Santa Fe Trail Ranch POA
Special Board/Budget Committee Meeting
September 25, 2003
Home of Diane Rader

Board Members Present: Monica Leche, Diane Rader, Bob Santoro, Mike Shelton, Harriet Vaugeois

Board Members Absent: George Gonzalez, Ed Hockett, Rick Johnson, Jerry Withington

Guests: None

1. CALL TO ORDER – Treasurer Diane Rader called this combined Special Board and Budget Committee meeting to order at 6:40 p.m.  Ms. Rader noted that the purpose of the meeting was to finalize the proposed 2004 budget in preparation for the October 4 Annual Meeting and to evaluate accounting service proposals to determine if a change in service providers will be made, which would require Board approval.
    
2. PROOF OF NOTICE – Mr. Shelton stated that the meeting was posted on both the ranch bulletin board and on the web site.
    
3. DETERMINATION OF QUORUM – Five members present made a quorum and all business official.
    
4. 2003 FINANCIAL REVIEW – Ms. Rader first presented updated financial reports with activity through August, 2003.  She stated that several minor corrections need to be made and therefore the reports have not yet been posted to our website.  She also stated that a new insurance quote has been sent out and we should hear back on that early next week.  In preparing for yearend, Mr. Santoro requested that transfers relating to any account savings or deficits be properly noted so that we adhere to our total budget for the year.  Mr. Shelton confirmed that he would like any projected budget savings to be allocated to 2003 snow removal/road work.  Finally, Ms. Rader stated that she had recently received additional information from Dixon & Waller to assist in sorting out the Power account balance issue.  She hopes to have this resolved in time for the Annual Meeting.
    
5. 2004 BUDGET – Ms. Rader then presented a revised 2004 budget for review.  Based on current CPI, she is projecting a 2.2% (~$7,000) increase in dues.  A discussion followed about charging dues for the improved J lots.  Ms. Rader stated that the J-1 owners were billed on a prorata basis from the date they moved in.  Mr. Shelton was concerned that the other improved J lot be billed accordingly.  Unfortunately, no one was aware of the status of the agreement to bring the J lots into the POA.  Since contractors have been using our roads to build a house on a southern J lot, some felt it was appropriate for the owner (Baldwin or otherwise) to be paying dues now.  Mr. Shelton made a motion to bill the other improved J lot on a prorata basis effective today.  The motion passed with one abstention.  Ms. Rader stated that our grazing lease is set to expire on 12/30/2004.  We are estimating full payment on that lease next year.  On the expense side, it was noted that we would save ~$4,000 from changes in accounting services and it was agreed to use some of that savings to increase our legal budget to $2,000.  Mr. Shelton confirmed that we should be reimbursed $3,450 from Vermijo Park Ranch in 2004 for half the cost of the fence repair, and that no expenses will be incurred.  Ms. Rader also reminded the group that our trash contract is up for renewal next September.  While there may be an issue with price, Mr. Shelton made a point to say that we are receiving terrific service from our current vendor.  There were 3 unresolved expense items: the cost of insurance, whether funds would be needed for 911 compliance and possible funds for a covenant addition.  The group agreed that the Covenant Committee would use general POA legal funds in that event.  Ms. Rader then asked if the Board wanted to submit a zero balance budget for the year and the group agreed.  Mr. Shelton suggested that any projected revenue overage be applied to snow removal.  At the end of the discussion, Mr. Shelton made a motion to accept the proposed 2004 budget, taking into consideration the remaining open items.  The motion passed.
    
6. ACCOUNTING SERVICES – At this time Ms. Rader requested questions and comments on the summary of accounting bids she submitted earlier to Board members.  She noted that she had not received any comments back from Board members who were unable to attend the meeting.  Mr. Shelton inquired who was going to be in charge of the database of owners and would the Board have access to it.  Ms. Rader stated that the accountant is both responsible for maintaining the database and for providing relevant information to the Board as requested.  She clarified that the owner/address database is maintained within the accounting software, and is separate from the lot database she created, which concentrates on resident information and improved/unimproved status.  Ms. Vaugeois acknowledged Century’s comments of having to continually re-acclimate to new board members and treasurers, as she personally witnessed the difficulty this could cause.  Ms. Rader confirmed the need for the POA to preserve proper accounting principles, guided by the accountant, while allowing some flexibility for Board members on the number and names of accounts used and management reporting.  Based on the bids received and references checked, she recommended Ortiz Tax Service, who was the low bidder with an all-inclusive arrangement to provide accounting and tax services, with no charge for supplies other than postage.  Ortiz, however, will not perform the general mailing of materials (minutes, special mailings) to owners, which the Board has agreed to take over.  The overall savings will be over $4400 (31%) from 2003 costs.  Mr. Shelton made a motion to accept the proposal.  The motioned was seconded, then a discussion ensued over the concern of making a decision right before new board members are elected.  Ms. Rader pointed out that, while this board is more familiar with the issues at hand, we had three nominees present at the last board meeting and they were all in favor of proceeding.  Ms. Vaugeois further noted that we are continuing to find errors in our financials.  The timing was spurred on by these errors and we have time to make a transition before the annual dues mailing in January.  The group voted and the motion passed with one abstention.  Ms. Rader stated that she would communicate with the parties involved and assist in the transition of accounting services and gathering of our records.
    
7. ADJOURNMENT - Ms. Rader called for a motion to adjourn.  The motion was seconded and passed.  The meeting was adjourned at 7:40 p.m.

Submitted by Diane Rader, Treasurer, September 26, 2003