MINUTES OF LAKE SUMMERSET 35th ANNUAL MEETING
DECEMBER 9, 2007

All open session board meetings are audio recorded by the Recording Secretary for transcribing and clarification purposes. Board President, Bill Keener, called the meeting to order at 2:00 p.m. Directors present were Jeff Reuter, Marty Kisser, Joan Pepich, Carol Raduns, Jack Walsh, Mark Metzler, Karen Franzen and Frank Miller. General Manager, Gary Wilke, and Corporate Secretary, Marsha Shelly, were also present.

Members signed in: Dom Lomanto, Norman Becker, Judy Becker, Alan Bloomfield, Donna Miller & Frank Miller, Klaus & Monika Knappik, Clarence & Janet Metzler, Karen Franzen, Howard Lass, Bob Page, Linda Ellis, Ron Dobrunz, Pat Page, Sharon Richardson, Bob Ivey, Neil Laage, Margaret Jindra, Walt Pepich, Tony & Jennie Lopez, Ruth & Alex Artisuk, LaVonne Arendsee, Myrna Rowe, Jane & Phillip Brannon, John Lund, Don Kuhl, Denny & Sue Harker, Betty & Bob Kierelko, Orvin Bergsmith, Gerald Osowski, Kelli Metzler, Harry Engelstad, Jean Brogan, Tom & Pam Tindell, Dale & Cathy Jenkins, Mike & Ann Kriegler, Ron & Diana Richards, Carol & Mike Rosko, Bill Kibble, Vyonne & Ken Ward, Phyllis Gibson, Carl Campagna, William & Grace Merritt.

CALL TO ORDER. President William Keener called the 35th Annual Meeting of the Lake Summerset Association to order and welcomed all members present.

INTRODUCTIONS. President Keener introduced the current and future Board Members, Mark Metzler, Frank Miller, Carol Raduns, Jack Walsh, Joan Pepich, Jeff Reuter, Karen Franzen, Marty Kisser, General Manager Gary Wilke, Corporate Secretary Marsha Shelly, Recording Secretary Marlisa Gunderson. He also introduced Dennis Harker, maintenance supervisor. Committee chairmen were introduced: Herm Muehlbauer, Building, Roads and Grounds; co-chairs Dale Jenkins and Ed Jurczak, Community Relations Committee; Don Kuhl, Environmental Control Committee; Steve Harting, Lake Planning; Leon Gorsch, Long Range Planning; Kelli Metzler, Security; and Mike Ries, Campground.

ELECTION COMMITTEE REPORT. President Keener introduced Howard Lass, to provide the election committee report. Howard Lass opened by thanking his committee and Corporate Secretary, Marsha Shelly for their service. Election results were as follows:

Frank Miller 946 votes
Karen Franzen 933 votes
Ed Jurczak 302 votes
Tony Scianna 222 votes

Grand total votes cast were 2,453, but 50 were spoiled; total votes counted were 2,403.

President Keener also thanked the Election Committee and welcomed Karen Franzen and Frank Miller as new Board Members.

PRESIDENT’S REPORT. President Keener again welcomed all members present. He indicated the year had gone by quickly and a lot had happened at Lake Summerset. He thanked the committees and club members for their service and participation, as well as the 2007 Board Members who he was humbled to have served with. He bid farewell to Mark Metzler and Jack Walsh, thanking them for their many years of service and wishing them Godspeed. He indicated that the membership doesn’t have to agree with the decisions made by the leadership, but should respect the people who serve the Association. He closed with holiday wishes to all.

AWARDS PRESENTATION. President Keener turned the floor over to General Manager Wilke who recognized the departing directors. He complimented Jack Walsh on his willingness to serve the Board since 1999. Jack was recognized as always being willing to listen to people, step up to held and possibly being accused of being “too involved,” leaving a legacy of being too caring. Manager Wilke presented a plaque to Jack Walsh.

General Manager Wilke introduced Mark Metzler as the second departing director, who had a long history with LSA, serving the board on separate terms from 1992-1998 and 2002 to present. Manager Wilke has not seen a more qualified, dedicated treasurer during his service to the community. He has provided sound financial information to the board to base decisions on, and consulting auditors have shared those same opinions of Mark. Manager Wilke presented a plaque to Mark Metzler.

MANAGER’S REPORT. General Manager Wilke continued by providing a recap of 2007 achievements. With regard to equipment upgrades, the campground golf cart has been replaced, a laptop and projector was purchased to be utilized for staff training, replacement of failed analog video recorder with a digital unit at the east gate. There was also regularly scheduled replacement of recreational equipment such as picnic tables and playground equipment. On the topic of the dam, lake and watershed projects fish stocking was continued, with efforts from the Fish Club, of walleye and pike. Continued participation in the IEPA Volunteer Lake Monitoring Program provides an opportunity to assess water quality by the standards set forth by the IEPA. There was continued pursuit of the feasibility review of the Hagemann property proposal and funding for that. The testing project continued with OCLUD to check bacteria levels. Efforts were renewed for goose control. In the area of general property improvements the pool house restoration was completed as well as new fencing in that area. Fence was also replaced around the tennis courts and a section along Rock Grove Road. Renovation of the campground bathhouse was initiated, as well as numerous community landscaping upgrades. Water was installed at Memorial Garden and a tree nursery was developed at Maple Park. As OCLUD customers, the Association benefited from renovations to four lift stations and a new 3,000 gallon elevated water tank which will provide better fire protection and constant water pressure, supporting future growth. There was also an electric fireplace installed at the lodge.

Goals for 2008 include completion of the campground bathhouse; the design and possible completion of a bathhouse at Beach 2; replacement of perimeter fence; enhancement of water quality in the lake; and curb and gutter replacement to prepare for chip and seal in following years. Chief among capital assets purchases for the year will be a dump truck and grooming mower.

General Manager Wilke stated that most of what he had said was about spending money and he wanted to share that the Lake Association was also about building relationships and providing service. He wishes to recreate in 2008 a new management focus for community service. This is a friendly community that can enhance the quality of life of its residents and others. He closed with holiday wishes.

TREASURER’S REPORT AND PRESENTATION OF THE 2008 ANNUAL BUDGET. President Keener introduced Director Raduns to provide the Treasurer’s Report. Director Raduns stated that Association dues are up $20.00, with the main reason for the increase being that expenses have increased and revenue is down. The previous budget planned for $30,000.00 from thirty new homes, and only eight were built. Additionally, gas and oil costs have risen. She had come in with an increase of $15.00, but the Board had wanted $5.00-10.00 additional, and they were able to reach a compromise of $5.00 additional. The budget was approved at the November Board meeting with changes.

At the October Board of Directors meeting, there was further compromise of the 2008 budget. Directors Metzler and Walsh requested certain areas of the budget be restored to original budget requests. Although Director Metzler still voted against the budget, Director Walsh voted for it, with the request that Director Raduns make the discussed changes, which were as follows:

Page 1: Added $1,500.00 to the revenue side, line 6, operations reserve, from $96,300.00 to $97,800.00.

Page 2: Shows the total changes in the Capital expenditures as a result of the category changes.

Page 10: Road improvements, line 6, concrete curbs and gutters; added $13,000.00 to the previous request. In order to keep the budget request down for 2008, changed the asset life from 5 to 6 years.

Page 11: Gate improvements: Added back a main gate replacement line item. There are also line item requests in the building improvements account, line 42, page 7 and in major new building structures, line 1, page 15.

Page 12: Campground: Reserve Advisors cost estimates increased the estimated costs substantially for Utility lines and pedestals and other items. In order to decrease the estimated costs per year column, (the budget request), changed the asset life column.

Page 13: Parks and Recreation: Line 26 had been changed from $50,000.00 to $40,000.00 to reduce the budget request. Directors Metzler and Walsh wanted this restored, which Director Raduns did.

Page 14: Pool: Director Metzler wanted a line item for renovation of the bath/shower at the pool. This was in addition to a line item for a new pool, shown on line 2.

Page 15: Because of the changes requested at the Board workshop, it was necessary to reduce requests in other areas in order to stay within the extra $5.00 dues request. Therefore, the budget was reduced for the Major Land Acquisitions request from $15,000.00 to $13,000.00. That amount was restored back to $15,000.00 after the Board Meeting.

Changes to the asset life column in the budget allow the line items to remain in the budget. However, it also allows the budget requests for a particular year to go up or down. Of course, this would be used to bring the budget down, as the request for additional funds would most likely take place in a new line item.

Another item which does not show up in the budget request is the reallocation of funds. This is the money generated in interest on the Capital accounts. We can estimate what that will be, but the audit is what will give us the exact figure. However, we are estimating that we will have about $60,000.00 to reallocate into the Capital accounts in 2008. This money will be reallocated into accounts that need it because of a new project that hasn’t been budgeted before or in an area that needs these extra funds to keep it out of the red. This is also why, even though you may see a problem in a category on the projected yearend balance sheet, page 23, that will change if a reallocation is made into that account after the audit. An example would be the building improvement fund, which is showing a predicted deficit in 2012 and 2013. That will not actually happen, as reallocation into that account as well as other accounts that need it after the 2008 audit will occur.

Director Raduns also gave the report for November, indicating revenues of $33,386.17 for the month, and year-to-date $1,565.769.97. The 2007 budget called for revenues of $1,610,407.00. Total administrative and operating expenses for November were $72,279.57 with year-to-date of $1,042,211.02. The budget was for $1,197,757.00 for expenses.

Director Raduns made a request for a Motion to approve the 2008 budget with an increase of dues of $20.00. Don Kuhl moved, seconded by Jenny Lopez, to approve the 2008 budget with increase of dues of $20.00. Tony Lopez, 2007, inquired about the insurance premiums. Director Raduns indicated casualty and facilities insurance had increased approximately 18%. There are less employees on staff currently, and they pay part of the premium. Tony Lopez also asked what was included in the miscellaneous administrative expenses on line 11 totaling $18,100.00. General Manager Wilke indicated that related to equipment or other unusual expenses not otherwise predicated. Diana Richards, 133, asked about new building permits. Director Raduns indicated only eight had been issued this year, and have budgeted for fifteen in 2008. Director Raduns called for the vote. Corporate Secretary Shelly indicated 689 proxies in favor of the budget had been received. Along with verbal approval in attendance, only two present descending votes, the motion carried.

ADJOURNMENT. Director Walsh moved, seconded by Director Kisser, to adjourn the meeting.

Respectfully submitted,

_____________________________
Marlisa R. Gunderson
Recording Secretary