1. Beaver Lake Homeowners Association 2007 Annual Financial Report

2. Good News Expenses were $17,597 or 0.9% lower than last year Key drivers Labor costs (salary, benefits, payroll taxes) $656, 174 – Down $18,231 or 2.7% – Short one job in the office for several months

3. Beaver Lake Homeowners Association Labor Costs Salaries, wages and benefits – Down 2.6% over the past four years Consumer Price Index over same period – up 15% Troy’s Deployment

4. Good News Key drivers Repairs & Maintenance -- $299,934 – Down $6,523 or 2.1% – Includes: Water and Sewer Plant, Roads, Common Areas, Pool and Clubhouse, Equipment, and Contract Labor

5. Beaver Lake Homeowners Association Repairs and Maintenance Repairs and Maintenance – up 8.0% over the past five years Consumer Price Index over same period – up 15%

6. Good News – Interest Expense $146,624 – Down $11,364 or 7.2%

7. Beaver Lake Homeowners Association Interest Expense Water Treatment Plant accounted for $124,206 or 85% or interest expense

8. Bad News Taxes (real estate & personal property) - $137,205 – Up $22,341 or 19.4%

9. Beaver Lake Homeowners Association Real Estate and Personal Property Tax Taxes – up 82% over the past five years Consumer Price Index over same period – up 15%

10. Bad News – Insurance -- $160,440 Up $17,677 or 12.3%

11. Beaver Lake Homeowners Association Insurance Insurance – up 89.6% over the past five years Consumer Price Index over same period – up 15%

12. Sources of Revenue -- 2007 $1,957,914 Maint. Fees$1,135.3 Utility Fees$319.7 Murray Sewer$40.7 Utility Expansion$271.8 Meter Hookup Fees$87.8 Other$99.3

13. Where the Money Goes -- 2007 $1,981,828 Labor $ 656.2 Deprec. $ 408.6 Taxes $ 137.2 Interest & Fees $ 177.7 Insurance $ 160.4 Water & Sewer $ 157.5 Other $ 284.2 Depreciation - $408,589 Capital Budget -- $391,450 Excess Expenses over Revenue -- $23,914

14. How About Revenue? Membership Dues – a 10-year history 1999 -- $611.00 2000 -- $611.00 2001 -- $611.00 Membership dues have 2002 -- $611.00 increased 13.0% over the 2003 -- $641.60 the past 10 years. 2004 – $641.60 2005 – $657.64 The Consumer Price Index has 2006 – $657.64 gone up 28% in that same period 2007 -- $690.48 2008 -- $690.48

15. Utilities at Beaver Lake - Water and Sewer Rates – a 10-year history 1999 -- $11.80 2008 -- $17.41 – Special Assessments 1999 -- $96.00 Utility Expansion Fee 2008 -- $168.00 Utility Expansion Fee Based on 3,000 gallon minimum

16. Cost of Living at Beaver Lake - – Total Association Costs 1999 -- $848.60 2007 -- $1,067.40 » +25.7% » Core CPI +28%

17. Utilities in Cass County Cass County Rural Water – $27.50 minimum + water usage – $2.76 per 1,000 gallons Monthly charge for 3,000 gallons-- $35.78 Annual Charge -- $429.36 (but no sewer) Annual Utility Cost (3,000 gallons per month) – Cass County Rural Water -- $429.36 – BL (water & sewer) $208.02 + $168 (assessment) Total -- $376.92

18. History of Debt at Beaver Lake Phase II 1998 – Wastewater Treatment Plant $1,200,000 – 2002 – Road Paving Project Renegotiated WTP loan – Old Balance $458,330 – New Balance $800,000 – 2005 – Dredge – Old balance $475,930 – New Balance $486,918 (Murray sewer - $265,000) – Current Balance $231,649

19. History of Debt at Beaver Lake Phase III 2003 – Water Treatment Plant -- $3,246,791 Why we built the water plant!! Nebraska Clean Water Act Regulations Capacity Issues – eliminate rationing Remove odor and taste from water Old plant was deteriorating

20. Current Debt Water Treatment Plant $3,017,007 GMAC $12,757 Road/Dredge/Sewer Plant $231,649 » Total -- $3,261,414

21. Living at Other Lakes Copper Dollar Cove Mill Levy – 1.927392 Association Dues – A lots -- $1,519 – Off lake -- $1,145 No sewage treatment – sewage lagoon Cass County Rural Water -- $429.36 (3,000 gallons) Cost of living – $100,000 -- $3,875.75 Beaver Lake $2,976.25 (-23.2%) – $350,000 -- $8,694.20 Beaver Lake $7,775.31 (-10.5%)

22. Living at Other Lakes Lake Wa Con Da Mill Levy – 2.696403 (SID – 0.767761) Association Dues – $300 – Possible future assessment for dike work – Assessment in 2005 for dredging Cass County Rural Water -- $429.36 (3,000 gallons) Cost of living – $100,000 -- $3,438.21 Beaver Lake $2,976.25 (-13.4%) – $350,000 -- $10,220.35 Beaver Lake $7,775.31 (-23.9%)

23. Living at Other Lakes Buccaneer Bay Mill Levy – 2.777394 (SID – 0.85002) Association Dues – $300 for those who live on lake – Golf memberships are additional Buccaneer Bay Debt (SRF Loan) -- $6,924,794 Water/Sewer $14.98 per month + $22 debt reduction assess. – $443.76 annually (3,000 gallon minimum) Cost of living – $100,000 -- $3,521.15 Beaver Lake $2,976.25 (-15.4%) – $350,000 -- $10,464.64 Beaver Lake $7,775.35 (-25.7%)

24. Living in Other Communities Plattsmouth Mill Levy – 2.352832 Association Dues – None – But no lake Plattsmouth Sewer & Water – billed by cubic foot – 3,000 gallons would equate to $179.76 annually Cost of living – $100,000 -- $2,351.82 Beaver Lake $2,976.25 +26.6% – $350,000 -- $8,411.13 Beaver Lake $7,775.31 -7.6%

25. Living in Other Communities Murray Mill Levy – 2.369625 Association Dues – None – But no lake Cass County Rural Water -- $429.36 (3,000 gallons) Sewage – BLA --$216.48 Cost of living – $100,000 -- $3,015.47 Beaver Lake $2,976.25 (-1.3%) – $350,000 -- $8,939.53 Beaver Lake $7,775.31 (-13.0%)

26. Capital Expenditures Budget for 2008 -- $391,450 $112,583 principle for Dredge/Road/WTP Loan $119,527 principle on Water Plant Loan $ 6,600 principle on truck loan $152,740 left for projects/maintenance – Water tower maintenance, Lift stations, water meters, dam site #2 sedimentation project, seawall, one ton Budget for 2003 -- $473,186 $93,211 principle for Road/WTP Loan – Computers, skid loader, clubhouse retaining wall, retrofit lift station, s water tower repainted, clubhouse renovation, boat ramp restroom, lift station warning system, sander/snow blade, water meters, access area docks, etc.