The Christmas Lake Properties Association 35th annual meeting was held June 8th, 2008, 1:00 p.m. at the Recreation Center.

ROLL CALL - President Don Vogel called the meeting to order. He noted that there was a quorum.  Present were Gene Allen, Jim Davidson, Steven Lee, Rex Stevens, Jeff Stillman, Angela Vanover and Don Vogel.  Jim Hicks and Gene Sams were not present.

RESOLUTION - The following resolution was made by Fred Kanzler.  “Be it resolved that all acts and resolutions of every kind and character of the Board of Directors of Christmas Lake Property Owners Association for the year covering the period of time from the annual meeting of membership held in June of 2007 down to and including this date be ratified, approved and confirmed in all things by the membership of the Association.” The motion was seconded from the floor and adopted unanimously.

At this time, President Vogel excused Rex Stevens and the Nomination Committee to tally the ballots and proxies, which had been delivered by Melvin Held, CPA

READING OF THE MINUTES - The minutes of the 2007 annual meeting were read by Secretary/Manager Mark Kroeger.  A motion to accept the minutes, with two corrections, was made by Gene Allen and seconded by Steven Lee. The motion carried unanimously.  The first correction was paragraph 2, page 3.  It should have been “President” Vogel.  The second correction was paragraph 3, page 3.  It should have been “directors” instead of “members”.

REPORT OF TREASURER - Jim Davidson gave the Treasurer’s report.   Total income at this time was $668,901.00        Total expenses were $276,097.00.  Total monies on hand were $728,652.66.      

Current Financial Report 

Expenses remain in line with the budget projections with but a few minor exceptions.  None are major or critical.

Income projection continues to be well below budgeted forecast. Currently we have 12.7% of our budgeted income yet to be collected compared to 7.35% at this time last year. This is nearly a $50,000 shortfall in income and if this trend continues we will have to look seriously at the budgeted expense items for areas that can be reduced or eliminated.

The existing Board has been aware of this potentially serious problem and has considered several different approaches and will be making expense adjustments as necessary as well as searching out ways to make up the projected income shortfall.

At this point in time we are not considering ending the year with expenditures exceeding income.   

Future Financial Problems  

We are currently facing an increase in past due assessment and we are concerned that with the current economic conditions this situation may continue at its present rate, but it is more likely to escalate. Currently, we have $20,350 more in delinquent accounts than we did at this time last year, a 22% increase.

The county has had several tax sales that included Village lots.  Approximately 34 village lots remain unsold at this time.  If no other action is taken they become inactive county property.  As such we will not collect annual assessments on them.  We are working with the county on this problem.

The Village has a reserve fund for emergencies which, per our past financial advisors, should be maintained at a level equal to our annual income. This year that would call for a reserve of $761,550. At the end of this year, if we operate within our balanced budget, I can project a maximum balance of $320,564, which is $440,986 below the recommended level.

Operating expenses are being hard hit by the current inflationary trend, particularly as they relate to energy requirements and petroleum products.
Road paving as an example; Ferdinand’s recent study projects that a mile of paving will reach a cost of $150,000 this year, and compared that to their actual cost of $90,000 in 2005. With 26 miles of roads in the Village and under the present conditions we should be looking at resurfacing at least one mile a year while doing other minor repairs as necessary. This would develop an expense item that is impossible to attain within the present budgeting parameters.

Vectren is projecting a 50% increase in natural gas cost this year. This is while our water rates are skyrocketing, gasoline and diesel are up at least 25% since a year ago and the projections are for additional increases as the year progresses. This will have a major impact on the cost of some of our supplies.
  
All of these items are putting the squeeze on the Village and its attempt to maintain the level of service and appearance we have been accustomed too, let alone any new project that might be desirable. It is with heavy heart and I am sad presenting what is a foregone conclusion; the situation will not improve without some major increase in income or reduction in service.

The present Board is well aware of the overall situation and its implication for the future and has discussed several approaches available to us.  Some of these are out of the Board’s realm of responsibility and would require either a major change in the covenants and restrictions or in some cases a vote of the property owners.

Starting with the roads: in today’s dollars and considering the condition of our roads approximately 20% of the total budget dollars should be spent on infrastructure repair and maintenance; the majority on roads.

In an attempt to reduce the wear and tear on our roads we have contracted with an engineering consulting firm to core and bore our roads in various locations and study the samples’ load bearing capabilities and then provide us with a recommendation for establishing realistic load limits. The project is now in the final stages and we will be receiving their report soon.

We have also discussed reducing the garbage service to a single firm in order to reduce the number of miles that is put upon our roads with these heavy trucks. We have considered the purchase of portable scales that could be used to verify the weight of incoming trucks as well as determining the actual weight of the outgoing loaded trucks.

As you are probably aware we have explored the possibility of either reducing the hours we have life guards on duty or the total elimination of that service.

The subject of the front gate and the need for 24/7 coverage has been discussed with some alternatives, such as card readers or scan-able stickers backed up with phone service direct to the resident for visitors.

Although the following items have also been discussed, they are beyond the Board’s power to enact.  However, the Board does have the responsibility to direct.
  
1.     Special assessments for roads.
2.     Increase or eliminate the 5% cap on annual assessment increases.
      3.    Open the gate and deed the roads to the town, but continue with the lakes being private.

We are looking at a bleak future if we do not step up to this problem soon. We can forestall it by reducing the amount budgeted for the roads and let them continue to deteriorate but we would soon face what could turn into an insurmountable problem that would affect our property values a great deal. Would you buy a home in a community where the roads were in horrible shape, knowing that sooner or later some expensive corrective action would have to take place?

As Treasurer I felt it was my duty to present to you not only how we stand on our present budget but what we are facing in the future. The future holds problems for us but they are not insurmountable and can be overcome with relative ease with the help of everyone.
          .  
Jeff Stillman made a motion to accept the report.  The motion was seconded by Angela Vanover.  The motion carried. 

REPORT OF SECRETARY - Manager Kroeger read the report.

REPORT OF MANAGER - Mark Kroeger gave the report.  There are 845 homes in the Village including 9 that are currently under construction.   Seven have been started this calendar year.  We have been working on getting an accurate count for the last couple of years.  The ’05 and ’06 counts were approximately 40 houses short.  We have found what fouled the count and made the proper adjustment.

The First Subdivision is under a new set of Covenants & Restrictions that were recorded in December of 2007.  This document is very similar to the Covenants and Restrictions of the balance of the Village.  All but 18 of the members in this subdivision will be assessed the same amount as everybody else beginning with the 2009 billing.  These 18 members have been designated as “pioneers” as they were original members having purchased directly from Koch Development.  The “pioneer” status will be waived and the assessment will adjust at such time as the property changes hands.  The last bit of the outstanding legal issue from all of this is expected to be wrapped up very soon.

Along this same line, a committee is currently at work reviewing and making proposed changes in the existing Covenants & Restrictions with the ultimate intent of preparing a uniform modification that will be used by all Village members.  It will be a lengthy process.

We embarked on some new programs this past year.

We took the necessary steps to trap and relocate Canada Geese during their molting season.  We relocated about 125 geese in July 2007.  No geese were killed or injured during this process.  It seems to have worked as we have very few geese around the Village right now.  We have seen approximately three sets of spring goslings.  This is a huge difference from a year ago.  We are prepared and permitted to relocate again this summer. 

We tried something a little different with vehicle and boat stickers as well.  We distributed 2008 Property Owner Cards by request only.  We are simply handing out the yearly automobile and boat stickers if the auto/boat was registered in 2007.  This saves everyone at the gatehouse a lot of time, including people wanting to get in.  Also in this program we sent a print-out of each member’s data file for updating.  Our data base has been made more current and we believe it will become increasingly accurate.  With but a few exceptions, this idea has worked out very well and we fully expect to do it again in 2009.

After much debate, research, and an online survey, it was decided to provide lifeguards on the CLV beach for 2008, but to change the hours of operation to 1:00PM-8:00 PM daily through the season.

Again, after debate and meetings and speculation, the Board decided to enter into an agreement with Spencer County to bid on Village lots offered at a commissioners’ sale.  The Association will be the buyer of last resort.  We will assist the county in promoting the sale of the lots and then actively attempt to get these lots back into active circulation on an assessment and taxing paying basis.

With an eye toward preserving our roads, we have just completed a program whereby several random bores were made in CLV roadways.  The cores will be analyzed and we will be able to accurately set weight limits within the Village.

Late in 2007, the Board approved a rock walking path around the perimeter of Holly Park.  This project may be under way at this very moment.  A “kid powered” Merry-Go-Round was installed this spring and I hear it is receiving heavy use.

We are closely monitoring the weed growth in the lakes.  We have raked several problem areas twice this spring.  The first two times showed little growth but we are starting to see acceleration in the growth rate even though the lake is high and the water remains cool.  We have already sent photos of our vegetation to the experts for identification and suggestions on what will kill it.

We lost the lease on the Boat/Trailer storage area that we have had for 10 years.  That is now under the Flint Hill Storage umbrella.

A Neighborhood Watch program is trying to get a foothold in some areas of the Village.  More information on this program will be available at the upcoming Concert in the Park on June 26th.  I believe that this is an increasingly important and very much needed program for our community and that we should have as many as 20 Neighborhood Watch areas throughout the Village.

The Association is looking into the possibility of a “game night” to be held at the Rec Center on a regular basis.  Watch for further information about this.

In closing I would like to say thanks to all of the directors for their willingness to direct and guide the Village.  It is often a difficult job.  I would extend a special thank you to Steve Lee, Gene Sams, and Rex Stevens as they complete their terms.  Rex for three years as an elected director and Gene and Steve for stepping up to fill Board vacancies in a time of need.  I look forward to welcoming the new directors and working with the new Board.

REPORT OF PRESIDENT - Report of President was given by Don Vogel.  Conversations with many property owners over the past years, leads me to believe most owners have no idea where their Association fees are spent, or what your Board gets involved doing throughout the year.

First let me thank the 3 Board members completing their term – Rex Stevens, Steve Lee and Gene Sams.  Your contribution has been greatly appreciated.

Some facts about Christmas Lake Village – There are 2150 lots, 845 homes, with 7 new homes under construction in 2008.  26 miles of paved streets requires 30 tons of sand and salt.  6 maintenance employees drive 52 miles to complete just one pass for snow removal.  Prior to the latest oil price increase, 1 mile of road resurfacing cost $100,000.  Our maintenance staff mows 30 miles of road right-of-way and 50 acres of entryways, parks and common ground.  CLV maintenance equipment consists of 4 tractors, 5 trucks, a zero turn mower, a leaf vacuum, and a limb chipper.  Ideally one of these is replaced annually.

The 3 lakes cover 250 surface acres and require attention to weed control, fish restocking, life guards, dam maintenance and state mandated inspections, water safety patrol, boat launches, docks and storage slips.  The Recreation Center and Holly Park require continual maintenance and upgrading of facilities for our growing population.

Our front entry gate is staffed 24/7, 365 days a year, with over 3000 cars passing in and out daily as well as several hundred using the back gate. We are blessed with some very dedicated, long service employees to provide you and your family the privacy and protection that you desired when you chose Christmas Lake village as a place to live.

Your Board of Directors consists of 9 property owners just like yourself, serving 3 year terms, working with your Property Manager, most of them volunteering 10 – 30 hours per month to help make CLV the best place to live in Indiana.  The directors meet monthly in open meetings, chair various standing committees, meet with owners over issues of concern to them, constantly review and revise the various rules and regulations as they pertain to architectural control and building construction, lake rules, recreation policies, and others guidelines within the Village.

CLV is now a community well into its 40’s having been started in the early 1960’s.  That means we have 40+ year old roads – much of them need resurfacing far beyond what our meager budget allows; 40+ year old drainage culverts and ditches – again many in need of expensive upgrades; a 40+ year old Rec Center with some major structural damage; a state mandated upgrade to Christmas Lake spillway and Lake Holly spillway;
ever increasing insurance expenses, employee costs, maintenance equipment replacement; and the list goes on.

CLV operates on an annual assessment that is far lower than any other comparable gated community within hundreds of miles of Santa Claus.  Unfortunately your Board spends a disproportionate amount of their time trying to collect assessments due CLV from about 8 – 10% of the property owners who choose to make it very difficult to operate CLV to the benefit of every property owner.  Those fees owed end up costing CLV thousands of dollars to try to collect through added office hours, added postage, added legal expenses, added collection agency fees, and added court costs.  This lost income would make many of the concerns listed in the above paragraph go away. 

I will say without a doubt that your CLV Board of Directors, at least during my 5 years on this board, serves unselfishly, with only the very best interest of Christmas Lake Village as their primary focus.  Our goal is always to promote Christmas Lake Village as the very best place to live and raise a family, and do all we can to increase property values.

It is indeed a privilege to serve my community.

Don Vogel
President
CLV Board of Directors

OPEN FLOOR - At this time, President Vogel opened the floor for discussion.  Rodger Claise was concerned about some lake buoys that had disappeared during the recent storms.  He stated that boaters and skiers were getting too close to the shore.   Karen Claise asked who was responsible for the street lights.  Manager Kroeger explained that the Town pays for installation and monthly fees, Vectren maintains them and we notify them of any problems.  He noted that he would contact Vectren about the streetlight that needs repair.

ELECTION OF OFFICERS - The Nomination Committee Chairman, Rex Stevens returned with the results.  There were 241 proxies and 390 votes returned.  The new directors are Rob Collins, Harold Johnson and Lee Powell.

The Board decided to hold their organizational meeting the following Tuesday at 6 p.m.

NEW BUSINESS - Jeff Stillman had one last matter before adjournment.  He stated that Holiday World was selling the bumper boats that had been used at the park.  He was concerned that it would be a safety hazard if people were to use them on the lakes.  He made a motion to ban them from Christmas Lake Village lakes.  Angela Vanover seconded the motion, which carried unanimously.

ADJOURNMENT - There being no further business, a motion to adjourn was made by Gene Allen and seconded by Jeff Stillman. The meeting was adjourned at 1:53 p.m.

Respectfully submitted,
Don Vogel, President