May ended with a surplus of $4,333.73 bringing our five-month surplus to $28,088.80.

The Lake A restoration project, as most everyone can see, is well underway and nearing completion. The approximately $56,000 cost of this project will not affect our accumulated surplus as this restoration project will be charged against our Lake A Reserve Fund. The portion of the Reserve Fund dedicated to Lake A will result in a deficit in the short term, as this cash flow funding shortfall will be absorbed by other dollars in the Reserve Fund. It is projected by year-end that the deficit will be eliminated through additional contributions from the usual and customary monthly Lake A Monthly Assessment.

On May 3^rd, the Fifth Third Bank held a foreclosure auction on one property in Seminole Lakes. The property was sold at auction to the highest bidder. As often happens, the highest bidder was the Fifth Third Bank and they are now the new owner liable only for assessments occurring after the auction date. Board decisions are still pending on our remaining exposure related to this property.

On other foreclosure matters currently in process, attorneys for the applicable plaintiff have filed a motion for summary judgment. A court hearing has been scheduled for July 9^th. After the hearing, it is possible that a final judgment of foreclosure will be obtained. Within a month, it’s likely an auction will take place at which time I will have more definitive information on which to recommend to the board a course of action to protect our financial interest in the property.

We have one additional developing delinquency account in our monthly assessments. This situation will be addressed with Star Management following today’s meeting with a possible recording of a Claim of Lien with the Charlotte County Clerk of Court if there are no special mitigating circumstances associated with this account.

On June 3^rd, our SunTrust $100,000 CD matured. The effect of this maturing CD is not reflected in our current statements as the event occurred in June. However, I have accepted the renewal offer from SunTrust Bank and rolled over the $100,000 CD and the earned interest totaling $5,814.87. The new term will be for 11 months @ an effective yield of 5.20%, which I feel is very competitive for commercial accounts.

Our Reserve Balance at May 31, 2007 is $485,666.94.