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2015 ANNUAL MEETING - OFFICIAL NOTICE October 23, 2015 Dear Shelmore Property Owner: This is the Official Notice for the Shelmore at Brunswick Forest Homeowners' Association, Inc. (“Shelmore”) Annual Meeting that will be held on Monday, November 2, 2015 at 4:30 pm in the Multi-purpose room of the Leland Cultural Arts Center, located at 1212 Magnolia Way, Leland, NC, 28451. 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 2016 Budget is sent to Members in the BFMA Annual Meeting Package. Each year Members review the BFMA Budget for ratification at their Neighborhood Annual Meeting. Then only the Neighborhood Voting Member (Board President) attends the BFMA Annual Meeting where the final BFMA Budget ratification takes place. BFMA Annual Assessments are paid separately. Ratifying the Shelmore Budget: The Membership will consider the enclosed Shelmore Board-Adopted 2016 Budget for ratification. The Budget includes the Administrative, Operating, Repairs & Maintenance Expenses, and Reserves for the Common Expenses as outlined in the Governing Documents and approved by the Board. The 2016 Annual Operating Expenses & Reserves are projected to total $435,037.22 with a total of 268 units owned by Class “A” Members by January 1, 2016. Additionally, if the Assessment Income does not sufficiently fund all of the Operating Expenses, the Declarant, at its option, may subsidize the Association’s shortfall, if necessary. The Developer Contribution keeps dues lower and eventually will be eliminated as the Association becomes self-sustaining with Members’ Assessment Income. Shelmore Assessment Payments: Completed Single Family Dwellings: $1,400.00 annually $350.00 paid quarterly (+$14/qtr.) Completed Townhomes: $2,800.00 annually $700.00 paid quarterly (+$25/qtr.) Vacant Lots: $384.00 annually $96.00 paid quarterly (No Change) Assessments are due the 1st of January, April, July and October. Auto-Draft Assessment payments are typically drafted on the 10th of the month. If you set up neighborhood automatic payments either through the website or your bank, remember to update the quarterly payment amount to $350.00 per quarter for Single Family Homes; and $700 per quarter for Townhomes. BFMA dues are paid separately. 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. Please contact CAMS to ask how you can save your HOA money by switching to E-statements, ACH, etc., [email protected], (910) 256-2021. Shelmore 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 330 planned Units. Once there are 33 or less properties owned by the Declarant, or 297 Class “A” Members, there will be an election. There are currently 229 Class "A" Members other than the declarant. 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 Friday, October 30, 2015, even if you plan to attend the meeting; this ensures that the Association will have a quorum for the meeting. Thank you and we hope to see you at the meeting. Sincerely, The Board of Directors of Shelmore at Brunswick Forest Homeowners’ Association, Inc.; by Nicol K. Karn, CMCA®, AMS® | CAMS Community Manager

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Page 1: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

2015 ANNUAL MEETING - OFFICIAL NOTICE October 23, 2015

Dear Shelmore Property Owner: This is the Official Notice for the Shelmore at Brunswick Forest Homeowners' Association, Inc. (“Shelmore”) Annual Meeting that will be held on Monday, November 2, 2015 at 4:30 pm in the Multi-purpose room of the Leland Cultural Arts Center, located at 1212 Magnolia Way, Leland, NC, 28451. 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 2016 Budget is sent to Members in the BFMA Annual Meeting Package. Each year Members review the BFMA Budget for ratification at their Neighborhood Annual Meeting. Then only the Neighborhood Voting Member (Board President) attends the BFMA Annual Meeting where the final BFMA Budget ratification takes place. BFMA Annual Assessments are paid separately. Ratifying the Shelmore Budget: The Membership will consider the enclosed Shelmore Board-Adopted 2016 Budget for ratification. The Budget includes the Administrative, Operating, Repairs & Maintenance Expenses, and Reserves for the Common Expenses as outlined in the Governing Documents and approved by the Board. The 2016 Annual Operating Expenses & Reserves are projected to total $435,037.22 with a total of 268 units owned by Class “A” Members by January 1, 2016. Additionally, if the Assessment Income does not sufficiently fund all of the Operating Expenses, the Declarant, at its option, may subsidize the Association’s shortfall, if necessary. The Developer Contribution keeps dues lower and eventually will be eliminated as the Association becomes self-sustaining with Members’ Assessment Income. Shelmore Assessment Payments:

Completed Single Family Dwellings: $1,400.00 annually $350.00 paid quarterly (+$14/qtr.) Completed Townhomes: $2,800.00 annually $700.00 paid quarterly (+$25/qtr.) Vacant Lots: $384.00 annually $96.00 paid quarterly (No Change)

Assessments are due the 1st of January, April, July and October. Auto-Draft Assessment payments are typically drafted on the 10th of the month. If you set up neighborhood automatic payments either through the website or your bank, remember to update the quarterly payment amount to $350.00 per quarter for Single Family Homes; and $700 per quarter for Townhomes. BFMA dues are paid separately. 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. Please contact CAMS to ask how you can save your HOA money by switching to E-statements, ACH, etc., [email protected], (910) 256-2021. Shelmore 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 330 planned Units. Once there are 33 or less properties owned by the Declarant, or 297 Class “A” Members, there will be an election. There are currently 229 Class "A" Members other than the declarant. 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 Friday, October 30, 2015, even if you plan to attend the meeting; this ensures that the Association will have a quorum for the meeting. Thank you and we hope to see you at the meeting. Sincerely, The Board of Directors of Shelmore at Brunswick Forest Homeowners’ Association, Inc.; by

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

Page 2: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

2015 ANNUAL MEETING

NOVEMBER 2, 2015 4:30 PM Multi-purpose Room at Leland Cultural Arts Center

1212 Magnolia Way, Leland, NC 28451

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. Unfinished Business

XI. New Business

XII. Adjournment

XIII. Member Q&A

Meeting Documents Enclosed (Bring to meeting & return proxy ASAP):

Official Notice

Proxy: Return to CAMS ASAP, even if attending

Agenda

Shelmore Previous Year Annual Meeting Minutes

BFMA Budget: Other info sent from BFMA or found at www.brunswickforestmaster.com

Shelmore HOA Financials, 2014 Balance Sheet & Income Statement - EOY

Shelmore HOA Financials, 2015 Balance Sheet & Income Statement - Current

Surplus Funds Resolution

Shelmore HOA 2016 Budget

Page 3: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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2014 ANNUAL MEMBERS MEETING MINUTES

OCTOBER 22, 2014

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

Annual Members Meeting at 3:00 pm on Wednesday, October 22, 2014 in the Leland Room of the

Fitness & Wellness Center at Brunswick Forest in Leland, North Carolina 28451.

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

2014 Annual Meeting was called to order at 3:12 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 Kerry (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 one hundred and fifty (150) Class A Members. The Declarant, Class B Member,

represents the remaining 180 of the 330 lots, with three (3) votes for every Lot owned. Following the

certification of proxies, a total of twenty-three (23) Class A Members were represented, thirteen (13)

in person and ten (10) 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

2014 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 2013 Annual Meeting minutes was waived. There being no objections, the Minutes were

approved by the Membership. The 2014 Annual Meeting Minutes will be reviewed by the Board for

approval by the Membership at the 2015 Annual Meeting. Minutes are made available online at

www.smbfhoa.com.

Brunswick Forest Master Association Budget Presentation: The BFMA 2013 & current 2014

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 2015 BFMA Annual Operating Budget was ratified. 2015 Operating Expenses

are budgeted to total $2,583,139. To fund the Common Expenses of the Association, the BFMA

2015 Assessment was established by the Declarant, assuming a Developer Subsidy, to be $1000

annually, billed in the amount of $250.00 per quarter.

Page 4: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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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. The Shelmore HOA also provides basic landscaping services around the completed dwellings.

The Shelmore Community Manager presented the 2013 End of Year financials and discussed the

current 2014 financials with the Membership. Board approved 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 70-6014 was passed by the members for the current year.

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

Board Adopted 2015 Shelmore Annual Operating Budget, with 2015 Operating Expenses & Reserves

budgeted to total $208,464.00. To fund these Common Expenses of the Association, the Shelmore

2015 Assessment was established by the Declarant, assuming a Developer Subsidy, with not change

from 2014. Assessments for Members with a Completed Dwelling are $1,344 annually, billed in the

amount of $336 per quarter. Assessments for Members with a Vacant Lot are $384 annually, billed in

the amount of $96 per quarter. The 2015 Budget was ratified by the Membership.

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 Kerry, Secretary.

Unfinished Business: None to report

New Business: None to report

Adjournment: A motion to adjourn the meeting was made by Danny Lester, and seconded by Tina

Miller. The 2014 Annual Meeting of the Park Landing Townhomes at Brunswick Forest

Homeowners' Association, Inc. adjourned at 3:58 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 December 22, 2014

Page 5: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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Time: 10:25 am

1/21/2015

Page:

Shelmore at Brunswick Forest HOA, Inc (SM)

End Date: 12/31/2014

Date:Balance Sheet - Operating

Assets

10 - Cash Accounts:

10-1001-000 North State Bank - Checking $17,557.72

10-1001-001 North State Bank - MM Reserve .10% 45,530.21

$63,087.93 Total 10 - Cash Accounts::

12 - Accounts Receivable

12-1200-000 Accounts Receivable 340.80

$340.80 Total 12 - Accounts Receivable:

$63,428.73 Total Assets:

Liabilities & Equity

20 - Accounts Payable:

20-2000-000 Accounts Payable 4.92

$4.92 Total 20 - Accounts Payable::

21 - Other Current Liabilities:

21-2110-000 Pre-Paid Assessments 14,423.35

21-2112-000 Owner Refunds Due 266.41

$14,689.76 Total 21 - Other Current Liabilities::

30 - Reserve Funds:

30-3030-001 Reserve - Fences/Paint 9,546.00

30-3065-001 Reserve - Paving Alleys 9,145.00

30-3185-001 Reserve - Fences/Replacement 25,650.00

30-3190-001 Reserve - Miscellaneous 1,256.00

30-3195-001 Reserve - Townhomes 750.00

30-3250-001 Reserve - Mailbox Kiosks 585.00

$46,932.00 Total 30 - Reserve Funds::

35 - General Fund:

35-3500-000 Prior Year Fund Balance 4,212.82

$4,212.82 Total 35 - General Fund::

Net Income Gain / Loss (2,410.77)

($2,410.77)

$63,428.73 Total Liabilities & Equity:

CINCSystems, Inc. Copyright 2015. All rights reserved.

Page 6: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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Time: 10:25 am

1/21/2015

Page:

Shelmore at Brunswick Forest HOA, Inc (SM)

Date:

12/31/2014

Income Statement - Operating

Description

Current Period

Budget BudgetActual Variance

Year-to-date

Actual Variance

Annual

Budget

OPERATING INCOME

40 - Revenue - Assessments:

$40,762.19 $6,867.87 4000-000 Assessment Income $5,648.50 $12,516.37 $67,782.00 $108,544.19 $67,782.00

17,000.00 2,354.13 4020-000 Working Capital 145.87 2,500.00 1,750.00 18,750.00 1,750.00

(51,574.00)(4,297.87)4025-000 Developer Contribution 4,297.87 - 51,574.00 - 51,574.00

$10,092.24 $4,924.13 $6,188.19 $15,016.37 $127,294.19 $121,106.00 Total 40 - Revenue - Assessments: $121,106.00

42 - Revenue - Fees:

20.00 - 4200-000 Administrative Collection Fe - - - 20.00 -

50.03 3.60 4245-000 Interest - Owner Accounts - 3.60 - 50.03 -

354.96 20.00 4250-000 Late Fee Income - 20.00 - 354.96 -

$- $23.60 $424.99 $23.60 $424.99 $- Total 42 - Revenue - Fees: $-

48 - Revenue - Other:

47.05 3.85 4800-001 Interest - Reserve Funds - 3.85 - 47.05 -

$- $3.85 $47.05 $3.85 $47.05 $- Total 48 - Revenue - Other: $-

$6,660.23 $4,951.58 $10,092.24 $127,766.23 $121,106.00 Total OPERATING INCOME $15,043.82 $121,106.00

OPERATING EXPENSE

50 - Administrative Expenses:

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

225.00 20.87 5008-000 Meeting Expense 20.87 - 250.00 25.00 250.00

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

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

1,500.00 125.00 5026-000 Legal Expense 125.00 - 1,500.00 - 1,500.00

534.00 166.63 5040-000 Insurance-Com Area (D&O) 166.63 - 2,000.00 1,466.00 2,000.00

(2,880.00)(471.00)5060-000 Management Fees 531.00 1,002.00 6,372.00 9,252.00 6,372.00

1,152.45 44.26 5072-000 Office Supplies 126.62 82.36 1,519.00 366.55 1,519.00

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

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

$1,298.37 $214.01 $4,020.45 $1,084.36 $11,559.55 $15,580.00 Total 50 - Administrative Expenses: $15,580.00

54 - Repairs & Maintenance Expenses:

(13,360.00)(3,120.00)5755-000 Full Service Landscape 3,360.00 6,480.00 40,320.00 53,680.00 40,320.00

$3,360.00 ($3,120.00) ($13,360.00)$6,480.00 $53,680.00 $40,320.00 Total 54 - Repairs & Maintenance Expe $40,320.00

60 - Townhome Expenses:

(6,540.16)(649.83)5045-000 Insurance - TH 211.50 861.33 2,538.00 9,078.16 2,538.00

1,170.00 (180.00)5760-000 Landscaping - TH 180.00 360.00 2,160.00 990.00 2,160.00

700.00 58.37 5765-000 Misc. Ext Bldg Maint - TH 58.37 - 700.00 - 700.00

320.00 26.63 5770-000 Termite Inspection - TH 26.63 - 320.00 - 320.00

200.00 16.63 5775-000 Pressure Washing - TH 16.63 - 200.00 - 200.00

200.00 16.63 5780-000 Gutter Cleaning - TH 16.63 - 200.00 - 200.00

300.00 25.00 5785-000 Irrigation Repairs/Maint - TH 25.00 - 300.00 - 300.00

(212.76)(57.58)6222-000 Electricity-TH Irrig. Meter - 57.58 - 212.76 -

219.45 52.55 6285-000 Water/Irrigation - TH 82.50 29.95 990.00 770.55 990.00

550.00 45.87 8985-000 Misc Maint & Repairs - TH 45.87 - 550.00 - 550.00

$663.13 ($645.73) ($3,093.47)$1,308.86 $11,051.47 $7,958.00 Total 60 - Townhome Expenses: $7,958.00

61 - Common Area Expenses:

(1,779.34) 1,244.00 5700-000 Land Maint/Sup-Com Area 3,544.00 2,300.00 42,528.00 44,307.34 42,528.00

2,000.00 166.63 5735-000 Irrigation Maint/Repairs-Com 166.63 - 2,000.00 - 2,000.00

2,500.00 208.37 5745-000 Grounds Improvements-Com 208.37 - 2,500.00 - 2,500.00

321.52 (424.94)6222-000 Electricity-Com Area 216.63 641.57 2,600.00 2,278.48 2,600.00

173.30 14.63 6280-000 Water-Com Area 41.63 27.00 500.00 326.70 500.00

146.54 152.86 8980-000 Misc Maint/Repairs-Com Are 208.37 55.51 2,500.00 2,353.46 2,500.00

$4,385.63 $1,361.55 $3,362.02 $3,024.08 $49,265.98 $52,628.00 Total 61 - Common Area Expenses: $52,628.00

62 - Utilities:

- 0.11 6222-000 Electricity - (0.11) - - -

$- $0.11 $0.00 ($0.11) $- $- Total 62 - Utilities: $-

95 - Reserve Expense:

- - 9530-000 Reserve - Fences/Paint 82.08 82.08 985.00 985.00 985.00

CINCSystems, Inc. Copyright 2015. All rights reserved.

Page 7: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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Time: 10:25 am

1/21/2015

Page:

Shelmore at Brunswick Forest HOA, Inc (SM)

Date:

12/31/2014

Income Statement - Operating

Description

Current Period

Budget BudgetActual Variance

Year-to-date

Actual Variance

Annual

Budget

$- $- 9565-000 Reserve - Paving Alleys $49.25 $49.25 $591.00 $591.00 $591.00

- - 9685-000 Reserve - Fences/Replace 105.83 105.83 1,270.00 1,270.00 1,270.00

- - 9690-000 Reserve - Miscellaneous 59.42 59.42 713.00 713.00 713.00

- - 9695-000 Reserve - Townhomes 62.50 62.50 750.00 750.00 750.00

- - 9750-000 Reserve - Mailbox Kiosks 25.92 25.92 311.00 311.00 311.00

$385.00 $- $0.00 $385.00 $4,620.00 $4,620.00 Total 95 - Reserve Expense: $4,620.00

($9,071.00)($2,190.06)$10,092.13 $130,177.00 $121,106.00 Total OPERATING EXPENSE $12,282.19 $121,106.00

($2,410.77) $0.00 $2,761.52 $0.11 Net Income: ($2,410.77) $0.00 $2,761.63

CINCSystems, Inc. Copyright 2015. All rights reserved.

Page 8: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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Time: 9:57 am

10/5/2015

Page:

Shelmore at Brunswick Forest HOA, Inc (SM)

End Date: 09/30/2015

Date:Balance Sheet - Operating

Assets

10 - Cash Accounts:

10-1001-000 North State Bank - Checking $14,369.37

10-1001-001 North State Bank - MM Reserve .15% 50,262.09

$64,631.46 Total 10 - Cash Accounts::

12 - Accounts Receivable

12-1200-000 Accounts Receivable 3,233.75

$3,233.75 Total 12 - Accounts Receivable:

$67,865.21 Total Assets:

Liabilities & Equity

21 - Other Current Liabilities:

21-2110-000 Pre-Paid Assessments 18,088.16

21-2112-000 Owner Refunds Due 266.41

$18,354.57 Total 21 - Other Current Liabilities::

30 - Reserve Funds:

30-3030-001 Reserve - Fences/Paint 10,448.25

30-3065-001 Reserve - Paving Alleys 9,541.76

30-3185-001 Reserve - Fences/Replacement 26,574.75

30-3190-001 Reserve - Miscellaneous 1,893.51

30-3195-001 Reserve - Townhomes 2,329.50

30-3250-001 Reserve - Mailbox Kiosks 839.25

$51,627.02 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 (3,918.43)

($3,918.43)

$67,865.21 Total Liabilities & Equity:

CINCSystems, Inc. Copyright 2015. All rights reserved.

Page 9: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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Time: 9:57 am

10/5/2015

Page:

Shelmore at Brunswick Forest HOA, Inc (SM)

Date:

09/30/2015

Income Statement - Operating

Description

Current Period

Budget BudgetActual Variance

Year-to-date

Actual Variance

Annual

Budget

OPERATING INCOME

40 - Revenue - Assessments:

$35,747.03 $5,304.37 4000-000 Assessment Income $12,746.00 $18,050.37 $114,714.00 $150,461.03 $152,952.00

6,875.00 1,375.00 4020-000 Working Capital 625.00 2,000.00 5,625.00 12,500.00 7,500.00

4,991.00 36,999.00 4025-000 Developer Contribution 4,001.00 41,000.00 36,009.00 41,000.00 48,012.00

$17,372.00 $43,678.37 $47,613.03 $61,050.37 $203,961.03 $156,348.00 Total 40 - Revenue - Assessments: $208,464.00

42 - Revenue - Fees:

65.00 10.00 4200-000 Administrative Collection Fe - 10.00 - 65.00 -

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

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

90.61 7.18 4245-000 Interest - Owner Accounts - 7.18 - 90.61 -

700.00 40.00 4250-000 Late Fee Income - 40.00 - 700.00 -

$- $57.18 $1,080.61 $57.18 $1,080.61 $- Total 42 - Revenue - Fees: $-

48 - Revenue - Other:

36.86 5.14 4800-001 Interest - Reserve Funds - 5.14 - 36.86 -

$- $5.14 $36.86 $5.14 $36.86 $- Total 48 - Revenue - Other: $-

$48,730.50 $43,740.69 $17,372.00 $205,078.50 $156,348.00 Total OPERATING INCOME $61,112.69 $208,464.00

OPERATING EXPENSE

50 - Administrative Expenses:

90.00 10.00 5002-000 Admin Collection Fees 10.00 - 90.00 - 120.00

112.50 12.50 5008-000 Meeting Expense 12.50 - 112.50 - 150.00

817.60 112.00 5020-000 Bad Debt Expense 112.00 - 1,008.00 190.40 1,344.00

168.75 43.75 5024-000 Legal & Collections 43.75 - 393.75 225.00 525.00

562.50 62.50 5026-000 Legal Expense 62.50 - 562.50 - 750.00

1,599.53 166.67 5040-000 Insurance-Com Area (D&O) 166.67 - 1,500.03 (99.50) 2,000.00

2,143.50 21.50 5060-000 Management Fees 1,347.50 1,326.00 12,127.50 9,984.00 16,170.00

1,395.23 163.24 5072-000 Office Supplies 197.50 34.26 1,777.50 382.27 2,370.00

(75.00) 125.00 5078-000 Accounting Services 125.00 - 1,125.00 1,200.00 1,500.00

(112.50) 37.50 5096-000 Tax Preparation Fees 37.50 - 337.50 450.00 450.00

$2,114.92 $754.66 $6,702.11 $1,360.26 $12,332.17 $19,034.28 Total 50 - Administrative Expenses: $25,379.00

54 - Repairs & Maintenance Expenses:

(19,900.00)(4,000.00)5737-000 Lot Maintenance - 4,000.00 - 19,900.00 -

(22,770.00)(3,960.00)5755-000 Full Service Landscape 6,480.00 10,440.00 58,320.00 81,090.00 77,760.00

$6,480.00 ($7,960.00) ($42,670.00)$14,440.00 $100,990.00 $58,320.00 Total 54 - Repairs & Maintenance Expe $77,760.00

60 - Townhome Expenses:

(11,601.20)(6,797.11)5045-000 Insurance - TH 2,158.00 8,955.11 19,422.00 31,023.20 25,896.00

(855.00)(405.00)5760-000 Landscaping - TH 720.00 1,125.00 6,480.00 7,335.00 8,640.00

749.97 83.33 5765-000 Misc. Ext Bldg Maint - TH 83.33 - 749.97 - 1,000.00

900.00 100.00 5770-000 Termite Inspection - TH 100.00 - 900.00 - 1,200.00

(800.00) 100.00 5775-000 Pressure Washing - TH 100.00 - 900.00 1,700.00 1,200.00

(664.00) 100.00 5780-000 Gutter Cleaning - TH 100.00 - 900.00 1,564.00 1,200.00

600.03 66.67 5785-000 Irrigation Repairs/Maint - TH 66.67 - 600.03 - 800.00

(544.52)(55.22)6222-000 Electricity-TH Irrig. Meter - 55.22 - 544.52 -

(4,713.21)(1,035.62)6285-000 Water/Irrigation - TH 333.33 1,368.95 2,999.97 7,713.18 4,000.00

$3,661.33 ($7,842.95) ($16,927.93)$11,504.28 $49,879.90 $32,951.97 Total 60 - Townhome Expenses: $43,936.00

61 - Common Area Expenses:

(3,352.53) 842.08 5700-000 Land Maint/Sup-Com Area 3,642.08 2,800.00 32,778.72 36,131.25 43,705.00

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

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

(1,412.06)(123.38)6222-000 Electricity-Com Area 216.67 340.05 1,950.03 3,362.09 2,600.00

- - 6280-000 Water-Com Area 27.00 27.00 243.00 243.00 324.00

511.47 208.33 8980-000 Misc Maint/Repairs-Com Are 208.33 - 1,874.97 1,363.50 2,500.00

$4,594.08 $1,427.03 $246.88 $3,167.05 $41,099.84 $41,346.72 Total 61 - Common Area Expenses: $55,129.00

95 - Reserve Expense:

- - 9530-000 Reserve - Fences/Paint 100.25 100.25 902.25 902.25 1,203.00

- - 9565-000 Reserve - Paving Alleys 44.08 44.08 396.76 396.76 529.00

CINCSystems, Inc. Copyright 2015. All rights reserved.

Page 10: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

2

Time: 9:57 am

10/5/2015

Page:

Shelmore at Brunswick Forest HOA, Inc (SM)

Date:

09/30/2015

Income Statement - Operating

Description

Current Period

Budget BudgetActual Variance

Year-to-date

Actual Variance

Annual

Budget

$- $- 9685-000 Reserve - Fences/Replace $102.75 $102.75 $924.75 $924.75 $1,233.00

- - 9690-000 Reserve - Miscellaneous 70.83 70.83 637.51 637.51 850.00

- - 9695-000 Reserve - Townhomes 175.50 175.50 1,579.50 1,579.50 2,106.00

- - 9750-000 Reserve - Mailbox Kiosks 28.25 28.25 254.25 254.25 339.00

$521.66 $- $0.00 $521.66 $4,695.02 $4,695.02 Total 95 - Reserve Expense: $6,260.00

($52,648.94)($13,621.26)$17,371.99 $208,996.93 $156,347.99 Total OPERATING EXPENSE $30,993.25 $208,464.00

($3,918.44) $0.00 $30,119.43 $0.01 Net Income: ($3,918.43) $0.01 $30,119.44

CINCSystems, Inc. Copyright 2015. All rights reserved.

Page 11: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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 2015 , 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 02, 2015 .

President - Rosemary Russell

Attested by Secretary - Lannin Kerry

Page 12: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

2015 2016 2015 vs. 2016 OPERATING

BUDGET OPERATING

BUDGET BUDGET

VARIANCE OPERATING INCOME 2015: (10 TH, 72 SF, 76 Lot Only. Also 2015 BO = 36 TH Units, vs 2016 BO = 66 TH Units)Revenue - Assessments: 2016: (37 Townhome Units, 114 Single Family, 117 Lot Only)Assessment Income * 152,952 308,128 (155,176) Based on # owners projected for Jan 1; each new owner lowers subsidyWorking Capital 7,500 6,250 1,250 Non-reoccurring Income - New Units @ $250 - Buyer pays @ 1st conveyanceDeveloper Contribution

48,012 120,659 (72,647) Developer subsidizing operating shortfall, if needed

Total Revenue - Assessments: 208,464 435,037 (226,573)

Total OPERATING INCOME 208,464 435,037 (226,573)

OPERATING EXPENSESAdministrative Expenses:Administrative Collections Fees * 120 120 - Late Fees/Collections Letters, etc.; Reimb. once Owners pay Meeting Expense 150 375 (225) Meeting Room Reservation, Recording Secretary, etc. Bad Debt Expense* 1,344 - 1,344 Estimate based on % of Owners that may not pay dues; N/A 2015Legal & Collections 525 525 - 3 Lien, Demand Letters etc.; Assn. Reimb when Owner paysLegal Expense 750 1,200 (450) Legal consult, Document Preparation and ReviewInsurance 2,000 2,900 (900) D&O; vs. Property and GL by Declarant; @ Buildout will need all. Management Fees* 16,170 25,220 (9,050) Agreement $7.21 +3%/Recorded Lot/Mo. Office Supplies * 2,370 2,265 105 Postage, Envelopes, Copies, etc.Accounting Services 1,500 1,500 - Audit, Review, Compilation services (est. $6700, 2900, 1100)Tax Preparation Fees 450 450 - Earney & Company, LLP; Professional Tax Prep

Total Administrative Expenses: 25,379 34,555 (9,176)

Single Family Grounds Expense:Lot Maintenance* - 35,100 (35,100) Add $50/Lot April - Sept Vacant Lot mowingLandscaping - SF Homes * 77,760 164,160 (86,400) $120/home/mo.($1440/yr./Home) 114 Homes vs. 72 in 2015

Total Single Family Grounds Exp: 77,760 199,260 (121,500)

Townhome ExpenseInsurance: TH* 25,896 43,164 (17,268) TH Insurance: Per Senn Dunn (37 units vs. 10 LY)Landscaping - TH* 8,640 26,640 (18,000) $60/Unit/month (10 vs. 37 2016) ($720/yr./Unit)Misc. Exterior Building Maint.: TH * 1,000 1,850 (850) Estimate $50/Unit/ year misc. Termite Inspection: TH* 1,200 2,775 (1,575) Estimate $75/Unit/year, per Bug n a Rug Pressure Washing: TH* 1,200 3,700 (2,500) Estimate $100/Unit/ year (1x) Pressure WashGutter Cleaning: TH* 1,200 3,700 (2,500) Estimate $100/Unit/year (1x) Gutters Irrigation Repairs/Maint: TH* 800 1,850 (1,050) Estimate $50/Unit/year Electricity: TH - 2,340 (2,340) Estimate $195/mo. Common TH Meters Water/Irrigation: TH* 4,000 22,200 (18,200) Est $30 x 5mo; $75x 7 mo./ Unit

Total Townhome Expense 43,936 108,219 (64,283)

Common Area ExpensesLand Main/ Sup- Com Area 43,705 60,705 (17,000) 2016 Additional Common Areas, trails, medians, misc. CA, etc. Irrigation Main/Repairs - CA 3,000 3,000 - Irrigation Rep/ Maint, spring start up/winterize CAGrounds Improvements - CA 3,000 3,000 - Items outside basic contract, Storm Clean Up, Trees, etc. Electricity - CA 2,600 4,810 (2,210) Entry Lights and elect. $ inc. (Add Alleyway Streetlights 2015,~ $210/mo.)Water - CA 324 570 (246) Most CA Irrig. on Well Water, min. exp. (1012 Sandy Gr., etc.; Fntn Meter off)Misc. Maint & Repairs: CA 2,500 2,500 - Street Signs, CBU, Gazebo Repairs, Lighting Repairs, etc.

Total Common Area Expenses 55,129 74,585 (19,456)

Total OPERATING EXPENSES 202,204 416,619 (214,415)

Reserve Contribution:Reserve (Fences Paint) * 1,203 4,401 (3,198) # Homes w/ Fences per CC&RsReserve (Paving Alleys) * 529 848 (319) 2016 No Additional Alleys AddedReserves (Fences, Replacement) * 1,233 4,487 (3,254) # Homes with Fences per CC&RsReserves Misc. 850 1,156 (306) Misc. Enhancement projects/Gazebo, etc. Reserves TH* 2,106 6,807 (4,701) TH BO: 56 Duplexes, 10 Singles =66 Units, 28+10 BuildingsReserves (Mailbox Kiosks) * 339 719 (380) Estimated based on 145 Homes on the Ground = 9, 16 Box Units.

Total 95 - Reserve Contribution: 6,260 18,418 (12,158)

Total OPERATING & RESERVES EXPENSES 208,464 435,037 (226,573)

Surplus/Deficit: Income vs. Expenses - -

Assessment (Dues) Summary: 2015 2016 2015 vs. 2016Dues 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

Dues Variance

Vacant Lot - Annual 384.00$ 384.00$ -$ Quarterly Payment Amount 96.00$ 96.00$ -$

Completed Dwelling - Annual 1,344.00$ 1,400.00$ 56.00$ Quarterly Payment Amount 336.00$ 350.00$ 14.00$

Townhome Unit - Annual (New 2014) 2,700.00$ 2,800.00$ 100.00$ Quarterly Payment Amount 675.00$ 700.00$ 25.00$

* Items Calculated Based on the # of Projected Units

Shelmore at Brunswick Forest Homeowners' Association, Inc. 2016 OPERATING BUDGET - Effective January 1, 2016

Buildout: 330 Members (66 Townhomes, 264 Single Family)

ADOPTED October 23, 2015

ANNUAL MEETING DISTRIBUTION COPY

Based on 268 dues paying Members by January 1, 2016 (37 Townhome, 114 Single Family, 117 Lot Only)

Page 13: 1 Notice - 2015 Annual Meeting SM - DRAFTfiles.ctctcdn.com/9ab963b0501/46170422-f96c-434f-97a8...Pursuant to notice, the Shelmore at Brunswick Forest Homeowners' Association, Inc (SM)

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, INC to be held in the

Multi-purpose room of the Leland Cultural Arts Center, located at 1212 Magnolia Way, Leland, NC, 28451 on Monday, November 2, 2015 at 4:30 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 in the Multi-

purpose room of the Leland Cultural Arts Center, located at 1212 Magnolia Way, Leland, NC, 28451 on Monday,

November 2, 2015 at 4:30 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 Multi-purpose room of the Leland Cultural Arts Center,

located at 1212 Magnolia Way, Leland, NC, 28451 on Monday, November 2, 2015 at 4:30 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 02, 2015, 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 OCTOBER 30, 2015, 1:00pm

(Even if you Plan to Attend) Brunswick Forest Wellness Center | 2701 Brunswick Forest Parkway, Leland, NC 28451

Fax: (910) 371-0112 E-mail: [email protected]