SPRING CREEK COURT HOMEOWNERS ASSOCIATION, INC. 2018 Annual Meeting of Association Members April 19, 2018 7:00 p.m. St. Timothy’s Anglican Church 6810 Louetta Road, Spring, TX 77379

Agenda Election Results Community Issues Holt & Young PC Q&A Establish Quorum; Call to Order Reading of Minutes: 2017 Annual Meeting Introductions Election of Directors (2) Financial State of the Association Election Results Community Issues Holt & Young PC Q&A Adjournment 2

Establish Meeting Quorum Call Meeting to Order 3

Read and Approve Minutes 2017 Annual Meeting 4

APC Property Management LLC Introductions HOA Directors: Donavon Smith Tim Holian Stephen Saffioti Marcellus Bolden Thomas Ta Managing Agent: Tara R. Fase APC Property Management LLC HOA Property Manager 5

Election of Officers – 2 Year Terms Re-elect Stephen Saffioti !! (Served Since 2010) Re-elect Tim Holian !! (Served Since 2010) Floor Nominations Invited vote to re-elect, vote for write-ins, or vote for floor nominees 6

Origin of the Spring Creek Court HOA Chartered by Developer in Dec. 2004 HOA Duties, Obligations and Rules set forth in “Statutory” (legally enforceable) Governing Documents: Articles of Incorporation Bylaws Covenants, Conditions and (Deed) Restrictions Architectural Control Standards Construction Damages Agreement 7

Purposes of the Spring Creek Court HOA To serve as a mechanism* that consistently provides for: Orderly, Peaceful Living; Protection, Maintenance and Preservation of Real Estate Owned by the Association; Effective Balance between Preferences of Individual Homeowners and Collective Rights of All Preservation of Property Values for All Homeowners *mechanism: “…the fundamental processes involved in or responsible for an action…” 8

How HOA Purposes are Achieved: Board Commitment to: 100% Collection Rate (Annual Property Assessments) Expense Monitoring Effective Capital Reserve Planning Deed Restriction Enforcement 9

Financial State of the Association Summary for Fiscal Year Ending December 31 2017 Revenue: $47,143 Expenses: $35,518 Income (Loss): $11,625 10

Financial State of the Association 2018 Operating Budget 2018 Income (Projected) 2018 Expenses (Projected)* Income (Loss) (Projected) *Avg. Monthly Expense = $2,381/mo. $40,290 $28,572 $11,718 11

Financial State of the Association HOA Expense Trend 2016 2017 2018 $37,909 $35,518 $28,572 12

Expense Wild Card: LEGAL FEES HOA must pay attorney at time legal service is performed HOA is reimbursed only when homeowner pays attorney and attorney forwards reimbursement to HOA 13

Financial State of the Association Cash Balance in Bank Accounts: $65,507 Effective March 31 2018 14

Financial State of the Association Short-Term (5-Yr.) Reserve Fund Goal: $40,000 90% Funded at Year-End 2018 (projected) 15

Purpose of Reserve Fund Planning: Financial State of the Association Purpose of Reserve Fund Planning: To meet HOA’s near- and long-term repair and replacement obligations Enhance community appearance through beautification with available funds 16

Financial State of the Association Alternative to Reserve Fund Planning: Special Assessments (Nuclear Option) Unpredictable and Penalizing 17

Financial State of the Association Banking Shifting Banking Business to Regions Bank 18

Election Results 19

Annual Property Assessments ACC Applications Community Issues Deed Restriction Violations Annual Property Assessments ACC Applications Trash Cans in Front of Houses, in Streets Street Parking Congestion 20

Holt & Young PC Collections Deed Restriction Enforcement Spring Creek Court HOA Legal Representation Collections Deed Restriction Enforcement Other Services, Upon Demand 21

SpringCreekCourtHOA.org SCC-HOA.org INVEST 30 MINUTES OF YOUR TIME… 22

Contractual Extended-Payment Plan Available to All Homeowners The Least Expensive Way to Pay the $395 Annual Property Assessment: Pay In-Full, On-Time 23

Deed Restriction Enforcement Accomplishments in 2017 No Trespassing Signs Deed Restriction Enforcement Collection of Delinquent Property Assessments Website Updates 24

Summary Expenses Under Control Deep Cash Balance Financially Solvent Forward-Looking Plan for Reserve Fund Responsive, Efficient and Experienced Managing Agent and Governing Board 25

Questions & Answers 26

Location/Time: Will Be Announced Next Annual Meeting January 2019 Location/Time: Will Be Announced Adjournment Thank you for voting! Thank you for your time! 27