OPERATING FUND

It’s December! Wow, how time flies by. Reviewing our preliminary financial reports for the month of November 2006 discloses that we are right on target with the projections we made last September! So, what’s the bottom line for November? We’re back in surplus territory again. After reporting a deficit of $2,283 last month, this month (November) we are reporting a $3,557 surplus, bringing our year-to-date surplus to $76,588.07. With only December activity to add to our 2006 performance, it’s a forgone conclusion that we will not experience any insignificant impact on our actual performance for 2006 or our budget numbers for 2007.

Operations in November were pretty much "ho ho hum", no pun intended with the Christmas season upon us. The only significant non-recurring activity in November was the $3050 final payment we made on the fountain installed in Lake H and the administrative costs associated with the notification, copying and mailing of the 2007 Budget to homeowners … about $1,000. Legal costs continue to accrue and are deferred from operating performance and assigned to the on-going foreclosure lawsuit.

We will establish, at least, four new certificates of deposit (CDs) before year end to set us up to reach and likely exceed the goal of $20,000 in interest income during 2007. Initiating these CDs now may set us up for a nice Interest Income Christmas gift next year! Upon conclusion of setting up these investments, we will have, at least, 4 CD’s and 1 Money Market account in the Reserve Fund and 1 CD and 1 non-interest bearing checking account in our Operating Fund.

RESERVE FUND

The normal monthly contribution to the Reserve Fund ($5,988.83) was deposited in our money market account during November. An additional $414.46 in earned interest was also received. Both these events have and will occur each month. Our Reserve Fund Balance on November 30^th is $430,527.75 and represents 35.1% of our estimated replacement costs.

As I have reported all year, our Reserve Fund continues to be the source of our financial strength. Its existence facilitates the board’s ability to confidently plan future maintenance and improvement projects already provided within the Operating Fund Budget for 2007.

HOMEOWNER MAINTENANCE FEES

As of November 30^th, not withstanding the one pending foreclosure lawsuit, 98.9% of all Maintenance Fees have been fully paid by our homeowners. This is in one word "outstanding"! Please maintain this track record.

Finally, remember that your January 2007 Maintenance Fee is being reduced to $115.00 per lot per month, and the Lake A Assessment will be $17.00 per lot per month. These rates will remain in effect throughout 2007.

Respectfully,

Albert "Al" DiSessa

Director Treasurer, Seminole Lakes Property Owner’s Association