2016 annual meeting - official...

2016 ANNUAL MEETING - OFFICIAL NOTICE October 28, 2016 Dear Shelmore Property Owner: This is the Official Notice for the Shelmore at Brunswick Forest Homeowners' Association, Inc. (“SM”) Annual Meeting that will be held on Tuesday, November 8, 2016 at 5:30 pm in the in the Council Chambers of the Town of Leland City Hall, located at 102 Town Hall Drive, Leland, NC 28451. Council Chambers is on the 2nd floor of the new 2 story red brick building, with plenty of parking in the back. Please see the enclosed meeting documents and information below. Also, the NC Planned Community Act (47-F), the Brunswick Forest Master Association’s Declaration and the Shelmore (SM) Declaration state ratification of the Budget does not require a quorum. Ratifying the BFMA Budget: The BFMA Board-Adopted 2017 Budget is sent to Members in the BFMA Annual Meeting Package. Members will briefly discuss the BFMA Budget at their Neighborhood Annual Meetings. The Neighborhood Voting Member (Board President) then attends the BFMA Annual Meeting, on behalf of the Membership, where the BFMA Budget is ratified. BFMA Annual Assessments are paid separately. Ratifying the SM Budget: The Membership will consider the enclosed SM Board-Adopted 2017 Budget for ratification. The Budget includes funding Operating Expenses and Reserves for the Common Expenses as outlined in the Governing Documents and as outlined in the enclosed budget. If the Assessment Income does not sufficiently fund all of the Operating Expenses, the Declarant, at its option, may subsidize the SM operating shortfall, if necessary. The Developer Contribution keeps dues lower, will be reduced over time, and will eventually be eliminated as the Association becomes self-sustaining with Assessment Income. SM Assessment Payments: Assessments are payable quarterly on the 1st of January, April, July and October.

Vacant Lots: $400.00 annually $100.00 paid quarterly (+$4/qtr.) Completed Single Family (SF) Dwellings: $1,500.00 annually $375.00 paid quarterly (+$25/qtr.) Completed Townhomes (TH): $2,900.00 annually $725.00 paid quarterly (+$25/qtr.)

If you set up automatic payments either through the HOA websites or your bank, please remember to update your quarterly payments. If you set up automatic debit payments (ACH) with CAMS, the quarterly payment amount will be automatically updated; no action is necessary. ACH payments are typically drafted on the 10th of the month. Coupon Books will be mailed to those not already set up with an alternate payment option. If you have billing questions, you can call a CAMS Community Specialist, (910) 256-2021, or email [email protected]. Remember to ask how E-statements can save your Association money. You can also find more information online at www.SMBFHOA.com. SM Voting & Elections: Per the Governing Documents, an election will be held when 10% or less of the total planned units are owned by the Declarant. At the time of Notice, the Shelmore Master Plan includes a total of 453 planned Units. Once there are 45 or less properties owned by the Declarant, or 408 Class “A” Members, there will be an election. There are currently 314 Class "A" Members other than the declarant, with 185 Completed Dwellings, 80 Vacant Lots and 74 Builder properties. Since the HOA remains under Declarant Control, there will not be an election nor a vote at this meeting; the Declarant will continue to appoint the Board. Shelmore Proxy: Please be sure to complete and return the enclosed Proxy by 1pm on Monday, November 7, 2016, even if you plan to attend the meeting so that the Association will have a quorum for the meeting. Thank you and we hope to see you at the meeting. Sincerely, The Shelmore at Brunswick Forest Homeowners’ Association, Inc. Board of Directors; by

Nicol K. Karn, CMCA®, AMS® | CAMS Community Manager

2016 ANNUAL MEETING

NOVEMBER 8, 2016 5:30 PM Town of Leland, City Hall Council Chambers, located at 102 Town Hall Drive, Leland, NC 28451.

Council Chambers is on the 2nd floor of the new 2 story red brick building, with plenty of parking in the back.

AGENDA

I. Call to Order

II. Roll Call & Quorum

III. Proof of Notice

IV. Approval of Previous Year Meeting Minutes

V. Brunswick Forest Master Association (BFMA) Budget Presentation

VI. Shelmore Financial Report

VII. Shelmore Surplus Funds Resolution, IRS Ruling 70-604

VIII. Shelmore Budget Presentation & Ratification

IX. Shelmore Appointment of Directors

X. Adjournment

XI. Member Q&A

Meeting Documents Enclosed (Please bring the following to the meeting & return proxy ASAP):

Official Notice

Agenda

Shelmore Previous Year Annual Meeting Minutes

SM HOA Financials, 2015 Balance Sheet & Income Statement - EOY

SM HOA Financials, 2016 Balance Sheet & Income Statement - Current

Surplus Funds Resolution

Shelmore HOA 2017 Budget

Please return your signed Proxy to CAMS ASAP for quorum purposes, even if attending

Please note that the BFMA Annual Meeting info and Budget is mailed separately and can be viewed at www.brunswickforestmaster.com

http://www.brunswickforestmaster.com/

SHELMORE AT BRUNSWICK FOREST HOMEOWNERS' ASSOCIATION, INC. PROXY

OPTION I: PROXY SOLICITED BY THE BOARD OF DIRECTORS

The undersigned hereby appoints Rosemary Russell, President, as Proxy Agent and Attorney-in-fact, with power of substitution, to vote in the place and stead of the undersigned as a Member, at the Annual Meeting of the Members of SHELMORE AT BRUNSWICK FOREST HOMEOWNERS' ASSOCIATION, to be held in the Council Chambers of the Town of Leland City Hall, located at 102 Town Hall Drive, Leland, NC 28451. Council Chambers is on the 2nd floor of the new 2 story red brick building, with plenty of parking in the back. on Tuesday, November 8, 2016 at 5:30 pm, any adjournments thereof, and any substitute meeting if the Annual meeting is canceled, on the matter listed below and on such other matters as may properly come before said meeting:

To vote as said Proxy Agent and Attorney-in-Fact

at the Annual Meeting.

OPTION II: ALTERNATE PROXY

The undersigned hereby appoints _________________________________(fill in the name of the person who will attend the meeting and vote in your place and stead as a Member) as Proxy Agent and Attorney-in-fact, with power of substitution, to vote in the place and stead of the undersigned as a Member at the Annual Meeting of SHELMORE AT BRUNSWICK FOREST HOMEOWNERS' ASSOCIATION, INC , to be held in the Council Chambers of the Town of Leland City Hall, located at 102 Town Hall Drive, Leland, NC 28451. Council Chambers is on the 2nd floor of the new 2 story red brick building, with plenty of parking in the back. on Tuesday, November 8, 2016 at 5:30 pm, any adjournments thereof, and any substitute meeting if the Annual meeting is canceled, on the matter listed below and on such other matters as may properly come before said meeting:

To vote as said Proxy Agent and Attorney-in-Fact

at the Annual Meeting.

OPTION III: PROXY FOR QUORUM ONLY

The undersigned authorizes the use of this Proxy for Quorum purposes only and does not appoint a Proxy Agent or Attorney-in-fact, for the Annual Meeting of the Members SHELMORE AT BRUNSWICK FOREST HOMEOWNERS' ASSOCIATION, INC, to be held in the Council Chambers of the Town of Leland City Hall, located at 102 Town Hall Drive, Leland, NC 28451. Council Chambers is on the 2nd floor of the new 2 story red brick building, with plenty of parking in the back. on Tuesday, November 8, 2016 at 5:30 pm, any adjournments thereof,

and any substitute meeting if the Annual Meeting is canceled. For Quorum purposes only

THIS PROXY WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED MEMBER. IF THE UNDERSIGNED SUBMITS THIS PROXY WITHOUT CHECKING A BOX ABOVE, THIS PROXY WILL BE USED FOR QUORUM PURPOSES ONLY.

THIS PROXY IS LIMITED TO THE ANNUAL MEETING OF MEMBERS TO BE HELD ON NOVEMBER 08, 2016, ANY ADJOURNMENTS THEREOF, AND ANY SUBSTITUTE MEETING IF THE ANNUAL MEETING IS CANCELED.

THIS PROXY MAY BE REVOKED AT ANY TIME BEFORE IT IS EXERCISED BY NOTICE IN WRITING OR BY PROPER PRESENTATION OF A PROXY WITH A SUBSEQUENT DATE DELIVERED TO THE SECRETARY.

DATE LOT # PRINT NAME

SHELMORE STREET ADDRESS SIGNATURE

_____ I/We will attend the meeting _____ I/We will not attend the meeting

PLEASE RETURN TO CAMS BY 1pm Monday, November 7, 2016 (Even if you Plan to Attend)

1174 Turlington Ave, Ste 202, Leland, NC 28451

Fax: (910) 408-1179 E-mail: [email protected]

mailto:[email protected]

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2015 ANNUAL MEMBERS MEETING MINUTES

NOVEMBER 02, 2015

Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM) held its

Annual Members Meeting at 4:30 pm on Monday, November 02, 2015 in the Multi-purpose room of

the Leland Cultural Arts Center, located at 1212 Magnolia Way, Leland, NC, 28451.

Call to Order: At the President’s request the Community Manager facilitated the meeting. The 2015

Annual Meeting was called to order at 4:31 pm by the Manager, Nicol Karn, CMCA®, AMS®. Per

the Governing Documents of the Association, Robert's Rules of Order Newly Revised is the governing

authority for this meeting and any meetings of this Association.

Roll Call & Quorum: The following Board Members were in attendance Rosemary Russell

(President), Lannin Braddock (Secretary) and Joshua Huber (Vice-President/Treasurer). Also in

attendance from CAMS, the Association Management Company, were Nicol Karn (CAMS Community

Manager) and Cindy Phillips (CAMS Community Assistant and Recording Secretary).

Per the SM By-laws the presence in person or by proxy of members representing 20% of the total votes

in the Association shall constitute a quorum at All Association Meetings. As of the date of this meeting

there were two hundred and twenty-nine (229) Class A Members. The Declarant, Class B Member,

represents the remaining 101 of the 330 lots, with three (3) votes for every Lot owned. Following the

certification of proxies, a total of thirty-two (32) Class A Members were represented, twenty-three (23)

in attendance and nine (9) by proxy. Between the Class A and Class B properties represented, a quorum

was established. However, even if 20% of the total votes in the Association are not represented, the

Governing Documents and State Statute state that the budgets can be ratified without a quorum.

Proof of Notice: The Manager displayed proof of the meeting notice, which is made a part of the

2015 Annual Meeting File. Annual Meeting notice packages were emailed to all Shelmore Members.

Approval of Prior Annual Meeting Minutes: There being no objections, the reading of the previous

2014 Annual Meeting minutes was waived. There being no objections, the Minutes were approved by

the Membership. The 2015 Annual Meeting Minutes will be reviewed by the Board for approval by the

Membership at the 2016 Annual Meeting. Minutes are made available online at www.smbfhoa.com.

Brunswick Forest Master Association Budget Presentation: The BFMA 2014 & current 2015

Financials were discussed by the BFMA Community Manager. The Board approved End of Year

Financials are made available to the Membership online at www.brunswickforestmaster.com.

The Board Adopted 2016 BFMA Annual Operating Budget was ratified. 2016 Operating Expenses are

budgeted to total $2,730,185. To fund the Common Expenses of the Association, the BFMA 2016

Assessment was established by the Declarant, assuming a Developer Subsidy, to be $1,100 annually,

billed in the amount of $275.00 per quarter. The Developer subsidy will reduce annually as needed.

http://www.smbfhoa.com/

http://www.brunswickforestmaster.com/

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Shelmore Financial Report: Shelmore HOA Common Area maintenance expenses include

maintenance of the Shelmore Entrance Features, the Right of Way (ROW) along Shelmore way starting

at the Power lines going to the Entrances, the ROW in front of the Homes and Vacant Lots, the area

around the Gazebo, the natural area across from the Gazebo along Simmerman Way and a small buffer

easement area/berm along N. Slippery Oak Lane. The Shelmore HOA also maintains the street front

facing fences and the mailbox kiosks, as well as reserves funding for the replacement of such, and

provides basic landscaping services around the completed dwellings.

The Shelmore Community Manager presented the 2014 End of Year financials and discussed the

current 2015 financials with the Membership. Upon the SM Board’s approval, typically after tax returns

have been processed by a third party CPA, the end of year financials are made available to the

Membership online at www.smbfhoa.com.

Shelmore Surplus Funds Resolution - IRS Ruling 70-604: Revenue ruling 70-604 pertains to the

HOA filing an 1120 tax form that allows the association to carryover excess Membership income over

Membership expenses to the next year without paying income tax on the excess. Hearing no objections,

Resolution 70-604 was passed by the members for the current year.

Shelmore Budget Presentation & Ratification: The Shelmore Community Manager presented the

Board Adopted 2016 Shelmore Annual Operating Budget, with 2016 Operating Expenses & Reserves

budgeted to total $435,037.00. To fund these Common Expenses of the Association, the Shelmore 2016

Assessment was established by the Declarant, assuming a Developer Subsidy.

Assessments for Members with a Completed Single Family Home are $1,400.00 annually, billed in the

amount of $350.00 per quarter. Completed Townhomes are $2,800.00 annually, billed in the amount

of $700.00 per quarter. Vacant Lots are $384.00 annually, billed in the amount of $96.00 per quarter.

Hearing no objections, the 2016 Budget was ratified as presented.

Shelmore Appointment of Directors: Per the SM Bylaws: Until the termination of the Class "B"

Control Period, the Class "B" Member shall be entitled to appoint all of the directors, who shall serve

at the discretion of the Class "B" Member; and the Class "B" Member shall also be entitled to determine

the number constituting the Board of Directors, which number shall be not greater than five (5) and not

less than three (3), and may be changed at any time in the Class "B" Member's sole discretion. Directors

that will serve in the following officer positions are Rosemary Russell, President; Joshua Huber, Vice

President/Treasurer; and Lannin Braddock, Secretary.

Adjournment: A motion to adjourn the meeting was made by Marion Shiflet, 1334 Still Bluff Ln.,

and seconded by John McAlick, 5046 Stoney Point Dr. The 2015 Annual Meeting of the Shelmore at

Brunswick Forest Homeowners' Association, Inc. adjourned at 5:34 pm.

Members Q & A: In an open forum question and answer period the Members were encouraged to

ask questions to the Board and Community Manager.

The Meeting Minutes were respectfully submitted by Recording Secretary, Cindy Phillips (CAMS) on behalf of

Shelmore Homeowners' Association on November 28, 2015. Board approved on January 19, 2016.

http://www.smbfhoa.com/

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Time: 4:20 pm

1/11/2016

Page:

Shelmore at Brunswick Forest HOA, Inc (SM)

End Date: 12/31/2015

Date:Balance Sheet - Operating

Assets

10 - Cash Accounts:

10-1001-000 North State Bank - Checking $23,042.04

10-1001-001 North State Bank - MM Reserve .15% 51,846.37

$74,888.41 Total 10 - Cash Accounts::

12 - Accounts Receivable

12-1200-000 Accounts Receivable 1,275.84

$1,275.84 Total 12 - Accounts Receivable:

$76,164.25 Total Assets:

Liabilities & Equity

21 - Other Current Liabilities:

21-2110-000 Pre-Paid Assessments 19,807.20

$19,807.20 Total 21 - Other Current Liabilities::

30 - Reserve Funds:

30-3030-001 Reserve - Fences/Paint 10,749.00

30-3065-001 Reserve - Paving Alleys 9,674.00

30-3185-001 Reserve - Fences/Replacement 26,883.00

30-3190-001 Reserve - Miscellaneous 2,106.00

30-3195-001 Reserve - Townhomes 2,856.00

30-3250-001 Reserve - Mailbox Kiosks 924.00

$53,192.00 Total 30 - Reserve Funds::

35 - General Fund:

35-3500-000 Prior Year Fund Balance 1,802.05

$1,802.05 Total 35 - General Fund::

Net Income Gain / Loss 1,363.00

$1,363.00

$76,164.25 Total Liabilities & Equity:

CINCSystems, Inc. Copyright 2016. All rights reserved.

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Date:

12/31/2015

Income Statement - Operating

Description

Current Period

Budget BudgetActual Variance

Year-to-date

Actual Variance

Annual

Budget

OPERATING INCOME

40 - Revenue - Assessments:

$60,967.45 $8,764.06 4000-000 Assessment Income $12,746.00 $21,510.06 $152,952.00 $213,919.45 $152,952.00

9,750.00 875.00 4020-000 Working Capital 625.00 1,500.00 7,500.00 17,250.00 7,500.00

(7,012.00)(4,001.00)4025-000 Developer Contribution 4,001.00 - 48,012.00 41,000.00 48,012.00

$17,372.00 $5,638.06 $63,705.45 $23,010.06 $272,169.45 $208,464.00 Total 40 - Revenue - Assessments: $208,464.00

42 - Revenue - Fees:

110.00 35.00 4200-000 Administrative Collection Fe - 35.00 - 110.00 -

195.00 - 4219-000 Attorney Collection Fees - - - 195.00 -

30.00 - 4220-000 Collection Fee Income - - - 30.00 -

106.35 7.34 4245-000 Interest - Owner Accounts - 7.34 - 106.35 -

1,040.00 60.00 4250-000 Late Fee Income - 60.00 - 1,040.00 -

$- $102.34 $1,481.35 $102.34 $1,481.35 $- Total 42 - Revenue - Fees: $-

48 - Revenue - Other:

56.16 6.57 4800-001 Interest - Reserve Funds - 6.57 - 56.16 -

$- $6.57 $56.16 $6.57 $56.16 $- Total 48 - Revenue - Other: $-

$65,242.96 $5,746.97 $17,372.00 $273,706.96 $208,464.00 Total OPERATING INCOME $23,118.97 $208,464.00

OPERATING EXPENSE

50 - Administrative Expenses:

120.00 10.00 5002-000 Admin Collection Fees 10.00 - 120.00 - 120.00

(180.00)(67.50)5008-000 Meeting Expense 12.50 80.00 150.00 330.00 150.00

1,153.60 112.00 5020-000 Bad Debt Expense 112.00 - 1,344.00 190.40 1,344.00

300.00 43.75 5024-000 Legal & Collections 43.75 - 525.00 225.00 525.00

750.00 62.50 5026-000 Legal Expense 62.50 - 750.00 - 750.00

2,099.50 166.63 5040-000 Insurance-Com Area (D&O) 166.63 - 2,000.00 (99.50) 2,000.00

2,004.00 (86.50)5060-000 Management Fees 1,347.50 1,434.00 16,170.00 14,166.00 16,170.00

1,742.07 48.41 5072-000 Office Supplies 197.50 149.09 2,370.00 627.93 2,370.00

300.00 125.00 5078-000 Accounting Services 125.00 - 1,500.00 1,200.00 1,500.00

- 37.50 5096-000 Tax Preparation Fees 37.50 - 450.00 450.00 450.00

$2,114.88 $451.79 $8,289.17 $1,663.09 $17,089.83 $25,379.00 Total 50 - Administrative Expenses: $25,379.00

54 - Repairs & Maintenance Expenses:

(19,900.00) - 5737-000 Lot Maintenance - - - 19,900.00 -

(35,100.00)(4,230.00)5755-000 Full Service Landscape 6,480.00 10,710.00 77,760.00 112,860.00 77,760.00

$6,480.00 ($4,230.00) ($55,000.00)$10,710.00 $132,760.00 $77,760.00 Total 54 - Repairs & Maintenance Expe $77,760.00

60 - Townhome Expenses:

(9,133.27)(1,345.07)5045-000 Insurance - TH 2,158.00 3,503.07 25,896.00 35,029.27 25,896.00

(2,340.00)(495.00)5760-000 Landscaping - TH 720.00 1,215.00 8,640.00 10,980.00 8,640.00

1,000.00 83.37 5765-000 Misc. Ext Bldg Maint - TH 83.37 - 1,000.00 - 1,000.00

1,200.00 100.00 5770-000 Termite Inspection - TH 100.00 - 1,200.00 - 1,200.00

(500.00) 100.00 5775-000 Pressure Washing - TH 100.00 - 1,200.00 1,700.00 1,200.00

(364.00) 100.00 5780-000 Gutter Cleaning - TH 100.00 - 1,200.00 1,564.00 1,200.00

800.00 66.63 5785-000 Irrigation Repairs/Maint - TH 66.63 - 800.00 - 800.00

(710.06)(55.22)6222-000 Electricity-TH Irrig. Meter - 55.22 - 710.06 -

(6,184.08) 196.92 6285-000 Water/Irrigation - TH 333.37 136.45 4,000.00 10,184.08 4,000.00

$3,661.37 ($1,248.37) ($16,231.41)$4,909.74 $60,167.41 $43,936.00 Total 60 - Townhome Expenses: $43,936.00

61 - Common Area Expenses:

(4,199.25) 2,067.12 5700-000 Land Maint/Sup-Com Area 3,642.12 1,575.00 43,705.00 47,904.25 43,705.00

3,000.00 250.00 5735-000 Irrigation Maint/Repairs-Com 250.00 - 3,000.00 - 3,000.00

3,000.00 250.00 5745-000 Grounds Improvements-Com 250.00 - 3,000.00 - 3,000.00

(1,883.75)(158.54)6222-000 Electricity-Com Area 216.63 375.17 2,600.00 4,483.75 2,600.00

- - 6280-000 Water-Com Area 27.00 27.00 324.00 324.00 324.00

(854.72) 208.37 8980-000 Misc Maint/Repairs-Com Are 208.37 - 2,500.00 3,354.72 2,500.00

$4,594.12 $2,616.95 ($937.72)$1,977.17 $56,066.72 $55,129.00 Total 61 - Common Area Expenses: $55,129.00

95 - Reserve Expense:

- - 9530-000 Reserve - Fences/Paint 100.25 100.25 1,203.00 1,203.00 1,203.00

- - 9565-000 Reserve - Paving Alleys 44.08 44.08 529.00 529.00 529.00


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Page:


Date:

12/31/2015


Description

Current Period


Year-to-date

Actual Variance

Annual

Budget

$- $- 9685-000 Reserve - Fences/Replace $102.75 $102.75 $1,233.00 $1,233.00 $1,233.00

- - 9690-000 Reserve - Miscellaneous 70.83 70.83 850.00 850.00 850.00

- - 9695-000 Reserve - Townhomes 175.50 175.50 2,106.00 2,106.00 2,106.00

- - 9750-000 Reserve - Mailbox Kiosks 28.25 28.25 339.00 339.00 339.00

$521.66 $- $0.00 $521.66 $6,260.00 $6,260.00 Total 95 - Reserve Expense: $6,260.00

($63,879.96)($2,409.63)$17,372.03 $272,343.96 $208,464.00 Total OPERATING EXPENSE $19,781.66 $208,464.00

$1,363.00 $0.00 $3,337.34 ($0.03)Net Income: $1,363.00 $0.00 $3,337.31


1

Time: 9:17 pm

8/26/2016

Page:


End Date: 08/31/2016

Date:Balance Sheet - Operating

Assets

10 - Cash Accounts:

10-1001-000 North State Bank - Checking $17,495.09

10-1001-001 North State Bank - MM Reserve .15% 64,175.10

$81,670.19 Total 10 - Cash Accounts::

12 - Accounts Receivable

12-1200-000 Accounts Receivable 4,638.32

$4,638.32 Total 12 - Accounts Receivable:

$86,308.51 Total Assets:

Liabilities & Equity

20 - Accounts Payable:

20-2000-000 Accounts Payable 19,359.90

$19,359.90 Total 20 - Accounts Payable::

21 - Other Current Liabilities:

21-2110-000 Pre-Paid Assessments 3,139.44

21-2115-000 Deferred Assessments 28,943.16

21-2121-000 Security Deposits (75.00)

$32,007.60 Total 21 - Other Current Liabilities::

30 - Reserve Funds:

30-3030-001 Reserve - Fences/Paint 13,683.00

30-3065-001 Reserve - Paving Alleys 10,239.32

30-3185-001 Reserve - Fences/Replacement 29,874.32

30-3190-001 Reserve - Miscellaneous 2,876.68

30-3195-001 Reserve - Townhomes 7,394.00

30-3250-001 Reserve - Mailbox Kiosks 1,403.32

$65,470.64 Total 30 - Reserve Funds::

35 - General Fund:

35-3500-000 Prior Year Fund Balance 3,165.05

$3,165.05 Total 35 - General Fund::

Net Income Gain / Loss (33,694.68)

($33,694.68)

$86,308.51 Total Liabilities & Equity:


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8/26/2016

Page:


Date:

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Description

Current Period


Year-to-date

Actual Variance

Annual

Budget

OPERATING INCOME

40 - Revenue - Assessments:

$15,660.34 $5,661.75 4000-000 Assessment Income $25,677.33 $31,339.08 $205,418.64 $221,078.98 $308,128.00

1,833.36 (20.83)4020-000 Working Capital 520.83 500.00 4,166.64 6,000.00 6,250.00

(24,881.36)(10,054.92)4025-000 Developer Contribution 10,054.92 - 80,439.36 55,558.00 120,659.00

$36,253.08 ($4,414.00) ($7,387.66)$31,839.08 $282,636.98 $290,024.64 Total 40 - Revenue - Assessments: $435,037.00

42 - Revenue - Fees:

20.00 (45.00)4200-000 Administrative Collection Fees - (45.00) - 20.00 -

- (25.00)4220-000 Collection Fee Income - (25.00) - - -

32.70 (12.45)4245-000 Interest - Owner Accounts - (12.45) - 32.70 -

460.00 (80.00)4250-000 Late Fee Income - (80.00) - 460.00 -

25.00 - 4260-000 Nsf Fee Income - - - 25.00 -

$- ($162.45) $537.70 ($162.45) $537.70 $- Total 42 - Revenue - Fees: $-

48 - Revenue - Other:

50.09 - 4800-001 Interest - Reserve Funds - - - 50.09 -

$- $- $50.09 $- $50.09 $- Total 48 - Revenue - Other: $-

($6,799.87)($4,576.45)$36,253.08 $283,224.77 $290,024.64 Total OPERATING INCOME $31,676.63 $435,037.00

OPERATING EXPENSE

50 - Administrative Expenses:

(5.00)(25.00)5002-000 Admin Collection Fees 10.00 35.00 80.00 85.00 120.00

250.00 31.25 5008-000 Meeting Expense 31.25 - 250.00 - 375.00

325.00 18.75 5024-000 Legal & Collections 43.75 25.00 350.00 25.00 525.00

800.00 100.00 5026-000 Legal Expense 100.00 - 800.00 - 1,200.00

425.36 (1,266.33)5040-000 Insurance-Com Area (D&O) 241.67 1,508.00 1,933.36 1,508.00 2,900.00

3,829.18 173.51 5060-000 Management Fees 2,101.67 1,928.16 16,813.36 12,984.18 25,220.00

1,088.74 102.88 5072-000 Office Supplies 188.75 85.87 1,510.00 421.26 2,265.00

1,000.00 125.00 5078-000 Accounting Services 125.00 - 1,000.00 - 1,500.00

(150.00) 37.50 5096-000 Tax Preparation Fees 37.50 - 300.00 450.00 450.00

$2,879.59 ($702.44) $7,563.28 $3,582.03 $15,473.44 $23,036.72 Total 50 - Administrative Expenses: $34,555.00

54 - Repairs & Maintenance Expenses:

(9,008.00)(2,775.00)5737-000 Lot Maintenance 2,925.00 5,700.00 23,400.00 32,408.00 35,100.00

(23,565.00)(5,205.00)5755-000 Full Service Landscape 13,680.00 18,885.00 109,440.00 133,005.00 164,160.00

$16,605.00 ($7,980.00) ($32,573.00)$24,585.00 $165,413.00 $132,840.00 Total 54 - Repairs & Maintenance Expense $199,260.00

60 - Townhome Expenses:

(18,126.59) 2,198.20 5045-000 Insurance - TH 3,597.00 1,398.80 28,776.00 46,902.59 43,164.00

(3,120.00)(1,020.00)5760-000 Landscaping - TH 2,220.00 3,240.00 17,760.00 20,880.00 26,640.00

1,233.36 154.17 5765-000 Misc. Ext Bldg Maint - TH 154.17 - 1,233.36 - 1,850.00

1,850.00 231.25 5770-000 Termite Inspection - TH 231.25 - 1,850.00 - 2,775.00

(403.36) 308.33 5775-000 Pressure Washing - TH 308.33 - 2,466.64 2,870.00 3,700.00

2,466.64 308.33 5780-000 Gutter Cleaning - TH 308.33 - 2,466.64 - 3,700.00

(1,174.14) 154.17 5785-000 Irrigation Repairs/Maint - TH 154.17 - 1,233.36 2,407.50 1,850.00

1,111.28 138.72 6222-000 Electricity-TH Irrig. Meter 195.00 56.28 1,560.00 448.72 2,340.00

8,793.93 1,850.00 6285-000 Water/Irrigation - TH 1,850.00 - 14,800.00 6,006.07 22,200.00

$9,018.25 $4,323.17 ($7,368.88)$4,695.08 $79,514.88 $72,146.00 Total 60 - Townhome Expenses: $108,219.00

61 - Common Area Expenses:

30.00 308.75 5700-000 Land Maint/Sup-Com Area 5,058.75 4,750.00 40,470.00 40,440.00 60,705.00

2,000.00 250.00 5735-000 Irrigation Maint/Repairs-Com Are 250.00 - 2,000.00 - 3,000.00

2,000.00 250.00 5745-000 Grounds Improvements-Com Are 250.00 - 2,000.00 - 3,000.00

236.00 9.30 6222-000 Electricity-Com Area 400.83 391.53 3,206.64 2,970.64 4,810.00

(43.57) 28.27 6280-000 Water-Com Area 47.50 19.23 380.00 423.57 570.00

1,308.06 208.33 8980-000 Misc Maint/Repairs-Com Area 208.33 - 1,666.64 358.58 2,500.00

$6,215.41 $1,054.65 $5,530.49 $5,160.76 $44,192.79 $49,723.28 Total 61 - Common Area Expenses: $74,585.00

62 - Utilities:

(46.70) - 6222-000 Electricity - - - 46.70 -

$- $- ($46.70)$- $46.70 $- Total 62 - Utilities: $-

95 - Reserve Expense:

- - 9530-000 Reserve - Fences/Paint 366.75 366.75 2,934.00 2,934.00 4,401.00

- - 9565-000 Reserve - Paving Alleys 70.67 70.67 565.32 565.32 848.00

- - 9685-000 Reserve - Fences/Replace 373.92 373.92 2,991.32 2,991.32 4,487.00


2

Time: 9:17 pm

8/26/2016

Page:


Date:

08/31/2016


Description

Current Period


Year-to-date

Actual Variance

Annual

Budget

$- $- 9690-000 Reserve - Miscellaneous $96.33 $96.33 $770.68 $770.68 $1,156.00

- - 9695-000 Reserve - Townhomes 567.25 567.25 4,538.00 4,538.00 6,807.00

- - 9750-000 Reserve - Mailbox Kiosks 59.92 59.92 479.32 479.32 719.00

$1,534.84 $- $0.00 $1,534.84 $12,278.64 $12,278.64 Total 95 - Reserve Expense: $18,418.00

($26,894.81)($3,304.62)$36,253.09 $316,919.45 $290,024.64 Total OPERATING EXPENSE $39,557.71 $435,037.00

($33,694.68) $0.00 ($7,881.07)($0.01)Net Income: ($33,694.68) $0.00 ($7,881.08)


SURPLUS FUNDS RESOLUTION

SHELMORE AT BRUNSWICK FOREST HOMEOWNERS’ ASSOCIATION, INC.

RESOLUTION FOR REVENUE RULING 70-604 ELECTION – EXCESS INCOME APPLIED TO THE FOLLOWING YEAR’S ASSESSMENTS The Membership of Shelmore at Brunswick Forest Homeowners' Association, Inc. took the following action by this written consent signed by Chairperson:

WHEREAS, the Membership of Shelmore at Brunswick Forest Homeowners' Association, Inc. is a North Carolina corporation duly organized and existing under the laws of the State of North Carolina; and WHEREAS, the members desire that the corporation shall act in full accordance with the rulings and regulations of the Internal Revenue Service; NOW, THEREFORE, the members hereby adopt the following resolution by and on behalf of the Membership of Shelmore at Brunswick Forest Homeowners' Association, Inc: RESOLVED, that any excess of membership income over membership expenses for the year ended 2016 , shall be applied against the subsequent tax year member assessments as provided by IRS Revenue Ruling 70-604. This resolution is adopted and made a part of the minutes of the meeting of ____November 08, 2016 .

President - Rosemary Russell

Attested by Vice President - Josh Huber

2016 2017 2016 v 2017OPERATING INCOMERevenue - Assessments:Assessment Income * 308,128 459,900 (151,772) Based on # owners projected for Jan 1; each new owner lowers subsidyWorking Capital 6,250 6,250 - Non-reoccurring Income - New Units @ $250 - Buyer pays @ 1st conveyanceDeveloper Contribution 120,659 75,306 45,353 Developer subsidizing operating shortfall, if needed

Total Revenue - Assessments: 435,037 541,456 (106,419)

Total OPERATING INCOME 435,037 541,456 (106,419)

OPERATING EXPENSESAdministrative Expenses:Administrative Collections Fees * 120 120 - Late Fees/Collections Letters, etc.; Reimb. once Owners pay Meeting Expense 375 380 (5) Meeting Room Reservation, Recording Secretary, etc. Legal & Collections 525 525 - 3 Lien, Demand Letters etc.; Assn. Reimb when Owner paysLegal Expense 1,200 1,200 - Legal consult, Document Preparation and ReviewInsurance 2,900 2,900 - D&O; vs. Property and GL by Declarant; @ Buildout will need all. Management Fees* 25,220 31,417 (6,197) Agreement $6.37; 3% inc/Recorded Lot/Mo. Office Supplies * 2,265 900 1,365 Postage, Envelopes, Copies, etc.Accounting Services 1,500 - 1,500 Audit, Review, Compilation services (est. $6700, 2900, 1100)Reserve Study Expense - - - Reserve Study Possibly for Common Areas, Kiosks, Fences, TH, at BO ($10-$7,000)Tax Preparation Fees 450 450 - Earney & Company, LLP; Professional Tax Prep

Total Administrative Expenses: 34,555 37,892 (3,337)

Single Family Grounds Expense:Lot Maintenance* 35,100 37,200 (2,100) Add $35/Lot April - Oct (245/year) Vacant Lot mowing; $6200/mo 2016 Landscaping - SF Homes * 164,160 244,200 (80,040) $120/home/mo.($1440/yr./Home) 114 Homes vs. 72 in 2015

Total Single Family Grounds Exp: 199,260 281,400 (82,140)

Townhome ExpenseInsurance: TH* 43,164 63,715 (20,551) TH Insurance: Per Senn Dunn (56 units vs. 37 LY)Landscaping - TH* 26,640 42,336 (15,696) $60/Unit/month (10 vs. 37 2016) ($720/yr./Unit)Misc. Exterior Building Maint.: TH * 1,850 2,800 (950) Estimate $50/Unit/ year misc. Termite Inspection: TH* 2,775 4,480 (1,705) Estimate $80/Unit/year, per Bug n a Rug Pressure Washing: TH* 3,700 5,600 (1,900) Estimate $100/Unit/ year (1x) Pressure WashGutter Cleaning: TH* 3,700 5,600 (1,900) Estimate $100/Unit/year (1x) Gutters Irrigation Repairs/Maint: TH* 1,850 2,800 (950) Estimate $50/Unit/year Electricity: TH 2,340 720 1,620 Estimate $195/mo. Common TH Meters Water/Irrigation: TH* 22,200 14,760 7,440 $60 x 6 mo + $2400 x 6 mo., based on 2016 Actuals

Total Townhome Expense 108,219 142,811 (34,592)

Common Area ExpensesLand Main/ Sup- Com Area 60,705 20,000 40,705 2017 Mainscape; More to possibly be added Common Areas, trails, medians, misc. CA, etc. Irrigation Main/Repairs - CA 3,000 3,000 - Irrigation Rep/ Maint, spring start up/winterize CAMisc. Grounds Expense 3,000 7,500 (4,500) Items outside basic contract, Storm Clean Up, Trees, Sidewalk Trails, etc. Electricity - CA 4,810 5,400 (590) Entry Lights and elect. Add Alleyway Streetlights 2017, ~ $450/mo.Water - CA 570 4,800 (4,230) Most CA Irrig. on Well Water, min. exp. (1012 Sandy Gr., etc.; Fntn Meter off; new Stoney Pt)Misc. Maint & Repairs: CA 2,500 2,500 - Street Signs, CBU, Gazebo Repairs, Lighting Repairs, etc.

Total Common Area Expenses 74,585 43,200 31,385

Total OPERATING EXPENSES 416,619 505,303 (88,684)

Reserve Contribution:Reserve (Fences Paint) * 4,401 7,988 (3,587) # Homes w/ Fences per CC&RsReserve (Paving Alleys) * 848 4,523 2017 Additional Alleys AddedReserves (Fences, Replacement) * 4,487 4,312 # Homes with Fences per CC&RsReserves (Fences, Metal - 2016) - 1,958 (1,958) 2017 Additional Metal Fences Added to Spring Branch Section

Reserves (Retaining Walls - 2016) - 3,467 (3,467) 2017 Additional Retaining Walls Added to Spring Branch Section Reserves Misc. 1,156 2,127 (971) Misc. Enhancement projects/Gazebo, etc. Reserves TH* 6,807 10,647 (3,840) TH BO: 56 Duplexes, 10 Singles =66 Units, 28+10 Buildings (Only TH PAY) Reserves (Mailbox Kiosks) * 719 1,131 (412) Estimated based on 145 Homes on the Ground = 9, 16 Box Units.

Total 95 - Reserve Contribution: 18,418 36,153 (14,235)

Total OPERATING & RESERVES EXPENSES 435,037 541,456 (102,919)

Surplus/Deficit: Income vs. Expenses - - * Items Calculated Based on the # of Projected Units

Assessment (Dues) Summary: 2016 2017 2016 v 2017Dues Payments are payable Quarterly on the 1st of January, April, July and October to Shelmore at Brunswick Forest Neighborhood Association, Inc. Brunswick Forest Master Association dues are paid separately.

Annual Dues & Quarterly Payments

Annual Dues & Quarterly Payments

Vacant Lot - Annual 384.00$ 400.00$ (16.00)$ Quarterly Payment Amount 96.00$ 100.00$ (4.00)$

Completed Dwelling - Annual 1,400.00$ 1,500.00$ (100.00)$ Quarterly Payment Amount 350.00$ 375.00$ (25.00)$

Townhome Unit - Annual (New 2014) 2,800.00$ 2,900.00$ (100.00)$ Quarterly Payment Amount 700.00$ 725.00$ (25.00)$

Payment Address HOA Name, C/O CAMS, PO BOX 97548, RALEIGH NC 27624-7548 (Note Account # on Check) Check Account Balances, Verify Contact Info, etc. at www.SMBFHOA.com | Billing Questions: (910)256-2021, [email protected]

(Brunswick Forest Master Association Assessments Paid Separately)

Shelmore at Brunswick Forest Homeowners' Association, Inc. 2017 OPERATING BUDGET - Effective January 1, 2017

Buildout: 453 Members (66 Townhomes, 387 Single Family)

ADOPTED October 21, 2016

ANNUAL MEETING DISTRIBUTION COPY - BUDGET COMPARISON

Based on 291 dues paying Members by January 1, 2016 (56 Townhome, 185 Single Family, 50 Lot Only)