Notes from 5/7/09 Finance Committee (FC) Meeting

Attendees: Rick Barrett, Austin Godfrey, Lori Denson, John Murray, Bob Yingling, Davor Gjivoje, Terry Dwyer.

Reports from Subcommittees:

Water Company

- Rick has provided Bob with all financial cost projections

- Lori indicated that hookups exceeding 100 can be made with virtually no impact on the Lakeshore Company.

- The cost of Lakeshore water is estimated at $500/yr/household.

- John will get the cost of water supplied by water companies in Harding.

- Rick and Terry are still awaiting arrangements to meet with local water companies.

Clubhouse

-�� John provided information on AC repair cycle, the next being $17K in 2019. It is difficult to estimate the costs and cycle for deck replacement. The FC decided not to account for it as a cyclic item, instead opting to pay for repairs/partial-reconstruction out of operating budgets. All clubhouse info has now been provided to Bob.

Roads

- Basically the roads should be maintained in major and minor cycles.

We need $250K within 5 years to complete the current repairs.� Beyond that, the cyclical components are chip-and-seal every 7 years at $50K, and total replacement every 4 minor cycles (28 years) at $500K. This completed the info needed by Bob.

Lake & Other Recreational Venues

- Austin provided some input on financial comparisons of other lake communities.

- We settled on the following cycles for dredging: Lagoon $10K every 5 years (next 2009), Breeder Pond $50k every 20 years (next 2015), main lake $500k every 40 years (next 2045). Bob now has all info on this area.

Land

- The only cost items in this area is property taxes, which are paid out of yearly operating expenses. Terry will outline several options for discussion to reduce taxes and/or obtain revenues.

Dues, Fees, Assessments

-�� The group unanimously supported the transfer fee concept. Lori will research comparable amounts in the area, and what the purposes are to which the transfer funds are put. John will obtain the average yearly number of property sales at MKL.

Reserve Analysis

- Bob will send out a draft by mid-May.

Working Schedule:

- Next meeting end of May/early June. This meeting will look at the first cut financial projection for the MKLCRF.

- September � meeting with subgroup of MKL residents to discuss MKLCRF idea, to go over funding possibilities and get their input.

- Fall � Presentation to community, incorporating September discussions/feedback.

- January 2010 � voting on proposals.