Lake Windcrest Property Owners Association Board of ...€¦ · A. Spinnaker Run Dead Tree Removal (2) B. Internet Access and Cameras at Boat Launch Area C. Storage Building at Melany

Lake Windcrest Property Owners Association

Board of Directors Meeting

AGENDA – Room 303

August 27, 2019

Lake Windcrest POA Board of Directors meetings are subject to Chapter 209 of the Texas Property Code requiring no less than 72 hours advance meeting notice to include the items of business on the agenda for action at such meeting, and a general description of items of deliberation in Executive Session. Board meetings are to be open, except for certain topics for which the Board may convene into Executive Session. Decisions may not be made on items not posted on the Agenda.

6:30 pm I. Establish a Quorum

II. Call to Order

III. Executive Session A. Legal Matters

a. Dam Access Azure B. Collections

a. 370-7957 b. 403-9747

C. Deed Restriction Violations/Fines D. Constable Patrol

6:50 pm Adjourn Executive Session 7:00 pm IV. Report Actions Taken during Executive Session

V. Review and Approve Minutes – April 10-11, 2019 and June 25, 2019

VI. Treasury Report A. Treasurers Finance Report 1908G-001 B. 2020 Budget – Workshop Date

VII. Ratify Project Approvals – 1908G-002 A. Spinnaker Run Dead Tree Removal (2) B. Internet Access and Cameras at Boat Launch Area C. Storage Building at Melany Meadows Park

VIII. Committee Reports A. Neighborhood Patrols – 1908G-003 B. Community Services - 1908G-004 C. Drainage, Lakes, and Dams -1908G-005 D. Grounds and Amenities – 1908G-006

• Grounds Chair

IX. Business A. 2018 Reserve Study – 1908G-007 B. 2018 Review – 1908G-008 C. 2019-OM002 Drainage Ditch Rehab Project – 1908G-009 D. 2019-R004 Windcrest Dam Restoration – 1908G-010 E. Operations Manual & EAP – 1908G-011

ANNOUNCEMENTS - XI. Homeowner Comments - Homeowners may comment on items of concern and provide their input on a particular issue. The Board will listen and make note; no action will be taken during this meeting. Check out the website at www.lakewindcrestpoa.com. 8:30 pm Adjournment Next Meeting: October 22, 2019 Board Meeting

http://www.lakewindcrestpoa.com/

MINUTES OF THE BOARD OF DIRECTORS ELECTRONIC MEETING

LAKE WINDCREST PROPERTY OWNERS’ ASSOCIATION April 10, 2019

A meeting of the Board of Directors of Lake Windcrest Property Owners’ Association (the “Association”) was called to order by John Pozadzides, at 12:12 p.m. A quorum was established by the attendance of the following Directors: Michelle Replogle, Vice President; Isabel Ross, Secretary; Michele Goldman, Treasurer; Darin Reeser, Grounds Maintenance; and David Traicoff, Dams, Lakes and Drainage. Janet Hampton, Community Manager, with PMG was also in attendance. Upon a motion made by John Pozadzides and seconded by David Traicoff, the following resolution was unanimously adopted. RESOLVED THAT, the Board approved to open accounts with Branch Bank & Trust (BB&T) to maximize interest rates for Lake Windcrest POA Association funds. The accounts to be opened with BB&T will be as follows: Two (2) Business Value 500 (ICS) at 2% and two (2) Business Investors Deposit accounts (Savings) at 2.4%. The amounts of transfer will be reflected on future financials for final monies for opening balances. A representative of Associa HOU PMG will coordinated with a representative at BB&T the setup of the accounts. Michele Goldman, Treasurer of the Lake Windcrest POA, will be a viewer on all accounts. The administrator on the accounts will be an Associa HOU Client Accounting Specialist having online access to the accounts. With no further banking business conduct the electronic Board meeting ended April 11, 2019, 10:07 a.m. Janet Hampton Community Manager

Lake Windcrest Property Owners Association

Board of Directors Meeting

AGENDA – Room 303

June 25, 2019

Lake Windcrest POA Board of Directors meetings are subject to Chapter 209 of the Texas Property Code requiring no less than 72 hours advance meeting notice to include the items of business on the agenda for action at such meeting, and a general description of items of deliberation in Executive Session. Board meetings are to be open, except for certain topics for which the Board may convene into Executive Session. Decisions may not be made on items not posted on the Agenda.

A meeting of the Board of Directors of Lake Windcrest Property Owners’ Association was called to order by John Pozadzides, President, at 6:30 p.m. A quorum was established by the attendance of the following Directors: Isabel Ross, Secretary; Michele Goldman, Treasurer; David Traicoff, Dams, Lakes and Drainage; Kevin Clark, Director; and Vinny Sinisi, Ex Officio Director. Michelle Replogle and Thomas Mosa were unable to attend. Janet Hampton, Community Manager, with PMG was also in attendance. Adjourn Executive Session John Pozadzides welcomed property owners to the board meeting. Anyone having a question or comment is welcome to speak up during the meeting. IV. Report Actions Taken during Executive Session John Pozadzides stated a discussion was held concerning delinquent accounts to include a variety of issues at the boat launch area. Any one entering the boat launch area must have the correct application submitted to the management company. Anyone entering with a watercraft must complete the watercraft application. A $500 fine may be imposed to anyone not following the rules and cameras will soon be installed to monitor the access. V. Board Organization - Elect Board Officers

Upon a motion made by Isabel Ross and seconded by Kevin Clark, the following resolution was

unanimously adopted. RESOLVED THAT, the Board approved the nomination of John

Pozadzides as President.

Upon a motion made by Isabel Ross and seconded by John Pozadzides, the following resolution

was unanimously adopted. RESOLVED THAT, the Board approved the nomination of Thomas

Mosa as Vice President.

Upon a motion made by John Pozadzides and seconded by David Traicoff, the following

resolution was unanimously adopted. RESOLVED THAT, the Board approved the nomination of

Isabel Ross as Secretary.

Upon a motion made by John Pozadzides and seconded by Kevin Clark, the following resolution

was unanimously adopted. RESOLVED THAT, the Board approved the nomination of Michele

Goldman as Treasurer.

Upon a motion made by John Pozadzides and seconded by Isabel Ross, the following resolution

was unanimously adopted. RESOLVED THAT, the Board approved the nomination of Vinny Sinisi

as Ex Officio Board member non-voting.

VI. Review and Approve Minutes – March 26, 2019 and April 10-11, 2019 Upon a motion made by John Pozadzides and seconded by Isabel Ross, the following resolution was unanimously adopted. RESOLVED THAT, the Board approved the minutes of March 26, 2019. The minutes of April 10-11, 2019 were tabled until further discussion. VII. Treasury Report - 1906G-001 Michele Goldman presented the Financial Report recommending approving the February and March 2019 Financials. Upon a motion made by Michele Goldman and seconded by John Pozadzides, the following resolution was unanimously adopted. RESOLVED THAT, the Board approved the February and March 2019 Financials. The CPA currently has everything they need to begin the 2018 Review and will supply additional documents as needed. There are a few corrections being made to the 2018 Reserve Study and once complete a final will be presented to the Board for approval. VIII. Ratify Project Approvals – 1906-002 Upon a motion made by John Pozadzides and seconded by David Traicoff, the following resolution was unanimously adopted. RESOLVED THAT, the Board ratified the approvals for the following projects:

A. Lower Serenity Spillway Toe Wall (changed from upstream to downstream) B. Edgewater Park Lighting C. Edgewater Park – Play Structure Shade Cover D. Edgewater Tree Removal and Replacement E. Black Vultures Removal F. Melany Meadows Park Play Structure Replacement G. Corridor Project by Clubhouse Circle H. Azure Dam Access

IX. Committee Reports

A. Neighborhood Patrols – 1906G-003 Sergeant Ryan Simpson with Montgomery County Pct. 5 reported there have been no issues with ATVs and no significant traffic violations. There have been criminal arrests at the parks and that is usually relating to narcotics. Sergeant Simpson will have more information about the traffic lights in the area at the August Board meeting. Traffic increases as neighborhoods are built, so there are many improvements for road projects. May 2019 Report as follows: Traffic 47 Alarm 1 Welfare Check 1 Park Checks/ Citizen Contacts 25 Animal Call 1 (lost dog) Unauthorized Motor Vehicle 1 Suspicious Vehicle 1 Vacation Watches/ Building Check 8

B. Community Services - 1906G-004 Isabel Ross presented the Community Services report. The garage sale in April went well thanks to Erika Moureau and thanks to her and her grandsons for putting out the signs. We are hoping to have two (2) movie nights this fall and looking for volunteers. We are also looking for someone to volunteer on a newsletter for the community.

C. Drainage, Lakes, and Dams -1906G-005 Michael Jones is working with Schuler Services on the bid for a few ditches. Bob Jester stated once property owners have been notified concerning the access to Azure Lake the DLDC will begin the three-option bid process. Mystic Cove ditch project will be finalized soon with recommendations to the board for repairs.

D. Grounds and Amenities – 19060G-006 John Pozadzides stated during a storm a tree fell on a powerline and was hanging over the FM 1488 fence. The tree is now gone, and the fence has been repaired. Lighting has been added to Edgewater Park and soon covers will be installed over the play equipment. X. Business A. 2018 Reserve Study – 1906G-007 The Reserve Study was not available for approval and will be moved to the August Board meeting. The brick walls at the entrances do not need to be replaced and the lakes do not need to be dredged so those items will be moved forward in time on the reserve study. XI. Homeowner Comments Discussion was held concerning the landscaping maintenance contract and the progress of the mowing. John Pozadzides stated if you do not want your roadside mowed you may request to be placed on the do not mow list. Markers are placed on the corners of the lot indicating to the maintenance company not to mow the roadside. There are no more markers left so John will be making 100 and will be reimbursed for the cost of the materials at $5 apiece. The meeting was adjourned at 8:38 p.m. Janet Hampton Community Manager

AGENDA ITEM

Board of Directors

Treasurer’s Report

1908G-001

Committee: Finance Committee

Date: August 27, 2019

Submitted by: Michele Goldman, Treasurer

Gerald Hearn, Finance Chair

Financial Statements – The Finance Committee has reviewed April, May and June financials for 2019 and recommends the approval by the board. 2018 Reserve Study – The reserve study provides a budget planning tool that identifies the status of the reserve fund, and an opinion recommending a reserve funding plan, and annual funding goals to offset the anticipated future replacement expenditures of the property. The Finance Committee recommends approving the 2018 Reserve Study and will be available on the website (www.lakewindcrestpoa.com) once approved. 2018 Review – The CPA has finalized the review and the Finance Committee recommends approving the 2018 Review and will be available on the website (www.lakewindcrestpoa.com) once approved. 2018 990 Tax Return – The CPA is currently working on the 990 and will complete soon. 2020 Budget – The Finance Committee is currently working on the Budget for 2020. The various committees have been working on their budget figures and will submit soon for board approval.



May 31, 2019Balance Balance

Apr 30, 2019 Change

Balance Sheet Report

Lake Windcrest POAAs of May 31, 2019

Assets

Operating Funds

1000 - PPB OP - 4469 45,996.72 (2,144.99)48,141.71

1102 - BB&T OP CK 5174 0.00 (585,101.00)585,101.00

1103 - BB&T OP IDA 5158 51,567.45 51,349.98 217.47

1104 - BB&T OP ICS 158 0.00 (51,249.88)51,249.88

1105 - BB&T OP ICS 174 556,266.96 556,266.96 0.00

Operating FundsTotal 653,831.13 684,710.06 (30,878.93)

Reserve Funds

1300 - PPB Res CK #4618 11,946.89 113.63 11,833.26

1325 - PPB MM Reserve - 5333*CLOSED* 0.00 (113.63)113.63

1328 - BB&T RESV IDA 5166 19,493.93 35.85 19,458.08

1329 - BB&T RESV ICS 182 957,037.49 1,594.94 955,442.55

Reserve FundsTotal 988,478.31 986,847.52 1,630.79

Accounts Receivable

1500 - Residential Assessments Receivable 34,629.79 (7,360.01)41,989.80

Accounts ReceivableTotal 34,629.79 41,989.80 (7,360.01)

Other Current Assets

1600 - Prepaid Insurance 3,678.13 (2,054.17)5,732.30

Other Current AssetsTotal 3,678.13 5,732.30 (2,054.17)

AssetsTotal 1,680,617.36 1,719,279.68 (38,662.32)

Liabilities

Liabilities

2036 - PMG Collections 3,374.59 (240.00)3,614.59

2050 - Resident Refunds 0.00 (1,800.00)1,800.00

2395 - Other Accrued Expenses 15,852.90 (3,960.48)19,813.38

Page 1 of 2Printed by Taylor Johnson-AssociaHDQ on Wed Jun 12, 2019 03:18 pm

May 31, 2019Balance Balance

Apr 30, 2019 Change


Lake Windcrest POAAs of May 31, 2019

Liabilities

Liabilities

2400 - Accrued Payroll Payable 3,313.20 3,313.20 0.00

2525 - Architectural Review Fees Deposit 16,470.00 (3,600.00)20,070.00

2550 - Prepaid Assessments 9,619.00 520.00 9,099.00

2595 - Deferred Revenue 314,416.65 (44,916.67)359,333.32

LiabilitiesTotal 363,046.34 413,730.29 (50,683.95)


Owners' Equity

Owners Equity - Prior Years

3000 - Operating Fund - Prior year 335,414.69 0.00 335,414.69

Owners Equity - Prior YearsTotal 335,414.69 335,414.69 0.00

Capital Reserves - Prior Years

3102 - Repair & Replacement Reserve - Prior Yrs 880,981.62 0.00 880,981.62

Capital Reserves - Prior YearsTotal 880,981.62 880,981.62 0.00

Owners' EquityTotal 1,216,396.31 1,216,396.31 0.00

Net Income / (Loss)

Total Liabilities and Equity

101,174.71

1,680,617.36

89,153.08

1,719,279.68

12,021.63

(38,662.32)

Page 2 of 2Printed by Taylor Johnson-AssociaHDQ on Wed Jun 12, 2019 03:18 pm

Lake Windcrest POA

Income Statement Report

OperatingMay 01, 2019 thru May 31, 2019

Variance Actual Budget Current Period

Actual Budget Year to Date (5 months)

Variance Budget Annual

Remaining Budget

Income

Income

4000 - Residential Assessments 192.67 44,724.00 44,916.67 223,808.35 223,621.00 187.35 536,690.00 312,881.65

4205 - Application Fees (24.00)24.00 0.00 0.00 117.00 (117.00) 280.00 280.00

4220 - Gate & Access Fees 759.00 291.00 1,050.00 2,850.00 1,458.00 1,392.00 3,500.00 650.00

4710 - Late Fees & Interest 971.34 416.00 1,387.34 6,081.10 2,083.00 3,998.10 5,000.00 (1,081.10)

4720 - Legal Reimbursements (155.00)375.00 220.00 286.00 1,875.00 (1,589.00) 4,500.00 4,214.00

4805 - Compliance Fees (84.00)84.00 0.00 250.00 417.00 (167.00) 1,000.00 750.00

4900 - Interest Earned - Operating Accounts 1,203.78 116.00 1,319.78 2,071.37 583.00 1,488.37 1,400.00 (671.37)

48,893.79 46,030.00 2,863.79 235,346.82 230,154.00 5,192.82 Total Income 552,370.00 317,023.18

48,893.79 46,030.00 2,863.79 235,346.82 230,154.00 5,192.82 Total Operating Income 552,370.00 317,023.18

Expense

Administrative

5000 - General Administrative 111.09 66.00 177.09 580.14 333.00 247.14 800.00 219.86

5005 - Application/Processing 24.00 41.00 65.00 195.00 208.00 (13.00) 500.00 305.00

5010 - Bad Debt (250.00)250.00 0.00 126.79 1,250.00 (1,123.21) 3,000.00 2,873.21

5015 - Bank Charges 9.00 6.00 15.00 15.00 31.00 (16.00) 75.00 60.00

5025 - Billing/Collections 1,343.00 416.00 1,759.00 1,759.00 2,083.00 (324.00) 5,000.00 3,241.00

5035 - Decorations 0.00 0.00 0.00 0.00 3,000.00 (3,000.00) 6,000.00 6,000.00

5045 - Dues & Subscriptions 0.00 0.00 0.00 0.00 0.00 0.00 500.00 500.00

5075 - Meeting Expense 406.78 125.00 531.78 1,235.44 625.00 610.44 1,500.00 264.56

5090 - Office Supplies (5.76)50.00 44.24 639.06 250.00 389.06 600.00 (39.06)

5100 - Records Storage 5.40 234.00 239.40 1,197.00 1,167.00 30.00 2,800.00 1,603.00

5115 - Web Site Maintenance 63.40 200.00 263.40 263.40 200.00 63.40 200.00 (63.40)

5195 - Other Administrative Services (216.00)216.00 0.00 622.14 1,083.00 (460.86) 2,600.00 1,977.86

5200 - Community Events (236.72)834.00 597.28 1,621.51 4,167.00 (2,545.49) 10,000.00 8,378.49

5210 - Printing & Copying (35.30)416.00 380.70 3,658.45 2,083.00 1,575.45 5,000.00 1,341.55

Printed by Taylor Johnson-AssociaHDQ on Wed Jun 12, 2019 03:18 pm Page 1 of 4

Lake Windcrest POA






Remaining Budget

Expense

Administrative

5215 - Postage (201.05)250.00 48.95 2,603.10 1,250.00 1,353.10 3,000.00 396.90

4,121.84 3,104.00 1,017.84 14,516.03 17,730.00 (3,213.97)Total Administrative 41,575.00 27,058.97

Insurance

5400 - Insurance Premiums (506.53)2,084.00 1,577.47 9,794.15 10,417.00 (622.85) 25,000.00 15,205.85

1,577.47 2,084.00 (506.53) 9,794.15 10,417.00 (622.85)Total Insurance 25,000.00 15,205.85

Utilities

6000 - Electric Service (132.82)1,500.00 1,367.18 6,943.72 7,500.00 (556.28) 18,000.00 11,056.28

6025 - Water Service (863.47)1,000.00 136.53 1,422.32 5,000.00 (3,577.68) 12,000.00 10,577.68

1,503.71 2,500.00 (996.29) 8,366.04 12,500.00 (4,133.96)Total Utilities 30,000.00 21,633.96

Landscaping

6100 - Grounds & Landscaping - Contract (7,804.93)19,575.00 11,770.07 90,069.95 97,875.00 (7,805.05) 234,900.00 144,830.05

6140 - Force Mow (375.00)375.00 0.00 250.00 375.00 (125.00) 750.00 500.00

6199 - Landscape Other (1,000.00)1,000.00 0.00 3,442.50 5,000.00 (1,557.50) 12,000.00 8,557.50

6200 - Irrigation Repair & Maintenance 634.55 209.00 843.55 1,688.55 1,042.00 646.55 2,500.00 811.45

12,613.62 21,159.00 (8,545.38) 95,451.00 104,292.00 (8,841.00)Total Landscaping 250,150.00 154,699.00

Operations

6300 - Permits & Licenses 0.00 0.00 0.00 3,675.00 4,000.00 (325.00) 10,000.00 6,325.00

0.00 0.00 0.00 3,675.00 4,000.00 (325.00)Total Operations 10,000.00 6,325.00

Contracted Services

6418 - Fountains/Ponds/Lakes Services 0.00 950.00 950.00 4,750.00 4,750.00 0.00 11,400.00 6,650.00

6440 - Safety & Security 1,084.00 4,166.00 5,250.00 23,125.00 20,833.00 2,292.00 50,000.00 26,875.00

6444 - Water Treatment/Lake & Fish Services (500.00)500.00 0.00 0.00 500.00 (500.00) 1,500.00 1,500.00

6,200.00 5,616.00 584.00 27,875.00 26,083.00 1,792.00 Total Contracted Services 62,900.00 35,025.00

Repair & Maintenance

6505 - Boat Dock Repair & Maintenance (209.00)209.00 0.00 0.00 1,042.00 (1,042.00) 2,500.00 2,500.00

6530 - Common Areas Repair & Maintenance (666.00)666.00 0.00 9,703.55 3,333.00 6,370.55 8,000.00 (1,703.55)


Lake Windcrest POA






Remaining Budget

Expense


6545 - Electrical Supplies/Repair & Maintenance (41.00)41.00 0.00 1,821.57 208.00 1,613.57 500.00 (1,321.57)

6585 - Fountain/Pond/Lake/Dam Rprs & Maint. (125.00)125.00 0.00 928.00 625.00 303.00 1,500.00 572.00

6645 - Locks & Keys Repair & Maintenance (41.00)41.00 0.00 0.00 208.00 (208.00) 500.00 500.00

6670 - Drainage Repair & Maintenance (3,334.00)3,334.00 0.00 0.00 16,667.00 (16,667.00) 40,000.00 40,000.00

6685 - Playground Maintenance/Repairs (416.00)416.00 0.00 15,155.00 2,083.00 13,072.00 5,000.00 (10,155.00)

6745 - Signage Repair & Maintenance (41.00)41.00 0.00 0.00 208.00 (208.00) 500.00 500.00

6770 - Vandalism Repair & Maintenance (84.00)84.00 0.00 0.00 417.00 (417.00) 1,000.00 1,000.00

0.00 4,957.00 (4,957.00) 27,608.12 24,791.00 2,817.12 Total Repair & Maintenance 59,500.00 31,891.88

Professional Services

7000 - Audit & Tax Services 0.00 0.00 0.00 4,615.00 3,000.00 1,615.00 6,000.00 1,385.00

7005 - Consulting Services (125.00)125.00 0.00 1,500.00 625.00 875.00 1,500.00 0.00

7010 - Engineering Services (166.00)166.00 0.00 0.00 833.00 (833.00) 2,000.00 2,000.00

7025 - Legal Services - Collections (250.00)250.00 0.00 0.00 1,250.00 (1,250.00) 3,000.00 3,000.00

7030 - Legal Services - General Counsel 499.00 416.00 915.00 3,372.23 2,083.00 1,289.23 5,000.00 1,627.77

7035 - Legal Services - Deed Restrictions (30.00)250.00 220.00 286.00 1,250.00 (964.00) 3,000.00 2,714.00

7040 - Management Fees 2,851.31 8,500.00 11,351.31 44,610.23 42,500.00 2,110.23 102,000.00 57,389.77

7095 - Other Professional Services (84.00)84.00 0.00 0.00 417.00 (417.00) 1,000.00 1,000.00

12,486.31 9,791.00 2,695.31 54,383.46 51,958.00 2,425.46 Total Professional Services 123,500.00 69,116.54

Taxes

9015 - Property/Real Estate Tax 0.00 0.00 0.00 0.00 50.00 (50.00) 50.00 50.00

0.00 0.00 0.00 0.00 50.00 (50.00)Total Taxes 50.00 50.00

38,502.95 49,211.00 (10,708.05) 241,668.80 251,821.00 (10,152.20)Total Operating Expense 602,675.00 361,006.20

10,390.84 (3,181.00) 13,571.84 (6,321.98) (21,667.00) 15,345.02 Total Operating Income / (Loss) (50,305.00) (43,983.02)


Lake Windcrest POA


ReservesMay 01, 2019 thru May 31, 2019




Remaining Budget

Income

Income

4025 - Reserve Assessments 0.00 0.00 0.00 161,600.00 161,600.00 0.00 161,600.00 0.00

4910 - Interest Earned - Reserve Accounts 1,501.79 134.00 1,635.79 2,530.23 667.00 1,863.23 1,600.00 (930.23)

1,635.79 134.00 1,501.79 164,130.23 162,267.00 1,863.23 Total Income 163,200.00 (930.23)

1,635.79 134.00 1,501.79 164,130.23 162,267.00 1,863.23 Total Reserves Income 163,200.00 (930.23)

Expense

Reserve Expenses

9800 - Drainage Reserves 0.00 0.00 0.00 7,655.00 0.00 7,655.00 0.00 (7,655.00)

9815 - Bank Fees/NSF 5.00 0.00 5.00 5.00 0.00 5.00 0.00 (5.00)

9828 - Concrete Expenses 0.00 0.00 0.00 29,273.54 0.00 29,273.54 0.00 (29,273.54)

9922 - Ponds & Lakes Expenses 0.00 0.00 0.00 19,700.00 0.00 19,700.00 0.00 (19,700.00)

5.00 0.00 5.00 56,633.54 0.00 56,633.54 Total Reserve Expenses 0.00 (56,633.54)

5.00 0.00 5.00 56,633.54 0.00 56,633.54 Total Reserves Expense 0.00 (56,633.54)

1,630.79 134.00 1,496.79 107,496.69 162,267.00 (54,770.31)Total Reserves Income / (Loss) 163,200.00 55,703.31

Total Association Net Income / (Loss) 12,021.63 (3,047.00) 15,068.63 101,174.71 140,600.00 (39,425.29) 112,895.00 11,720.29


Jun 30, 2019Balance Balance

May 31, 2019 Change


Lake Windcrest POAAs of June 30, 2019

Assets

Operating Funds

1000 - PPB OP - 4469 70,162.74 24,166.02 45,996.72

1103 - BB&T OP IDA 5158 51,657.23 89.78 51,567.45

1105 - BB&T OP ICS 174 507,098.71 (49,168.25)556,266.96

Operating FundsTotal 628,918.68 653,831.13 (24,912.45)

Reserve Funds

1300 - PPB Res CK #4618 53.45 (11,893.44)11,946.89

1328 - BB&T RESV IDA 5166 19,516.51 22.58 19,493.93

1329 - BB&T RESV ICS 182 958,583.10 1,545.61 957,037.49

Reserve FundsTotal 978,153.06 988,478.31 (10,325.25)

Accounts Receivable

1500 - Residential Assessments Receivable 27,318.27 (7,311.52)34,629.79

Accounts ReceivableTotal 27,318.27 34,629.79 (7,311.52)

Other Current Assets

1600 - Prepaid Insurance 1,623.96 (2,054.17)3,678.13

Other Current AssetsTotal 1,623.96 3,678.13 (2,054.17)

AssetsTotal 1,636,013.97 1,680,617.36 (44,603.39)

Liabilities

Liabilities

2015 - Returned Check Fee Payable 30.00 30.00 0.00

2036 - PMG Collections 3,134.59 (240.00)3,374.59

2395 - Other Accrued Expenses 16,019.86 166.96 15,852.90

2400 - Accrued Payroll Payable 3,333.77 20.57 3,313.20

2525 - Architectural Review Fees Deposit 14,670.00 (1,800.00)16,470.00

2550 - Prepaid Assessments 9,884.00 265.00 9,619.00

Page 1 of 2Printed by Taylor Johnson-AssociaHDQ on Thu Jul 11, 2019 04:16 pm

Jun 30, 2019Balance Balance

May 31, 2019 Change


Lake Windcrest POAAs of June 30, 2019

Liabilities

Liabilities

2595 - Deferred Revenue 269,499.98 (44,916.67)314,416.65



Owners' Equity

Owners Equity - Prior Years

3000 - Operating Fund - Prior year 335,414.69 0.00 335,414.69

Owners Equity - Prior YearsTotal 335,414.69 335,414.69 0.00

Capital Reserves - Prior Years

3102 - Repair & Replacement Reserve - Prior Yrs 880,981.62 0.00 880,981.62

Capital Reserves - Prior YearsTotal 880,981.62 880,981.62 0.00

Owners' EquityTotal 1,216,396.31 1,216,396.31 0.00

Net Income / (Loss)

Total Liabilities and Equity

103,045.46

1,636,013.97

101,174.71

1,680,617.36

1,870.75

(44,603.39)

Page 2 of 2Printed by Taylor Johnson-AssociaHDQ on Thu Jul 11, 2019 04:16 pm

Lake Windcrest POA


OperatingJune 01, 2019 thru June 30, 2019




Remaining Budget

Income

Income

4000 - Residential Assessments 4,181.67 44,724.00 48,905.67 272,714.02 268,345.00 4,369.02 536,690.00 263,975.98

4205 - Application Fees (23.00)23.00 0.00 0.00 140.00 (140.00) 280.00 280.00

4220 - Gate & Access Fees (92.00)292.00 200.00 3,050.00 1,750.00 1,300.00 3,500.00 450.00

4710 - Late Fees & Interest (492.86)417.00 (75.86) 6,005.24 2,500.00 3,505.24 5,000.00 (1,005.24)

4720 - Legal Reimbursements (375.00)375.00 0.00 286.00 2,250.00 (1,964.00) 4,500.00 4,214.00

4805 - Compliance Fees (83.00)83.00 0.00 250.00 500.00 (250.00) 1,000.00 750.00

4900 - Interest Earned - Operating Accounts 834.53 117.00 951.53 3,022.90 700.00 2,322.90 1,400.00 (1,622.90)

49,981.34 46,031.00 3,950.34 285,328.16 276,185.00 9,143.16 Total Income 552,370.00 267,041.84

49,981.34 46,031.00 3,950.34 285,328.16 276,185.00 9,143.16 Total Operating Income 552,370.00 267,041.84

Expense

Administrative

5000 - General Administrative (39.75)67.00 27.25 607.39 400.00 207.39 800.00 192.61

5005 - Application/Processing 18.00 42.00 60.00 255.00 250.00 5.00 500.00 245.00

5010 - Bad Debt 54.65 250.00 304.65 431.44 1,500.00 (1,068.56) 3,000.00 2,568.56

5015 - Bank Charges 23.00 7.00 30.00 45.00 38.00 7.00 75.00 30.00

5025 - Billing/Collections 622.20 417.00 1,039.20 2,798.20 2,500.00 298.20 5,000.00 2,201.80

5035 - Decorations 0.00 0.00 0.00 0.00 3,000.00 (3,000.00) 6,000.00 6,000.00

5045 - Dues & Subscriptions 0.00 0.00 0.00 0.00 0.00 0.00 500.00 500.00

5075 - Meeting Expense 73.52 125.00 198.52 1,433.96 750.00 683.96 1,500.00 66.04

5090 - Office Supplies (5.65)50.00 44.35 683.41 300.00 383.41 600.00 (83.41)

5100 - Records Storage 6.40 233.00 239.40 1,436.40 1,400.00 36.40 2,800.00 1,363.60

5115 - Web Site Maintenance 0.00 0.00 0.00 263.40 200.00 63.40 200.00 (63.40)

5195 - Other Administrative Services (150.04)217.00 66.96 689.10 1,300.00 (610.90) 2,600.00 1,910.90

5200 - Community Events (833.00)833.00 0.00 1,621.51 5,000.00 (3,378.49) 10,000.00 8,378.49

5210 - Printing & Copying 486.43 417.00 903.43 4,561.88 2,500.00 2,061.88 5,000.00 438.12

Printed by Taylor Johnson-AssociaHDQ on Thu Jul 11, 2019 04:16 pm Page 1 of 4

Lake Windcrest POA






Remaining Budget

Expense

Administrative

5215 - Postage (110.32)250.00 139.68 2,742.78 1,500.00 1,242.78 3,000.00 257.22

3,053.44 2,908.00 145.44 17,569.47 20,638.00 (3,068.53)Total Administrative 41,575.00 24,005.53

Insurance

5400 - Insurance Premiums (28.83)2,083.00 2,054.17 11,848.32 12,500.00 (651.68) 25,000.00 13,151.68

2,054.17 2,083.00 (28.83) 11,848.32 12,500.00 (651.68)Total Insurance 25,000.00 13,151.68

Utilities

6000 - Electric Service (138.35)1,500.00 1,361.65 8,305.37 9,000.00 (694.63) 18,000.00 9,694.63

6025 - Water Service (157.30)1,000.00 842.70 2,265.02 6,000.00 (3,734.98) 12,000.00 9,734.98

2,204.35 2,500.00 (295.65) 10,570.39 15,000.00 (4,429.61)Total Utilities 30,000.00 19,429.61

Landscaping

6100 - Grounds & Landscaping - Contract (3,902.48)19,575.00 15,672.52 105,742.47 117,450.00 (11,707.53) 234,900.00 129,157.53

6140 - Force Mow 0.00 0.00 0.00 250.00 375.00 (125.00) 750.00 500.00

6199 - Landscape Other (895.00)1,000.00 105.00 3,547.50 6,000.00 (2,452.50) 12,000.00 8,452.50

6200 - Irrigation Repair & Maintenance (37.75)208.00 170.25 1,858.80 1,250.00 608.80 2,500.00 641.20

15,947.77 20,783.00 (4,835.23) 111,398.77 125,075.00 (13,676.23)Total Landscaping 250,150.00 138,751.23

Operations

6300 - Permits & Licenses 0.00 0.00 0.00 3,675.00 4,000.00 (325.00) 10,000.00 6,325.00

0.00 0.00 0.00 3,675.00 4,000.00 (325.00)Total Operations 10,000.00 6,325.00

Contracted Services

6418 - Fountains/Ponds/Lakes Services 0.00 950.00 950.00 5,700.00 5,700.00 0.00 11,400.00 5,700.00

6440 - Safety & Security (417.00)4,167.00 3,750.00 26,875.00 25,000.00 1,875.00 50,000.00 23,125.00

6444 - Water Treatment/Lake & Fish Services (500.00)500.00 0.00 0.00 1,000.00 (1,000.00) 1,500.00 1,500.00

4,700.00 5,617.00 (917.00) 32,575.00 31,700.00 875.00 Total Contracted Services 62,900.00 30,325.00


6505 - Boat Dock Repair & Maintenance (208.00)208.00 0.00 0.00 1,250.00 (1,250.00) 2,500.00 2,500.00

6530 - Common Areas Repair & Maintenance (667.00)667.00 0.00 9,703.55 4,000.00 5,703.55 8,000.00 (1,703.55)


Lake Windcrest POA






Remaining Budget

Expense


6545 - Electrical Supplies/Repair & Maintenance (42.00)42.00 0.00 1,821.57 250.00 1,571.57 500.00 (1,321.57)

6585 - Fountain/Pond/Lake/Dam Rprs & Maint. (125.00)125.00 0.00 928.00 750.00 178.00 1,500.00 572.00

6645 - Locks & Keys Repair & Maintenance (42.00)42.00 0.00 0.00 250.00 (250.00) 500.00 500.00

6670 - Drainage Repair & Maintenance (3,333.00)3,333.00 0.00 0.00 20,000.00 (20,000.00) 40,000.00 40,000.00

6685 - Playground Maintenance/Repairs (417.00)417.00 0.00 15,155.00 2,500.00 12,655.00 5,000.00 (10,155.00)

6745 - Signage Repair & Maintenance (42.00)42.00 0.00 0.00 250.00 (250.00) 500.00 500.00

6770 - Vandalism Repair & Maintenance (83.00)83.00 0.00 0.00 500.00 (500.00) 1,000.00 1,000.00

0.00 4,959.00 (4,959.00) 27,608.12 29,750.00 (2,141.88)Total Repair & Maintenance 59,500.00 31,891.88

Professional Services

7000 - Audit & Tax Services 0.00 0.00 0.00 4,615.00 3,000.00 1,615.00 6,000.00 1,385.00

7005 - Consulting Services (125.00)125.00 0.00 1,500.00 750.00 750.00 1,500.00 0.00

7010 - Engineering Services (167.00)167.00 0.00 0.00 1,000.00 (1,000.00) 2,000.00 2,000.00

7025 - Legal Services - Collections (250.00)250.00 0.00 0.00 1,500.00 (1,500.00) 3,000.00 3,000.00

7030 - Legal Services - General Counsel 1,370.50 417.00 1,787.50 5,159.73 2,500.00 2,659.73 5,000.00 (159.73)

7035 - Legal Services - Deed Restrictions (250.00)250.00 0.00 286.00 1,500.00 (1,214.00) 3,000.00 2,714.00

7040 - Management Fees (461.89)8,500.00 8,038.11 52,648.34 51,000.00 1,648.34 102,000.00 49,351.66

7095 - Other Professional Services (83.00)83.00 0.00 0.00 500.00 (500.00) 1,000.00 1,000.00

9,825.61 9,792.00 33.61 64,209.07 61,750.00 2,459.07 Total Professional Services 123,500.00 59,290.93

Taxes

9015 - Property/Real Estate Tax 0.00 0.00 0.00 0.00 50.00 (50.00) 50.00 50.00

0.00 0.00 0.00 0.00 50.00 (50.00)Total Taxes 50.00 50.00

37,785.34 48,642.00 (10,856.66) 279,454.14 300,463.00 (21,008.86)Total Operating Expense 602,675.00 323,220.86

12,196.00 (2,611.00) 14,807.00 5,874.02 (24,278.00) 30,152.02 Total Operating Income / (Loss) (50,305.00) (56,179.02)


Lake Windcrest POA


ReservesJune 01, 2019 thru June 30, 2019




Remaining Budget

Income

Income

4025 - Reserve Assessments 0.00 0.00 0.00 161,600.00 161,600.00 0.00 161,600.00 0.00

4910 - Interest Earned - Reserve Accounts 1,452.19 133.00 1,585.19 4,115.42 800.00 3,315.42 1,600.00 (2,515.42)

1,585.19 133.00 1,452.19 165,715.42 162,400.00 3,315.42 Total Income 163,200.00 (2,515.42)

1,585.19 133.00 1,452.19 165,715.42 162,400.00 3,315.42 Total Reserves Income 163,200.00 (2,515.42)

Expense

Reserve Expenses

9800 - Drainage Reserves 0.00 0.00 0.00 7,655.00 0.00 7,655.00 0.00 (7,655.00)

9815 - Bank Fees/NSF 17.00 0.00 17.00 22.00 0.00 22.00 0.00 (22.00)

9828 - Concrete Expenses 0.00 0.00 0.00 29,273.54 0.00 29,273.54 0.00 (29,273.54)

9910 - Playground Reserves 11,893.44 0.00 11,893.44 11,893.44 0.00 11,893.44 0.00 (11,893.44)

9922 - Ponds & Lakes Expenses 0.00 0.00 0.00 19,700.00 0.00 19,700.00 0.00 (19,700.00)

11,910.44 0.00 11,910.44 68,543.98 0.00 68,543.98 Total Reserve Expenses 0.00 (68,543.98)

11,910.44 0.00 11,910.44 68,543.98 0.00 68,543.98 Total Reserves Expense 0.00 (68,543.98)

(10,325.25) 133.00 (10,458.25) 97,171.44 162,400.00 (65,228.56)Total Reserves Income / (Loss) 163,200.00 66,028.56

Total Association Net Income / (Loss) 1,870.75 (2,478.00) 4,348.75 103,045.46 138,122.00 (35,076.54) 112,895.00 9,849.54


Ratify Project Approvals 1908G-002 Removal of Dead Trees July 16, 2019 Arbor Care removed two dead trees on Spinnaker Run pipeline. Approved by Janet Hampton $1,360 Internet access and cameras at boat launch, and storage building at Melany Meadows Park. July 22, 2019 Board approved to move forward to install internet access and cameras at the boat launch to enable online access to upload access card information and to monitor activity at the boat launch area. Also approve to move forward with installing a storage building at Melany Meadows. David Traicoff [4:22 PM] Approve. Kevin J Clark [5:38 PM] Approve. Thomas Mosa [5:42 PM] Approve. Michelle Replogle [5:42 PM] Approved. Purchase of Mueller building (12X21X8) $2,552.19 and slab bid from Schuler Services for $4,000.

1908G-003

LAKE WINDCREST SECURITY REPORT

June 2019

Traffic 65

Vacation Watches/ Building Check 12

Park Checks/ Citizen Contacts 22

Suspicious Vehicle 1

Unauthorized Motor Vehicle 1

Suicide in Progress 1

LAKE WINDCREST SECURITY REPORT

July 2019

Traffic 46

Vacation Watches/ Building Check 23

Park Checks/ Citizen Contacts 12

Suspicious Vehicle 1

Unauthorized Motor Vehicle 1

Suicide in Progress 1

Gas Leak 1

Narcotics Arrest 1

AGENDA ITEM

Board of Directors

Standing Committee Report

1908G-004

Committee: Community Services Committee


Submitted by: Isabel Ross, Chairperson

2019 Activities Another Kids for Cops will be held October 27, 2019 beginning at 2:00 p.m. and ending at 4:00 p.m.

at Edgewater Park. The last event was a great success and we hope you will join us!

Looking for Volunteers We would like to hold a couple of movie nights and would love your assistance on planning the events. If you can help us please contact Isabel or Janet at [email protected] or [email protected]. We would also like to have another parade and looking for volunteers and ideas. Newsletter: Currently Lake Windcrest does not have an editor for the newsletter and reviewing various options. Welcome Committee: Plans are currently under way on reviving the Welcome Committee for our community. If interested in helping support this committee in any way, please send an email to [email protected] or [email protected] Join in the FUN of helping to plan an event for your community or join a committee!

mailto:[email protected]




Lake Windcrest - Board of Directors Committee Report

Drainage, Lakes, & Dams August 2019

Accomplishments: 1908G-005 - Bathymetric lake survey recommendations: Given the negligible sediment that has accumulated in all lakes in

the last 20 years, Committee recommends that only minor dredging on two lakes will be required in immediate future. Reserve Account adjusted.

- Clubhouse Circle / Cimarron Corridor: Clearing of all vegetation was outside of Lake Windcrest and work completed by Schuler Services (Lake Windcrest was reimbursed by MUD 141 and Freedom Church). Committee recommends that Property Management contact these property owners to ensure:

o Dirt pile in middle of corridor (left years ago) is removed to facilitate drainage o Area east of Cimarron bridge be cleared and maintained o Ditch behind Clubhouse Cir, south of this main channel be cleared / maintained o Ensure this Clubhouse / Cimarron corridor vegetation is maintained regularly

- Internal Ditch Renovation: Received estimates for the work required on the eight priority ditches ($72,594); Committee is requesting Board approval of 5 of these ditches for $40,843 for 2019 completion, other work to be deferred to 2020.

- Mystic Cove: Committee met with property owner for his feedback for this ditch; SOW and RFQ are completed and sent to Property Management to secure bids for this work. Anticipate work to be approved and begin this year.

- Preliminary Dam Rework Analysis: Committee approved Bleyl Engineering proposal for preliminary dam analysis to satisfy TCEQ requirements. Proposal sent to Board for their approval at October board meeting; work to commence in early 2020 given budget approval.

- Emergency Action Plan / Operation Manual for Dams: Committee approved Bleyl Engineering proposal for revision of Emergency Action Plan and creation of Operations Manual for Dam emergencies, per TCEQ requirement. Proposal sent to Board for their approval for work to commence this year.

- Lake Windcrest Shoreline Erosion (recommendation from annual dam inspection): SOW and RFQ finalized and sent to Property Management to secure bid for this work. Bid received back from Schuler Services ($30,889) and proposal sent to Board for their approval for work to begin this year.

- ‘No Trespass signs’: installed in Reserve K per Dam Inspection requirement - Property with undersized driveway culvert: Committee recommendation to Board regarding one property

with an undersized culvert. - Upper Serenity Dam Seals (after vulture attack): completed - Reserve Fund: New analysis is that DLDC will require $722,000 less in the next 10 years than in the previous

study, due to lower bathymetric survey cost and greatly reduced lake dredging requirements. - 2020 Preliminary Budget: submitted to Property Management

Work-in-Process:

- Internal Ditch Policy: awaiting approval and communication (Board) so Committee and Property Management know how to respond to property owner questions

- Internal Ditch remediation: Board approval requested; approved work to be completed by Schuler Services in 2019

- Mystic Cove: Secure bids, board approval, begin work. - Lake Windcrest Dam Shoreline Erosion: Board approval requested; approved work to be completed by

Schuler Services in 2019 - Lake Azure Dam Shoreline Erosion: Property Management and Committee Chair to meet with affected

homeowners mid-August to review access proposal. Once access determined, secure bids, board approval, begin work.

- Remaining Dam Inspection items from 2018: SOW for erosion repair on all dams, Tabletop exercise to satisfy TCEQ requirement, to be completed in 2020 pending budget approval

Board of Directors

Standing Committee Report

Committee: Grounds and Amenities Committee – 1908G-006


Submitted by: David Foxworth, Grounds Chair

The Grounds and Amenities Committee is always looking for volunteers. There are exciting things happening with the Grounds Committee and we want you to be part of the success. Committee members are valuable as they bring new and exciting ideas to your community. Landscaping – The Grounds Committee continually works with our landscaping company. Roadside mowing is a

noticeable part of the maintenance however there are many other parts to the maintenance of your community.

The entrances, dams, pipelines, parks and FM 1488 are also part of the mowing. Currently the mowing crew is on

schedule and doing an acceptable job. If you would like to be placed on the do not mow list for your roadside mowing,

please contact the management company.

Edgewater Park – Please stop by the park and check out

the newly installed covers over the play units. The covers

have made a tremendous difference for shade and our

children will certainly enjoy the added feature. A couple

of the areas were not covered due to safety concerns.

Adventure Play Systems did an excellent job!

Melany Meadows Park – A new play structure will be

replacing the old structure very soon. It is a great little park

tucked away off Edgewater Drive and Melany Meadows

Lane. It’s a great picnicking park. Soon a small building will

be constructed in the corner of the park for committee use.

Boat Launch Area – You may have noticed the recent activity by the Magnolia Volunteer Fire Department at

Windcrest Lake. They will be training a few times a year using the parking area and the lake to better serve the

Magnolia area. Soon internet access and cameras will be installed in this area.

Future Projects - The Grounds Committee is researching future projects for your community. A walking path and

additional parking are being considered at Edgewater Park.

Agenda Item: 1908G-007

Title: 2018 Reserve Study Update


Purpose: Approve updated 2018 Reserve Study

Background: “A Reserve Study allows the Board to offset the ongoing deterioration of

the common area components with Reserve Funds to ensure their timely

repair or replacement.” Lake Windcrest Property Owners’ Association

includes 953 single-family homes, common elements include, but are not

limited to asphalt pavement, signage, lighting, drainage and dams, lakes,

pumps, wooden docks and pilings, wooden seawall, gates and

operator/boat launch, fencing, irrigation systems, perimeter walls,

wooden bridges, playground equipment, tables, benches, and trails.

Timeline

• May 8, 2018 - The proposal for the Reserve study was approved

by the Board.

• October 2, 2018 - Met with Reserve Advisors to discuss the

changes and inspect the common areas

• October 23, 2018 - Received the preliminary Reserve Study

• May 20, 2019 Met with the Board to review the changes

Motion to Board: Move to approve the 2018 Reserve Study.

Submitted: Michele Goldman

Moved by: ____________________ Second by: _______________________

Action: _______________________ Date: ____________________________

Agenda Item: 1908G-008

Title: December 31, 2018 Review


Purpose: Review 2018 Financial records.

Background: Yearly review or audit is performed. CPA presented an independent

accountants’ report, balance sheets, statements of Revenues, Expenses,

and Changes in Fund Balance, Statements of Cash Flows, Notes to

Financial Statements and Supplemental Information.

Motion to Board: Motion to accept Financial Statements December 31, 2018 as presented

by the CPA.

Submitted: Michele Goldman

Moved by: ____________________ Second by: _______________________

Action: _______________________ Date: ____________________________

LAKE WINDCREST PROPERTY OWNERS’

ASSOCIATION

(A Non-Profit Corporation)

Reviewed Financial Statements

December 31, 2018 and 2017

TABLE OF CONTENTS

Independent Accountants’ Report.................................……………..……..…………....1, 2

Balance Sheets ……………………....…………………………………………………......3

Statements of Revenues, Expenses, and Changes in Fund Balance..…..………………......4

Statements of Cash Flows……………………......…………….………………………….. 5

Notes to Financial Statements……………………………………………………..…… 6 - 9

Supplemental Information …………………..………………………..…………….. 10 - 12

Independent Accountants’ Report

To the Board of Directors

Lake Windcrest Property Owners’ Association

Magnolia, TX

We have reviewed the financial statements of Lake Windcrest Property Owners’ Association (a

non-profit corporation) which are comprised the balance sheets as of December 31, 2018 and 2017,

the related statements of revenues, expenses, and changes in fund balance, and cash flows for the

years then ended, and the related notes to the financial statements. A review includes primarily

applying analytical procedures to the association’s financial data and making inquiries of the

association’s management. A review is substantially less in scope than an audit, the objective of

which is the expression of an opinion regarding the financial statements as a whole. Accordingly,

we do not express such an opinion.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements

in accordance with accounting principles generally accepted in the United States of America; this

includes the design, implementation, and maintenance of internal control relevant to the

preparation and fair presentation of the financial statements that are free from material

misstatement whether due to fraud or error.

Accountants’ Responsibility

Our responsibility is to conduct the review in accordance with Statements on Standards for

Accounting and Review Services issued by the American Institute of Certified Public Accountants.

Those standards require us to perform procedures to obtain limited assurance as a basis for

reporting whether we are aware of any material modifications that should be made to the financial

statements for them to be in accordance with accounting principles generally accepted in the

United States of America. We believe that the results of our procedures provide a reasonable basis

for our conclusion.

Accountants’ Conclusion

Based on our review, we are not aware of any material modifications that should be made to the

accompanying financial statements in order for them to be in conformity with accounting

principles generally accepted in the United States of America.

Disclaimer of Opinion on Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the

information about future major repairs and replacements of common property on pages 9 to 11 to

be presented to supplement the basic financial statements. Such information, although not a part

of the basic financial statements, is required by the Financial Accounting Standards Board, which

considers it to be an essential part of financial reporting for placing the basic financial statements

in an appropriate operational, economic, or historical context. We have not reviewed the required

supplementary information and, accordingly, do not express an opinion, a conclusion, nor provide

any assurance on it.

Cox and Associates CPAs LLC

New Caney, TX

August 8, 2019

2018 2017

Current Assets

Cash (Note 1) $ 562,580 $ 634,185

Cash-designated for future major

repairs and replacements (Note 1) 880,982 977,616

Total cash 1,443,562 1,611,801

Assessments receivable, net (Note 1) 16,420 25,151

Prepaid expenses 17,625 17,225

Total Current Assets 1,477,607 1,654,177

Total Assets $ 1,477,607 $ 1,654,177

Current Liabilities

Accounts payable $ 13,561 $ 32,094

Members' construction deposits - refundable (Note 1) 20,071 32,671

Members' assessments received in advance (Note 1) 227,578 212,406

Total Current Liabilities 261,210 277,171

Fund Balance

Undesignated 335,415 399,390

Designated for future repairs and replacements (Note 1) 880,982 977,616

Total Fund Balance 1,216,397 1,377,006

Total Liabilities and Fund Balance $ 1,477,607 $ 1,654,177

Lake Windcrest Property Owners' Association

Liabilities and Fund Balances

Assets

December 31, 2018 and 2017

Balance Sheets

(A Non-Profit Organization)

See accountants' review report and accompanying footnotes

3

2018 2017

Revenues

Member assessments - operations $ 541,710 $ 471,806

Member assessments - major repairs and replacements 156,700 152,100

Interest income 3,312 2,944

Collection and other fees 9,150 12,316

Total Revenue 710,872 639,166

Expenses

Landscaping expenses 246,109 234,016

Common area maintenance and repair expenses 91,826 57,924

Utilities 35,659 30,644

Lake management expenses 21,566 20,859

General and administrative expenses 232,827 216,296

Capital improvement expenditures 255,393 52,983

Total Expenses 883,380 612,722

Change in Fund Balance (172,508) 26,444

Fund Balance at Beginning of Year 1,377,006 1,350,562

Prior Period Adjustment (Note 3) 11,899 0

Fund Balance at Beginning of Year, as Corrected 1,388,905 1,350,562

Fund Balance at End of Year $ 1,216,397 $ 1,377,006

For the Years Ended December 31, 2018 and 2017

Statements of Revenues, Expenses, and Changes in Fund Balance




4

2018 2017

Cash Flows From Operating Activities

Change in Fund Balance $ (172,508) $ 26,444

Adjustments to reconcile excess of revenues over expenses

to net cash provided by operating activities:

Prior period adjustment 11,899 0

(Increase) / decrease in current assets:

Assessments receivable 8,731 9,949

Prepaid insurance (400) (4,764)

Increase / (decrease) in current liabilities:

Accounts payable (18,533) (9,684)

Members' construction deposits - refundable (12,600) 271

Members' assessments received in advance 15,172 3,324

Net Cash Provided / (Used) by Operating Activities (168,239) 25,540

Increase / (Decrease) in Cash (168,239) 25,540

Cash and Cash Equivalents, Beginning of Year 1,611,801 1,586,261

Cash and Cash Equivalents, End of Year $ 1,443,562 $ 1,611,801

For the Years Ended December 31, 2018 and 2017

Statements of Cash Flows




5



Notes to the Financial Statements

December 31, 2018

See independent accountants’ report

6

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Organization

Lake Windcrest Property Owners’ Association (the Association) is a tax exempt Texas

corporation incorporated on November 19, 1997 for the purpose of providing maintenance,

preservation, and architectural control of the properties that are within the jurisdiction of

the Association. The Association serves the needs of approximately 900 residential home

sites in the Lake Windcrest Subdivision, Montgomery County, Texas.

Method of Accounting

The Association's financial statements reflect the accrual basis method of accounting.

Uses of Estimates

The preparation of financial statements in conformity with accounting standards generally

accepted in the United States of America requires management to make estimates and

assumptions that affect certain reported amounts and disclosures. Accordingly, actual

results could differ from those estimates.

Income Taxes

The Association is exempt from federal income tax under section 501(c)4 of the Internal

Revenue Code and files an annual informational return. The Association believes that all

significant tax positions utilized by the Association will more likely than not be sustained

upon examination. As of December 31, 2018, the tax years that remain subject to

examination by the major tax jurisdictions under the statute of limitations are from 2015

forward. Tax penalties and interest, if any, would be accrued as incurred and would be

classified as general and administrative expense in the Statement of Revenues, Expenses

and Change in Fund Balance.

Assessments Receivable, net

Association members are subject to an annual assessment to provide funds for the

Association's operating expenses, future capital acquisitions, and major repairs and

replacements. Assessments receivable at the balance sheet date represent fees due from

unit owners. The Association's policy is to retain legal counsel and place liens on the

properties of homeowners whose assessments are thirty days or more delinquent.




December 31, 2018


7

Any excess assessments at year end are retained by the Association for use in the

subsequent year. At December 31, 2018 and 2017, the Association had delinquent

assessments of $16,420 and $25,151, respectively. It is the opinion of the board of directors

that the Association will ultimately prevail against homeowners with delinquent

assessments and, accordingly, no allowance of doubtful accounts is deemed necessary.

Cash and Cash Equivalents

The Association’s policy is to record all liquid investments with original maturities of three

months or less as cash equivalents. The carrying value of cash and cash equivalents

approximates fair value because of the short maturities of those financial instruments.

There are no cash equivalents at December 31, 2018 and 2017.

As of December 31, 2018 and 2017, the Association has designated $880,982 and

$977,616, respectively, for future major repairs and maintenance; these funds are held in

reserve accounts.

Property and Equipment

Real property and common areas acquired from the developer and related improvements

to such property are not recorded in the Association's financial statements. Real and

common property, not capitalized on the balance sheet, consists of entrance monuments,

sections of perimeter masonry, an entrance gate system, wood fencing, a boat launch area

with an asphalt paved parking area and automatic entrance gate system, common park areas

with playground equipment, park fixtures, multiple reserve properties without

improvements, and a system of four man-made lakes designated as Lake Windcrest, Lake

Azure, and Serenity Lake. It is the Association's responsibility to maintain all common

area and improvements.

Construction Deposits

The Association requires a construction deposit from residents before certain construction

projects and improvements are approved to begin. The total deposit required is $2,070, of

which $270 is non-refundable management fees. The remaining $1,800 is refundable to

the resident once work is completed and a request is made by the property owner. Any fees

that need to be assessed (improper site cleanup, maintenance, etc.) are levied from this

$1,800 and the remaining balance is refunded. In most cases, the resident receives the

entire $1,800 deposit back after construction is completed. As of December 31, 2018 and

2017, the Association held $20,071 and $32,671 of refundable construction deposits.




December 31, 2018


8

Subsequent Events

Subsequent events have been evaluated by management through the date the financial

statements were available to be issued on August 8, 2019.

Future Major Repairs and Replacements

The Association makes an annual assessment to be used for future major repairs and

replacements. The Association is not required per their bylaws to assess a specific dollar

amount annually for reserves; however, the Board did assess a fee for 2018 and 2017 of

$174 and $169 per unit, respectively. There are accumulated funds of $880,982 and

$997,616 at December 31, 2018 and 2017, respectively, in the reserve accounts. These

funds are held in separate accounts and are reserved for future major repairs and

replacements. There were no transfers between the operating fund and the reserve fund

during calendar years 2018 and 2017.

In October 2018 the Association engaged an independent company who conducted a level

1 full reserve study to estimate the remaining useful lives and the replacement costs of the

common property components. The Association is funding for such repairs and

replacements over the estimated useful lives of the components based on the study's

estimates of current replacement costs, considering amounts previously accumulated in the

reserve fund. The study used the cash flow method to compute the reserve funding plan.

This method offsets future variable reserve expenditures with existing and future stable

levels of reserve funding. Their application of this method included the current and future

local costs of replacement, 1.5% annual rate of return on invested reserves, and 2.4% future

inflation rate for existing future replacement costs. The Association’s balance of $880,982

in reserve as of December 31, 2018 was considered in determining the amount of future

assessments needed. The sources for the local replacement costs are the vendor’s

proprietary database, historical costs and published sources.

Actual expenditures may vary from the estimated amounts and the variations may be

material. Therefore, amounts accumulated in the replacement fund may not be adequate

to meet future needs. If additional funds are needed, however, the Association has the

right, subject to board vote, to increase regular assessments. The Board may also delay

major repairs and replacements until the funds are available.

The funding goal of the study is to maintain reserves above an adequate, not excessive

threshold funding one or more years of significant expenditures. This plan recognizes the

threshold funding year of 2037 due to the dredging of the lakes.




December 31, 2018


9

NOTE 2 – CONCENTRATION OF CREDIT RISK

Financial instruments which potentially subject the Association to concentrations of credit

risk consist principally of cash and savings accounts. The Association maintains its cash

in various bank deposit accounts which, at times, may exceed federally insured limits.

Total deposits in excess of federally insured limits are $102,985 at December 31, 2018.

NOTE 3 – PRIOR PERIOD ADJUSTMENT

Adjustments were made during 2018 that affected general ledger accounts from a prior

period. The net adjustment at December 31, 2018 is $11,899.

Lake Windcrest Property Owners Assoicates

Reserve Study

(Not Reviewed)

EstimatedTotal Per Phase 1st Year of Years Per Phase Total 30-Year Total

Quantity Quantity Units Reserve Component Inventory Event Useful Remaining (2018) (2018) (Inflated)

Boat Launch and Park Elements

4,500 4,500 Sq Yards Asphalt Pavement, Parking Areas, Crack Repair, Patch and Seal Coat 2019 3 to 5 1 9,000 9,000 78,790

4,500 4,500 Sq Yards Asphalt Pavement, Parking Areas, Mill and Overlay 2023 15 to 20 5 60,750 60,750 178,310

1 1 Each Bridge, Wood, Edgewater Park 2027 15 to 25 9 18,000 18,000 58,950

1 1 Each Bridge, Wood, Nature Trail 1 2021 15 to 25 3 10,000 10,000 29,264

1 1 Each Bridge, Wood, Nature Trail 2 2021 15 to 25 3 10,000 10,000 29,264

1 1 Allowance Decking, Pilings and Seawall, Inspections & Repairs, Boat Launch 2045 10 to 15 27 12,000 12,000 22,766

1 1 Allowance Decking, Pilings and Seawall, Inspections & Repairs, Edgewater Park2048 10 to 15 30 15,800 15,800 32,185

1 1 Allowance Decking, Pilings and Seawall, Total Replacement, Boat Launch 2030 to 35 12 45,000 45,000 59,815

1 1 Allowance Decking, Pilings and Seawall, Total Replacement, Edgewater Park 2033 to 35 15 35,000 35,000 49,954

1 1 Each Evaporator Pump, Boat Launch Area 2022 to 20 4 12,000 12,000 34,396

2 2 Each Gate Operators, Boat Launch Area 2027 to 10 9 7,000 7,000 33,576

2 2 Each Gates, Boat Launch Area 2027 to 30 9 8,000 8,000 9,904

1 1 Each Gazebo, Edgewater Park 2034 to 30 16 33,000 33,000 48,230

1 1 Allowance Playground Equipment, Playsets and Swingsets, Edgewater Park 2031 15 to 20 13 70,000 70,000 95,279

1 1 Allowance Playground Equipment, Playsets and Swingsets, Melanie Meadows 2019 15 to 20 1 22,872 22,872 58,764

1 1 Allowance Playground Equipment, Shade Structure, Edgewater Park 2034 12 to 18 16 29,144 29,144 42,594

1 1 Allowance Playground Equipment, Site Furniture, Boat Launch and Trails 2033 15 to 20 15 5,200 5,200 18,015

1 1 Allowance Playground Equipment, Site Furniture, Edgewater Park 2032 15 to 20 14 13,000 13,000 43,980

1 1 Allowance Playground Equipment, Site Furniture, Melanie Meadows 2034 15 to 20 16 8,000 8,000 11,692

5 5 Each Signage, Informational 2021 15 to 20 3 12,500 12,500 34,990

Entrance Elements

3 3 Each Flagpoles 2030 to 30 12 9,000 9,000 11,963

1 1 Allowance Lighting and Electrical, Inspections and Repairs 2024 to 15 6 20,000 20,000 55,968

1 1 Allowance Monuments, Inspections and Repairs, Crestlake Boulevard 2025 8 to 12 7 10,000 10,000 45,743

1 1 Allowance Monuments, Inspections and Repairs, Golf Entrance Rear 2022 8 to 12 4 10,000 10,000 42,601

Life Analysis in

10


Reserve Study

(Not Reviewed)



Life Analysis in

1 1 Allowance Monuments, Inspections and Repairs, Lake Windcrest Drive 2023 8 to 12 5 10,000 10,000 43,624

1 1 Allowance Monuments, Inspections and Repairs, Windcrest National 2024 8 to 12 6 10,000 10,000 44,671

100 100 Linear Feet Perimeter Walls, Masonry, Crestlake Boulevard 2027 to 30 9 12,000 12,000 14,855

580 580 Linear Feet Perimeter Walls, Masonry, Lake Windcrest Boulevard 2025 to 30 7 69,600 69,600 82,169

300 300 Linear Feet Perimeter Walls, Masonry, Windcrest National 2026 to 30 8 36,000 36,000 43,521

Fence Elements

500 500 Linear Feet Fences, Chain Link, Spillways 2024 to 25 6 15,000 15,000 47,850

2,330 2,330 Linear Feet Fences, Vinyl, Common Areas 2025 to 25 7 46,600 46,600 55,016

6,285 6,285 Linear Feet Fences, Wood, Along FM 1488 2034 15 to 20 16 157,125 157,125 229,638

4,180 4,180 Linear Feet Fences, Wood, Reserve H+I 2020 15 to 20 2 104,500 104,500 269,722

42 42 Each Masonry Columns, Inspections, Repairs and Partial Replacements 2020 8 to 12 2 15,120 15,120 64,940

Lakes, Dams and Drainage Elements

1 1 Allowance Dam, Earthen, Azure Lake, Inspections and Repairs 2024 8 to 10 6 30,000 30,000 134,013

1 1 Allowance Dam, Earthen, Dry Detention Basin, Inspections and Repairs 2025 8 to 10 7 15,000 15,000 68,615

1 1 Allowance Dam, Earthen, Lake Windcrest, Inspections and Repairs 2027 8 to 10 9 79,000 79,000 378,924

1 1 Allowance Dam, Earthen, Lower Serenity, Inspections and Repairs 2026 8 to 10 8 21,000 21,000 98,365

1 1 Allowance Dam, Earthen, Upper Serenity, Inspections and Repairs 2028 8 to 10 10 82,000 82,000 402,753

1 1 Allowance Dam, Spillways, Concrete, Azure Lake, Inspections and Repairs 2020 to 25 2 67,000 67,000 207,100

1 1 Allowance Dam, Spillways, Concrete, Lake Windcrest, Inspections and Repairs 2020 to 25 2 67,000 67,000 211,950

1 1 Allowance Dam, Spillways, Concrete, Lower Serenity, Inspections and Repairs 2020 to 25 2 67,000 67,000 216,916

1 1 Allowance Dam, Spillways, Concrete, Upper Serenity, Inspections and Repairs 2020 to 25 2 67,000 67,000 216,916

1 1 Allowance Drainage Ditches, Inspections and Repairs (2019 is Budgeted) 2019 8 to 10 1 35,000 35,000 246,907

1 1 Allowance Lakes, Bathymetric Survey, Azure Lake 2019 10 to 15 1 6,600 6,600 15,583

1 1 Allowance Lakes, Bathymetric Survey, Lake Windcrest 2019 10 to 15 1 6,600 6,600 15,583

1 1 Allowance Lakes, Bathymetric Survey, Lower Serenity 2019 10 to 15 1 3,250 3,250 7,674

11


Reserve Study

(Not Reviewed)



Life Analysis in

1 1 Allowance Lakes, Bathymetric Survey, Upper Serenity 2019 10 to 15 1 3,250 3,250 7,674

1 1 Allowance Lakes, Dredging, Azure Lake 2035 to 40 17 125,000 125,000 187,072

1 1 Allowance Lakes, Dredging, Lake Windcrest 2037 to 40 19 250,000 250,000 392,319

1 1 Allowance Lakes, Dredging, Lower Serenity 2034 to 40 16 100,000 100,000 146,150

1 1 Allowance Lakes, Dredging, Upper Serenity 2036 to 40 18 75,000 75,000 114,937

1 1 Allowance Lakes, Dredging, Interim, Small Dredging of Inlet/Outlet Areas 2021 to 10 3 10,000 10,000 41,602

1 1 Allowance Lakes, Shorelines, Inspections and Repairs 2025 to 5 7 36,000 36,000 273,187

1 1 Allowance Lakes, Shorelines, Near Term Rip-Rap Installation, Phased 2019 n/a 1 to 2 75,000 75,000 155,443

Anticipated Expenditures, By Year $5,562,682

12

Agenda Item 1908G-009

Title: 2019 Drainage Ditch Rehabilitation – 2019-OM002


Purpose: The DLDC, utilizing the new Drainage Ditch Capacities Study

provided by Bleyl Engineering, identified the drainage ditches in

need of rehabilitation. The committee analyzed the data provided,

evaluated over 19 ditches, and established priority levels. Over

several days, the committee walked the proposed ditches and

determined those that needed work this year.

Proposal: Eight ditches were identified. The Committee recommends

proceeding with work on those of the highest priority and will defer

the others to early 2020.

Cost: Total Bid – Not to Exceed $40,845.

Funding: GL6670 – Drainage R&M

Motion to Board: Move to approve bid from Schuler Services Not to Exceed $40,845

for rehabilitation of Ditches 1y1, 2d, 4p, 5f2 and 5i.

Submitted: David Traicoff/John Pozadzides

Second by: _______________________ Action: _______________________


Title: Windcrest Lake Shoreline Restoration – 2019-R004


Proposal: The Committee has noted excessive erosion at the southeast

corner of Windcrest Lake. The corner has some existing rip rap

however the area going westward to the neighboring property

owner’s lot has been mostly unprotected. The corner will be

restored by placement and compaction of fill material upon which

interlocking concrete blocks will be installed to interlock into the

existing concrete blocks on the adjacent lot.

Cost: Total Bid – Not to Exceed $30,889.37.

Funding: GL9922 – Ponds & Lakes Expenses

Motion to Board: Move to approve bid from Schuler Services Not to Exceed $30,890

for restoration of the Southeast Corner of Windcrest Lake

Shoreline.


Second by: _______________________ Action: _______________________


Title: Lake Windcrest Dam Operations Manual and Updated

Emergency Action Plan

Date: August 27, 2019 Purpose: Lake Windcrest Dams are subject to State regulations for operations

and maintenance. Every 5 years the Texas Environmental Quality Commission (TCEQ) inspects the dams and provides a report of deficiencies to be addressed.

An Emergency Action Plan (EAP), which defines the processes and contact persons in the event of a catastrophic dam failure, is to be maintained and updated annually as needed. In addition, a table-top exercise to run through the processes should be conducted on every five years. A separate proposal for a table-top exercise will be prepared for consideration at a future meeting.

In addition, the Association is required to have a Dam Operations & Maintenance Manual. The manual documents the regular maintenance program followed to ensure proper maintenance of the earthen dams and spillways.

Proposal: Bleyl Engineering will prepare the Dam Operations & Maintenance Manual and update the Emergency Action Plan to follow TCEQ requirements.

Cost: $6,600. Funding: GL7010 – Engineering Services (Funds not included in 2019 Budget) Motion to Board: Move to approve proposal from Bleyl Engineering for $6,600 to

prepare the Dams Operations & Maintenance Manual and update the Emergency Action Plan.


Second by: _______________________ Action: _______________________

Documents

Lake Windcrest Property Owners Association Board of ...€¦ · A. Spinnaker Run Dead Tree Removal (2) B. Internet Access and Cameras at Boat Launch Area C. Storage Building at Melany