Treas. - 2010

TREASURER’S REPORT - August 24, 2010

I received the Maintenance Budget for 2011 with requirement needs from Dave Freese. Thank you for a prompt response for the outline for the money required. Janet Freese and Judy Snyder also outlined their money requirements for the 2011 Landscaping Budget in a timely manner which was greatly appreciated.

I met with Don Franceschini on August 16^th to review the preliminary 2011 budget facts. Unfortunately, we will see another increase in our association fee for 2011.

Some of our contracts are tied to the Consumer Price Index (CPI) standards, and the CPI increased in June and July by 2 basis points. If there is another increase again this month, we will be seeing significant increases in some areas.

Attached are a few rough drafts for the proposed landscape and maintenance items for 2011. Dave’s requests are normal, but the requirements for our village landscaping must be agreed upon by the Council.

After we discuss the 2011 budget facts, and a conclusion is reached, I will meet again with Don and Kathleen at Penco this week to give Don final suggestions and guidance for 2011.

Respectfully submitted,

R. Byron Clark

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TREASURER’S REPORT - July 27, 2010

We are currently in the pre-planning phase of the budget for next year (2011). I will be meeting with Penco’s President Don Franceschini to review the financial situation and preliminary budget facts on Monday, August 16, 2010.

I will need preliminary budget requirements from both the Maintenance and Landscape Committee Chairman, on or before August 4, 2010.

We will review bidding and contract approval guidelines for subsequent approval. I will make suggestions and hope for final approval in August.

I am working on By-Laws revision and Jim Harmstead will review the rough draft, before the revision is submitted to Council for any additional revisions and final approval.

Byron and Jane Clark are going to be spending the winter months in Florida, and Jane will need to give the responsibility of the books to someone else in her absence. Priscilla Burt agreed to have the books turned over to her, which will be done next month at the August Council Meeting.

Respectfully submitted,

R. Byron Clark

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Treasurer's Report - June 22, 2010

There appears to be some confusion regarding the Treasurer's desire to clarify the change which makes the management of our village finances more readily available to analyze. It is important that our financial records be maintained in a clear and simple fashion, so that each month I can report the current status on income and budget items, expenditures and balances, in order to advise The Council, committee members and homeowners.

According to our Declaration of Covenants and By-Laws, the Treasurer shall be responsible for:

• the receipt, deposit and disbursement of the funds of the Homeowners Association

• shall keep and have charge of the financial records of the Homeowners Association

• shall open and maintain bank accounts on behalf of the Homeowners Association

• shall designate the signatories

When I was elected to be the Treasurer of Devonshire Village, our nation's economy was in a serious recession. There were predictions that there were going to be some bank failures.

The FDIC insurance on bank deposits is limited to $250,000. I also knew from a reliable source that our (only) bank, First National Bank of Chester County, had taken some serious losses from developers in southern Chester County. First National Bank was then required, by the FDIC, to significantly increase their reserve position. This would remove capital from their lending capability, which would jeopardize their ability to loan money and make a profit.

Since we have approximately $500,000. which passes through our Operating Account, and we approach $200,000. in our Reserve Fund, I realized that it was a logical decision to consider establishing another account and operating system.

I was also advised that our deposit of reserve capital in Vanguard was no longer insured. After receiving significant assistance from the Finance and Accounting Departments at Penco Management, we researched over 50 lending and deposit institutions. I suggested several banks that I had used to place numerous home mortgages and commercial loans. One of those was Downingtown National Bank, which offered the highest interest rate at the time. DNB also has a branch on Route 202 in Chadds Ford near the Penco Management office.

It is prudent not to have all of our assets in one bank. After opening a new account at DNB, I transferred our uninsured Reserve Fund money from Vanguard into a Money Market account

earning 1.75%. It is also advisable to have a checking account for the reserve money to pay reserve bills.

Those of us who lived in Devonshire Village in the 90's remember the large assessment to cover the cost of significant maintenance costs in excess of $7,000. per household. As long as I am the Treasurer, and serve our village as a Council Member, I will protect our Reserve Fund and Operating Account so that we will remain financially responsible to all the homeowners.

There are several other minor changes that are necessary in our accounting program and financial system, which I will complete within the next 30 days.