1. The Stepping Stone Association Annual Meeting of Members
March 6, 2012

2. Agenda Welcome and Introduction of Board Members
Review Stepping Stone Property
2011 Accomplishments
Landscaping Update
Barn Update
Financial Update
Social Committee Update
2012 Plans
Architectural Review Board Update
Mail Box Painting Proposal
Resident Concerns
Election of new Board Members
Provide New Directories

3. 2011 Board Members and Officers
Dan Strait - President
Scott Fitzgerald - Treasurer
Michelle Slisher – ARB
Officers
Susie Strait
Jennifer Stouffer, Social
Lisa Dawes, Social
Sandy Sanford, Barn
Pam Benson, Barn
Trisha Jordan, Neighborhood Liaison
Lisa Warner, Neighborhood Liaison

4. Stepping Stone Review What we own: 12.725 acres Large pond
An additional acres at the barn ( acres total) In 2011 we leased an additional 5 acres for pasture.
13 stalls
Indoor and Outdoor Riding Arenas
Conference Room
Two Bedroom Apartment

5. 2011 Accomplishments The Neighborhood
Street Signs were repainted and improved
Routine Maintenance and Upkeep of Grounds, Barn and Apartment
Community Newsletter and Directory
Community Social Events
Barn Improvements
A shed was added which allowed for expansion of the Tack Room and the addition of stalls. This should increase our revenue.
Drainage issues were addressed
Barn and Apartment Maintenance

6. Landscaping Update - Maintenance, Flowers, Repairs and Pond Management
Our landscape contractor, Brinkman, continued routine annual maintenance including planting spring and fall annuals and providing holiday decorations.
Brinkman planted pine trees free of charge to replace pine trees damaged by a DuPont herbicide.
We signed a 2 year lease renewal with Brinkman
Regular maintenance of lighting on roadway at entrance
Regular maintenance of pond

7. Barn Update - Maintenance and Projects
The shed allowed for an expansion of stalls and improved Tack Room
Lindsay signed a two year lease in December
Regular maintenance of barn and surrounding land

8. Stepping Stone HOA Financial Review
Revenue
2011
2010
Assessments
$ 43,034
$ 41,063
Apt. Rental
7,140
7,020
Barn Rental
20,465
18,615
Barn Electric
Misc. Income
2160
1025
650
Total Revenue
$ 73,824
$ 67,348

9. Stepping Stone HOA 2011 2010 Capital Improvements $ 9,856 $ 5,676
Barn Expense/Apartment Exp
2011
2010
Capital Improvements
$ 9,856
$ 5,676
Barn Insurance
2,442
2,311
Barn Real Estate Taxes
6,470
5,938
Barn Electric
4,861
5,584
Barn Water
2,265
2,347
Barn/Apt Repair/Maint.
11,413
4,830
Total Barn Expense
$37,307
$26,686

10. Stepping Stone HOA HOA Expense 2011 2010 Landscape Maintenance $27,005
$27,805
Electric
5,696
4,927
Repairs/Maintenance
6,220
923
Pond Expense
2,495
Insurance
1,562
1,540
Taxes Real Estate
1840
1,689
Misc. Expense
714
519
Social Expense
624
520
Total HOA Expense
$46,156
$40,418

11. Stepping Stone HOA Income Statement
2011
2010
Revenue (HOA, Barn, Rental)
$73,824
$67,348
Barn Expense
37,307
26,686
HOA Expense
46,156
40,418
Total Expense
$83,463
$67,104
Profit (Loss)
$ (9,639)
$244

12. Stepping Stone HOA Checkbook Balance
Ledger Balance 12/31/10
$ 15,262
Ledger Balance 12/31/11
$ 5,024
Change
$(10,238)

13. The Barn / Apartment– Financial Update
2011
2010
Apartment Rental
$ 7,140
$7,020
Stable Rental
20,465
18,615
Electric Refund
Barn Income
2,160
29,765
None
25,635
Barn Expense
37,307
26,686
Profit (Loss)
$ (7,542)
$(1,051)

14. Summary of 2011 Stepping Stone HOA Financials
Revenue increased 8.5% due to increased barn revenue & HOA fees
Barn expenses increased nearly 40% predominantly due to barn additions and drainage upgrades
HOA expenses increased 14% due increase repairs & maintenance
Overall the total HOA had a loss of $(9639) TY vs. $244 profit LY
In general, the loss was largely due to barn upgrades & unusually high barn repair expenses.
2012 looks to be better year due to anticipated lower maintenance costs, lower capital improvements, and increased revenue

15. Social Committee Update
Directories delivered
Spring Egg Hunt – April 16, 2011
Candy and goody bags provided
Happy Hour – Friday, June 10, 2011
Appetizers, Beer and Wine provided
Block Party – Sat., August 20, 2011
30 households attended
Games were provided by Dawes and Middlestadt families
Halloween Party
Entertainment provided by Peter Rushton of PT Reptiles

16. 2012 Plans What we plan to do in 2012:
Fence in the South Pasture Spring 2012
Lindsay previously leased from the Cohee family of 7031 Aly Dar
The Cohees raised the rent by 25% (from $400 to $500) and conveyed that would raise the rent to $700 a month.
The Cohees pay property taxes of $1,044 a year ($87 a month) and provided no seeding or maintenance
A horse grazing on the Cohee pasture was shot and killed on December 1, 2011
Raises our monthly revenue by $400
Barn Improvements
Paint cupola
Replace front door
Replace apartment’s privacy fence

17. 2012 Upcoming Issues/Goals
Continue to Improve Landscaping/Pond Management
Work with Lindsay Yinger on strategy for barn improvements
Look into property management company if volunteer interest continues to be low

18. What is the Architectural Review Board (ARB)?
Committee under the Home Owners’ Association
Monthly meetings (first Tuesday)
7:00PM at the barn
Mandate is driven by Stepping Stone covenants
Agenda driven by covenants, resident, and/or ARB member observations and requests

19. What is the purpose of the Architectural Review Board (ARB)?
Establish and preserve design guidelines
Ensure we maintain the character of the neighborhood
Maintain property values
Pre-approve all exterior changes and additions
Additions or alterations must be submitted to ARB for prior approval
Maximum response time is 60 days
Enforcement
By ARB or by the HOA Board at recommendation of ARB
This may include removal of improvements and assessment of related costs to homeowner

20. Which covenants are applicable to the Architectural Review Board (ARB)?
Article IV (Architectural Review), and Article V (Protective Covenants and Restrictions)
Summary of relevant covenants distributed to all residents
Part of welcoming process for new residents
Realtors with listings
Available on Stepping Stone web site
note: the covenant language overrides the summary

21. Architectural Review Board (ARB)
ARB applications should be submitted for the following: Any improvement, addition, change, or alteration visible to the exterior any change in exterior color landscaping land contours and grades plans for cross sections and elevations exterior lighting plans mail boxes, address markers and exterior ornamentation walls, fencing and screening patios, fences, gazebos and porches swing sets, play areas, basketball boards, and similar improvements drawings with samples of materials and colors vehicles, trailers, boats antennas and dishes swimming pools

22. Mail Box Painting Proposal
There are many mail boxes in poor condition
The mail boxes are truly front and center. They are very visible.
Other communities provide a similar service and it creates a better more uniform look to the neighborhood.
The cost is low and may cost less than the resident doing the work themselves.

23. Architectural Review Board (ARB) Members
Jacquie Fadel Michelle Slisher Angela Richards Lisa Middlestadt WE ARE IN NEED OF NEW MEMBERS!

24. Resident Concerns

25. Election of New Board Members
Open Nominations for Election to the Board
President opens the election and asks for nominations from the floor by asking a raise of a hand, stating name and residence address. A nomination is completed with a second
Only one individual, owner or spouse, residing at a residence may run for an elected office
Nominations are closed when no more hands are raised
Nominees are Designated and Ballots Distributed for Voting
Only one vote per household. Ballots will contain the street address of said voter resident
The President (if not a nominee) will Appoint a Committee to Collect and Count Executed Ballots. If the President is a nominee for re-election, he or she will appoint a resident, at will, to supervise the vote

26. Election of New Board Members (cont.)
Vote Count by Appointed Committee
The Vote committee is to announce the winners of the election at the close of the Annual Meeting, but refrain from submitting the numbers of votes for each nominee
Solicit Volunteers for Officers and Committees