Ventana Lakes

 Property Owners' Association

Financial Report
September 9, 2006

Balance Sheet
Statement of Operations
Reserve Funds Report
Treasurer's Report

Treasurer's Report

Attached and Included  As Part Of This Report

The first 2 pages of Colby Management’s Balance Sheet for the seven months ending July 31, 2006. The Aug. report is not yet available.

Comments

Since the only financial information readily available for my report comes from Colby Management I have decided to use the first 2 pages of Colby Management’s Balance Sheet as part of my official Treasurers Report.  I will use this comment section to inform the Board and the Association of any questions and/or concerns since my last report and the outcomes, if any, of such questions and/or concerns.

Included is an additional page listing all VLPOA CD’s in the order of their maturities.

Please Note - A large amount of money was moved in August so this report will bring the Association up to date and will not stop with the July 31 statement.

Reserves

If you compare the attached list of CDs with the previous list from my July report you will see that 1 CD from FNB has matured and 9 new CDs totaling $347,000 have been purchased.

Line item 124 from the July report shows $274,504.95, as of today there is less then $3,000 in that account.

Line item 133 from the July report shows $208,000, as of today there is more then $383,000 in that account.

I have utilized the Wells Fargo brokerage account to purchase CDs in the secondary market when their available rates are comparable to most banks nationwide.  However, I have also dealt with individual banks to achieve better yields then available in the secondary CD market. I was even able to negotiate a competitive yield utilizing the new Federally insured CDARS program.

December 31, 2005 report shows VL Master Reserves $952,646.93.  July 31, 2006 report shows VL Master Reserves $1,114,095.49.  This is an increase in $161,449.44 in just 7 months.  This Board, by using good money management, has increased reserves significantly while maintaining our amenities.

Better Insured Funds

Board:  After several e-mail and phone conversations with Anne Dill and Tammy Matthews the following will be my recommendation to the Board on Saturday Sept. 9, 2006.  All of these recommendations have been discussed with Tammy Matthews and she is in agreement that these would be in the best financial interests of Ventana Lakes. I will work along with Tammy to do all the needed research and make all the arrangements.

1)  Line item 171 - Gardens reserve Money Market FNB

          Move this to any bank that has consistently offered high money market rates and that has no other Ventana Lakes funds so that it is 100% insured.  2.15% from FNB is not in our best interest plus we are well over FDIC insurance limits with FNB.

2)  Line item 120 - Reserve Money Market FNB

          Move  $95,000 of this to any bank that has consistently offered high money market rates and that has no other Ventana Lakes funds so that it is 100% insured.  2.15% from FNB is not in our best interest and we are well over FDIC insurance limits with FNB.

          The remaining funds would be used to purchase a CD.  If you look at our list of CDs ( there are now 19 )  you will see we have approx. $50,000 maturing about every 3-5 months. 

          The $95,000 in the liquid MM plus what we add every month plus what matures is more then enough available for use.

3)  Line item 102 -  FNB Operating

          I have paper tract the last 8 months for this account.  We seldom use $150,000 per month yet we carry around $300,000 yielding 2.15%.

          Tammy is in agreement that we should move $95,000 to a Money Market account at any bank that offers consistently high rates and that we do not have other funds with.  This will give us a better rate of return in money we do not use but still have liquid access to and it will be 100% insured.

          Now the most important step.  We should move our operating account which is really a money market account from FNB 2.15% to Compass Bank 4.50%.  Compass is where Colby holds most of its other customers money and based on yield you can see why.  That would mean approximately  $200,000 at Compass with only about $100,000 over the FDIC insurance limits.

         I even discussed this with Anne Dill and she even agreed if Compass offers 4.50% we should use them because FNB cannot match that.  They offered us a 30 day CDARS CD at 4.50% but why would we tie money up for even 30 days for the same yield as liquid funds.

  4)  Line item 103 -  FNB Activity CHKG

         Go to Compass at Lake Pleasant and Beardsley and open a CHKG account there.  More convenient for deposits and the balance is not large enough to worry about FDIC insurance.  But if  insurance  is a concern we could open that account anywhere.

Again, I will do the bank research and work with Tammy.  Lois will just have to sign. Bob

Certificate of Deposits as of August 18, 2006

                                                                                                                                           HELD AT
           BANK                                         Yield     BALANCE   MATURES    WELLS FARGO

 1) Citizens State Bank                        4.95%       $ 50,000       Nov. 24, 2006        YES

 2)  First Bank of Puerto Rico             5.05%       $ 58,000       April 20, 2007       YES

 3)  Morgan Stanley Bank                    5.25%        $ 75,000       May  16, 2007      YES

 4)  Washington  Mutual                       5.25%        $ 25,000       Aug. 23, 2007      YES

 5)  Westernbank of Puerto Rico       5.30%        $ 25,000       Aug. 23, 2007       YES

 6)  AmTrust                                            4.70%        $100,000      Nov. 23, 2007

 7)  FNB                                                    4.65%        $ 75,827       Jan. 30, 2008

 8)  First Federal Savings Bank, IN  5.40%         $ 25,000       April 9, 2008         YES

 9)  Sky Bank                                          5.25%        $ 50,000       May 27, 2008        YES

10)  Matrix( First Community Bank) 4.93%        $ 15,282       Oct. 6, 2008

11)  FNB                                                   4.65%        $ 75,834       Jan. 30, 2009 

12)  GMAC Bank                                     5.30%       $ 50,000        May 19, 2009        YES

13)  New West Bank Greenley, CO    5.40%        $ 25,000       Aug. 4, 2009          YES

14)  FNB                                                   4.75%        $ 75,843       Jan. 30, 2010

15)  First Internet Bank of IN               5.59%        $ 35,000       Aug. 16, 2010

16)  First Internet Bank of IN               5.64%        $ 45,000       Aug. 16, 2011

17)  Stonebridge Bank                         5.50%         $ 17,000      Aug. 18, 2011

18)  United Bank Parkersburg, WY   5.60%         $ 75,000      Aug. 30, 2011  guaranteed CDARS FNB

19)  Bank One                                         5.68%        $112,308      June 18, 2012