Dear Lake Forest Member:

You have been presented with a plan that could have a major impact on our community and you need to give serious consideration to the consequences.  Those who proposed the plan have already sent you a letter stating their point of view.  Here is a view from the other side of the issue.  The numbers that I will be using come from our audited financial reports and our own accounting system.

·        In 1996 Lake Forest had a long term debt of $733,000

·        From 1996 – 2001 the LFPOA Board of Directors implemented a massive renovation program that used streamlined operations and financing to restore severely neglected amenities. During that period the following was accomplished:

o       the irrigation system on the eighteen hole course was replaced at a cost of over $400,000

o       a delinquent tax bill of over $330,000 was paid

o       two new tennis courts were built

o       parking lots were paved

o       new lighting was placed on parking lots

o       the nine hole course received a new irrigation system at a cost of around $145,000

o       new roofs were put on buildings

o       stables were rebuilt

o       barns were painted

o       the marina was rebuilt a couple of times courtesy of hurricanes

o       buildings received new stain ( a couple of times)

o       swimming pools were renovated

o       at least four playgrounds were built or renovated

o       the 19^th Hole was remodeled

o       the old Swim & Racquet Club building was restored and is now being used by many of our young people

o       the Country Club was remodeled

o       new air conditioning systems were installed

o       the Yacht Club was remodeled

o       and much, much more.

·        Today, our long term debt is around $440,000 and that is scheduled to be paid off in four years at which time we will be debt free and still own twelve million dollars worth of amenities.

Did you notice that after all of those improvements, our long term debt is $300,000 lower than it was when we started?  How? It was accomplished by using good management to reduce expenses, eliminate unnecessary services and improve operations. Please also note that much of the above will simply be given away if the restructuring proposal passes.

In 1996 a member of the Lake Forest Property Owners Association had to pay a user fee to use any amenity in Lake Forest.  Beginning in 1999 the following changes were made:

·        Our families can swim for free in either of two conveniently located swimming pools.

·        Our families can play tennis for free on our two newest asphalt tennis courts.

·        Our families can play 18 holes of golf on our Lake Nine golf course any day of the week for $5.

·        Our families can launch their boat at our marina for free.

·        Our children enjoy four playgrounds for free.

·        We can enjoy a view from the deck of our Yacht Club for free.

·        Our association gives thousands of dollars in scholarships to Lake Forest children each year.

Do you realize that we will lose ALL of the above if the proposal passes? Does the above sound like something that would be done by an organization in dire financial straits?    Take a look at the table below for our financial performance.  These numbers show our excess of revenue over expenses before depreciation.  These numbers come from audited financial reports for every year but 2003.  We don’t have that report yet.

As you can see from those numbers, rather than being in financial peril, Lake Forest is managing its money in a manner that would be the envy of most organizations.  Furthermore, we have had only one dues increase in over twenty years.   Let me throw another wrinkle into this discussion.  We have a new developer who will finally be building homes in Lake Forest.  Friday Construction bought the undeveloped areas where there are 714 lots ready for new homes.  This does not include the property that that was never platted.  Let’s say they only build on half of them, 357 new upscale homes.  That’s 357 new members.  These are people who will probably be buying in Lake Forest because of our amenities.   That’s $149,940 a year in new revenue.  We can do wonderful things in our community with the additional money.  One might also wonder what the loss of the amenities would do to the prospects of the new development.  Would someone be as anxious to build an upscale home in a thirty year old community without the amenities?  Why should they when they can build in the new phase at Timber Creek?  The new development can breathe new life into Lake Forest and improve all of our home values.

Let me touch on the Faulkner Community College issue for a moment.  First, no one from Faulkner or the State of Alabama has met with the Board of Directors to discuss our giving them your amenities.  As far as I know, they have only talked with Bob Underwood and John Deloney.  Second, if you ran a college and someone came to you and offered to give you free of charge more than a million dollars worth of newly renovated property, do you think you would take it? Of course you would.  Your family and mine can use these amenities now for free.  They are in great condition.  Why would we want to lose them when our organization is in such good condition?  We want to enjoy them!

The question we should consider is who benefits from this restructuring?  Hopefully, the twenty dollars a month is not enough for us to be willing to lose our amenities and possibly diminish the value of our entire neighborhood.  The eighteen hole golf course comes out OK at least temporarily.  Faulkner State makes out great on this deal.  But everyone else loses.  We lose our swimming pools.  We lose our tennis courts.  We lose our Yacht Club.  It is interesting to note that the golf course costs us about as much to operate as the pools, tennis courts and Yacht Club combined.  These guys have tried to stir us up by saying that “We are subsidizing their games.” Yet they are proposing that we get rid of all those other amenities that we are presently enjoying for free and keep the eighteen hole course.  Hmmm.  Does something strike you odd about this idea? 

Yes, our amenities cost us a little money.  But, the quality of life for our families is so much better for having them.  Please vote NO to everything on that proxy.