Al DiSessa, Treasurer
Seminole Lakes Property Owner’s Association, Inc.

The last board of directors meeting was June 11^th during which I reported on the results of our operations as of the end of May 2007. At that time I reported a January through May surplus of $28,088.80. For the months of June, July and August, our association operated at and additional surplus of $6,343.50 thus bringing our year to date surplus to $34,432.30. This continued below budget performance is significant and solidifies our excellent financial position when combined with our nearly fully funded Capital Improvement Reserves.

Our reserve balance at the end of August was $455,702.05, which is down about $30,000 since May due to our expenditure of $55,329.32 for the rebuilding of the Lake A shoreline completed during the month June 2007. This is the first significant "draw" on our reserves since hurricane Charley expenditures back in 2004. The Lake A Rebuilding Project caused the Lake A Reserve component of our reserves to become negatively funded. This negative funding is currently planned to be extinguished through the regular monthly Lake A $17.00 Assessment. I am recommending to the board that the current favorable budget variance in Operating Account #440 - Lake A Maintenance of $3,639.10 be transferred into the Lake A Reserve component within the Capital Reserve Fund to both eliminate negative funding and begin rebuilding this needed and desirable reserve. As your Treasurer, I’m aware of no further anticipated draws on our reserves for the remainder of 2007. If this projection becomes reality, our year-end reserve balance should come in at approximately $495,000.00.

With the exception of the Lake A capital expenditure, disbursements during these past three months have generally been usual and customary and within budgeted guidelines. The pool contract has been in-line with expectations, details of which will be reported on separately at this meeting.

Looking ahead, in September we will have three certificates of deposit (CD’s) maturing totaling over $210,000 and will provide us with approximately $8,500 in interest income. Two 9-month $50,000 5.4% United Bank CD’s will mature on September 28^th. If we renew with United Bank, I expect the renewal interest rate will be at least 5.4%. Our 12-month $108,935.58 5.31% Countrywide Bank CD will mature on September 30^th. I have been in touch with Countrywide Bank and feel reasonably confident that our current 5.31% CD will renew at a higher rate … possibly reaching 5.5% by month end.

The next ten weeks the board will be in a number crunching budget mode. The process will be completed in time for our November board meeting and our 2008 Budget will be presented at that time.