Spruce Creek South | Road Resurfacing Assessment

April 30, 2008

RE: Road Resurfacing Assessment

Residents,

As you are likely aware, some of the roads in Spruce Creek South are at or near the end of their useful life and need to be resurfaced. This was one of the main topics of discussion at the General Information meetings we held in January and February, however if you didn’t attend below is a brief summary of the key points.

• There are slightly over 20 miles of roads in Spruce Creek South.
• The Main Boulevards are in need of resurfacing now.
• The side roads are in varying states of repair, ranging from needing to be done within the next few years to some lasting for another 10+ years.
• The cost today to cover all roads is just over $2.1 million dollars.
• There were no previous road reserves set up under the prior ownership.
• The problem isn’t going away…it will only get worse.

The proposal we discussed at the meeting is to take a “Phased” approach to resurfacing the roads. Based on today’s costs and adjusting slightly for inflation it looks like we will be able to resurface the entire development over the next 11 years with a $10.00 per month per house Road Assessment. By way of this notice and pursuant to Article VI, Sections 2- of the Declaration of Restrictions and Covenants for Spruce Creek South, we are implementing a Road Assessment to fund the resurfacing of the roads. These funds will be deposited in a separate interest bearing escrow account and will be accounted for annually and published with the annual financial statement.

As a show of good faith, we are prepared to implement the first phase of road resurfacing prior to receiving all the necessary reserve funds. the road resurfacing for the main boulevards is scheduled to begin late April with the assessment going into effect June 1. The cost will be reimbursed out of the road assessment account as the funds are received over the next year.

PAYMENTS MADE BY ACH OR DIRECT DEBIT For people who are using this method to pay their monthly assessment, there is no action required on your part, as the $10.00 Road Assessment will be added to your June fee. However you should note your records accordingly.

PAYMENTS MADE BY WRITING A CHECK If you are currently writing a check each month, you will be sent a new coupon book prior to June 1 so that you will have an updated coupon for your June payment.

In summary, effective June 1, 2008, each resident will be assessed an additional $10.00 per month to pay for the road resurfacing that will occur over the next 10-11 years.

Sincerely,

Ken Kirkpatrick
Spruce Creek Recreation, Manager