MASTER ANNUAL REPORT

Frenchman’s Creek, Inc. and Subsidiary

Notes to Consolidated Financial Statements ______________________________________________________________________________________________________________

Note 9. Fund Balances Activity (Continued) During 2007, the membership approved the renovation and expansion for the 19 th Hole restaurant. The renova- tion plan was funded through a $3,972 per member assessment. The members had the option to pay the as- sessment in four installments of $993 or $47 per month for a period of ten years with interest at 6.5%. As of April 30, 2017, the Association had collected the entire assessment. During 2010, the membership approved the renovation and expansion of the back of the house, with a total esti- mated renovation cost of $2,400,000. Along with the renovation plan, the membership approved a $4,008 per member assessment. The members had three options to pay the assessment: in two equal installments of $2,004 payable in February and August 2010; or $2,004 payable in February 2010 and monthly installments of $17 commencing in February 2010 for 15 years with interest at 6.25%; or monthly installments of $34 commenc- ing in February 2010 for 15 years with interest at 6.25%. As of April 30, 2018 and 2017, the Association had col- lected $1,536,482 and $1,510,838, respectively. The unbilled portion of this assessment, as of April 30, 2018, was $748,179. During 2010, the membership approved the renovation and expansion of the fitness center, with a total estimat- ed renovation cost of $4,600,000. The assessment was reduced in 2012 to $4,450,570 as project costs were less than originally anticipated. Members were refunded based on their payment method. Along with the renova- tion plan, the membership approved a $7,679 per member assessment (assessment was reduced by the Board to $7,430). The members had three options to pay the assessment: in two equal installments of $3,840 payable in February and August 2010; $3,840 payable in February 2010, and monthly installments of $33 commencing in February 2010 for 15 years with interest at 6.25%; or monthly installments of $66 commencing in February 2010 for 15 years with interest at 6.25%. As of April 30, 2018 and 2017, the Association had collected $2,784,534 and $2,733,669, respectively. The unbilled portion of this assessment, as of April 30, 2018, was $1,458,678.

The following is a schedule of the future billings, excluding interest, remaining on these assessments:

Back of House Fitness Center Renovation Renovation

Total

Years ending April 30: 2019

$

93,201 99,182 105,567 112,360 119,584 218,285 748,179

$

180,422 192,035 204,379 217,530 231,523 432,789

$

273,623 291,217 309,946 329,890 351,107 651,074

2020 2021 2022 2023

Thereafter

$

$

1,458,678

$

2,206,857

Additionally, the Association bills an assessment to the membership to supplement the fund for the purchases and replacement of capital assets held by the Association. During the years ended April 30, 2018 and 2017, the Association collected $1,444,185 and $1,435,350, respectively, related to the assessment. In November 2015, the Board approved an emergency special assessment in the amount of $1,000 per mem- ber, payable over ten months beginning in December 2015, to fund necessary repairs to the Beach Club. During the year ended April 30, 2017, the Association collected $299,000 related to the assessment. The Association collected the full assessment of $599,000 as of April 30, 2017. During the year ended April 30, 2018, the Associ- ation used the funds to perform capital repairs to the Beach Club.

2018/2019 Annual Report Page 42