ANNUAL STATUS REPORT


As the management company serving Lakes of Coppell Owners Association, Inc. and your Board of Directors, CMA strives to provide quality service and excellence in community association management every day.  Owner surveys and feedback have expressed an interest in understanding the short-term and the long-term goals, the "Business Plan" of your Association.

Below is an explanation of the Operating Budget, an overview of the planned expenditures from the Reserve Account, a statement of what is required of vendors who would be considered for work in the common areas and a compliance report for the past 12 months.

OPERATING & RESERVE BUDGETS
Sound financial projections are the driving factor of any business plan.  Here is an overview of both the annual association Operating Budget and planned Reserve expenditures proposed for 2016.

Operating Budget for 2016:  $482,748.18
The Operating Budget includes those expenses that occur every month or year, just like your annual personal budget.  The Association has contracted services that they must pay monthly, such as landscaping, lake maintenance and management services, as well as other operating expenses, such as insurance and utilities.  The Association also budgets for items that should be replaced or refinished, such as signs, flowers, etc.

Reserve and Replacement Budget Balance:  $21,005.61
The Reserve account is designed to accumulate funds for the replacement or refurbishment of Association assets that depreciate over time, and whose costs would generally exceed the funds available in the annual operating budget.  It is prudent to fund reserves to avoid Special Assessments.  The items include, but are not limited to, rebuilding or replacing the perimeter walls either in their entirety or in portions, rebuilding or replacing the lake walls either in their entirety or in portions, etc.

VENDOR REQUIREMENTS
Your Board of Directors, along with CMA, works to ensure that only qualified vendors perform work within the community.  This not only lowers the actual cost to the Association by ensuring specific items are addressed only once, but also limits the liability as well.  When a major contract is sent out to bid, CMA solicits a minimum of three proposals from vendors specializing in the required area.  Each vendor must provide a Certificate of Insurance demonstrating that they have a General Liability policy with a minimum $1,000,000 limit and Worker's Compensation Insurance.  Your Board then reviews the proposals received and makes a decision based on the needs of the Association.  The goal is to select the best vendor based upon pricing as well as whether the vendor will be able to perform the required job within the parameters set.

ENFORCEMENT
Another obligation of the Board of Directors to your Community is to ensure compliance of the members with the governing documents in order to protect the property values.

In the previous year (July 2013 - June 2014), 637 violation notices were mailed to owners for deed restriction violations ranging from Landscape and Exterior Maintenance to failing to submit proper documentation for exterior improvements.  Comparing the same time period this year (July 2014 - June 2015), 1,621 owners were notified of violations.  Whether the trend is positive or negative, the Association Manager or Compliance Coordinator performs a full review of the community on a regular schedule so that due process is afforded each owner.  The goal of this process is to achieve compliance with the community's guidelines.

This report is part of our communications service on behalf of your community to provide you a better understanding of the Association's direction for the upcoming year.  If you have any additional questions, please contact your manager at 972-943-2850.

2015 Legislative Policies Adopted: Generator Guidelines, Updated Fining Policy
The new policies are posted on the website at www.lakesofcoppell.com