FAIRLINGTON ARBOR COUNCIL OF CO-OWNERS

ANNUAL OPERATING BUDGET MEETING

SEPTEMBER 30, 2004

MINUTES OF MEETING

BOARD MEMBERS PRESENT: Pat Schoen, Yvonne Calzada, Jincy Boerner,

Wendy Deker, and Marilyn Beck

BOARD MEMBERS ABSENT: None

MANAGEMENT PRESENT: David Pollard, Facilities Manager

Mike Maloney, CFM Manager

The President began the meeting at 7:30 pm.

ACTION ITEMS:

Proof of notice of the meeting was mailed to the homeowners. Motion was made and seconded to waive Proof of Notice of the meeting, calling of the roll, and reading of the minutes of the Annual Election Meeting of April 20, 2004. It was determined that a quorum existed to proceed with the meeting.

As mentioned at the Annual Election Meeting in April, the President proceeded to update the homeowners on the status of David Pollard's replacement, Assistant Facilities Manager, Steve Kirkpatrick, who will be starting on Oct. 5. Briefly, Steve grew up in area, was a supervisor for developer in the area, and for the past 21 years owned his own contracting firm. His schedule will be part-time for the first 6 months working 2 days a week, will increase to 3 days for the next 6 months, then full time for Dave's last year.

REPORT OF OFFICERS:

Marilyn Beck, VP Community Affairs: The pool season was a successful one. The pool party was well attended. Inclement weather cancelled the second one. New lap lanes were installed due to splintering of the old ones. The pool restrooms will be renovated next season with new paint and floor mats. With regard to the Newsletter, she encouraged homeowners to visit the fairlington.org website to get information on other villages, review Newsletters and Board Meeting minutes, and link to the Fairlington Citizens Association site for information on Fairlington and its relationship with Arlington County.

Wendy Deker, VP Grounds: There is a constant assessment of trees and shrubs. In August, 15 trees were either removed or trimmed. Planting needs will be considered for the spring. Ms. Deker thanked all those who volunteered to maintain the common areas this summer.

Yvonne Calzade, VP Buildings: The carpets in the common units have been cleaned. They will be monitored for any necessary replacement. Residents are asked to take care in preventing soils and stains when removing trash and bicycles should be free of dirt and oil when carried thru the halls. Ten roofs in Court 3 will undergo replacement in the spring. Presently, some of these roofs are leaking and Dave has maintained them temporarily till the new roofs can be installed.

BUDGET PRESENTATION

Jincy Boerner, Treasurer, gave a report on the budget process to the homeowners. The Treasurer, with the assistance of David Pollard, work on proposed budget figures based on David's expertise and knowledge of Arbor maintenance, his working with various contractors over the years, and assessment of future projects. This provides the basis for projecting budget costs. The Arbor uses no arbitrary outside standard to estimate budget figures nor do condo fees increase based on government inflation. Condo fees are raised only when necessary. In 2002 Arbor experienced a 3% increase, 4% in 2003, 3% in 2004, and a proposed 4% for 2005. Over a nine-year period, from 1994-2001, there were no assessment increases. In 1996 with a Reserve Balance of $1,583,577, the Arbor started the expensive roof replacement program of which 17 of the 29 roofs have been completed, the pool has been white-coated and tiled; the tennis courts refurbished, and the parking lots have been milled and paved for a total expense of $1,670,000. In light of this expense, the Arbor will still maintain a healthy Reserve Balance of $1,332,344 at the beginning of next year's budget. Common sense in budgeting and planning, rather than an arbitrary formula, has served Arbor well. As an interesting statistic, Virginia Condo experts report that homeowner associations should have approximately $1,700 per unit in reserve as a safety net whereas Arbor has $3,800 per unit in reserve.

Ms. Boerner cited reasons for the 4% increase: salary for Dave Pollard's replacement while in training for next two years; our master insurance policy has risen dramatically, by 20% just this year, as a result of the 9/11 disaster.

HOMEOWNER DISCUSSION

A homeowner questioned the voting procedure with regard to proxy vote. Mike Maloney of CFM explained that as a result of proxy revision, homeowners are able to indicate their individual vote(s) listed on their proxy.

Several members of the Finance Committee expressed their disapproval of Board actions or inactions.

It was reported that 53% of the homeowners voted and the budget was approved.

There was a motion to adjourn the meeting, seconded, and the meeting was adjourned at 8:30 p.m.