To all Royal Pelican Owners:

This note is to advise you on a change in our budget. We have good news. Our general insurance package renewed at $15.6K less than the amount budgeted. We were thrilled. The board has decided to put this money to work toward our ongoing fire upgrade project.

We have already included in the approved budget, upgrades to the fire system in two buildings. 1 and 5. This work is scheduled to begin shortly. When we went into the planning process, Fyr Fyter offered a 10% discount if we did 3 buildings. Unfortunately, we could not fit the spending into the deferred maintenance budget, so we only contracted for two buildings.

Now that we have the savings from the insurance renewal, we decided to add building 8 to the upgrade process and take advantage of the nearly $9K discount. We had to choose a 4 story building since the cost is $4K less than a townhouse building. If you are not aware, we have upgrades to 2 buildings per year in our capital plan. Buildings 2,6 and 7 are complete. 1,5 and 8 are now scheduled. 3 and 4 will be done next year. Building 9 has a sprinkler system which is already an upgrade.

In other financial news, we finished the fiscal year with spending $35K under budget, so we go into the next fiscal in great shape.

Should you have any questions, please feel free to send Patti Owens via an email.

Patowens5920@msn.com

Sincerely,
Your Board of Directors.