Annual Rept 2015.publisher. full report

Frenchman’s Creek, Inc. and Subsidiary

Notes to Consolidated Financial Statements

Note 9. Capital Assessments (Continued) During 2010, the membership approved the renovation and expansion of the fitness center, with a total estimated reno- vation 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 renovation 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, 2014 and 2013, the Association had collected $2,468,086 and $2,409,007 of the $4,450,570 assessment. The unbilled portion of this assessment as of April 30, 2014 was $1,982,484. 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, 2014 and 2013, the Association collected $1,437,400 and $1,441,809, respectively, related to the assessment. The following is a schedule of the future billings, excluding interest, remaining on these assessments: Total capital assessments collected during the years ended April 30, 2014 and 2013 amounted to $1,654,699 and $1,883,311, respectively.

Note 10. Insurance Matters The Association’s insurance policies have been renewed through June 1, 2015. The Association’s properties are in- sured for all perils, including windstorm, under two policies with two insurance companies, Weston and Zurich. All structural properties, other than the Clubhouse, Fitness Center, Pro Shop and Guard House, are insured for named windstorm coverage by Weston with a 3% per building, per year, deductible. The Clubhouse, Fitness Center, Pro Shop and Guard House are insured for windstorm, through Zurich, with a named-storm deductible of $2,240,000 per occur- rence. A $1,540,000 deductible buy back policy is in place to reduce the named-storm deductible on those properties to $700,000 per occurrence. Due to the Association’s deductibles, losses from future catastrophic weather events may require special assessments or funding form existing reserves, if such funds are available.

2014/2015 Annual Report Page 43