LAKES OF STONEGATE ANNUAL MEETING MINUTES APRIL 26, 2008 Jan Purdy announced that there were 40 homeowners represented in person or by proxy establishing the quorum for the annual meeting. President, Greg Birge called the meeting to order at 10:30 am. Jan Purdy introduced the Board of Directors to those in attendance, Greg Birge, President; Doug Gardenhire, Treasurer; and John Romeo, Secretary. Greg Birge gave the update on the association’s on going property tax issues. Upon discovering that there were 5 common parcels of land that belonged to Lakes of Stonegate but the county records did not reflect the proper transfer of the land to the association from the developer and now there were thousand of dollars in taxes due on these parcels from as far back as 2003, the association worked with the attorneys and try to reach a settlement. We were able to get the values of the parcels reduced to nominal value for 2007 going forward but through the attorneys, the county would not agree to go back and retroactively reduce the values. Matt Sparger asked the boards permission to talk to the county to see if he could convince them that the re-evaluation of the parcels was appropriate and needed to be done or at the very least if the penalties and interest could be waived on the past due taxes that were owed by the association. The Board gave their permission and Mr. Sparger successfully got the values of all 5 parcels reduced to nominal value and the resulting tax liability for the association is zero ultimately saving the association between $15,000 to $20,000 in back taxes, penalties and interest. On behalf of the association Mr. Birge presented Mr. Sparger with a token of the association’s appreciation on his efforts for the community. Doug Gardenhire presented the association’s financial report and explained that the increase in the annual assessment for 2008 was partly due to the association’s concern over the major repair and replacement of common items owned by the association and the need to set money aside for future expenses and reserves to hopefully prevent having to special assess homeowners when unbudgeted expenses are required. The favorable outcome of the tax liability allows the association to plan for the major maintenance items such as the pool and the cabana and still leave money in reserves for the future. Jan Purdy presented the property update and reminded homeowners that if they are going to be making any exterior modifications to their homes (including changes in paint colors) that they must request ACC approval prior to doing any work. The ACC form is on the web-site at www.lakesofstonegate.com. Upon completion of the form, please send or fax the form to Sentry Management, as well as getting the original to Doug Gardenhire at 1024 Frog Leap Trail. The Board meets every 2nd Wednesday of the month and discusses the ACC requests. Jan Purdy further advised homeowners to review their covenants for the rules and restrictions of the community and to be mindful of the appearance of their home and landscaping. Three Board positions were up for election and Jan Purdy asked for nominations for those positions. Greg Birge, Doug Gardenhire and John Romeo were nominated and agreed to accept the nominations. There were no other nominations for the Board so the three nominations were automatically elected to the Board and will serve another one year term. Greg Birge discussed the proposed Amendments to the Association Documents and urged every homeowner to vote the ballot for the amendments. Amendments require a 2/3 majority to pass. The first amendment allows for the perpetual duration of the Lakes of Stonegate homeowners association. Without the amendment passing, the term of the corporation will terminate after 20 years. The second amendment allows for a Capital Reserve Fee to be paid by the buyer upon the transfer of any lot within the community. This Capital Reserve Fee money would benefit the association helping to fund the reserves and thus help maintain the annual assessment at a reasonable annual fee. Greg Birge opened a question and answer period and adjourned the annual meeting of the homeowners association at 11:30 am.