process Based on plan developed with LCSWM in 2012

Documents maintenance items (swing set repair, painting of emergency gate, pond status, invasives in wetlands area, etc.)

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Buckthorn Removal

Before Removal After Removal

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Phragmites Removal

Before Spray (Aug 6, 2013)

After Spray (Aug 18, 2013)

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Common Area Each year we will need to put an amount in the

operating budget for Common Area Maintenance Creek maintenance Invasive removal Etc.

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Treasurer’s Report

Expenses 2013 Budget 01/01/13 - 08/16/13

Actual CostsAnticipated costs thru

end of 2013 Total

Landscape $7,600 $2,305 $3,880 $6,185

Pond Maintenance $1,100 $150 $0 $150

Reserve Study $1,100 $0 $1,100

Bank Charges $0 $48 $0 $48

Insurance $1,900 $1,862 $0 $1,862

License Permits $61 $0 $0

Office Supplies $225 $70 $40 $110

Postage & Delivery $130 $74 $74

Legal Professional Fees $750 $230 $230

Utilities $489 $244 $244

Website Maintenance $140 $84 $84

Subtotal - Operating Expenses $12,395 $6,083 $4,004 $10,087

Capital Reserve $3,005 $3,005 $3,005

TOTAL $15,400 $9,088 $4,004 $13,092

Number of Homes 56

Annual Dues Collected $14,354

Assessed Annual Dues per Home $275

SAGHA Operating Expenses vs. Budget

2013Notes

• Assessments • 4 households with

unpaid assessments• 1 sent to collections• 3 sent registered letters

• Legal/Professional fees reflect costs of assistance with collection activities

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Breakdown of 2013 SAGHA Budget

76%

12%

4%3%

5% Common AreaMaintenance &Reserves

Insurance

Administrative

Utilities

Legal

2013 SAGHA Budget: $15,400

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Treasurer’s ReportSAGHA CAPITAL RESERVES REVIEW

Below is a recap showing the SAGHA capital reserves.

Sagha Capital Reserves Schedule will be updated to reflect the reserve study as we prepare the 2014 budget.

Reserve ItemActual Cost

Expected Life

Years in Service

2013 Reserve Balance

2013 Expenditures to date

2013 Remaining Expenditures

Grant Funds to be received

2013 Ending Reserve Balance

Fence 40000 47 15 13,680 13,680 Park Path 5000 15 15 5,025 5,025 Pond Pump 1000 5 3 800 800 Park: - - Equipment 6800 15 15 6,800 6,800 Cleanup 3500 5 1 700 - 700 Grass Burn 5000 4 3 5,000 3,750 1,250 Other Common Area Maintenance Buckthorn Removal 5,590 7,510 1,390 (4,450) 1,140

- Reserve Balance after 2013 HOA contributions 37,595 11,260 1,390 (4,450) 29,395

Capital reserves expenditures include:* Grass Burn - 3,750* Buckthorn Removal - 7,510* Phragmites Removal - 1,390

Practiced Reserve Approach

Assets:

Cash in Bank PNC $24,857.32

CD Long Term $19,708.09

Total Cash on Hand $44,565.41

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Reserve Study Results

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Reserve Study Vendor Waldman Engineering Consultants, Inc., Naperville, IL

40 years of combined experience

Reserve Studies,

Engineering Transition Studies,

Structural Engineering Assessments,

Moisture Investigations,

Repair Specifications

Cost: $2,200

Grant Ostreko, Reserve Specialist

Completed on January 31, 2013

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Scope & Objective Elements included:

o Asphalt Patho Perimeter Fencingo Retention Pondo Playground Equipmento Fire Lane

Validate replacement cost and useful life estimates of items captured in

current reserve methodology Identify any other items where a reserve may be necessary Determine the amount of money the association would need to set aside in

the reserve to meet the anticipated expenses over the next 30 years

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Methodology

Replacement costs are calculated using a combination of bids from local

contractors for similar work and then scheduled over the next 30 years

according to each element’s anticipated useful life

Present day expenses were inflated to account for future increases in

construction costs – two recommended inflation rates of 3% and 5%

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Results by Element

ElementPresent Day

ExpenseTypical

Useful LifeRemaining Useful Life

Replacement cost per SAGHA

Useful Life per SAGHA

Remaining Useful Life per SAGHA

Asphalt Path $8,000 10-15 3-10 $5,025 15 0

Fire Lane Pavers

$10,000 20-30 15 n/a n/a n/a

Fencing $40,000 20-30+ 16 $40,000 47 32

Playground Equipment (excludes labor)

$25,000 15-20 11 $6,800 20 5

Retention Pond Aeration System

$1,000 5-10 6 $1,000 5 2

Park Cleanup $3,500 5 5 $3,500 5 5

Grass Burn $5,000 5 1 $5,000 4 1

Other Common Area Maintenance

$5,000 5 1 $5,950 n/a n/a

ElementPresent Day

ExpenseTypical

Useful LifeRemaining Useful Life

Replacement cost per SAGHA

Useful Life per SAGHA

Remaining Useful Life per SAGHA

Asphalt Path $8,000 10-15 3-10 $5,025 15 0

Fire Lane Pavers

$10,000 20-30 15 n/a n/a n/a

Fencing $40,000 20-30+ 16 $40,000 47 32

Playground Equipment (excludes labor)

$25,000 15-20 11 $6,800 20 5

Retention Pond Aeration System

$1,000 5-10 6 $1,000 5 2

Park Cleanup $3,500 5 5 $3,500 5 5

Grass Burn $5,000 5 1 $5,000 4 1

Other Common Area Maintenance

$5,000 5 1 $5,950 n/a n/a

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Required Funding by Year

Notes:• Interest rate used was 0.1%• 2013 Reserve Fund contribution was $3,005

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Annual Funding Schedule

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Annual Reserve Expenditures

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Interesting Takeaways 30 year schedule also provided which shows replacement necessities for

next 30 years…good roadmap for future boards Needing to take inflation into consideration is an important element;

especially for longer term items (i.e. fence replacement) Need to include reserve item, or operating expense item, for general

common area maintenance (creek cleanup, tree removal, etc.) Capital Reserve contribution should increase each year to bridge the gap

between inflation and current interest rates

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Reserve Study Outcome Maximize interest rates on reserve funds

Moving reserve funds to BCU to increase interest rates from 0.1% with PNC to greater than 1.0% with BCU

Gap between current reserve contribution and required reserve contribution per Reserve Study

Small increases should be applied annually during budgeting process to close that gap over time

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Stewardship & Seeding Projects

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Proposals Turf to Prairie (#4802): $1,400

Convert Turf to Prairie- As shown on the map. Spray existing turf grass with herbicide, then seed the area with native grasses and flowers. The seeded area will be covered with temporary straw blanket to protect the seed and prevent erosion. Spring 2013.

Seeding and Stewardship in Buckthorn Removal Area (#4801): $8,620

Stewardship – Trained staff will visit the restoration zone multiple times during the growing season for invasive weed control ($2,400)

Native Seeding – The area will be seeded with native flowers and grasses ($1,690) Streambank Erosion Control – Stream bank will be seeded with native species, then

immediately covered with erosion control blanket ($2,130) Streambank Erosion Control – Plug sized native flowers and grasses will be planted

through the erosion control blanket ($2,400)

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Next Steps Stewardship element in Buckthorn removal area is a good start…will likely

need stewardship in other zones as well Trained staff to visit area during growing season for invasive weed control

Visits consist of herbicide application, mowing and/or hand weeding

Evaluate Stewardship Plan for common area and include in 2014 budget

Look at seeding and prairie projects for 2015 Look at erosion projects for 2015 or beyond

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Social Committee

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Other Committee Participation

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Website Update

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Open Board Position Resolution