The operating expense report for the twelve months of POA management was sent to the B of D prior to this meeting. For the total year’s operation the $51,703 expenses were over budget by only $343. The POA budget included the same $4,280 each month of the year so the lower than budget expenses during the summer months were expected and the winter month’s expenses ran higher than the straight line budget. Electricity for the year of $12,847 was the largest single expense, with the exception of the contracted lease payment for the year, which totaled $15,408. Heating the pool with the electric heating system cost about $20 a day more than the normal pool electricity expenses.

We were fortunate that the pool pumping, filtering and heating equipment has held up pretty well this past year and we spent only $2,517 in repairs and replacement of the pool, tiki hut and exercise room equipment. The current shut down of the swimming pool has been caused by the failure of the circulating system pump and repair/replacement may cost over $2,000.

Actual cost of operating the pool facilities and equipment portion of the Seminole Lakes Amenities has averaged about $3,000 per month for the past year. The $1,284 monthly lease payment adds about a 43 % "interest" (return on owner’s equity) cost to our "operating" expenses. It is, again, suggested that this large portion of the expenses be more vigorously addressed in future negotiations with the Developer at the time of lease renewal opportunities for this Amenity Center. .

I want to thank the committee members who have stepped up and taken on the task of helping to monitoring the pool equipment operation and our cleaning contractors’ work.

Use of the pool during this current lease has remained at the 10% to 30% of the residents depending on the particular event. This is in line with the typical utilization of similar facilities in residential communities in the area. Water aerobics remains popular with about 18-20 "swimmers" in the early mornings, and a growing number of residents have been visiting the Exercise Room to enjoy their daily exercise. During the Christmas/New Years/ Spring Break holiday season many residents that are not "regular" users of the facilities entertained family and visiting friends at poolside.

We have had a few residents use the Tiki Hut and pool facilities for their family and friends more private get togethers that require more entertainment room than they have in their residences. These have worked out very well, so remember that these facilities are being leased for the use of all of the Seminole Lakes residents. Just let any of the Pool Committee members know about your plans and place it on the calendar, which Lillian Conover is updating monthly and posting at the Stillwater Circle entrance to the pool.

Landscaping has been added around the swimming pool deck this year. The Activities committee, Arts committee and Tennis members have held various successful events at the Pool Facilities that could not have been held at any other local facilities for our residents. They have let it be known that they will continue to plan activities that will utilize the facilities.

Sharon Price wants me to thank everybody that has donated books for the exercise room "Library", and to let the residents know that our "read and return basis" operation is being enjoyed by quite a few residents.

After serving as the Pool Committee Chairman for the past three year’s contracted lease periods I have advised the Board that I will be resigning from this role. Bob Toth has asked Stu Smith to consider chairing this Committee. Stu has experience in swimming pool maintenance and I will work with Stu to bring him up to speed with the particular operating characteristics of our facilities. The financial aspects of the lease will be handled by the board Treasurer in the future.

I know Stu will enjoy the same cooperative spirit that you members have given me these past years. Thank you!!

Galen Price