Century%20Farms%20Neighborhood%20Association

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Century Farms Neighborhood Association
2007 Budget Presentationand some fundamental
information.

• What you always wanted to know about our
  neighborhood in 30 slides or less
• Prepared by Fran Bixler, CFNA President
• November 16, 2006
• No guarantee or warranty is implied against
  errors or omissions. I am just a volunteer who
  loves my community and tries my best to make
  Century Farms a complete neighborhood one with
  social events that are eventful, one where our
  common areas are safely enjoyed by all and are in
  healthy condition and look nice, not necessarily
  perfect. Meeting a basic level of standards out
  of a Naperville subdivision with our market value
  is something I think we all expect. I doubt that
  this presentation will be read by the majority of
  the homeowners due to their understandably
  overscheduled lives. However, if we dont
  schedule in the time to care for our community,
  our very own neighborhood, then this neighborhood
  will reflect it with poorly maintained common
  areas and possibly even lawsuits from other
  subdivisions. If you purchased a home here
  primarily for its location and you dont have
  time to get involved, then please respect the
  homeowners who do spend their time researching
  the information, obtaining the bids, and doing
  all the work. If you dont like what this
  presentation holds, I plead you to become
  involved and help the board construct a plan for
  the future of Century Farms that you feel is
  fair. After all, you get what you put into it.

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Century Farms Neighborhood Association
The Basics
3
Who we are

• 5 Volunteer Board Members.
• Two Terms Expire in Odd Years.
• Three Terms Expire in Even Years.
• Volunteer Committees, 6 with members.
• Communications Newsletter Ponds Common Areas
  Social Welcoming,
• 253 CFNA Members (homeowners).
• The Declarations in Section 1 of Article V
  indicate the Association shall
• have a Board of not less than 5 directors.

4
Who we are

• 253 Owners / Home Sites The Approximate
  Breakdown
• 145 Home Sites Interior (not backing to the
  following)
• 42 Home sites back to ponds/natural area
• 41 Home sites back to Cress Creek or CC Commons
• 18 Home sites back to the business corridor
• 7 Home sites back to park
• Of the 43 sites backing to ponds and the natural
  areas
• 26 Homes Back to pond 1
• 14 Homes Back to pond 2 (Lot 177 also sides to
  pond 3 but is counted here).
• 1 Home Backs to pond 3
• 1 Home Backs to the Natural Area and a portion
  of pond 3
• Backs to is defined as the majority of the back
  property line being adjacent to specific feature,
  not specifically siding to a feature.

5
We Currently Have

• 5 volunteer Board members.
• 6 active volunteer CFNA Committees.
• Defined Mission, Vision, Values Beliefs
  Statement.
• Defined Purpose.
• Defined Policies and Procedures Manual.
• Defined descriptions for board members.
• Defined descriptions for committee members.

6
We Are Regulated by

• The CFNA Declarations.
• The CFNA By-Laws.
• The CFNA Rules and Regulations.
• The CFNA Fence Resolution.
• City of Naperville rules and regulations.
• State of Illinois laws.
• US laws.

7
We Currently Offer

• A Neighborhood Website.
• A Neighborhood Chat List.
• A Quarterly Newsletter.
• Neighborhood Annual Events.
• Management of Common Areas.

8
We Know We Need

• Timely and effective communication.
• Managed expectations and goals.
• Clear, concise operating procedures.
• Defined processes and implementations.
• A Financial Committee -first initiated in 2002,
  dropped due to lack of participation.
• More Volunteers.
• Also referred to as a Budget Committee.

9
We Know We Struggle With

• Continually playing catch up.
• Increasing Community Awareness.
• Promoting Neighborhood Participation.
• Implementing the Vision for Century Farms.
• Bringing Unity Spirit to the neighborhood.
• Finding leaders to take charge and motivate.
• It has been the same people volunteering.
• We need new blood to revitalize this
  neighborhood.
• Getting residents to look at Century Farms as a
  collective neighborhood rather than a grouping of
  individual homes.

10
We Embrace
Listening to Homeowners Through

• Email Communication via board email address
  cfna-board_at_yahoogroups.com .
• Email Communication via CF Chat List at
  cfna_at_yahoogroups.com .
• Communication at Quarterly Meetings.
• Communication at Neighborhood Events.
• Communication through CFNA committees.

11
The Budget
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2007 Budget Has Not Yet Been Adopted.

• The Board chose not to vote on the budget until
  we were able to listen to the homeowners at the
  meeting.
• We postponed the vote to our December meeting so
  that more dialogue could take place via email.
• The next Board meeting is December 12th, located
  at the Naperville Township Offices at 139 Water
  Street.
• The Board is required to adopt a budget before
  neighborhood association assessments can be sent
  out in January 2007.

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The Process of Creating a Budget

• Use current year budget as the baseline.
• Analyze dollars actually spent in current year.
• Forecast anticipated rise in costs (by 5).
• Contract expenses from return vendors.
• Get bids for future anticipated needs.
• Ask What will be the consequences if we wait?
• Address the needs of the committees.

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The Process of Creating a Budget

• Compare proposed budget to actual cost.
• Did the cost reap the anticipated results?
• Did the vendors we used meet the performance and
  skill anticipated at fair market price?
• Get bids from multiple vendors.
• Select vendors that provide the most value.
• Does the budget meet the requirements dictated
  by
• The Declarations,
• The By-Laws and
• The Mission, Vision, Values and Beliefs
  Statement?

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Did you know that

• The board is permitted to raise the assessments
  by 15 each and every year according to the
  declarations?
• For 4 years (1998, 1999, 2000, and 2001) the
  assessment stayed the same at 179.60?
• If you really looked at our assessment history,
  from 1998 to 2006, our assessments have only gone
  up 2.87 per year thats just 5.60 per year?
• If we added the proposed budget into this
  calculation, that dollar amount would only change
  to 15.04 per year?

CFNA ASSESSMENT BREAKDOWN ACTUAL CASE SCENARIOS IN COMARISION CFNA ASSESSMENT BREAKDOWN ACTUAL CASE SCENARIOS IN COMARISION CFNA ASSESSMENT BREAKDOWN ACTUAL CASE SCENARIOS IN COMARISION CFNA ASSESSMENT BREAKDOWN ACTUAL CASE SCENARIOS IN COMARISION CFNA ASSESSMENT BREAKDOWN ACTUAL CASE SCENARIOS IN COMARISION CFNA ASSESSMENT BREAKDOWN ACTUAL CASE SCENARIOS IN COMARISION CFNA ASSESSMENT BREAKDOWN ACTUAL CASE SCENARIOS IN COMARISION CFNA ASSESSMENT BREAKDOWN ACTUAL CASE SCENARIOS IN COMARISION
Year ActualAssessment Differencefrom last yr Raised AnnualAssessmentat 5 Hike Differencefrom last yr AnnualAssessmentat 10 Hike Differencefrom last yr
1998 179.60 0.00 0.00 179.60 0.00 179.60 0.00
1999 179.60 0.00 0.00 188.58 8.98 197.56 17.96
2000 179.60 0.00 0.00 198.01 9.43 217.32 19.76
2001 179.60 0.00 0.00 207.91 9.90 239.05 21.73
2002 197.00 17.40 9.69 218.30 10.40 262.95 23.90
2003 197.00 0.00 0.00 229.22 10.92 289.25 26.30
2004 210.00 13.00 6.60 240.68 11.46 318.17 28.92
2005 210.00 0.00 0.00 252.72 12.03 349.99 31.82
2006 230.00 20.00 9.52 265.35 12.64 384.99 35.00
Total Increase Since1998 Total Increase Since1998 50.40 25.81   85.75   205.39
Broken Down Per Year Broken Down Per Year 5.60 2.87   9.53   22.82
         
2007 330.00 100.00 43.00        
Broken down per year Broken down per year 15.04 8.37        
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FINANCIAL INCOME
Century Farms Neighborhood Association - 2007 Budget Proposal Century Farms Neighborhood Association - 2007 Budget Proposal Century Farms Neighborhood Association - 2007 Budget Proposal Century Farms Neighborhood Association - 2007 Budget Proposal Century Farms Neighborhood Association - 2007 Budget Proposal Century Farms Neighborhood Association - 2007 Budget Proposal Century Farms Neighborhood Association - 2007 Budget Proposal
INCOME Your Daily Cost Your 330 Breakdown Budget Budget Difference  
INCOME Your Daily Cost Your 330 Breakdown 2007 2006 2007-2006 Comments for 2007 Budget
INCOME            
ASSESSMENT INCOME           330 per home x 253 homes (equivalent to approx. 43 increase over 2006 assessment of 230)
4010-Assessments from Homeowners 0.904 330.00 83,490 58,190 25,300 330 per home x 253 homes (equivalent to approx. 43 increase over 2006 assessment of 230)
4610-Operating Interest (Includes CDs) 0.014 4.94 1,250 0 1,250 Interest paid on approx. 35K of short-term CD's quarterly, semi-annual and annual CD's)
             
Total Income   84,740 58,190 26,550  

• As you can see from the previous slide, the
  boards conservative approach to spending and
  raising assessments has proven to be shortsighted
  in the long run. As a new neighborhood, just
  like your new home, we have to make some
  fundamental improvements at the beginning so that
  we can benefit from those improvements.
• Pond maintenance and landscaping are crucial but
  fundamental. Without first establishing a
  healthy ecosystem, we will continually be plagued
  by invasive species taking over these areas.
  Without preventative maintenance, it will only
  get worse and therefore much more expensive to
  overcome.

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ADMINISTRATIVE EXPENSES
ADMINISTRATIVE EXPENSES Your Daily Cost Your 330 Breakdown Budget Budget Difference  
ADMINISTRATIVE EXPENSES Your Daily Cost Your 330 Breakdown 2007 2006 2007-2006 Comments for 2007 Budget
8505-Management Fee 0.077 28.06 7,100 6,803 297 575.00 per month through 4/30/07 per the management agreement and 600 per month through remainder of 2007.
8521-Legal Fees (Assn) 0.032 11.86 3,000 3,000 0 No change anticipated from 2006 budget.
8530-Audit Fee 0.000 0.00 0 0 0 Audit was last performed in 2004 for Year End 2003. The Board will consider the need for a 2006 fiscal year audit.Range of 1,900 to 3,000 in letter from Cray Kaiser.
8540-Professional Service (Includes Accountant Fees) 0.004 1.50 380 263 118 Estimate based on 2006 YTD actuals.
8550-General Office Exp / Supplies (Includes Signs) 0.005 1.68 426 417 9 5 Increase over the Annualized 6/30/06 YTD actuals.
8551-Photocopy/Reproduction 0.017 6.14 1,555 1,481 74 5 Increase over the 2006 budget.
8552-Postage 0.009 3.24 819 780 39 5 Increase over the 2006 budget.
8553-Coupon Books/Lockbox Fees 0.003 0.99 250 238 12 5 Increase over the 2006 budget.
8554-Bank Charges 0.000 0.00 0 0 0 No actuals in 2005 or 2006.
9101-Reserve Study 0.000 0.00 0 0 0  
Total Administrative Expenses 0.147 53.47 13,529 12,981 548  

• Administrative Expenses represent 16.15 of the
  budget.

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OPERATING EXPENSES
OPERATING EXPENSES Your Daily Cost Your 330 Breakdown Budget Budget Difference  
OPERATING EXPENSES Your Daily Cost Your 330 Breakdown 2007 2006 2007-2006 Comments for 2007 Budget
7210-Electricity 0.043 15.81 4,000 4,000 0 No change from 2006 budget. Based on 2005 Actuals. 2006 actuals were lower due to limited aerator usage.
7220-Water and Sewer 0.000 0.00 0 854 -854 No change from 2006 budget.
7621-Bulbs, tubes, and timers 0.000 0.00 0 269 -269 No actuals spent in 2005 and 2006.
7695-Other Bldg Repairs 0.000 0.00 0 118 -118 No actuals spent in 2005 and 2006.
8556-Dues/Fees/Licenses 0.001 0.20 50 0 50 Includes NAHC fees.
8565-Website Registration and Hosting 0.001 0.52 132 126 6 5 Increase over 2006 budget and actual.
8570-5 Newsletter / Ad Inc 0.000 0.00 0 0 0  
8570-Newsletter Printing(Printing Publisher Fees) 0.002 0.58 147 69 78 5 Increase over the Annualized 6/30/06 YTD Actuals.
8571-Newsletter Postage 0.000 0.00 0 0 0 Rolled into Postage Expenses above - 8552.
8575-5-Promo/Social Reimbursement 0.000 0.00 0 0 0  
8575-Promotions/Social Activities 0.005 1.98 500 1,000 -500 Halved the 2006 budget. YTD 6/30/06 0
Total Operating Expenses 0.047 17.11 4,329 6,436 -2,107

• Operating Expenses represent 5.17 of the budget.

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MAINTENANCE EXPENSES
MAINTENANCE EXPENSES Your Daily Cost Your 330 Breakdown Budget Budget Difference  
MAINTENANCE EXPENSES Your Daily Cost Your 330 Breakdown 2007 2006 2007-2006 Comments for 2007 Budget
7805-Grounds -Landscaping maintenance 0.126 46.17 11,680 16,000 -4,320 2007 contact with Green Scene for 11,680 for regular maintenance including mowing, etc.
7810-Additional Landscaping 0.089 32.31 8,175 8,000 175 2005 actuals were 4,155 and 2004 actuals were 11,160. Split the difference at 7,500 for additional /replacement plantings. Plus mulching to entrances/monument areas. Need to do parkway tree mulching every other year starting again in 2008.
7817-Natural Landscaped Area Maint 0.189 69.15 17,495 10,000 7,495 Invasive Species Removal (incl. millfoil)and Upland Area Treatment including 4 herbicide treatments, invasive water plant treatment and 1 burn. Burn not required in 2007, but it will be necessary in 2008. Per Pond Committee recommendations.
7830-Lakes/Ponds/Fountains 0.000 0.00 0 0 0 Expenses for these items go under 7831 and 7832.
7831-Pond Maintenance -Chemical Treatments 0.130 47.43 12,000 15,000 -3,000 Remediation, Shoreline Restoration including Alum and Nutrifier Treatments, plus 2,000 set aside for additional chemical treatment and 5,000 set aside for other contingencies. Per Pond Committee recommendations.
7832-Pond Maintenance -Aerator Maintenance 0.080 29.25 7,400 1,618 5,782 New Aerator and Installation and Storage of all Aerators. 5 Increase over the Annualized 8/31/05 YTD Actuals. Aerator Maintenance - Purchased new aerator for middle pond in 2005 for approximately 5,500 (should last 5 years). Per Pond Committee.
7833-Geese Police 0.065 23.72 6,000 4,000 2,000 6,000 for Geese Police (1,000 per month). Geese Police will do egg treatments for free if we use them for 6 months.
Total Maintenance Expenses 0.680 248.02 62,750 54,618 8,132  

• Non-Pond Landscaping Needs represent 44.95 of
  the budget.
• Pond Maintenance Needs represent 30.32 of the
  budget.

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TAXES INSURANCE EXPENSESAND THE SUMMARY
TAXES AND INSURANCEEXPENSES Your Daily Cost Your 330 Breakdown Budget Budget Difference
TAXES AND INSURANCEEXPENSES Your Daily Cost Your 330 Breakdown 2007 2006 2007-2006 Comments for 2007 Budget
8710-All Assn Insurance 0.024 8.62 3,146 3,146 0 5 Increase over Actual annual insurance premium paid. Policy Expires February 12th of each year - Using St. Paul Travelers
Umbrella            
Package            
Taxes            
Total Taxes and Insurance 0.024 8.62 3,146 3,146 0  
           
Total Expenses 0.897 327.23 83,754 77,181 6,573  
             
Summary for 2007            
Total Income 84,740  
Total Expenses 83,754  
Profit/(Loss) 986 This will money will be applied to the reserve account. This will money will be applied to the reserve account. This will money will be applied to the reserve account.

• Taxes and Insurance represent only 3.76 of the
  total budget.
• Summary, if we compare the percentage of each
  portion of the budget to earlier budgets, it will
  correlate within a few points. However if we
  compare this to the first budget I was able to
  find from 1999, the entire maintenance assessment
  represented 61.26 and that did not even include
  pond maintenance. It stipulated GROUNDS
  Maintenance only!

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The Basics of the Budget

• The Declarations state
• Article V Century Farms Neighborhood Association
• Section 6 Maintenance Assessments (excerpted
  paragraphs)
• (e) Both annual and special assessments must be
  fixed at a uniform amount for all Lots.
• (j) The regular yearly assessment shall be
  determined by the affirmative vote of the
  majority of the members serving on the Board.
• Article IX General Provisions, Section 6 states
  (excerpted paragraphs)
• by a 2/3 written vote of all Voting Members,
  revoke, modify, amend or supplement in whole or
  in part any or all of the covenant and conditions
  contained in this Declaration and may release
  from any part or all of such covenants all or any
  part of the real property subject thereto.
  Any such changes shall be effective only if
  expressed in a written instrument or instruments
  executed and acknowledged by each of the
  consenting Owners, certified by the Secretary of
  the Association and recorded in the Office of the
  Recorder of Deeds of DuPage, County, Illinois.

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The Basics of the Budget

• The By-Laws state
• Article IX (excerpted paragraphs)
• 9.03 ASSESSMENT PROCEDURE.
• If an adopted budget requires assessment
  against the Owners in any fiscal year exceeding
  115 of the assessments for the preceding year,
  the Board, upon written petition by Owners with
  20 of the votes of the Association filed within
  14 days of the Board action, shall call a meeting
  of the Owners within 30 days of the date of
  filing of the petition to consider the budget.
  Unless a majority of the votes of the Owners are
  cast at the meeting to reject the budget, it is
  ratified, whether or not a quorum is present

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Heres what happened
For some,expectations were not met.
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Homeowner Feedback from Meeting

• Confusion over the agenda.
• Some attendees liked Sean Flahertys
  presentation, some thought why is Sean Flaherty
  giving a pond presentation isnt this a budget
  meeting?
• Confusion over purpose of meeting.
• Only after the meeting, did the board realize
  that a circulation was widely received door to
  door. This misinformed homeowners implied that
  they must come to vote at the meeting or the
  budget will be passed. Who ever circulated this
  flyer, misunderstood the declarations and the
  cover sheet that was sent with the budget
  proposal.
• To clarify, only AFTER a budget that exceeds
  115 of the preceding year budget is adopted by
  the board, can homeowners petition the
  neighborhood. Then only after receiving at least
  20 of the homeowners signatures (with only 1
  owner signature per unit) or 51 signatures within
  14 days after the adoption, can they request
  another meeting to have the board reconsider the
  budget. AT THAT MEETING, owners are allowed to
  cast their votes. Please refer to slide 22, to
  reiterate, Unless a majority of the votes of the
  Owners are cast at the meeting to reject the
  budget, it is ratified, whether or not a quorum
  is present..."
• Left feeling frustrated.
• Some homeowners upon hearing that the board
  chose to postpone voting for the budget walked
  out. Some homeowners thought that they were not
  going to get their chance to vote once the
  board clarified this position. Feeling
  frustrated some homeowners left thinking that
  their voice would not get to be heard.

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Board Feedback from Meeting

• The agenda.
• We asked Sean to offer his presentation so that
  all the attendees would be made aware of the
  conditions of the ponds and the natural areas.
  This was to provide the homeowners with more
  information because these were large areas in the
  budget that the homeowners had voiced concerns.
  To see his presentation and perhaps more
  importantly to view the minutes from our July
  meeting, visit our website at www.centuryfarms.org
  .
• Purpose of meeting.
• At the beginning of the meeting the agenda was
  handed to everyone. Our agenda stated our
  purpose, and to be perfectly blunt, we knew this
  was our one and possibly only chance to get so
  many homeowners in one place to listen to what is
  happening in our common areas.
• The boards intention was to listen to all the
  attendees voice their concern. We postponed
  voting on the budget to benefit everyone, so that
  we could spend more time in the days to come
  listening and re-evaluating the budget. We
  stayed and continued to listen to those who did
  want their opinions heard.
• Expectations Were Not Met.
• Simply put, they could not be met, since most
  came into the room with different expectations.
• For all us to do our job, we all need to learn
  how to clarify our expectations in advance,
  giving the homeowners and the board the
  opportunity to at least know how to prepare for
  the next meeting. The responsibility for clear
  communication lies within each of us.

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How We Will Move Forward

• Complete review of this process.
• Try to define expectations prior to board
  meetings.
• Plan to communicate more effectively.
• Post budget information earlier.
• Provide Annual Statement after the close of each
  fiscal year.

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What We Need From You

• Become Involved
• Come to Meetings/Join a Committee.
• Continuous feedback and suggestions.
• Get to know the issues before criticizing.
• Enthusiasm and positive vibes.
• Understand CFNA Governing Documents
• The Declarations
• The By-Laws
• The Rules and Regulations
• The Fence Resolution
• The Policies and Procedures

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What We Need From You

• Take a Turn on The Board.
• Vote/Turn in Your Proxies at Elections.

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What You Can Continue to Expect From Us

• To listen to your suggestions and feedback.
• To provide feedback, positive and constructive.
• To respect you and your opinions, even if we
  choose to disagree.
• We will make mistakes, but thats how we learn!
• Whatever else you may think, one of the boards
  main responsibilities is to ensure that Century
  Farms continues to be a highly desirable
  neighborhood. And as such it is one of our
  primary fiduciary duties to enhance and to
  protect the values of the entire community.

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THE CFNA BOARD AND ITHANK YOU SINCERELY FOR
READING THIS PRESENTATION.