TREASURER’S REPORT

July 14, 2001

Bills: The Finance Committee met on July 7. Following review of the “Unpaid Bills Summary” and comparison with the bills on file, the committee recommends that the bills be paid.

Account Status: As of July 6 the balance in HMC accounts is as follows

Key Bank Sweep Account $ 79,154 (General Fund + Surplus)

Dock CD $ 1,834

Dock/Dolphin Reserve $ 74,157

Dry Dock Reserves $ 63,167

Road Reserves $ 7,535

Water Reserves $ 62,640

TOTAL $288,487

Banking Update: I met with our Key Bank Account Executive earlier in the month to discuss several banking issues:

Bond: A 5-yr. CD, which was initially required as part or our DNR lease will mature on Oct. 31. The original bond amount specified in the lease was $1,000. Documents were provided to the bank so that we can easily transfer all accrued interest to our general account, once the bond matures. If a bond continues to be required as a condition of the lease, we will also be able to routinely sweep accrued interest into our account.

Credit Card Payments: Key Bank provided a proposal on the feasibility of accepting credit cards for annual assessment payments. Since transaction fees and related expenses are estimated at over $2,000/ yr., it is recommended that we not pursue this form of payment.

Corporate Credit Card: An application for a no fee corporate credit card for possible use by the Island Manager and Office Manager was obtained. Frequently, these employees either pay out of pocket for HMC purchases, then are reimbursed. D. Allen and B. Huff will evaluate possible benefits over the next month or so, to determine if this would be beneficial. All bills would continue to be tracked by the Finance Committee.

Senior Pass Activity

14 passes were sold in June, bringing passes sold to date to 63. Of these, members who would typically purchase a commuter pass anyway purchased 9 passes. Subtracting these users, the financial impact YTD (Mar-June 01) is $1,177 (a $1.09 discount per trip compared to ticket price). $2,500 was the predicted annual expense.

Property Sale: Sale for the former Ward property has been completed. After subtracting closing costs, the net revenue is $5,450.

Lien Policy for delinquent accounts

In order to protect HMC’s interests related to the potential sale of delinquent properties, language will be included in future assessment letters, which states that a Notice of Lien will be filed on all accounts with a balance due 15 days after the delinquency date. Charges related to filing a lien ($8 to place and $8 to release) will be charged to the owner.