February 24, 2012 Budget Meeting

CHRISTMAS MOUNTAIN CAMPGROUND ASSOCIATION

BOARD OF DIRECTORS BUDGET MEETING

February 24, 2012

The Board of Directors Budget meeting of the Christmas Mountain Campground Association was held on Friday, February 24, 2012 at 11:00 am at Odyssey Dells Resort, Wisconsin Dells, WI.



Present in person at Odyssey Dells were, President Dennis Thurow, Secretary/Treasurer Tammy Bateman, Director Sheri Lundstrom, Director Connie Dodd.

Absent was Vice President Vonei White.

Also present were, Barney Barber, SVP, Bluegreen Resorts Management, Inc., David DeShaw, Regional Director, Bluegreen Resorts Management, Inc., Dale Dobis, Regional Director, Bluegreen Resorts Management, Inc., Linda Vazquez, Association Administrator, Bluegreen Resorts Management, Inc. Michael Noble, General Manager at Christmas Mountain Village, Stephen Sease, Assistant General Manager at Christmas Mountain Village.

President Thurow called the meeting to order and called the roll at 11:00am (Central Time).

PUBLIC INFORMATION PERIOD

· There were no owners present.

APPROVAL OF AGENDA

· Motion made by Director Dodd, seconded by Director Bateman and carried to amended the agenda and add a request to reallocate reserve funds under Financial Business.

APPROVAL OF MINUTES

· Motion made by Director Dodd, seconded by Director Lundstrom and carried to approve the September 7, 2011 meeting minutes as presented.

OFFICER REPORTS

· Secretary/Treasurer Thurow provided an update of the Campground rezoning. He explained that the girl at the state has taken a leave of absence and just return in January. The state will be visiting the resort in February to view the grounds. The state will have a meeting in March to discuss the next step.

· Vice President White was absent

· Secretary/Treasurer Bateman did not have anything to discuss.

POA UPDATE

· President Thurow gave the POA update.

FINANCIAL BUSINESS

· November 2011 YTD Variance Report

· November 2011 Financials

Dale Dobis explained that the reserve account balance is currently $469k. He explained to the board that he would like to ask the board to reallocate monies within the reserve accounts to bring each account to a positive balance. The board approved the request.

Motion made by Director Bateman, seconded by Director Dodd and carried to approve the reallocation of the reserves in the amount of $150,000.00 into the reserve category listed below.

a) Move $75,000 from 3055 Special Assessment Reserve Interest to 3010 Exterior/Capital Improvement.

b) Move $75,000 from 3015 Interior Reserve Interest to 3010 Exterior/Capital Improvement.

Dale reviewed the January 2012 financial statement and provided the board with an up-to-date financial review. He explained that Revenue is ahead of budget by $28k, main contributor was additional housekeeping cleans. Payroll is under budget by $47k, Utilities is over budget by $4k, Operational expenses is over in by$60k; which is offset by the savings in Payroll; due to contract labor. Landscaping and Grounds is over budget by $56k; mainly due to tree removal. General and Administration is under budget by $2k. As of the end of January the association is ahead of budget by $34k.

· November 2011 A/R Report (Exhibit D)

Dale Dobis explained that at future meetings, Kim will provide the board with an explanation for each account on the AR report.

Kim Fries explained that she is working closely with legal and will be able to provide the board with a detail report and more information at the next meeting.

Barney Barber explained the Bluegreen has agreed to sell association owned inventory as an effort to get a fee paying member into the association. Bluegreen is not offering to purchase the inventory, but they will pay the transfer fees associated with transferring the inventory from the name of the association into the Vacation Clubs name.

NEW BUSINESS

· Manager’s Report (Exhibit H-K)

Stephen Sease provided an update to the board on resort improvements, staff changes RCI comment card scores, as well as the new Bluegreen comment card survey system that began in January 2012. (as outlined on the manager’s report in board binder).

UNFINISHED BUSINESS

· Action Item list.

Dale Dobis reviewed the action item list.

Dale Dobis explained that the resort completed a reserve study for each association. He explained that a reserve study is when a third party company comes to the resort to properly record the resort assets and they also provide a 30 year cash flow. A copy of the reserve study will be provided to the board.

The following items were added to the future action item list;

1. Local attorney is researching the governing documents to provide an interpretation of owners being able to rent their units.

2. Director Lundstrom requested research to done to determine if there are more Park Models on the books than is allowed per the governing documents.

3. Director Lundstrom requested a breakdown of bad debt for each unit type.

4. Director Lundstrom explained that the housekeeping revenue is off by $100k. She has asked to see a report that shows the per diem housekeeping revenue fee that Bluegreen pays.

5. Director Thurow explained that the governing documents state that Wilderness maintenance fees should be less than UDI owners.

· Request formal board approval to allow the owners who purchased UDI to finalize closing and permit them to pay the 2012/2013 maintenance fees with usage rights to begin June 1, 2012.

Motion made by Director Lundstrom, seconded by Director Dodd and carried to formally approve.

· Renovation Discussion

Barney Barber stated that the board has made great progress is getting closer to a renovation. He explained that the construction and development team is still working on a renovation scope and the management team will have more information to share with the board and owners at the April meeting.

2012-2013 PROPOSED OPERATING BUDGET

· 2012-2013 Operating Budget

Dale Dobis reviewed the proposed budget.

Motion made by Director Dodd, seconded by Director Lundstrom and carried to approve the 2012-2013 operating budget as presented to include a 7.5% maintenance fees increase.

ADJOURN

Motion made by Director Lundstrom, seconded by Director Bateman and carried to adjourn the meeting at 12:50pm.

Respectfully submitted, Acknowledged by,

_______________________ _________ ___________________ _________

Linda Vazquez Date Tammy Bateman Date

Association Administrator Secretary/Treasurer