GREENBRIAR AT WHITTINGHAM

Transcription

THIRD AMENDMENT
TO THE
PUBLIC OFFERING STATEMENT
FILED AND PRESENTED BY:
U.S. HOME CORPORATION
800 WEST MAIN STREET
FREEHOLD, NEW JERSEY 07728
FOR
(SECTION 2.1-67 HOMES)
(SECTION 2.2, Phases A & B - 115 HOMES)
(SECTIONS 2.2 Phases C through H, 1.3 - 405 HOMES)
(SECTION 3.1-100 HOMES and SECTION 1.5-30 HOMES)
LOCATED IN THE
TOWNSHIP OF MONROE, MIDDLESEX COUNTY, NEW JERSEY
NOTICE TO PURCHASERS
THIS THIRD AMENDMENT TO THE PUBLIC OFFERING STATEMENT IS FOR INFORMATIONAL
PURPOSES ONLY. PURCHASERS SHOULD ASCERTAIN FOR THEMSELVES THAT THE PROPERTY
OFFERED MEETS THEIR PERSONAL REQUIREMENTS. THE NEW JERSEY DIVISION OF CODES AND
STANDARDS, BUREAU OF HOMEOWNER PROTECTION, DEPARTMENT OF COMMUNITY AFFAIRS
HAS NEITHER APPROVED NOR DISAPPROVED THE MERITS OF THIS OFFERING.
EFFECTIVE DATE OF PUBLIC OFFERING STATEMENT: JULY 14, 1994
REGISTRATION NUMBER: #R 1532C
Effective Date of First Amendment: OCTOBER 7, 1994
Effective Date of Second Amendment: APRIL 20, 1995
Effective Date of Third Amendment: JANUARY 31, 1997
THIS THIRD AMENDMENT TO THE PUBLIC OFFERING STATEMENT HAS BEEN FILED AND
PRESENTED PURSUANT TO THE PLANNED REAL ESTATE DEVELOPMENT FULL DISCLOSURE ACT
(N.J.S.A. 45:22A-21 ET SEQ.), AND OF THE REGULATIONS PROMULGATED THEREUNDER.
Prepared By:
WENDELL A. SMITH, ESQ.
Greenbaum, Rowe, Smith, Ravin, Davis & Himmel
P. O. Box 5600
Woodbridge, New Jersey 07095
THIRD AMENDMENT
TO THE
PUBLIC OFFERING STATEMENT
FOR
U. S. Home Corporation, a Delaware corporation (hereinafter the "Developer"), with its principal office at
800 West Main Street, Freehold, New Jersey 07728 hereby amends its Public Offering Statement ("POS") for
Greenbriar at Whittingham (the "Development") effective July 14, 1994, the First Amendment to the Public
Offering Statement ("First Amendment") effective October 7, 1994 and Second Amendment to the Public
Offering Statement ("Second Amendment") effective April 20, 1995 as set forth herein.
Heretofore, the Developer has offered for sale pursuant to the POS sixty - seven (67) fee simple Homes in
Section 2.1 of the Development. Under the terms of the Public Offering Statement and ancillary governing
documents, the Developer has reserved the right to incorporate additional Homes into the Development and to
offer the additional Homes for sale. By means of the First Amendment, the Developer exercised its right to offer
for sale one hundred and fifteen (115) additional fee simple Homes in Section 2.2, Phases A & B. By means of
the Second Amendment, the Developer exercised its right to offer for sale four hundred five (405) additional fee
simple Homes in Sections 2.2, Phases C through H and 1.3 (the Model Area in the Development.) By means of
this Third Amendment, the Developer is hereby exercising its right to offer for sale one hundred thirty (130) fee
simple Homes in Sections 3.1 and 1.5 in the Development and the POS is modified as herein provided.
1. Section 3 entitled "Description of the Development" is amended as follows:
A. As amended, the first paragraph is deleted in its entirety and replaced with the following:
"The Development consists of approximately 343.2 acres of land owned by the Developer upon
which the Developer currently intends to construct 1,200 Homes and a nine - hole golf course; together
with certain other improvements, and hereby offers for sale an additional one hundred thirty (130) fee
simple Homes in Sections 3.1 and 1.5 of the Development".
B. As amended, the first three sentences in the third paragraph in this Section are deleted in their entirety
and replaced with the following:
"The Homes, in Sections 3.1 and Section 1.5 are intended to include 100 single family detached
Homes and 30 single family attached duplex Homes, respectively. The single family detached models
include the include the Barrington, Danbury, Manchester, and Westbury which range from 1,750 to 1,930
square feet in area. The single family attached duplex models include the Concord, Essex, Fairfax,
Lexington and Westport which range from 1,675 to 1,840 square feet in area."
2. Section 9 entitled, "Proposed Operating Budgets for Common Property is amended as follows:
A. As amended, in subsection A entitled, "Whittingham Homeowners Association":
(i) the first sentence of the second paragraph is deleted in its entirety and replace with the following:
"Copies of the current operating budget, projected operating budget and estimated full occupancy
budget for the operation and management of WHOA are attached hereto as Exhibits 10, 10A and 10B,
respectively".
B. As amended, in subsection B entitled, "Greenbriar at Whittingham Community Association":
(i) the reference to "RCA" in the last line of the first paragraph, is deleted and replaced by the reference
"GWCA" to correct a typographical error.
(ii) the first sentence of the second paragraph is deleted in its entirety and replaced with the following:
"Copies of the current operating budget, estimated operating budget, and estimated full
occupancy budget together with corresponding Letters of Adequacy are attached hereto as Exhibits 13,
13A, and 13B respectively".
3. As amended, in Section 15 entitled "Escrow Account", the name of the banking institution has been changed to
First Union Bank.
4. In Section 20, entitled "Taxes, Municipal Assessments and Deductions", the third through fifth sentences are
revised as follows:
"The tax rate per $100.00 of the assessed valuation for the last three years is as follows: 1996 $2.28, 1995 - $2.26, 1994 - $2.16. At the present time, assessed value, based upon the County
equalization, is 100.00% of proposed assessment, land and improvements. In 1996, the assessed ratio was
88.16%, in 1995 the assessed ratio was 88.75% and in 1994 the assessed ratio was 90.52.%".
Exhibits to Public Offering Statement
Copies of the following Exhibits are attached as Exhibit to this Third Amendment to the Public Offering
Statement: WHITTINGHAM HOMEOWNERS ASSOCIATION, INC.
5.
Exhibit 10A - Forecasted Annual Budget Including Reserves for the Year of Operations ending December
31, 1997 Based on Occupancy of 801 Units and 1997 Dollars and Budget Letter of Adequacy
6.
Exhibit 10B - Forecasted Annual Budget Including Reserves for the First Full Year of Operation Based
on Full Occupancy of 1613 Units and 1996 Dollars and Budget Letter of Adequacy
7.
Exhibit 10C - Insurance Letters of Adequacy
GREENBRIAR AT WHITTINGHAM COMMUNITY ASSOCIATION, INC.
8.
Exhibit 13 - Forecasted Annual Budget Including Reserves for the Year of Operation ending December
31, 1997 Based Upon 388 Homes and 1996 Dollars and Budget Letter of Adequacy
9.
Exhibit 13A - Forecasted Annual Budget Including Reserves for the First Full Year of Operation Based
on Full Occupancy of 1200 Homes and Budget Letter of Occupancy
10.
Exhibit 13B - Insurance Letters of Adequacy
11.
Exhibit 18 - Proposed Amendment and Supplement for Incorporation of New Phases
GREENBRIAR GOLF COURSE ASSOCIATION, INC.
12.
Exhibit 21 - Forecasted Annual Budget Including Reserves for the Year of Operations ending December
31, 1997 Based on 512 Members and 1996 Dollars
13.
Exhibit 21A - Forecasted Annual Budget Including Reserves for the First Full Year of Operations Based
on Full Occupancy of 1,300 Members and 1996 Dollars
14.
Exhibit 21B - Insurance Letters of Adequacy
15.
Except as set forth in this Third Amendment to the POS ("Third Amendment") for Greenbriar at
Whittingham, all other provisions of the POS for Greenbriar at Whittingham dated July 14, 1994, shall remain as
stated.
The Developer has been represented by the law firm of Greenbaum, Rowe, Smith, Ravin, Davis
& Himmel in the preparation of this Third Amendment to the Public Offering Statement. Said law firm has made
no independent investigation or determination as to the accuracy of the facts and statements set forth herein, but
has relied on the representations made by the Developer and its agents with respect thereto. Accordingly, although
said law firm has no specific knowledge to the contrary, it assumes no independent responsibility or any liability
with regard to the accuracy of such facts or statements. In addition, said law firm has relied exclusively upon the
opinions or certifications of those other persons who have prepared or approved various exhibits to this Plan or
the Application For Registration and has not made an independent judgment or evaluation of any aspects of same.
Therefore, it also assumes no independent responsibility or liability with respect to the contents of any such
exhibits.
The Developer hereby represents that to the best of its knowledge information and belief, the statements
and representations contained herein are true and accurate.
U. S. HOME CORPORATION
THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK
WHITTINGHAM HOMEOWNERS ASSOCIATION, INC.
Exhibit 10A
Forecasted Annual Budget Including Reserves
for the Year of Operations ending December 31, 1997
Based on Occupancy of 801 Units and 1997 Dollars
FORECASTED ANNUAL BUDGET INCLUDING RESERVES
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31, 1997
BASED ON OCCUPANCY OF 801 UNITS AND 1997 DOLLARS
The Developers
Whittingham Homeowners Association, Inc.
We have examined the accompanying Forecasted Operating Budget of Whittingham Homeowners
Association, Inc. for the year ending December 31, 1997 based on occupancy of 801 units. Our
examination was made in accordance with standards for an examination of a forecast established by
the American Institute of Certified Public Accountants and, accordingly, included such procedures as
we considered necessary to evaluate both the assumptions used by the Sponsor and the preparation
and presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the Sponsor's knowledge and
belief, the Association's expected revenues, expenditures and replacement funding for the year ending
December 31, 1997 based on 801 units. It is not intended to be a forecast of financial position, results
of operations or cash flows. The accompanying forecasted operating budget and this report were
prepared for the Developer, for inclusion in the Public Offering Statement of Whittingham Homeowners
Association. Inc. and should not be used for any other purpose.
In our opinion, the accompanying Forecasted Operating Budget is presented in conformity with
guidelines for presentation of forecasted information established by the American Institute of Certified
Public Accountants and the underlying assumptions provide a reasonable basis for the Sponsor's
forecast, and that the operating budget including replacement funding is adequate. However, there will
usually be differences between the forecasted and actual results, because events and circumstances
frequently do not occur as expected and those differences may be material. We have no responsibility
to update this report for events and circumstances occurring after the date of this report.
125 Half Mile Road, Red Bank, New Jersey 07701-6749 • Tel. (908) 747-0500 • Fax (908) 747-7700
NOTE
REFERENCE
REVENUES:
Whittingham Homeowners Association
maintenance
Greenbriar at Whittingham Community
Association maintenance
Township snow removal reimbursement
Developer subsidy
ANNUAL
BUDGET
1
$1,122,198
2
3
4
524,871
20,000
391,560
TOTAL ASSOCIATION REVENUE
$2,058,629
OPERATING EXPENSES AND CAPITAL RESERVES:
GENERAL AND ADMINISTRATIVE:
Insurance
Professional fees
Management
Salaries, taxes and benefits
Uniforms
Payroll service
Nursing services
Audit fee
Office supplies
Copier
License/fees/permits
Bank service charges
CAI membership dues
Miscellaneous
Card keys
Federal income tax
5
6
7
8
9
10
12
11
13
14
15
16
17
18
19
$ 142,605
35,000
30,900
211,429
7,500
2,000
149,520
3,500
20,000
8,400
500
1,210
250
1,000
1,180
6,000
TOTAL GENERAL AND ADMINISTRATIVE
GROUNDS AND LANDSCAPING:
Painting
Refuse and recycling
Grounds maintenance
Snow removal
Lighting maintenance
Repairs and maintenance
Irrigation
Street sweeping
Pest control
620,994
20
21
22
23
24
25
26
28
29
5,000
39,650
174,015
55,000
9,000
60,000
24,760
3,000
3,800
TOTAL GROUNDS AND LANDSCAPING
See Accompanying Summary of Significant Assumptions
and Accountant's Report
2
374,225
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31.1997
NOTE
REFERENCE
SECURITY:
Security salaries, taxes and benefits
Gatehouse
Gate maintenance
Security
Home monitors
30
31
32
33
34
ANNUAL
BUDGET
$ 179,289
6,200
2,400
1,000
65,670
TOTAL SECURITY
254,559
CLUBHOUSE:
Utilities
Telephones
Cable
Elevator
Indoor plants
Maintenance wages, taxes and benefits
Repairs and supplies
Trash removal
Real estate taxes
35
36
37
38
39
40
41
42
43
105,200
11,100
400
2,300
3,500
112,908
45,000
2,000
65,000
TOTAL CLUBHOUSE
347,408
POOL:
Management
Repairs
Maintenance and supplies
Gas/electric
44
45
46
47
90,700
16,600
4,000
4,000
TOTAL POOL
115,300
TRANSPORTATION:
Auto expense
Auto lease
Bus driver wages and taxes
Bus repairs and maintenance
Bus lease
Bus operations
48
49
50
51
52
17,000
16,330
39,623
2,000
18,000
100
TOTAL TRANSPORTATION
93,053
CAPITAL EXPENDITURES
53
10,000
CAPITAL REPLACEMENT RESERVES
54
243,090
TOTAL ASSOCIATION BUDGET
3
$2,058,629
WHITTINGHAM HOMEOWNERS ASSOCIATION
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's knowledge and belief, the Association's
expected operating budget for the year assuming the following conditions:
•
No construction or material defects will exist after completion of the common and limited
common areas and structures;
•
The quantities of common and limited common areas contained in the operating budget are
accurate;
•
Proper maintenance of the common and limited common areas and structures will take place
in the future;
•
The schedule of replacement reserves will be reviewed on an annual basis and
assessments will be updated for changes in projected lives and replacement costs.
The forecast reflects the Sponsor's judgment as of December 18,1996, the date of this forecast, of
the expected course of action given 1996 dollars for the fiscal year based upon occupancy of 801
units. The forecasted budget amounts are those expected to be incurred in the normal operations of
the general and limited common elements. It does not include expenses incurred for individual units.
The assumptions disclosed herein are those that the sponsor believes are significant to the forecast.
Further, even if full occupancy levels were attained and expenses remained at 1996 dollars, there
will usually be differences between the forecasted and actual results, because events and
circumstances frequently do not occur as expected and those differences may be material.
REVENUES:
Note 1.
Whittingham Homeowners' Association Maintenance
This revenue account is calculated based on a combination of unit square footage and of equal
allocation of the following items: reserves, trash removal and home monitoring.
Townhouses
Single family
Manors
213 units
64 units
136 units
$235.96 per unit/per month
Note 2.
Greenbriar at Whittingham Community Association Maintenance
Each unit owner of Greenbriar at Whittingham is assessed a monthly fee to cover operating
expenses of the recreational facilities maintained by the Whittingham Homeowners' Association.
This revenue account is calculated at $112.73 per unit per month based on 388 units.
Note 3.
The Association is to be reimbursed for snow removal from Monroe Township.
4
REVENUES: (Continued)
Note 4.
Developer Subsidy
Any deficiency between the actual income and expenses for the Whittingham Homeowners
Association Fixed Expenses in any fiscal year, shall be paid by the Developer in twelve (12) equal
monthly installments based upon the current Whittingham Homeowners Association operating
budget. The Developer shall have the right to terminate its subsidy of the Whittingham
Homeowners Association Fixed Expenses at any time after at least 1,210 homes within the
community have been conveyed to individual purchasers.
EXPENSES:
Note 5.
Insurance
This expense is based on the current insurance coverage from Boyarin, Hourigan and Blundell to
provide replacement cost hazard insurance on the common elements, Directors and Officers
coverage, employee dishonesty fidelity bond, and comprehensive general liability. The expense
also includes $2,000 as a self insured deductible.
Note 6.
Professional Fees
This is an estimate per Association's attorney to provide legal counsel and to bring collection
actions for delinquent accounts.
Note 7.
Management
This cost is based on $2,575 per month to provide financial management and consulting to the
Association and is based on the current contract with Wentworth Property Management Company.
Note 8.
Salaries. Taxes and Benefits
These estimates are based on five full time and three part time management employees. Payroll
taxes are computed at 11.75% of salaries. Benefits are estimated on current billings for full time
employees.
Note 9.
Uniforms
Uniform expense is calculated for 16 workers at $9.00 per workers per week.
Note 10. Payroll Service Expense
This cost is based on contract with ADP to provided payroll services at $36 per week.
Note 11. Audit Fee
An annual independent audit of the Association is required by the Association documents. Fee
based on 1995 actual amount.
Note 12. Nursing Services
The Association has a contract with St. Peters Medical Center to provided nursing services.
5
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31. 1997
Note 13. Office Supplies
Estimated expense for supplies, letterhead, postage, and paper based on 1996 actual.
Note 14. Copier
Cost of leasing a copier and related service contract estimated at S680 per month.
Note 15. Licenses/Fees/Permits
These expenses consist of various operating licenses, fees and permits required by various
agencies and authorities. The amounts are estimated based on the prior year budget.
Note 16. Bank Service Charges
Represents various bank charges on Association's bank accounts. Amount is estimated based on
the prior year budget.
Note 17. CAI Membership Dues
Amount based on CAI schedule of membership dues.
Note 18. Card Keys
This expense represents the estimate cost of gate openers.
Note 19. Federal Income Tax
The Association is required to pay Federal income tax on non-membership income which consists
primarily of interest income.
Note 20. Painting
Estimated cost of painting doors at $50 each for 100 Whittingham Homeowner units.
Note 21. Refuse and Recycling
Calculated based on 413 Whittingham units a $8 per unit per month charge by local carters.
Note 22. Grounds Maintenance
Landscape maintenance is provided through a contract with Landscape Maintenance Services Inc.
Note 23. Snow Removal
Estimated cost based on 1996 budget amounts.
Note 24. Lighting Maintenance
Maintenance on lights poles and fixtures owed by Whittingham Homeowners Association based on
1996 budget amounts.
Note 25. Repairs and Maintenance
These items consist of fixed expenses relating to the common area recreation facilities excluding
the pool and variable expenses relating to Whittingham units for siding, shingles, drainage and
landscape items. Costs relating to these items are based on 1996 budget amounts.
6
GROUNDS AND LANDSCAPING: (Continued)
Note 26. Irrigation
Irrigation consists of equipment maintenance, well and electric to operate the pump. The costs are
based on a 1997 maintenance contract and 1996 budget amounts.
Note 27. Engineering
No engineering costs are anticipated for 1997.
Note 28. Street Sweeping
Estimated cost for one sweeping per year based on 1996 budget.
Note 29. Pest Control
Cost of treatment based on 1997 contract.
SECURITY:
Note 30. Security Salaries. Taxes and Benefits
These estimates are based on six full time and five part time employees. Payroll taxes are
computed at 11.75% of salaries. Benefits are estimated on current billings for full time employees.
Note 31. Gatehouse
Maintenance and utilities based on 1996 budget amounts.
Note 32. Gate Maintenance
Cost of replacing gate arms based on 1996 budget amounts.
Note 33. Security
Estimated miscellaneous supplies for security.
Note 34. Home Monitors
Cost of home monitoring based on a contract for 413 Whittingham homes at $12.50 per unit per
month plus tax.
CLUBHOUSE:
Note 35. Utilities
Utilities consist of electric, gas, water and sewer based on prior year.
Note 36. Telephone
Coin phone and telephones located in the clubhouse and gatehouse based on prior year.
Note 37. Cable
Cable television service is available in the clubhouse. The cost is at a rate set by the local cable
supplier.
7
CLUBHOUSE: (Continued)
Note 38. Elevator
Elevator maintenance is based on a 1997 service contract with Cesco, Inc.
Note 39. Indoor Plants
Maintenance of indoor plants is estimate at $225.00 per month based on past experience.
Note 40. Maintenance Wages, Taxes and Benefits
These estimates are based on three full time and three part-time employees. Payroll taxes are
computed at 11.75% of salaries. Benefits are estimated on current billings for full time employees.
Note 41. Repairs and Supplies
These expenses are for items not covered elsewhere and are calculated based on 1996 budget
amounts.
Note 42. Trash Removal
Expense is calculated at $140.00 per month based on contract with local carter.
Note 43. Real Estate Taxes
This tax is based on a tax rate of $2.28 per $100 in assessed value as established by the Monroe
Township tax assessor. The land and building are assessed at approximately $2,633,000.
POOL:
Note 44. Management
The Association has an indoor and outdoor pool. The management expense of the pools are
based on a 1997 contract with Candlewood Pool Management.
Note 45. Repairs
These costs are for general repairs including concrete work, heaters, gaskets and filters and are
based on prior year costs.
Note 46. Maintenance and Supplies
These expenses are for items not covered by the pool contract and are calculated based on prior
year costs.
Note 47. Gas/Electric
These expenses are calculated based on prior year costs.
TRANSPORTATION:
Note 48. Auto Expenses
These expenses are for fuel, repairs and maintenance of the Association's vehicles based on 1996
budget amounts.
8
TRANSPORTATION: (Continued)
Note 49. Auto Leases
The Association has three vehicle leases. The amount reflects the current lease obligations under
these leases.
Note 50. Bus Driver Wages and Taxes
These estimates are based on one full time employee and one part time driver. Payroll taxes are
computed at 11.75% of salaries. Benefits are estimated on current billings for the full time
employee.
Note 51. Bus Lease
The Association is financing a bus under a lease purchase. The monthly payments of principal and
interest are $1,500.00. Final payment is due April 1, 2001.
Note 52. Bus Operations
The expense consists of motor vehicle fees to operate the bus.
CAPITAL EXPENDITURES:
Note 53. Capital Expenditures
Cost of acquisition of computers and software for Association use.
CAPITAL RESERVES:
Note 54. Capital Reserve Replacement Funding
An independent engineering report was prepared by Crest Engineering Inc. through a review of the
site and architectural plans in August 1995. The quantities and cost estimates included in this
budget were directly from this report. The schedule of capital replacement reserves are detailed in
an exhibit to this report. (Pages 10-12)
The budgeted amount for 1997 is based on the reserve schedule plus a 2% increase for inflation. It
also includes a small increase for newly acquired items not included on the reserve schedule.
9
REPLACEMENT RESERVE SCHEDULE
AUGUST 1995
Capital Item
RECREATION:
Pavement
Concrete Walks/ Patios
Lighting
High level
Standard
Structures
Pool-Outdoor
Liner
Equipment
Deck-Concrete
Deck-Wood
Wood Awning
Building Roof
Furniture
Fence
Tennis Courts
Recolor
Resurface
Fence
Fence
Lights
Shuffleboard Courts
Whittingham Drive
Pavement
Concrete
Guardhouse
Security Gate
Estimated
Remaining Useful
Lives (Years)
Annual Reserve
Required
12
24
$ 124,000
28,300
$ 8,267
943
22
22
24
35,200
42,900
40,000
1,408
1,716
1,333
14
9
24
24
24
14
9
24
25,000
8,000
28,600
12,600
20,160
7,200
35,000
49,880
1,250
533
953
420
672
360
2,333
1,663
1
9
19
24
19
19
16,000
52,500
17,250
17,250
26,400
17,500
2,285
3,500
690
690
1,056
700
15
24
14
4
192,500
17,500
16,000
32,000
12,833
583
800
3,200
861,740
48,188
19
160,000
6,400
9
14
14
24
19
14
37,200
72,000
4,500
10,000
9,100
47,300
2,480
3,600
225
417
364
2,365
14
14
14
14
14
14
14
14
20
14
2,600
17,300
17,400
7,900
17,900
8,400
12,000
4,800
8,400
12,600
130
865
870
395
895
420
600
240
420
630
SUBTOTAL
BUILDING INTERIOR:
HVAC
Floor Covering
Carpet
Tile
Ceramic Tile
Hardwood
Miscellaneous
Wall Covering
Furniture - 1st Floor
Medical Area
Ballroom
Partition
Great Room
Lobby
Tap Room
Kitchen
Rest rooms
Locker Rooms
Sauna/Steam
Current
Replacement
Value
AUGUST 1995
Capital Item
Estimated
Remaining Useful
Lives (Years)
BUILDING INTERIOR: (Continued)
Pool-Indoor
Liner
Equipment
Exercise Room
Furniture - 2nd Floor
Mens Card
Womens Card
Board Room
Billiard Room
Offices
Hall
Rest rooms
Furniture - Basement
Ceramic & Crafts
Billiards
Rest rooms
Misc, Furniture
Card Tables
Chairs
64" Tables
Current
Replacement
Value
14
19
9
14
$ 4,800
15,800
11,500
10,500
$ 240
632
767
525
14
14
14
14
14
14
9
4,200
2,600
5,200
2,600
7,900
1,600
1,900
210
130
260
130
395
80
127
14
14
9
6,800
4,200
1,900
340
210
127
10
10
15
3,600
50,000
6,000
240
3,333
300
590,500
29,362
51,750
10,800
32,700
2,588
1,080
1,090
95,250
4,758
18
23
23
23
645,000
54,000
516,000
36,000
25,800
1,800
17,200
1,200
8
8
127,000
41,400
5,200
205,520
43,950
145,200
8,467
2,760
743
6,851
2,930
7,260
1,819,270
75,011
SUBTOTAL
BUILDING EXTERIOR:
Roofing - Shingles
Roofing - Flat
Vinyl Siding
14
4
24
SUBTOTAL
BUILDINGS:
Roof
Chimneys
Siding
Stairways
SITE
Pavement
Driveways
Seal Coat
Walks
Privacy Fence
Street Lights
Annual
Reserve
Required
23
8
13
SUBTOTAL (Section 1)
11
WHITTINGHAM HOMEOWNERS ASSOCIATION. INC.
AUGUST 1995
Capital Item
BUILDINGS:
Roof
Chimneys
Siding
Stairways
SITE
Pavement
Driveways
Seal Coat
Walks
Privacy Fence
Street Lights
TOTAL
Estimated
Remaining Useful
Lives (Years)
Current
Replacement
Value
Annual
Reserve
Required
20
25
25
25
720,000
82,200
579,000
54,000
28,800
2,740
19,300
1,800
10
10
2
25
10
15
78,000
19,800
2,460
259,620
40,730
179,300
5,200
1,320
352
8,654
2,716
8,965
2,015,110
79,847
$5,381,870
$237,166
Exhibit 10B
for the First Full Year of Operation
Based on Full Occupancy of 1613 Units and 1996 Dollars
and Budget Letter of Adequacy
FOR THE FIRST FULL YEAR OF OPERATIONS
BASED ON FULL OCCUPANCY OF 1613 UNITS AND 1996 DOLLARS
The Developers
Whittingham Homeowners Association, Inc.
We have examined the accompanying Forecasted Operating Budget of Whittingham Homeowners Association,
Inc. for the first full year of operations based on full occupancy of 1613 units. Our examination was made in
accordance with standards for an examination of a forecast established by the American Institute of Certified
Public Accountants and, accordingly, included such procedures as we considered necessary to evaluate both the
assumptions used by the Sponsor and the preparation and presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the Sponsor's knowledge and belief, the
Association's expected revenues, expenditures and replacement funding for the year first full year of operations
based on full occupancy. It is not intended to be a forecast of financial position, results of operations or cash
flows. The accompanying forecasted operating budget and this report were prepared for the Developer, for
inclusion in the Public Offering Statement of Greenbriar Golf Course Association, Inc. and should not be used for
any other purpose.
In our opinion, the accompanying Forecasted Operating Budget is presented in conformity with guidelines for
presentation of forecasted information established by the American Institute of Certified Public Accountants and
the underlying assumptions provide a reasonable basis for the Sponsor's forecast, and that the operating budget
including replacement funding is adequate. However, there will usually be differences between the forecasted and
actual results, because events and circumstances frequently do not occur as expected and those differences may be
material. We have no responsibility to update this report for events and circumstances occurring after the date of
this report.
1
17
NOTE
REFERENCE
REVENUES:
maintenance
ANNUAL
BUDGET
1
$ 942,410
2
3
1,128,096
20,000
$2,090,506
Insurance
Professional fees
Management
Salaries, taxes and benefits
Uniforms
Payroll service
Nursing services
Accounting
Office supplies
Copier
License/fees/permits
Bank service charges
CAI membership dues
Miscellaneous
Federal income tax
4
5
6
7
8
9
11
10
12
13
14
15
16
17
$ 152,113
35,000
30,000
184,682
6,550
2,000
181,881
3,500
25,000
8,400
500
1,210
250
3,046
6,775
Painting
Refuse and recycling
Grounds maintenance
Snow removal
Lighting maintenance
Repairs and maintenance
Irrigation
Engineering
Street sweeping
Pest control
Survey
640,907
18
19
20
21
22
23
24
25
26
27
28
TOTAL GROUNDS AND LANDSCAPING
2
2,500
40,240
174,020
137,500
9,000
60,000
27,000
5,000
3,000
3,500
2,500
464,260
SECURITY:
Security salaries, taxes and benefits
Gatehouse
Gate maintenance
Security
Home monitors
NOTE
REFERENCE
ANNUAL
BUDGET
29
30
31
32
33
$ 179,607
5,200
1,800
1,000
61,950
TOTAL SECURITY
249,557
CLUBHOUSE:
Utilities
Telephones
Cable
Elevator
Indoor plants
Maintenance wages, taxes and benefits
Repairs and supplies
Trash removal
Real estate taxes
34
35
36
37
38
39
40
41
42
94,000
10,160
360
2,290
2,700
118,368
40,000
1,680
62,000
TOTAL CLUBHOUSE
331,558
POOL:
Management
Repairs
Maintenance and supplies
Gas/electric
43
44
45
46
63,920
16,600
2,000
3,000
TOTAL POOL
85,520
TRANSPORTATION:
Auto expense
Auto lease
Bus driver wages and taxes
Bus repairs and maintenance
Bus lease
Bus operations
47
48
49
49
50
51
TOTAL TRANSPORTATION
17,000
16,330
28,608
1,500
18,000
100
81,538
CAPITAL REPLACEMENT RESERVES
52
3
237,166
$2,090,506
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's knowledge and belief, the Association's expected
operating budget for the year assuming the following conditions:
•
No construction or material defects will exist after completion of the common and limited common
areas and structures;
•
The quantities of common and limited common areas contained in the operating budget are accurate;
•
Proper maintenance of the common and limited common areas and structures will take place in the
future;
•
The schedule of replacement reserves will be reviewed on an annual basis and assessments will be
updated for changes in projected lives and replacement costs.
The forecast reflects the Sponsor's judgment as of August 7, 1996, the date of this forecast, of the expected
course of action given 1996 dollars for the fiscal year based upon full occupancy. The forecasted budget
amounts are those expected to be incurred in the normal operations of the general and limited common
elements. It does not include expenses incurred for individual units. The assumptions disclosed herein are
those that the sponsor believes are significant to the forecast. Further, even if full occupancy levels were
attained and expenses remained at 1996 dollars, there will usually be differences between the forecasted and
actual results, because events and circumstances frequently do not occur as expected and those differences may
be material.
REVENUES:
Note 1.
This revenue account is calculated based on unit square footage as follows:
Townhouses
Single family
Manors
213 units
64 units
136 units
1794 sq. ft.
1220 sq. ft.
1332 sq. ft.
Note 2.
Greenbriar at Whittingham Community Association Maintenance
Each unit owner of Greenbriar at Whittingham is assessed a monthly fee to cover operating expenses
of the recreational facilities maintained by the Whittingham Homeowners' Association. This revenue
account is calculated at $78.34 per unit per month based on 1200 units.
Note 3.
The Association is to be partially reimbursed for snow removal from Monroe Township.
4
EXPENSES:
Note 4.
Insurance
provide replacement cost hazard insurance on the common elements, Directors and Officers
coverage, employee dishonesty fidelity bond, and comprehensive general liability. The expense
also includes $2,000 as a self insured deductible.
Note 5.
Professional Fees
This is an estimate per Association's attorney to provide legal counsel and to bring collection
actions for delinquent accounts.
Note 6.
Management
This cost is based on $2,500 per month to provide financial management and consulting to the
Association and is based on the current contract with Wentworth Property Management
Company.
Note 7.
Salaries, Taxes and Benefits
These estimates are based on four full time and three part time management employees. Payroll
taxes are computed at 11.75% of salaries. Benefits are estimated on current billings for full time
employees.
Note 8.
Uniforms
Uniform expense is calculated for 14 workers at $9.00 per workers per week.
Note 9.
Payroll Service Expense
This cost is based on contract with Minidata to provided payroll services.
Note 10.
Audit Fee
An annual independent audit of the Association is required by the Association documents.
Note 11.
Nursing Services
The Association has contracted with the Home Health Services of New Jersey, Inc. and St. Peters
Medical Center to provided nursing services.
Note 12.
Office Supplies
This is an estimated expense for supplies, letterhead, postage, and paper.
Note 13.
Copier
This expense is the cost of leasing and maintenance on a copier based on a contract.
5
Note 14.
Licenses/Fees/Permits
These expenses consist of various operating licenses, fees and permits required by various
agencies and authorities. The amounts are estimated based on prior years expenses.
Note 15.
Bank Service Charges
Represents various bank charges on Association's bank accounts. Amount is estimated based on
prior years expenses.
Note 16.
CAI Membership Dues
Amount based on CAI schedule of membership dues.
Note 17.
Federal Income Tax
The Association is required to pay federal income tax on non-membership income which consists
primarily of interest income.
Note 18.
Painting
Estimated cost of painting garage doors for Whittingham Homeowner units.
Note 19.
Refuse and Recycling
This expense is calculated based on a $8.12 per unit per month charge from local carters.
Note 20.
Grounds Maintenance
Landscape maintenance is provided through a contract with Landscape Maintenance Services Inc.
Note 21.
Snow Removal
Estimated cost based on prior years expenses.
Note 22.
Lighting Maintenance
Maintenance on lights poles and fixtures owed by Whittingham Homeowners Association.
Note 23.
Repairs and Maintenance
These items consist of fixed expenses relating to the common area recreation facilities excluding
the pool and variable expenses relating to Whittingham units for siding, shingles, drainage and
landscape items. Amounts relating to these items are based on prior years expenses.
6
Note 24.
Irrigation
Irrigation consists of equipment maintenance, well and electric to operate the pump. The amounts
are based on a maintenance contract and on actual costs incurred in 1995.
Note 25.
Engineering
Estimated cost for transition related costs.
Note 26.
Street Sweeping
Estimated cost for one sweeping per year.
Note 27.
Pest Control
Estimated cost of treatment based on prior years.
Note 28.
Survey
Estimated cost for transition related costs.
SECURITY:
Note 29.
Security Salaries, Taxes and Benefits
These estimates are based on six full time and five part time employees. Payroll taxes are
computed at 11.75% of salaries. Benefits are estimated on current billings for full time
employees.
Note 30.
Gatehouse
Maintenance and utilities based on prior years.
Note 31.
Gate Maintenance
Cost of replacing gate arms based on prior years.
Note 32.
Security
Estimated miscellaneous supplies for security.
Note 33.
Home Monitors
Cost of home monitoring for 413 Whittingham homes is $12.50 per unit per month based on a
contract.
CLUBHOUSE:
Note 34.
Utilities
Utilities consist of electric, gas, water and sewer based on prior years.
Note 35.
Telephone
Coin phone and telephones located in the clubhouse and gatehouse.
7
23
CLUBHOUSE:
Note 36.
Cable
Cable television service is available in the clubhouse. The cost is at a rate set by the local cable
supplier.
Note 37.
Elevator
Elevator maintenance is provided through a service contract with Cesco, Inc.
Note 38.
Indoor Plants
Maintenance of indoor plants is estimate at $225.00 per month based on past experience.
Note 39.
Maintenance Wages, Taxes and Benefits
These estimates are based on four full time and two part time employees. Payroll taxes are
computed at 11.75% of salaries. Benefits are estimated on current billings for full time
employees.
Note 40.
Repairs and Supplies
These expenses are for items not covered elsewhere and are calculated based on experienced
costs.
Note 41.
Trash Removal
Expense is calculated at $140.00 per month based on contract with local carter.
Note 42.
Real Estate Taxes
This tax is based on a tax rate of $2.28 per $100 in assessed value as established by the Monroe
Township tax assessor. The land and building assessed value is $2,633,000.
POOL:
Note 43.
Management
The Association has an indoor and outdoor pool. The management of the pools are done under a
contract with Candlewood Pool Management.
Note 44.
Repairs
These costs are for general repairs including concrete work , heaters, gaskets and filters and are
based on past expenditure costs.
Note 45.
Maintenance and Supplies
These expenses are for items not covered by the pool contract and are calculated based on past
experienced costs.
Note 46.
Gas/Electric
These expenses are calculated based on past experienced costs.
8
24
TRANSPORTATION:
Note 47.
Auto Expenses
These expenses are for fuel, repairs and maintenance of the Association's vehicles.
Note 48.
Auto Leases
The Association has three vehicle leases. The amount reflects the current lease obligations under
these leases.
Note 49.
Bus Driver Wages and Taxes
These estimates are based on one full time employee and one backup driver estimated for six
weeks during the year. Payroll taxes are computed at 11.75% of salaries. Benefits are estimated
on current billings for the full time employee.
Note 50.
Bus Lease
The Association is financing a bus under a lease purchase. The monthly payments of principal
and interest are $1,410.00. Final payment is due April 1, 2001.
Note 51.
Bus Operations
The expense consists of motor vehicle fees to operate the bus.
CAPITAL RESERVES:
Note 52.
Capital Reserve Replacement Funding
An independent engineering report was prepared by Crest Engineering Inc. through a review of
the site and architectural plans in August 1995. The quantities and cost estimates included in this
budget were directly from this report. The schedule of capital replacement reserves are
detailed in an exhibit to this report. (Pages 10 - 12)
9
AUGUST 1995
Capital Item
RECREATION:
Pavement
Concrete Walks/
Patios
Lighting
High level
Standard
Structures
Pool-Outdoor
Liner
Equipment
Deck-Concrete
Deck-Wood
Wood Awning
Building Roof
Furniture
Fence
Tennis Courts
Recolor
Resurface
Fence
Fence
Lights
Shuffleboard Courts
Whittingham Drive
Pavement
Concrete
Guardhouse
Security Gate
Estimated
Remaining Useful
Lives (Years)
Current
Replacement
Value
12
$ 124,000
$ 8,267
24
28,300
943
22
22
24
35,200
42,900
40,000
1,408
1,716
1,333
14
9
24
24
24
14
9
24
25,000
8,000
28,600
12,600
20,160
7,200
35,000
49,880
1,250
533
953
420
672
360
2,333
1,663
1
9
19
24
19
19
16,000
52,500
17,250
17,250
26,400
17,500
2,285
3,500
690
690
1,056
700
15
24
14
4
192,500
17,500
16,000
32,000
12,833
583
800
3,200
861,740
48,188
19
160,000
6,400
9
14
14
24
19
14
37,200
72,000
4,500
10,000
9,100
47,300
2,480
3,600
225
417
364
2,365
14
14
14
14
14
14
14
14
20
14
2,600
17,300
17,400
7,900
17,900
8,400
12,000
4,800
8,400
12,600
130
865
870
395
895
420
600
240
420
630
SUBTOTAL
BUILDING INTERIOR:
HVAC
Floor Covering
Carpet
Tile
Ceramic Tile
Hardwood
Miscellaneous
Wall Covering
Furniture - 1st Floor
Medical Area
Ballroom
Partition
Great Room
Lobby
Tap Room
Kitchen
Restrooms
Locker Rooms
Sauna/Steam
Annual
Reserve
Required
10
AUGUST 1995
Estimated
Remaining Useful
Lives (Years)
Capital Item
Current
Replacement
Value
Annual
Reserve
Required
BUILDING INTERIOR: (Cont'd)
Pool - Indoor
Liner
Equipment
Exercise Room
Furniture - 2nd Floor
Mens Card
Womens Card
Board Room
Billiard Room
Offices
Hall
Restrooms
Furniture - Basement
Ceramic & Crafts
Billiards
Restrooms
Misc. Furniture
Card Tables
Chairs
64" Tables
14
19
9
14
$ 4,800
15,800
11,500
10,500
$ 240
632
767
525
14
14
14
14
14
14
9
4,200
2,600
5,200
2,600
7,900
1,600
1,900
210
130
260
130
395
80
127
14
14
9
6,800
4,200
1,900
340
210
127
10
10
15
3,600
50,000
6,000
240
3,333
300
590,500
29,362
51,750
10,800
32,700
2,588
1,080
1,090
95,250
4,758
18
23
23
23
645,000
54,000
516,000
36,000
25,800
1,800
17,200
1,200
8
8
127,000
41,400
5,200
205,520
43,950
145,200
8,467
2,760
743
6,851
2,930
7, 260
1,819,270
75,011
720,000
82,200
579,000
54,000
28,800
2,740
19,300
1,800
SUBTOTAL
BUILDING EXTERIOR:
Roofing - Shingles 14
Roofing - Flat 4
Vinyl Siding 24
14
4
24
SUBTOTAL
BUILDINGS
Roof 18
Chimneys 23
Siding 23
Stairways 23
SITE
Pavement 8
Driveways 8
Seal Coat
Walks 23
Privacy Fence 8
Street Lights 13
23
8
13
BUILDINGS
Roof 20
Chimneys 25
Siding 25
Stairways 25
20
25
25
25
11
AUGUST 1995
Capital Item
SITE
Pavement
Driveways
Seal Coat
Walks
Privacy Fence
Street Lights
Estimated
Remaining Useful
Lives (Years)
10
10
2
25
10
15
TOTAL
Current
Replacement
Value
Annual
Reserve
Required
78,000
19,800
2,460
259,620
40,730
179,300
5,200
1,320
352
8,654
2,716
8,965
2,015,110
79,847
$5,381,870
$237,166
12
28
Exhibit 10C
Insurance Letter of Adequacy
29
30
CH2100 • Toms River, NJ • 08754-2100 • 908-349-2100 • 800-596-5252 • fax 908-349-0186
Peter Boyarin
Licensed Insurance Agent
December 20, 1996
Whittingham Homeowners and Condominium Association, Inc
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Whittingham Condominium and Homeowners Associations, Inc Letter of Adequacy Based on
current and final occupancy
Gentlemen:
I am a licensed insurance agent providing insurance for Whittingham Condominium and Homeowners
Associations located in Jamesburg, NJ.
The insurance policies that are in force for the Whittingham Condominium and Homeowners
Associations is written on an "all risk" policy, subject to standard exclusions such as normal wear and
tear, war, flood, etc. The amount of insurance set forth is reasonable and adequate:
I. so that the insured shall not be a co-insurer if the policy contains a co-insurance provision;
or
II. to cover replacement cost if the policy is for an agreed amount which waives co-insurance.
The replacement cost coverage is based upon a replacement cost of $55 per square foot
To the best of my knowledge, the insurance is in an amount that will satisfy the requirements of
mortgage lenders or management agents I further state that:
1. The amount budgeted for insurance in the Condominium Association is sufficient to pay the
premium of the proposed insurance based on the rates in force at that time.
2. The policy will provide fire and casualty insurance under an agreed amount replacement value
policy.
31
3. Fire, casualty and general liability insurance will provide:
a. that each unit owner is an additional insured;
b. there will be no cancellation without notice to the board of directors of the association;
c. there will be a waiver of subrogation;
d. there will be a waiver of invalidity because of the acts of the insured and unit owners;
e. there will be a waiver of pro-rata reduction if additional unit owners obtain coverage.
4. The insurance policies will satisfy the requirements of the declaration of condominium.
All premiums for the above coverage are part of the common charges Should the Condominium
Association choose to take any additional insurance, the premiums therefore will be in addition to those
estimated on the operating budgets.
Very truly yours,
Peter Boyarin, CIC, CPCU
PB/phg
cc:
Stephanie Harmon,
Whittingham Condominium and Homeowners Associations, Inc.
Regina Sapio
Wentworth Group
32
Peter Boyarin
December 20, 1996
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Whittingham Condominium and Homeowners Associations, Inc. Letter of Adequacy Based on
current and final occupancy
Gentlemen.
Associations provide the following coverage at the premiums noted:
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property:
Buildings
Contents
Deductible
$42,240,000
Included
$ 1,000
$103,937
Included
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$ 11,000,000
$ 5,000
Included
Included
Automobile.
Bodily Injury
Property Damage
$11,500,000
Included
$19,868
Included
33
Crime:
Employee Dishonesty
Money & Securities
$ 800,000
$15,000
Included
Included
Directors & Officers:
$10,000,000
$7,730
Umbrella Liability:
Included
Included
Workers Compensation:
Statutory
$ 9,070
Total Premiums:
$140,605
All premiums for the above coverages are part of the common charges. Should the Associations choose
to take any additional insurance, the premiums therefore, will be in addition to those estimated on the
operating budgets.
Very truly yours,
PB/phg
cc:
Stephanie Harmon
Regina Sapio
Wentworth Group
34
Peter Boyarin
December 20, 1996
Whittingham Homeowners and Condominium Association, Inc.
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Letter of Adequacy Based on current and final occupancy
Gentlemen:
Associations is written on an "all risk" policy, subject to standard exclusions such as normal wear and
tear, war, flood, etc The amount of insurance set forth is reasonable and adequate.
I.
so that the insured shall not be a co-insurer if the policy contains a co-insurance
provision;
or
II
to cover replacement cost if the policy is for an agreed amount which waives coinsurance. The replacement cost coverage is based upon a replacement cost of $55 per square
foot
1.
The amount budgeted for insurance in the Condominium Association is sufficient to pay
the premium of the proposed insurance based on the rates in force at that time.
2.
The policy will provide fire and casualty insurance under an agreed amount replacement
value policy.
35
3. Fire, casualty and general liability insurance will provide:
a.
that each unit owner is an additional insured,
b.
there will be no cancellation without notice to the board of directors of the
association;
c.
there will be a waiver of subrogation;
d.
there will be a waiver of invalidity because of the acts of the insured and unit
owners;
e.
there will be a waiver of pro-rata reduction if additional unit owners obtain
coverage.
All premiums for the above coverage are part of the common charges. Should the Condominium
Association choose to take any additional insurance, the premiums therefore will be in addition to those
estimated on the operating budgets.
Very truly yours,
PB/phg
cc:
Stephanie Harmon,
Regina Sapio
Wentworth Group
36
Peter Boyarin
December 20, 1996
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Whittingham Condominium and Homeowners Associations, Inc
Gentlemen.
Associations provide the following coverage at the premiums noted.
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property.
Buildings
Contents
Deductible
$42,240,000
Included
$ 1,000
$100,235
Included
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$11,000,000
$ 5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$11,500,000
Included
$12,456
Included
37
Crime:
Employee Dishonesty
Money & Securities
$ 800,000
$15,000
Included
Included
$ 10,000,000
$ 20,565
Umbrella Liability:
Included
Included
Boiler & Machinery:
$ 5,000,000
$ 1,363
Physical Damage (bus).
$ 1,000 Deductibles
Comprehensive and Collision
$2,381
Statutory
Total Premiums:
$ 13.113
$ 150,113
All premiums for the above coverages are part of the common charges. Should the Associations choose
operating budgets.
Very truly yours,
PB/phg
cc:
Stephanie Harmon
Regina Sapio
Wentworth Group
38
Exhibit 13
for the Year of Operation ending December 31, 1997
Based Upon 388 Homes and 1996 Dollars
39
40
FOR THE YEAR OF OPERATION ENDING DECEMBER 31, 1997
41
42
The Developers
Greenbriar at Whittingham Community Association, Inc.
We have examined the accompanying Forecasted Operating Budget of Greenbriar at Whittingham
Community Association, Inc. for the year ending December 31, 1997 based on occupancy of 388 units. Our
examination was made in accordance with standards for an examination of a forecast established by the
American Institute of Certified Public Accountants and, accordingly, included such procedures as we
considered necessary to evaluate both the assumptions used by the Sponsor and the preparation and
presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the Sponsor's knowledge and
belief. the Association's expected revenues, expenditures and replacement funding for the year ending
December 31. 1997 based on 388 units. It is not intended to be a forecast of financial position, results of
operations or cash flows. The accompanying forecasted operating budget and this report were prepared for
the Developer, for inclusion in the Public Offering Statement of Greenbriar at Whittingham Community
Association, Inc. and should not be used for any other purpose.
In our opinion, the accompanying Forecasted Operating Budget is presented in conformity with guidelines
for presentation of forecasted information established by the American Institute of Certified Public
Accountants and the underlying assumptions provide a reasonable basis for the Sponsor's forecast, and that
the operating budget including replacement funding is adequate. However, there will usually be differences
between the forecasted and actual results, because events and circumstances frequently do not occur as
expected and those differences may be material. We have no responsibility to update this report for events
and circumstances occurring after the date of this report.
43
NOTE
REFERENCE
REVENUES:
Golf maintenance
Whittingham Homeowners' Association
maintenance
Interest income
ANNUAL
BUDGET
1
2
$275,331
69,840
3
524,871
2,100
$872,142
Management
Insurance
Audit
Legal fees
Office supplies
Postage
Bank service charge
Federal income tax
4
5
6
7
8
9
10
11
$ 36,920
4,920
2,000
5,040
1,693
960
1,385
400
GROUNDS/LANDSCAPING:
Refuse/Recycling
Mowing/Turf care
Mulch
Tree replacement
Street sweeping
Street lighting
53,318
12
13
14
15
16
17
36,920
163,440
1,000
500
500
15,384
TOTAL GROUNDS/LANDSCAPING
217,744
2
44
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31,1997
NOTE
REFERENCE
RESERVES
GOLF MAINTENANCE
WHITTINGHAM HOMEOWNERS'
ASSOCIATION MAINTENANCE
ANNUAL
BUDGET
18
2
$ 6,369
69,840
3
524,871
$872,142
1996 MAINTENANCE FEE
Greenbriar at Whittingham Community Association
Greenbriar Golf Course Association
$ 59.66
112.73
15.00
$ 187.39
3
45
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's knowledge and belief, the
Association's expected operating budget for the year assuming the following conditions:
•
•
The quantities of common and limited common areas contained in the operating budget
are accurate;
•
Proper maintenance of the common and limited common areas and structures will take
place in the future;
•
The schedule of replacement reserves will be reviewed on an annual basis and
assessments will be updated for changes in projected lives and replacement costs.
The forecast reflects the Sponsor's judgment as of December 18, 1996, the date of this
forecast, of the expected course of action given 1996 dollars for the fiscal year based upon
occupancy of 388 units. The forecasted budget amounts are those expected to be incurred in
the normal operations of the general and limited common elements. It does not include
expenses incurred for individual units. The assumptions disclosed herein are those that the
sponsor believes are significant to the forecast. Further, even if full occupancy levels were
attained and expenses remained at 1996 dollars, there will usually be differences between the
forecasted and actual results, because events and circumstances frequently do not occur as
expected and those differences may be material.
4
46
GREENBRIAR AT WHITTINGHAM COMMUNITY ASSOCIATION. INC.
REVENUES:
Note 1.
Maintenance Fees
This revenue account is calculated at $59.66 per unit per month based on of 388 units closed or
closing through December 31, 1997.
Note 2.
Golf Course Assessments
Unit owners are assessed an annual golf course fee of $180 per year. This amount is collected
and paid over to the Greenbriar Golf Course Association. Accordingly a line item expense is
reflected to show this transaction.
Note 3.
Each unit owner is assessed a monthly fee to cover operating expenses of the recreational
facilities maintained by the Whittingham Homeowners' Association. Assessments for 1997 are
$112.73 per unit per month. This amount is collected and paid over to the Whittingham
Homeowners' Association. Accordingly a line item expense is reflected to show this transaction.
EXPENSES:
Note 4.
Management
This cost is based on a rate of $8.00 per unit per month to provide financial and administrative
management to the Association and is based on the current contract with Wentworth Property
Management Company.
Note 5.
Insurance
provide replacement cost hazard insurance on the common elements. Directors and Officers
coverage, employee dishonesty fidelity bond, and comprehensive general liability.
Note 6.
Audit Fee
An annual independent audit of the Association is required by the Association documents. Fee
based on 1996 bid.
Note 7.
Legal
Costs to provide legal counsel and to bring collection actions for delinquent accounts. This
amount does not included attendance at meetings. Based on prior year costs.
Note 8.
Office Supplies
Estimated expense for supplies, letterhead, and paper based on a rate of $140.00 per month.
Note 9.
Postage
Expense based on six mailings per year at an estimated cost of $160.00 per mailing.
Note 10.
Estimate for bank fees charged on Association accounts.
5
47
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31,19976
GENERAL AND ADMINISTRATIVE: (Continued)
Note 11.
Federal Income Tax
The Association is required to pay Federal income tax on non-membership income which
consists primarily of interest income.
Note 12.
These expenses calculated based on a $8.00 per unit per month charged by local carters.
Note 13.
Mowing/Turf Care
Estimated at $41.00 per unit per month plus $1,215 per month for perimeter area and tax.
Note 14.
Mulch
Estimated cost to mulch in 1997.
Note 15.
Tree Replacement
Estimated cost of tree replacement for 1997.
Note 16.
Street Sweeping
Estimated cost of sweeping streets.
Note 17.
Street Lighting
Estimated cost of lighting calculated at one light/three homes at $10 per month.
CAPITAL RESERVES:
Note 18.
The Association documents call for the establishment and accumulating of separate funds
for the eventual replacement of certain common elements. The finds should be budgeted,
collected and set aside in a separate Association account. Each year during the budget
process, the Association's board members should review the replacement cost and useful
life for reasonableness in determining the proper amount of funds to be set aside in that
particular year.
An independent engineering report was prepared by Flannery, Webb & Hansen, P.A.
Through a review of the site and architectural plans in April 1996. The quantities and cost
estimates included in this budget were directly from this report. The schedule of capital
replacement reserves are detailed in an exhibit to this report (Page 7).
6
48
Capital Reserve Study
Greenbriar at Whittingham
April, 1996
Page 7 of 13
Replacement Reserve Schedule
Effective as of January 1, 1996
Existing Reserve Amount
$0.00
Item
Yr. Installed
Useful Life
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
20
20
20
20
20
20
20
20
20
20
20
Est. Remaining Estimated
Useful Life
Quantity
Unit
Unit Cost
Current Rep.
Value
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$175,347
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$5,058
Site
1 1/2" Asphalt Roadway Surface
Item
Site
Estimated Contribution:
Percentage of
Total Value
20
21
22
23
24
25
26
27
28
29
30
Current Funded
Amount
41.29%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
1.19%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
100.00%
$0
Annual Reserve
Requirement
$8,767
$1,292
$1,234
$1,130
$1,131
$1,088
$1,044
$l,005
$969
$936
$189
Year
No. of Units
1996
1997
1988
1989
2000
2001
2002
2003
2004
2005
2006
278
378
478
578
678
778
878
978
1078
1178
1200
Monthly
Contribution
Per Unit
$1.31
$1.38
$1.44
$1.52
$1.59
$1.87
$1.78
$1.84
$1.94
$2.03
$2.13
52975
8200
8200
8200
8200
8200
8200
8200
8200
8200
1528
SY
SY
SY
SY
SY
SY
SY
SY
SY
SY
SY
Amount Funded
@ E.O.Y.
$8,787
$1,292
$1,234
$1,180
$1,131
$1,088
$1,044
$1,005
$989
$938
$169
Notes
Des. No.
1
1
1
l
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Annual
Reserve
Contribution
$4,370.16
$8,239.27
$8,284.36
$10,518.37
$12.955.08
$15.809.13
$18,496.21
$21,832.99
$25,037.20
$28.727.74
$30,727.47
7
49
50
Exhibit 13A
for the First Full Year of Operations
Based on Full Occupancy of 1200 Homes and 1996 Dollars
and Budget Letter of Occupancy
51
52
BASED ON FULL OCCUPANCY OF 1,200 UNITS AND 1996 DOLLARS
53
54
The Developers
We have examined the accompanying Forecasted Operating Budget of Greenbriar at
Whittingham Community Association, Inc. for the first full year of operations
based on full occupancy of 1,200 units. Our examination was made in accordance
with standards for an examination of a forecast established by the American
Institute of Certified Public Accountants and, accordingly, included such
procedures as we considered necessary to evaluate both the assumptions used by
the Sponsor and the preparation and presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the
Sponsor's
knowledge
and
belief,
the
Association's
expected
revenues,
expenditures and replacement funding for the first full year of operations
based on full occupancy. It is not intended to be a forecast of financial
position, results of operations or cash flows. The accompanying forecasted
operating budget and this report were prepared for the Developer, for inclusion
in the Public Offering Statement of Greenbriar at Whittingham Community
In our opinion, the accompanying Forecasted Operating Budget is presented in
conformity
with
guidelines
for
presentation
of
forecasted
information
established by the American Institute of Certified Public Accountants and the
underlying assumptions provide a reasonable basis for the Sponsor's forecast,
and that the operating budget including replacement funding is adequate.
However, there will usually be differences between the forecasted and actual
results, because events and circumstances frequently do not occur as expected
and those differences may be material. We have no responsibility to update this
report for events and circumstances occurring after the date of this report.
125 Half Mile Road, Red Bank. New Jersey 07701-6749 • Tel. (908) 747-0500 • Fax (908) 747-7700
55
REVENUES:
Golf maintenance
Whittingham Homeowners' Association
maintenance
NOTE
REFERENCE
ANNUAL
BUDGET
1
2
$ 762,048
102,960
3
$1,128,096
$1,993,104
Management
Insurance
Audit
Legal fees
Office supplies
Postage
Bank service charge
Federal income taxes
4
5
6
7
8
8
9
10
$
48,000
22,200
3,500
10,000
4,840
3,000
4,320
540
Refuse/Recycling
Mowing
Turf care
Tree replacement
Street sweeping
Street lighting
Road repairs
96,400
11
12
13
14
15
16
17
116,928
384,000
72,000
6,000
2,000
48,000
6,000
634,928
2
56
NOTE
REFERENCE
RESERVES
GOLF MAINTENANCE
WHITTINGHAM HOMEOWNERS' ASSOCIATION
MAINTENANCE
19
$ 30,720
102,960
1,128,096
$1,993,104
MAINTENANCE FEE
Greenbriar at Whittingham Community Association
Greenbriar Golf Course Association
$
52.92
79.34
7.15
$
138.41
3
57
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's knowledge
and belief, the Association's expected operating budget for the year
assuming the following conditions:
•
No construction or material defects will exist after completion of
the common and limited common areas and structures;
•
The quantities of common and limited common areas contained in the
operating budget are accurate;
•
Proper maintenance of the common and limited
structures will take place in the future;
•
The schedule of replacement reserves will be reviewed on an annual
basis and assessments will be updated for changes in projected lives
and replacement costs.
common
areas
and
The forecast reflects the Sponsor's judgment as of August 7, 1996, the
date of this forecast, of the expected course of action given 1996 dollars
for the fiscal year based upon full occupancy. The forecasted budget
amounts are those expected to be incurred in the normal operations of the
general and limited common elements. It does not include expenses incurred
for individual units. The assumptions disclosed herein are those that the
sponsor believes are significant to the forecast. Further, even if full
occupancy levels were attained and expenses remained at 1996 dollars,
there will usually be differences between the forecasted and actual
results, because events and circumstances frequently do not occur as
4
58
REVENUES:
Note 1.
Maintenance Fees
This revenue account is calculated on the basis of $635.04 payable in
monthly installments of $52.92.
Note 2.
Golf Course Assessments
Unit owners are assessed an annual golf course fee of $85.80 per year.
This amount is collected and paid over to the Greenbriar Golf Course
Association. Accordingly a line item expense is reflected to show this
transaction.
Note 3.
Each unit owner is assessed a monthly fee to cover operating expenses
of
the
recreational
facilities
maintained
by
the
Whittingham
Homeowners' Association. Assessments for 1996 are $78.34 per unit per
month. This amount is collected and paid over to the Whittingham
Homeowners' Association. Accordingly a line item expense is reflected
to show this transaction.
EXPENSES:
Note 4.
Management
This cost is $3.33 per unit to provide financial and administrative
management to the Association and is based on an estimate provided by
Wentworth Property Management Company.
Note 5.
Insurance
This expense is based on the current insurance coverage from Boyarin,
Hourigan and Blundell to provide replacement cost hazard insurance on
the common elements, Directors and Officers coverage, employee
dishonesty fidelity bond, and comprehensive general liability.
Note 6.
Audit Fee
An annual independent
Association documents.
Note 7.
Legal
This is an estimate per Association's attorney to provide legal counsel
and to bring collection actions for delinquent accounts. This amount
does not included attendance at meetings.
Note 8.
Office Supplies
This is an estimated expense for supplies, letterhead, postage, and
paper.
Note 9.
This expense is an
accounts.
Note 10.
Federal Income Tax
The Association is required to pay Federal Income Tax on non-membership
income which consists primarily of interest income.
audit
of
estimate
5
the
for
Association
bank
fees
is
charged
required
on
by
the
Association
59
Note 11.
This expenses calculated based on a $8.12 per unit per month charge
from local carters.
Note 12.
Mowing
This expense is to cover the mowing of the Association and is based on
four cuts per month at a rate of $10 per cut.
Note 13.
Turf Care
This expense is to cover the grounds maintenance of the Association and
is estimated at $5 per unit per month.
Note 14.
Tree Replacement
Estimated cost of tree replacement for 1996.
Note 15.
Street Sweeping
Estimated cost of
Note 16.
Street Lighting
Estimated cost of lighting calculated at one light/three homes at $10
per month.
Note 17.
Road Repairs
Estimated cost of maintaining streets.
Note 18.
Snow Removal
Cost of snow removal to be included in amounts paid to Whittingham
Homeowners' Association.
sweeping streets.
CAPITAL RESERVES:
Note 19.
The Association documents call for the establishment and accumulating
of separate funds for the eventual replacement, of certain common
elements. The finds should be budgeted, collected and set aside in a
separate Association account. Each year during the budget process, the
Association's board members should review the replacement cost and
useful life for reasonableness in determining the proper amount of
funds to be set aside in that particular year.
An independent engineering report was prepared by Flannery, Webb &
Hansen, P.A. through a review of the site and architectural plans in
April 1996. The quantities derived directly from this report. The
schedule of capital replacement reserves are detailed in an exhibit to
this report (Page 7).
6
60
Capital Reserve Study
April, 1996
Page 7 of 13
$0.00
Item
Yr. Installed
Useful Life
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
20
20
20
20
20
20
20
20
20
20
20
Est. Remaining Estimated
Useful Life
Quantity
Unit
Unit Cost
Current Rep.
Value
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$175,347
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$5,058
Site
Item
Site
Percentage of
Total Value
20
21
22
23
24
25
26
27
28
29
30
Current Funded
Amount
41.29%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
1.19%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
100.00%
$0
Annual Reserve
Requirement
$8,767
$1,292
$1,234
$1,130
$1,131
$1,088
$1,044
$l,005
$969
$936
$189
Year
No. of Units
1996
1997
1988
1989
2000
2001
2002
2003
2004
2005
2006
278
378
478
578
678
778
878
978
1078
1178
1200
Monthly
Contribution
Per Unit
$1.31
$1.38
$1.44
$1.52
$1.59
$1.87
$1.78
$1.84
$1.94
$2.03
$2.13
52975
8200
8200
8200
8200
8200
8200
8200
8200
8200
1528
SY
SY
SY
SY
SY
SY
SY
SY
SY
SY
SY
Amount Funded
@ E.O.Y.
$8,787
$1,292
$1,234
$1,180
$1,131
$1,088
$1,044
$1,005
$989
$938
$169
Notes
Des. No.
1
1
1
l
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Annual
Reserve
Contribution
$4,370.16
$8,239.27
$8,284.36
$10,518.37
$12.955.08
$15.809.13
$18,496.21
$21,832.99
$25,037.20
$28.727.74
$30,727.47
7
61
62
Exhibit 13B
Insurance Letters of Adequacy
63
64
Peter Boyarin
December 20, 1996
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Letter of Adequacy Based on current occupancy
Gentlemen:
I am a licensed insurance agent providing insurance for Greenbriar at Whittingham Community Association
located in Jamesburg, NJ.
The insurance policies that are in force for the Greenbriar at Whittingham Community Association is written on
an "all risk" policy, subject to standard exclusions such as normal wear and tear, war, flood, etc. The amount of
insurance set forth is reasonable and adequate:
I.
so that the insured shall not be a co-insurer if the policy contains a co-insurance provision;
or
II
to cover replacement cost if the policy is for an agreed amount which waives co-insurance.
To the best of my knowledge, the insurance is in an amount that will satisfy the requirements of mortgage lenders
or management agents. I further state that:
1.
The amount budgeted for insurance in the Condominium Association is sufficient to pay the
2.
The policy will provide fire and casualty insurance under an agreed amount replacement value
policy.
65
3. Fire, casualty and genera! liability insurance will provide:
a. that each unit owner is an additional insured,
b. there will be no cancellation without notice to the board of directors of the association,
c. there will be a waiver of subrogation;
d there will be a waiver of invalidity because of the acts of the insured and unit owners;
e. there will be a waiver of pro-rata reduction if additional unit owners obtain coverage.
All premiums for the above coverage are part of the common charges. Should the Association choose to take any
additional insurance, the premiums therefore will be in addition to those estimated on the operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio,
Wentworth Group
66
CN2I00 • Toms River, NJ • 08754-2100 • 908-349-2100 • 800-596-5252 • fax 908-349-0186
Peter Boyarin
December 20, 1996
100 Whittingham Dr.
Jamesburg, NJ 08831
Re.
Letter of Adequacy Based on current occupancy
Gentlemen:
The insurance policies that are in force for the Greenbriar at Whittingham Community Association provide the
following coverage at the premiums noted:
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property:
Contents
Deductible
$ 30,000
$ 1,000
$ 3,207
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$ 1,000,000
$ 5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$ 1,000,000
Included
Included
Included
67
Crime:
Employee Dishonesty
Money & Securities
$ 470,000
$15,000
Included
Included
$1,000,000
$1,009
Statutory
$ 704
Total Premiums:
$ 4,920
All premiums for the above coverages are part of the common charges. Should the Association choose to take any
additional insurance, the premiums therefore, will be in addition to those estimated on the operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio
Wentworth Group
68
CN2I00 • Toms River, NJ • 08754-2100 • 908-349-2100 • 800-596-5252 • fax 908-349-0186
Peter Boyarin
December 20, 1996
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Letter of Adequacy Based on final occupancy
Gentlemen:
The insurance policies that will be written for the Greenbriar at Whittingham Community Association is written
on an "all risk" policy, subject to standard exclusions such as normal wear and tear, war, flood, etc. The amount of
insurance set forth will be reasonable and adequate:
I
so that the insured shall not be a co-insurer if the policy contains a co-insurance provision;
or
II.
to cover replacement cost if the policy is for an agreed amount which waives co-insurance.
To the best of my knowledge, the insurance is in an amount that will satisfy the requirements of mortgage lenders
or management agents I further state that:
1.
The amount budgeted for insurance in the Condominium Association is sufficient to pay the
2.
The policy will provide fire and casualty insurance under an agreed amount replacement value
policy.
69
3.
4
Fire, casualty and general liability insurance will provide:
a
that each unit owner is an additional insured;
b.
there will be no cancellation without notice to the board of directors of the association;
c.
d.
there will be a waiver of invalidity because of the acts of the insured and unit owners;
e.
there will be a waiver of pro-rata reduction if additional unit owners obtain coverage.
The insurance policies will satisfy the requirements of the declaration of condominium.
All premiums for the above coverage are part of the common charges Should the Association choose to take any
additional insurance, the premiums therefore will be in addition to those estimated on the operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio,
Wentworth Group
70
CN2100 • Toms River, NJ • 08754-2100 • 908-349-2100 • 800-596-5252 • fax 908-349-0186
Peter Boyarin
December 20, 1996
Greenbriar at Whittingham Community Association, Inc. 100 Whittingham Dr. Jamesburg, NJ 08831
Re:
Letter of Adequacy Based on final occupancy
Gentlemen:
The insurance policies that will be written for the Greenbriar at Whittingham Community Association provide the
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property:
Contents
Deductible
$50,000
$ 1,000
$16,600
General Liability.
Bodily Injury &
Property Damage
Medical Payments
$ 1,000,000
$ 5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$1,000,000
Included
Included
Included
71
Crime:
Employee Dishonesty
Money & Securities
$1,000,000
$ 15,000
Included
Included
$1,000,000
$5,000
Statutory
$ 595
Total Premiums:
$22,195
All premiums for the above coverages are part of the common charges. Should the Association choose to take any
additional insurance, the premiums therefore, will be in addition to those estimated on the operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio
Wentworth Group
72
Exhibit 18
Proposed Amendment and Supplement for Incorporation of New Phases
73
74
AMENDMENT AND SUPPLEMENT
TO THE
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
BY
U.S. HOME CORPORATION
A DELAWARE CORPORATION
DATED:
RECORD AND RETURN TO:
Greenbaum, Rowe, Smith, Ravin, Davis & Himmel
Attention: Wendell A. Smith, Esq.
Post Office Box 5600
Woodbridge, New Jersey 07095
75
AMENDMENT AND SUPPLEMENT
TO THE
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
THIS AMENDMENT AND SUPPLEMENT, made this _____ day of ______
______ , 199_
by U.S. HOME CORPORATION, a Delaware corporation,
having an address at 800 West Main Street, Freehold, New Jersey 07728
(the "Developer").
W I T N E S S E T H:
WHEREAS, the Developer is the owner of fee simple title to
certain lands and premises in Monroe Township, Middlesex County,
State of New Jersey, which lands and premises have been submitted to
a
Declaration
of
Covenants,
Conditions
and
Restrictions
for
Greenbriar at Whittingham (the "Declaration") dated December 14, 1994
and recorded December 14, 1994 in the Office of the Clerk of
Middlesex County, in Deed Book 4204 at Page 199, et seq.; and
WHEREAS, pursuant to Section 2.02 of the Declaration, the
Developer may further amend and supplement the Declaration to
incorporate within the Development all or a portion of the remainder
of the Property described and shown as set forth in Exhibits A & B to
the Declaration; and
NOW THEREFORE, the Developer hereby amends and supplements the
Declaration as follows:
1.
The Developer hereby incorporates all those lands described
in Exhibit A-1 hereto entitled "Description of Part of Lot 41, Block
48.35, Village 1.5 & 3.1" into the Development, as all shown on that
certain Plan entitled
"Final
Plat-Major Subdivision of Greenbriar
at Whittingham, Village 1.5 & 3.1" prepared by Flannery, Webb &
Hansen P.A., 1255 Route 70, Suite 22-S, Lakewood Township, New Jersey
08701 dated June 26, 1995 attached as Exhibit B-1;
2.
The Developer declares that such improvements are and shall
be held, transferred, sold, leased, conveyed, occupied and used
subject to the covenants, restrictions, conditions, easements,
charges, liens and provisions set forth in the Declaration, as now or
hereafter amended, all of which are hereby incorporated by reference
as though fully set forth herein; and
76
3.
Except as expressly modified herein, all other terms and
conditions of the Declaration shall remain in full force and effect
and the provisions hereof shall be deemed controlling.
IN WITNESS WHEREOF, the Developer has caused this instrument to
be executed the day and year first above written as duly authorized
by its corporate resolution.
ATTEST:
U.S. HOME CORPORATION, A Delaware
Corporation
Paul Rempe, Secretary
STATE OF NEW JERSEY
COUNTY OF
Gregory A. Snyder, Division
President
)
) SS:
)
BE IT REMEMBERED, that on this
day of
,199__,
Paul Rempe personally came before me and this person acknowledged
under oath, to my satisfaction, that:
(a)
this person is the Secretary of the corporation named
in the attached document;
(b)
this person is the attesting witness to the signing of
this document by the proper corporate officer who is
Gregory A. Snyder, the Division President of the
corporation;
(c)
this document was signed and delivered by the
corporation as its voluntary act duly authorized by a
proper resolution of its Board of Directors;
(d)
this
person
knows
the
proper
seal
of
the
corporation which was affixed to this document; and
(e)
this person signed this proof to attest to the truth
of these facts.
Paul Rempe, Secretary
Signed and sworn to before me
on this
day of
, 199___.
A Notary Public of the State
of New Jersey
77
EXHIBIT A-1
Description - Greenbriar at Whittingham, Village 1.5 & 3.1
78
FLANNERY, WEBB & HANSEN, P.A.
CIVIL ENGINEERS • LAND SURVEYORS • SITE PLANNERS
LANDSCAPE ARCHITECTS • ENVIRONMENTAL CONSULTANTS
1234.005
December 18, 1996
DESCRIPTION OF PART OF LOT 41 * BLOCK 48.35
VILLAGE 1.5
MONROE TOWNSHIP, MIDDLESEX COUNTY, NEW JERSEY
The following is a description
Township, Middlesex County, New Jersey.
of
property
situated
in
Monroe
Being known and designated as part of Lot 41, Block 48.35, as shown on
the Monroe Township Tax Map. Also known and designated as part of Lot 41,
Block 48.35, as shown on a map entitled "Greenbriar at Whittingham, Block
48.24, Lot 1, Block 48.35, Lots 39 & 40, and Block 48.40, Lot 14, Major
Subdivision," filed in the Middlesex County Clerk's office on 7/27/94 as Map
#5628, File #980, and being more particularly described as follows:
BEGINNING at a point in the northerly line of New Castle Road (a.k.a.
Lot 41.04, Block 40.35), said point being on the division line of Lot 1.01,
Block 48.24, and Lot 41, Block 48.35, and from said beginning point running:
1.
South 08° 25' 48" West, 599.18' to a point; thence
2.
South 81° 42' 08" West, 409.43' to a point on the easterly line
of Whittingham Drive (a.k.a. Lot 1, Block 48.23); thence
3.
Along same, North
curvature; thence
4.
Along same, along a curve to the right having a radius of
8203.76, an arc length of 113.70 to a point of curvature; thence
5.
Southerly and easterly along a curve to the left having a radius
of 25.00", an arc length of 39.21' to a point on the
aforementioned northerly line of New Castle Road; thence
6.
Along said northerly line of New Castle Road, North 62° 37’ 48"
East, 445.97' to a point of curvature; thence
7.
Along stunt?, along a curve to the right having a radius of
456.00' , an arc length of 110.72' to the point and place of
BEGINNING.
BS/ek
Doc: 12234DES.005
08°
17'
32"
West,
507.90'
to
a
point
of
79
CIVIL ENGINEERS • LAND SURVEYORS • SITE PLANNERS
LANDSCAPE ARCHITECTS • ENVIRONMENTAL CONSULTANTS
1234.005
December 18, 1996
DESCRIPTION OF PART OF LOT 41 * BLOCK 48.35
VILLAGE 3.1
MONROE TOWNSHIP, MIDDLESEX COUNTY, NEW JERSEY
The following is a description
Township, Middlesex County, New Jersey.
of
property
situated
in
Monroe
Being known and designated as part of Lot 41, Block 48.35, as shown on
the Monroe Township Tax Map. Also known and designated as part of Lot 41,
Block 48.35, as shown on a map entitled "Greenbriar at Whittingham, Block
48.24, Lot 1, Block 48.35, Lots 39 & 40 and Block 48.40, Lot 14, Major
Subdivision" filed in the Middlesex County Clerk's office on 7/27/94 as Map
#5628, File 980, and being more particularly described as follows:
BEGINNING at a point in the northerly line of New Castle Road (a.k.a.
Lot 41.04, Block 48.35), said point being on the dividing line of Lot 1.01,
Block 48.24, and Lot 41, Block 48.35, and from said beginning point running:
1.
Westerly along said northerly line of New Castle Road, along a
curve to the left having a radius of 456.00', an arc length of
110.72' to a point of tangency; thence
2.
Along same, South
curvature; thence
3.
Along a curve to the right having a radius of 25.00', an arc
length of 39.21' to a point on the easterly line of Whittingham
Drive (a.k.a. Lot 1, Block 48.23); thence
4.
Northerly along said easterly line of Whittingham Drive, along a
curve to the right having a radius of 8233.76', an arc length of
284.30' to a point of tangency; thence
5.
Along same, North
curvature; thence
6.
Along same, along a curve to the left having a radius of 668.00',
an arc length of 592.30' to a point of tangency; thence
7.
Along same, North 56° 19' 24" West, 122.21’ to a point; thence
8.
North 26° 57' 17" East, 88.96' to a point; thence
9.
10.
11.
South 57° 32' 26" East, 70.00' to a point; thence
82°
05°
37'
31'
48"
15"
West,
West,
445.97'
456.03'
to
to
a
a
point
point
P.O. BOX 456 • LAKEWOOD • NEW JERSEY • 08701 • PHONE (908) 901-0550 • FAX (908) 901-9797
of
of
80
12.
13.
14.
15.
South 05° 20'
BEGINNING.
48"
East,
199.66'
to
the
point
and
place
BS/ek
Doc: 12234DE2.005
81
of
EXHIBIT B-1
Final Plat of Greenbriar at Whittingham, Village 1.5 & 3.1
82
Exhibit 2I
for the Year of Operations ending December 31, 1997
Based on 512 Members and 1996 Dollars
85
86
BASED ON 512 MEMBERS AND 1996 DOLLARS
87
88
The Developers
Greenbriar Golf Course Association, Inc.
We have examined the accompanying Forecasted Operating Budget of Greenbriar Golf Course Association, Inc.
for the year of operations ending December 31, 1997 based on occupancy of 512 members. Our examination was
made in accordance with standards for an examination of a forecast established by the American Institute of
Certified Public Accountants and, accordingly, included such procedures as we considered necessary to evaluate
both the assumptions used by the Sponsor and the preparation and presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the Sponsor's knowledge and belief, the
Association's expected revenues, expenditures and replacement funding for the year ending December 31, 1997
based on 512 members. It is not intended to be a forecast of financial position, results of operations or cash flows.
The accompanying forecasted operating budget and this report were prepared for the Developer, for inclusion in
the Public Offering Statement of Greenbriar Golf Course Association, Inc. and should not be used for any other
purpose.
In our opinion, the accompanying Forecasted Operating Budget is presented in conformity with guidelines for
presentation of forecasted information established by the American Institute of Certified Public Accountants and
the underlying assumptions provide a reasonable basis for the Sponsor's forecast, and that the operating budget
including replacement funding is adequate. However, there will usually be differences between the forecasted and
actual results, because events and circumstances frequently do not occur as expected and those differences may
be material. We have no responsibility to update this report for events and circumstances occurring after the date
of this report.
89
NOTE
REFERENCE
REVENUES:
Developer subsidy
Annual greens fee
Daily greens fee
Maintenance fee
1
2
3
4
ANNUAL
BUDGET
$288,757
99,450
15,000
92,160
$495,367
Management
Insurance
Real estate taxes
Audit fee
Legal fees
Golf pro fees
Office supplies
Dues and subscriptions
Income tax
Contingency
5
6
7
8
9
10
11
12
13
$ 20,400
11,870
42,870
2,000
2,500
20,000
5,980
1,500
1,000
10,100
PAYROLL:
Superintendent
On-site laborer
Proshop salary
FICA
FUTA
SUI/SDI
Benefits
Workers compensation
Pager rental
118,220
14
14
14
14
14
14
14
14
15
47,070
40,000
18,900
8,107
848
3,496
10,080
5,606
130
TOTAL PAYROLL
134,237
2
90
NOTE
REFERENCE
Fuel and oil
General repairs
Miscellaneous supplies
Topdressing for greens
Grass seed
Irrigation equipment
Lawn fertilization
Chemicals - greens
Well electric
Trees and shrubs
Golf cart electric
Small equipment
16a
16b
17
18
18
19
20
20
21
22
23
24
ANNUAL
BUDGET
5,000
5,000
4,120
3,090
2,060
2,500
16,200
8,000
7,000
5,000
5,000
2,500
BUILDINGS:
Maintenance building
Proshop
Maintenance supplies
65,470
25
26
27
8,200
7,200
3,000
TOTAL BUILDINGS
18,400
Engineer
Equipment
Building improvements*
28
29
30
2,000
102,040
45,000
TOTAL CAPITAL IMPROVEMENTS
TOTAL RESERVE FUND
149,040
31
10,000
$495,367
3
91
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's knowledge and belief, the Association's
expected operating budget for the year assuming the following conditions:
•
•
The quantities of common and limited common areas contained in the operating budget are
accurate;
•
Proper maintenance of the common and limited common areas and structures will take place
in the future;
•
The schedule of replacement reserves will be reviewed on an annual basis and assessments
will be updated for changes in projected lives and replacement costs.
The forecast reflects the Sponsor's judgment as of December 31,1996, the date of this forecast, of the
expected course of action given 1996 dollars for the fiscal year based upon occupancy of 512 units. The
forecasted budget amounts are those expected to be incurred in the normal operations of the general and
limited common elements. It does not include expenses incurred for individual units. The assumptions
disclosed herein are those that the sponsor believes are significant to the forecast. Further, even if full
occupancy levels were attained and expenses remained at 1996 dollars, there will usually be differences
between the forecasted and actual results, because events and circumstances frequently do not occur as
Furthermore it is anticipated that after the Developer's subsidy stops expenses will exceed revenues for a
period of approximately four years. The Board of Trustees anticipates securing financing to cover any
shortfalls. This borrowing will be repaid out of future operating income.
To meet these potential differences the Board of Trustees has the authority to increase all fees including
special assessments. However, the Board cannot authorize special assessments in excess of $100 per
member per year. Also the monthly assessment per member is $15, $20, $20 and $25 for the years ending
December 31, 1997, 1998,1999 and 2000 respectively. These assessments cannot be increased without a
vote of the membership.
Definition of Member - A member is a home which pays a monthly maintenance fee to the Greenbriar Golf
Course Association. Membership is mandatory for US Home buyers and elective for Union Valley home
buyers.
4
92
REVENUES:
Note 1.
Developer Subsidy
The Developer has agreed to subsidize the operation of the golf course until the latter of
December 31,1997 or 425 golf members.
Note 2.
Annual Green Fees
Annual green fees are computed an average of $525 per year based on 188 playing units. A
playing unit is defined as a home within the Whittingham Community which pays annual
dues for unlimited play.
Note 3.
Daily Green Fees
Daily green fees are based on actual 1996 operations.
Note 4.
Maintenance Fees
This revenue account is calculated at $180 per year paid by 512 members.
EXPENSES:
Note 5.
Management
This cost is based on a flat rate of $1,700 per month to provide financial and administrative
management to the Association and is based on the current contract with Wentworth
Property Management Company.
Note 6.
Insurance
This expense is based on the current insurance coverage from Boyarin, Hourigan & Blundell
to provide replacement cost hazard insurance on the proshop and maintenance building,
Directors and Officers coverage, employee dishonesty fidelity bond, and comprehensive
general liability. Also includes $1,500 for golf ball damage claims.
Note 7.
Real Estate Taxes
This tax is based on a tax rate of $2.25 per $100 in assessed value as established by the
Monroe Township tax assessor. The land and building assessed value is estimated at
$1,905,400.
Note 8.
Audit Fee
An annual independent audit of the Association is required by the Association documents.
Note 9.
Legal
This is an estimate per Association's attorney to provide legal counsel at a rate of $175 per
hour.
Note 10.
Office Supplies
This is an estimated expense for supplies, scorecards, letterhead, postage, and paper.
Note 11.
Dues and Subscriptions
Expense consists of NJSCPA and USGA dues and meeting expenses.
5
93
GREENBRIAR GOLF COURSE ASSOCIATION. INC.
GENERAL AND ADMINISTRATIVE: (Continued)
Note 12.
Federal Income Tax
The Association is required to pay Federal income tax on non-membership income which
consists primarily of interest income.
Note 13.
Contingency
This expense is an estimate for any unforeseen operating expenses based on 3% of
operations excluding capital improvements. The percentage rate of 3% was established by
the Board of Trustees.
PAYROLL:
Note 14.
Payroll, Payroll taxes and benefits
These estimates are based on salaries for one full time superintendent, two full time laborers
and a proshop assistant. Payroll taxes are computed at 11.75% of salaries. Benefits are
estimated based on current billings for full time employees. Workers compensation is
calculated at $5.29 per $100 of salaries.
Note 15.
Pager Rental
This expense is based on a contract of $10.44 per month.
Note 16a.
Fuel and Oil
Estimated cost of operating golf course equipment. Based on 1996 use.
Note 16b.
General Repairs
Estimated cost of maintaining golf course equipment. Based on 1996 use.
Note 17.
Miscellaneous Supplies
Estimated cost of supplies for operations.
Note 18.
Topdressing and grass seed
These expenses are based on four applications of topdressing for greens and grass seed for
greens and the fairways.
Note 19.
Irrigation Equipment
Estimated cost of sprinkler head repairs and system winterization.
Note 20.
Lawn Fertilization. Chemicals and Weed Control
Cost of fertilization, chemicals and crabgrass prevention for nine holes.
Note 21.
Well Electric
Estimated cost of operating the well based on 1996 use.
Note 22.
Trees and Shrubs
Cost to replace trees and shrubs based on Committee/Board estimates.
6
94
GROUNDS AND LANDSCAPING: (Continued)
Note 23.
Golf Cart Electric
Cost of changing 20 battery powered carts based on estimate by Vic Gerard, a supplier of
golf carts.
Note 24.
Small Equipment
Estimate cost of small tools to maintain equipment and golf course based on 1996 actual
costs.
BUILDINGS:
Note 25.
Maintenance Building
Costs include gas, electric, telephone, water and sewer based on 1996 actual costs.
Note 26.
Pro Shop Building
Costs include gas, electric, telephone, water and sewer based on 1996 actual costs.
Note 27.
Maintenance Supplies
Cost of janitorial and other supplies to maintain maintenance building and Pro Shop.
Note 28.
Engineer
Estimated cost of engineering for rest room facility.
Note 29.
Equipment
Cost of equipment not previously reserved which includes the following: tractor, overseeders,
mowers, sprayer, sod cutter and core harvester.
Note 30.
Building Improvements
Estimated cost of proposed rest room facility.
CAPITAL RESERVES:
Note 31.
The Association's documents call for the establishment and accumulating of separate funds
for the eventual replacement of certain common elements. The funds should be budgeted,
collected and set aside in separate Association accounts. Each year during the budget
process, the Association's board members should review the replacement cost and useful
life for reasonableness in determining the proper amount of funds to be set aside in that
particular year.
7
95
CAPITAL RESERVES: (Continued)
An independent engineering report was prepared by Flannery, Webb & Hansen, P.A. Through a
review of the site and architectural plans in April 1996. The quantities and cost estimates included in
this budget were directly from this report. The schedule of capital replacement reserves are detailed
in an exhibit to this report (Pages 9-12).
The 1997 budget amount for capital reserves is calculated at a rate of $1.58 per unit per month plus
a small increase for new items not included in the reserve study.
8
96
Capital Reserve
Greenbriar Golf
Study
Course
April, 1996
Page 8 of 25
Greenbriar Golf Course
$0.00
Item
Yr. Installed
Useful Life
Est. Remaining
Useful Life
Estimated
Quantity
Unit
Unit Cost
Current Rep.
Value
Pro-shop Building
Exterior
Asphalt Shingles
Concrete Patios
Aluminum Gutters
Aluminum Downspouts
1998
1996
1996
1996
25
30
20
20
25
30
20
20
37
1605
206
90
SQ
SF
LF
LF
$114.00
$5.40
$2.33
$2.33
$4,218
$3,667
$480
$210
1998
1996
1996
1996
1996
1996
1996
1996
1996
1996
8
8
8
20
30
30
30
30
30
30
8
8
8
20
30
30
30
30
30
30
82
22
42
195
117
124
92
138
20
35
SY
SY
SY
SF
SF
SF
SF
SF
SF
SF
$22.05
$22.05
$22.05
$3.83
$6.89
$6.89
$6.89
$6.89
$6.89
$6.89
$1,808
$485
$926
$747
$806
$854
$634
$951
$138
$241
1996
1996
1996
1996
10
25
25
25
10
25
25
25
1
2
2
2
EA
EA
EA
EA
$850.00
$2,400.00
$285.00
$1,575.00
$850
$4,800
$570
$3,150
1996
1996
1996
25
20
20
25
20
20
58
275
95
SQ
LF
LF
$114.00
$2.33
$2.33
$6,612
$641
$221
1996
1996
1996
20
30
30
20
30
30
260
135
45
SF
SF
SF
$3.83
$3.83
$6.89
$996
$517
$310
1996
1996
1996
1996
1996
25
10
20
20
20
25
10
20
20
20
1
1
4
9
3
EA
EA
Ea
EA
EA
$2,400.00
$850.00
$2,300.00
$199.00
$1,125.00
$2,400
$850
$9,200
$1,791
$3,375
Interior Finishes
Sales Room Carpeting
Entry Room Carpeting
Bag Storage Room Composite Tile Flooring
Men's Locker Room Tile Floor
Women's Locker Room Tile Floor
Men's Lavatory Ceramic Tile
Women's Lavatory Ceramic Tile
Janitor's Room Ceramic Tile
Mechanical Room Ceramic Tile
Mechanical Items
Natural Gas Water Heater
Natural Gas Space Heaters
Electric Resistance Baseboard Heater
Central Air Conditioning Units (Exterior)
Golf Course Maintenance Building
Exterior
Asphalt Shingles
Aluminum Gutters
Aluminum Downspouts
Interior Finishes
Office Vinyl Composite Tile (12" Sq.)
Corridor Vinyl Composite Tile (12" Sq.)
Lavatory Ceramic Tile (6" Sq.)
Mechanical System
Natural Gas Space Heater
Infrared Space Heaters
Exterior High Pressure Sodium Luminaries
Roof Ventilators
97
9
Capital Reserve
Greenbriar Golf
Item
Study
Course
Yr. Installed
April, 1996
Page 9 of 25
Useful Life
Est. Remaining
Useful Life
Estimated
Quantity
Unit
Unit Cost
Current Rep.
Value
Site
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Tee And Golf Course Signs
Fuel Tank
Asphalt Golf Cart Path Maintenance
Well Motor/Pump
1996
1996
1996
1996
1996
1996
1996
1996
1996
1996
1996
1996
1996
20
20
20
20
20
20
20
20
20
10
15
15
12
20
21
22
23
24
25
26
27
28
10
15
15
12
1
1
1
1
1
1
1
1
1
1
1
722
1
LS
LS
LS
LS
LS
LS
LS
LS
LS
LS
EA
SY
EA
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$3,000.00
$7,000.00
$3.31
$6,000.00
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$3,000
$7,000
$2,588
$6,000
Site Maintenance Machinery
Cushman Truckster
Carry-All Golf Cart
Gang 5 Reel Mower
Sprayer
Triplex Tee Mower
Greens Mower
Sandtrap Machine
Toro Greens Mower
Backup 72" Mower (used)
Rotary Push Mowers
Weedeater
Golf Cart (used)
1996
1996
1996
1996
1996
1996
1996
1996
1994
1996
1996
1994
8
8
8
8
8
8
8
8
8
4
5
8
8
8
8
8
8
8
8
8
8
4
5
8
1
1
1
1
1
1
1
1
1
2
1
1
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
$10,000.00
$6,000.00
$23,000.00
$3,800.00
$9,000.00
$15,000.00
$8,000.00
$14,900.00
$6,000.00
$900.00
$350.00
$5,000.00
$10,000
$6,000
$23,000
$3,800
$9,000
$15,000
$8,000
$14,900
$6,000
$1,800
$350
$5,000
Total
$313,486
98
Capital Reserve
Greenbriar Golf
Study
Course
April, 1996
Page 10 of 25
$0.00
Item
Percentage of
Total Value
Current Funded
Amount
Annual Reserve
Requirement
Amount Funded
@ E.O.Y.
Photo
Notes
Des. No.
Pro-shop Building
Exterior
Asphalt Shingles
Concrete Patios
Aluminum Gutters
Aluminum Downspouts
1.35%
2.78%
0.15%
0.07%
$0
$0
$0
$0
$169
$289
$24
$10
$169
$289
$24
$10
1
2
3
3
0.58%
0.15%
0.30%
0.24%
0.25%
0.27%
0.20%
0.30%
0.04%
0.08%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$226
$61
$116
$37
$27
$28
$21
$32
$5
$8
$226
$61
$116
$37
$27
$28
$21
$32
$5
$8
4
0.21%
1.53%
0.18%
1.00%
$0
$0
$0
$0
$65
$192
$23
$128
$65
$192
$23
$128
7
8
9
10
2
2
2
2
8
8
8
8
2.11%
0.20%
0.07%
$0
$0
$0
$264
$32
$11
$264
$32
$11
11
1
9
10
11
0.32%
0.16%
0.10%
$0
$0
$0
$50
$17
$10
$50
$17
$10
12
0.77%
0.21%
2.93%
0.57%
1.08%
$0
$0
$0
$0
$0
$96
$65
$460
$90
$169 $
$96
$65
$460
$90
169
1
1
2
3
4
Interior Finishes
5
5
5
6
7
7
7
7
7
7
5
8
Mechanical Items
Natural Gas Water Heaters
Electric Residence Baseboard Heater
Exterior
Asphalt Shingles
Aluminum Gutters
Aluminum Downspouts
Interior Finishes
12
12
13
Mechanical System
Roof Ventilators
13, 14
15
16, 17
1
1
14
14
15
16
17
99
11
Capital Reserve
Greenbriar Golf
Study
Course
April, 1996
Page 11 of 25
$0.00
Item
Percentage of
Total Value
Current Funded
Amount
Annual Reserve
Requirement
Amount Funded
@ E.O.Y.
Photo
Notes
Des. No.
Site
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Fuel Tank
Well Motor/Pump
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
0.66%
2.23%
0.83%
1.91%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$750
$714
$682
$652
$625
$600
$577
$556
$538
$300
$487
$173
$500
$750
$714
$682
$652
$625
$600
$577
$556
$538
$300
$487
$173
$500
18
18
18
18
18
18
18
18
18
19
20
21
22
3.19%
1.91%
7.34%
1.21%
2.37%
4.78%
2.55%
4.75%
1.91%
0.57%
0.11%
1.59%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,250
$750
$2,875
$475
$1,125
$1,875
$1,000
$1,863
$1,000
$450
$70
$833
$1,250
$750
$2,875
$475
$1,125
$1,875
$1,000
$1,863
$1,000
$450
$70
$833
23
23
23
23
23
23
23
23
23
23
23
23
100.00%
$0
$23,419
Cushman Truckster
Carry-All Golf Cart
Gang S Real Mower
Sprayer
Triplex Tea Mow«r
Greens Mower
Sandtrap Machine
Toro Greens Mower
Rotary Push Mowers
Weedeater
Golf Cart (used)
Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
No. of Units
Monthly
Contribution
Per Unit
278
374
478
578
678
778
873
978
1078
1178
1273
1300
$1.50
$1.53
$1.85
$1.74
$1.82
$1.91
$2.01
$2.11
$2.22
$2.33
$2.44
$2.57
Annual
Reserve
Contribution
$5,004.00
$7,144.20
$9.485.91
$12,043.93
$14,834.04
$17,873.05
$21,178.87
$24,770.60
$28,868.55
$32,894.38
$37,471.09
$40,021.94
100
12
Exhibit 21A
for the First Full Year of Operations
Based on Full Occupancy of 1,300 Members and 1996 Dollars
101
102
BASED ON FULL OCCUPANCY OF 1,300 MEMBERS AND 1996 DOLLARS
103
104
The Developers
We have examined the accompanying Forecasted Operating Budget of Greenbriar
Golf Course Association, Inc. for the first full year of operations based on of
1,300 members. Our examination was made in accordance with standards for an
examination of a forecast established by the American Institute of Certified
Public Accountants and, accordingly, included such procedures as we considered
necessary to evaluate both the assumptions used by the Sponsor and the
preparation and presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the
Sponsor's
knowledge
and
belief,
the
Association's
expected
revenues,
expenditures and replacement funding for the first full year of operations
based on full occupancy (1,300 members). It is not intended to be a forecast of
financial position, results of operations or cash flows. The accompanying
forecasted operating budget and this report were prepared for the Developer,
for inclusion in the Public Offering Statement of Greenbriar Golf Course
In our opinion, the accompanying Forecasted Operating Budget is presented in
conformity
with
guidelines
for
presentation
of
forecasted
information
established by the American Institute of Certified Public Accountants and the
underlying assumptions provide a reasonable basis for the Sponsor's forecast,
and that the operating budget including replacement funding is adequate.
However, there will usually be differences between the forecasted and actual
results, because events and circumstances frequently do not occur as expected
and those differences may be material. We have no responsibility to update this
report for events and circumstances occurring after the date of this report.
105
BASED ON 1,300 MEMBERS AND 1996 DOLLARS
REVENUES:
Annual green fees
Daily green fees
Maintenance fees
NOTE
REFERENCE
1
2
3
ANNUAL
BUDGET
$134,925
5,000
234,000
$373,925
Management
Insurance
Real estate taxes
Audit fee
Legal fees
Golf pro fees
Office supplies
Dues and subscriptions
Contingency
Federal income taxes
4
5
6
7
8
9
10
11
12
-
$ 28,800
10,062
41,620
2,500
5,000
19,000
7,320
1,000
16,158
550
PAYROLL:
Superintendent
On-site laborer
Proshop salary
FICA
FUTA
SUI/SDI
Benefits
Workers compensation
Pager rental
132,010
13
13
13
13
13
13
13
13
14
45,700
34,700
10,920
6,986
170
3,014
8,640
4,831
132
TOTAL PAYROLL
115,093
2
106
NOTE
REFERENCE
Fuel and oil
General repairs
Miscellaneous supplies
Topdressing for greens
Grass seed
Irrigation equipment
Lawn fertilization
Chemicals - greens
Well electric
Weed control
Golf cart electric
Small equipment
Equipment
15
15
16
17
17
18
19
19
20
19
21
22
23
ANNUAL
BUDGET
3,400
2,500
4,000
3,000
2,000
2,500
13,000
5,000
9,840
1,500
6,000
3,000
15,000
BUILDINGS:
Maintenance building
Pro shop
Maintenance supplies
70,740
24
25
26
7,400
5,660
3,000
TOTAL BUILDINGS
TOTAL RESERVE FUND
16,060
27
40,022
$373,925
3
107
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's
knowledge and belief, the Association's expected operating budget for
the year assuming the following conditions:
•
No construction or material defects will exist after completion
of the common and limited common areas and structures;
•
The quantities of common and limited common areas contained in
the operating budget are accurate;
•
Proper maintenance of the common and limited common areas and
structures will take place in the future;
•
The schedule of replacement reserves will be
annual basis and assessments will be updated
projected lives and replacement costs.
reviewed on
for changes
an
in
The forecast reflects the Sponsor's judgment as of August 7, 1996, the date
of this forecast, of the expected course of action given 1996 dollars for
the fiscal year based upon full occupancy. The forecasted budget amounts are
those expected to be incurred in the normal operations of the general and
limited common elements. The assumptions disclosed herein are those that the
sponsor believes are significant to the forecast. Further, even if full
occupancy levels were attained and expenses remained at 1996 dollars, there
will usually be differences between the forecasted and actual results,
because events and circumstances frequently do not occur as expected and
those differences may be material.
Furthermore it is anticipated that after the Developer's subsidy stops
expenses will exceed revenues for a period of approximately four years. The
Board of Trustees anticipates securing financing to cover any shortfalls.
This borrowing will be repaid out of future operating income.
To meet these potential differences the Board of Trustees has the authority
to increase all fees including special assessments. However, the Board
cannot authorize special assessments in excess of $100 per member per year.
Also the monthly assessments per member is $5, $15, $20, $20 and $25 for the
years ending December 31, 1996, 1997, 1998, 1999 and 2000 respectively.
These assessments cannot be increased without a vote of the membership.
Definition of Member - A member is a home which pays a monthly maintenance
fee to the Greenbriar Golf Course Association. Membership is mandatory for
U.S. Home buyers and elective for Union Valley home buyers.
4
108
REVENUES:
Note 1.
Annual
Annual
on 257
at the
Green Fees
green fees are computed on an average of $525 per year, based
playing member homes. Annual green fees are subject to change
discretion of the Board.
Note 2.
Daily Green Fees
An estimated 333 rounds of golf will be played by guests at $15 per
round. Daily green fees are subject to change at the discretion of
the Board.
Note 3.
Maintenance Fees
This revenue account is calculated at $180.00 per year paid by 1,200
Greenbriar at Whittingham residents and 100 Whittingham Homeowner
residents.
EXPENSES:
Note 4.
Management
This cost is based on a flat rate of $2,400 per month to provide
financial and administrative management to the Association and is
based on an estimate from Wentworth Property Management Company.
Note 5.
Insurance
This expense is based on the current insurance coverage from
Boyarin, Hourigan & Blundell to provide replacement cost hazard
insurance on the proshop and maintenance building, Directors and
Officers
coverage,
employee
dishonesty
fidelity
bond,
and
comprehensive general liability.
Note 6.
Real Estate Taxes
This tax is based on a tax rate of $2.25 per $100 in assessed value
as established by the Monroe Township tax assessor. The land and
building assessed value is $1,849,800.
Note 7.
Audit Fee
An annual independent audit of the Association is required by the
Association documents.
Note 8.
Legal
This is an estimate per Association's attorney to provide legal
counsel at a rate of $1,250 per quarter.
Note 9.
Golf Pro Fees
Based on 1996 Golf Pro and consulting contracts.
Note 10.
Office Supplies
This is an estimated expense for supplies, letterhead, postage, and
paper.
5
109
(Continued)
Note 11.
Dues and Subscriptions
Expense consists of NJSGA and USGA dues and meeting expenses.
Note 12.
Contingency
This expense is an estimate for any unforeseen expenses incurred
during the year.
PAYROLL:
Note 13.
Payroll, Payroll taxes and benefits
These estimates
are
based
on
salaries
for
one
full
time
superintendent, two part time laborers and a proshop assistant.
Payroll taxes are computed at 11.75% of salaries.
Benefits are
estimated based on current billings for full time employees. Workers
compensation is calculated at $5.29 per $100 of salaries.
Note 14.
Pager Rental
This expense is based on a contract of $10.44 per month.
Note 15.
Fuel, Oil and General Repairs
Estimated cost of operating and maintaining golf course equipment.
Note 16.
Miscellaneous Supplies
Estimated cost of supplies for operations.
Note 17.
Topdressing and grass seed
These expenses are based on four applications of topdressing for
greens and grass seed for greens and the fairways.
Note 18.
Irrigation Equipment
Estimated cost of sprinkler head repairs and system winterization.
Note 19.
Lawn Fertilization, Chemicals and Weed Control
Cost of fertilization , chemicals and crabgrass prevention for nine
holes.
Note 20.
Well Electric
Estimated cost of operating the well is based on actual expenses
through June 30, 1996 and estimated costs for balance of the year.
Note 21.
Golf Cart Electric
Cost of charging 20 battery powered carts based on estimate by Vic
Gerard, a supplier of golf carts.
Note 22.
Small Equipment
Estimate cost of small tools to maintain equipment and golf course.
6
110
Note 23.
(Continued)
Equipment
Cost of golf course equipment not previously reserved for.
BUILDINGS:
Note 24.
Maintenance Building
Costs include gas, electric, telephone, water and sewer.
Note 25.
Pro Shop Building
Costs include gas, electric, telephone, water and sewer.
Note 26.
Maintenance Supplies
Cost of janitorial and other supplies to maintain maintenance
building and Pro Shop.
CAPITAL RESERVES:
Note 27.
The Association's documents call for the establishment and
accumulating of separate funds for the eventual replacement of
certain common elements. The funds should be budgeted, collected
and set aside in separate Association accounts. Each year during
the budget process, the Association's board members should review
the replacement cost and useful life for reasonableness in
determining the proper amount of funds to be set aside in that
particular year.
An independent engineering report was prepared by Flannery, Webb
& Hansen, P.A. Through a review of the site and architectural
plans in April 1996. The quantities and cost estimates included
in this budget were directly from this report. The schedule of
capital replacement reserves are detailed in an exhibit to this
report (Pages 8-11).
The engineering report referred to above does not reflect a 1996
improvement of an asphalt golf cart path at a cost of $60,000
with an estimated useful life of 15 years. The addition of this
item to the study will increase the monthly maintenance by
approximately $ .26 per member.
7
111
Capital Reserve
Greenbriar Golf
Study
Course
April, 1996
Page 8 of 25
$0.00
Item
Yr. Installed
Useful Life
Est. Remaining
Useful Life
Estimated
Quantity
Unit
Unit Cost
Current Rep.
Value
Pro-shop Building
Exterior
Asphalt Shingles
Concrete Patios
Aluminum Gutters
Aluminum Downspouts
1998
1996
1996
1996
25
30
20
20
25
30
20
20
37
1605
206
90
SQ
SF
LF
LF
$114.00
$5.40
$2.33
$2.33
$4,218
$3,667
$480
$210
1998
1996
1996
1996
1996
1996
1996
1996
1996
1996
8
8
8
20
30
30
30
30
30
30
8
8
8
20
30
30
30
30
30
30
82
22
42
195
117
124
92
138
20
35
SY
SY
SY
SF
SF
SF
SF
SF
SF
SF
$22.05
$22.05
$22.05
$3.83
$6.89
$6.89
$6.89
$6.89
$6.89
$6.89
$1,808
$485
$926
$747
$806
$854
$634
$951
$138
$241
1996
1996
1996
1996
10
25
25
25
10
25
25
25
1
2
2
2
EA
EA
EA
EA
$850.00
$2,400.00
$285.00
$1,575.00
$850
$4,800
$570
$3,150
1996
1996
1996
25
20
20
25
20
20
58
275
95
SQ
LF
LF
$114.00
$2.33
$2.33
$6,612
$641
$221
1996
1996
1996
20
30
30
20
30
30
260
135
45
SF
SF
SF
$3.83
$3.83
$6.89
$996
$517
$310
1996
1996
1996
1996
1996
25
10
20
20
20
25
10
20
20
20
1
1
4
9
3
EA
EA
Ea
EA
EA
$2,400.00
$850.00
$2,300.00
$199.00
$1,125.00
$2,400
$850
$9,200
$1,791
$3,375
Interior Finishes
Mechanical Items
Electric Resistance Baseboard Heater
Exterior
Asphalt Shingles
Aluminum Gutters
Aluminum Downspouts
Interior Finishes
Mechanical System
Roof Ventilators
112
8
Capital Reserve
Greenbriar Golf
Item
Study
Course
Yr. Installed
April, 1996
Page 9 of 25
Useful Life
Est. Remaining
Useful Life
Estimated
Quantity
Unit
Unit Cost
Current Rep.
Value
Site
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Fuel Tank
Well Motor/Pump
1996
1996
1996
1996
1996
1996
1996
1996
1996
1996
1996
1996
1996
20
20
20
20
20
20
20
20
20
10
15
15
12
20
21
22
23
24
25
26
27
28
10
15
15
12
1
1
1
1
1
1
1
1
1
1
1
722
1
LS
LS
LS
LS
LS
LS
LS
LS
LS
LS
EA
SY
EA
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$3,000.00
$7,000.00
$3.31
$6,000.00
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$3,000
$7,000
$2,588
$6,000
Cushman Truckster
Carry-All Golf Cart
Gang 5 Reel Mower
Sprayer
Triplex Tee Mower
Greens Mower
Sandtrap Machine
Toro Greens Mower
Rotary Push Mowers
Weedeater
Golf Cart (used)
1996
1996
1996
1996
1996
1996
1996
1996
1994
1996
1996
1994
8
8
8
8
8
8
8
8
8
4
5
8
8
8
8
8
8
8
8
8
8
4
5
8
1
1
1
1
1
1
1
1
1
2
1
1
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
EA
$10,000.00
$6,000.00
$23,000.00
$3,800.00
$9,000.00
$15,000.00
$8,000.00
$14,900.00
$6,000.00
$900.00
$350.00
$5,000.00
$10,000
$6,000
$23,000
$3,800
$9,000
$15,000
$8,000
$14,900
$6,000
$1,800
$350
$5,000
Total
$313,486
113
Capital Reserve
Greenbriar Golf
Study
Course
April, 1996
Page 10 of 25
$0.00
Item
Percentage of
Total Value
Current Funded
Amount
Annual Reserve
Requirement
Amount Funded
@ E.O.Y.
Photo
Notes
Des. No.
Pro-shop Building
Exterior
Asphalt Shingles
Concrete Patios
Aluminum Gutters
Aluminum Downspouts
1.35%
2.78%
0.15%
0.07%
$0
$0
$0
$0
$169
$289
$24
$10
$169
$289
$24
$10
1
2
3
3
0.58%
0.15%
0.30%
0.24%
0.25%
0.27%
0.20%
0.30%
0.04%
0.08%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$226
$61
$116
$37
$27
$28
$21
$32
$5
$8
$226
$61
$116
$37
$27
$28
$21
$32
$5
$8
4
0.21%
1.53%
0.18%
1.00%
$0
$0
$0
$0
$65
$192
$23
$128
$65
$192
$23
$128
7
8
9
10
2
2
2
2
8
8
8
8
2.11%
0.20%
0.07%
$0
$0
$0
$264
$32
$11
$264
$32
$11
11
1
9
10
11
0.32%
0.16%
0.10%
$0
$0
$0
$50
$17
$10
$50
$17
$10
12
0.77%
0.21%
2.93%
0.57%
1.08%
$0
$0
$0
$0
$0
$96
$65
$460
$90
$169 $
$96
$65
$460
$90
169
1
1
2
3
4
Interior Finishes
5
5
5
6
7
7
7
7
7
7
5
8
Mechanical Items
Natural Gas Water Heaters
Electric Residence Baseboard Heater
Exterior
Asphalt Shingles
Aluminum Gutters
Aluminum Downspouts
Interior Finishes
12
12
13
Mechanical System
Roof Ventilators
13, 14
15
16, 17
1
1
14
14
15
16
17
114
Capital Reserve
Greenbriar Golf
Study
Course
April, 1996
Page 11 of 25
$0.00
Item
Percentage of
Total Value
Current Funded
Amount
Annual Reserve
Requirement
Amount Funded
@ E.O.Y.
Photo
Notes
Des. No.
Site
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Fuel Tank
Well Motor/Pump
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
0.66%
2.23%
0.83%
1.91%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$750
$714
$682
$652
$625
$600
$577
$556
$538
$300
$487
$173
$500
$750
$714
$682
$652
$625
$600
$577
$556
$538
$300
$487
$173
$500
18
18
18
18
18
18
18
18
18
19
20
21
22
3.19%
1.91%
7.34%
1.21%
2.37%
4.78%
2.55%
4.75%
1.91%
0.57%
0.11%
1.59%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,250
$750
$2,875
$475
$1,125
$1,875
$1,000
$1,863
$1,000
$450
$70
$833
$1,250
$750
$2,875
$475
$1,125
$1,875
$1,000
$1,863
$1,000
$450
$70
$833
23
23
23
23
23
23
23
23
23
23
23
23
100.00%
$0
$23,419
Cushman Truckster
Carry-All Golf Cart
Gang S Real Mower
Sprayer
Triplex Tea Mow«r
Greens Mower
Sandtrap Machine
Toro Greens Mower
Rotary Push Mowers
Weedeater
Golf Cart (used)
Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
No. of Units
278
374
478
578
678
778
873
978
1078
1178
1273
1300
Monthly
Contribution
Per Unit
$1.50
$1.53
$1.85
$1.74
$1.82
$1.91
$2.01
$2.11
$2.22
$2.33
$2.44
$2.57
Annual
Reserve
Contribution
$5,004.00
$7,144.20
$9.485.91
$12,043.93
$14,834.04
$17,873.05
$21,178.87
$24,770.60
$28,868.55
$32,894.38
$37,471.09
$40,021.94
115
116
Exhibit 21B
Insurance Letter of Adequacy
117
118
Peter Boyarin
December 20, 1996
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Gentlemen:
I am a licensed insurance agent providing insurance for Greenbriar Golf Course Association located in
Jamesburg, NJ.
The insurance policies that are in force for the Greenbriar Golf Course Association is written on an "all
risk" policy, subject to standard exclusions such as normal wear and tear, war, flood, etc The amount of
I.
provision;
or
II.
foot.
mortgage lenders or management agents. I further state that:
1.
2.
value policy.
119
3
Fire, casualty and general liability insurance will provide.
a.
b.
association;
c
d.
owners;
e
4.
coverage.
All premiums for the above coverage are part of the common charges Should the Association choose to
take any additional insurance, the premiums therefore will be in addition to those estimated on the
operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio,
Wentworth Group
120
Peter Boyarin
December 20, 1996
Wentworth Group
157 Broad St., Suite 108
Red Bank, NJ 07701
Re:
Greenbriar Golf Course Association, Inc
Gentlemen.
Jamesburg, NJ.
The insurance policies that are in force for the Greenbriar Golf Course Association provide the
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property:
Buildings
Contents
Deductible
$ 520,000
Included
$ 1,000
$ 6,624
Included
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$1,000,000
$ 5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$1,000,000
Included
Included
Included
121
Crime:
Employee Dishonesty
$100,000
$
356
$ 1,000,000
$ 1,875
Umbrella:
$2,000,000
$
811
Statutory
$
396
Total Premiums:
$ 10,062
All premiums for the above coverages are part of the common charges. Should the Association choose
operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio
Wentworth Group
122
Peter Boyarin
December 20, 1996
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Gentlemen:
Jamesburg, NJ.
The insurance policies that are in force for the Greenbriar Golf Course Association is written on an "all
risk" policy, subject to standard exclusions such as normal wear and tear, war, flood, etc. The amount of
I.
provision,
or
II.
foot.
1.
2.
value policy
123
3.
Fire, casualty and general liability insurance will provide:
a.
b.
association;
c.
d.
owners;
e.
coverage.
4.
All premiums for the above coverage are part of the common charges. Should the Association choose to
take any additional insurance, the premiums therefore will be in addition to those estimated on the
operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio,
Wentworth Group
124
Peter Boyarin
December 20, 1996
100 Whittingham Dr
Jamesburg, NJ 08831
Re:
Greenbriar Golf Course Association, Inc
Gentlemen:
Jamesburg, NJ.
The insurance policies that are in force for the Greenbriar Golf Course Association provide the
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property:
Buildings
Contents
Deductible
$ 520,000
Included
$ 1,000
$ 6,932
Included
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$1,000,000
$ 5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$1,000,000
Included
Included
Included
125
Crime:
Employee Dishonesty
$100,000
$356
$ 1,000,000
$ 1,875
Umbrella:
$ 2,000,000
$ 811
Statutory
$ 396
Total Premiums:
$ 10,370
All premiums for the above coverages are part of the common charges. Should the Association choose
operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio
Wentworth Group
126

GREENBRIAR AT WHITTINGHAM

Transcription

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