Subject: Financial Information Letter

2011 Proposed Annual Budget & Building Update

Enclosed you will find the 2011 Proposed Annual Budget for your review. For 2011, we are anticipating higher costs for lawyers, landscaping, and management services. The board plans to move forward with foreclosure on any unit still in arrears. Due to the concrete restoration, sod needs to be replaced within the courtyard and new light fixtures are needed for the catwalks and balconies. The 2010 surplus will help pay for these items and also provide for some cushion in the budget.

Due to performance reasons, the board decided to let Evan go. As a result, you will see a new expense of pool service and the elimination of the pool supplies. The board is also actively working to find a property manager. Therefore, the 2011budget has a new expense of Management Services while the salary expense includes the cost for the existing maintenance position.

If this budget passes, the monthly maintenance amount without reserves will be $255,with reserves $337. Please read, vote, and return the enclosed 2011 Voting Ballot as soon as possible. The outcome of this vote will determine if the reserves should be funded for 2011. The results will be determined at the next board meeting scheduled to take place on December 17, 2010 at 6pm. Maintenance coupons for 2011 will be sent out to all owners immediately following.

Concrete Restoration

The project is moving along as planned and we have received positive feedback from the owners. Based on the latest reports, we believe to be on schedule and within budget. The project is forecasted to be completed by the end of January 2011. Concrete work remains only on stacks 7, 8, 3, 4, and the south/west side catwalks.

The Board realizes the inconvenience that this project has placed on all owners. We appreciate your patience and cooperation throughout the duration of the project and look forward to a safer and more beautiful building for 2011.

Screen Enclosure Update

All screen enclosures have been removed during the concrete restoration process. Unfortunately none of these existing structures can be re-installed due to their condition. Depending on your balcony configuration, the cost for new screens range from $800 to $1390. The installation cost is $12 per linear foot. Any owner who wishes to have a screen enclosure installed, please indicate this option on the enclosed form.

Shutter Re-installation

Any shutter that is installed against the vertical wall ontop of the sliding glass door can be re-installed. The engineer and contractor have voiced concerns about re-installing shutters that were located at the balcony edge against the railings. These shutters require holes to be drilled into the horizontal floor and ceiling balcony surfaces. They experience more wind-load at the edge and therefore will accelerate the deterioration process of the balconies. The board is concerned about re-installing any shutter located at the balcony railing/edge due to the potential for accelerated deteriorationand the shutters can be a hazard with future storms as they were the only ones that were blown into the pool during hurricane Wilma.

Please indicate on the voting ballot if you would like to allow for shutters to be re-installed at the balcony railing/edge.

Front Door Replacement

A number of owners have approached the Board inquiring about front door replacement. The Board is in the process of working with the contractor and engineer to finalize door specifications, costs, and a potential schedule. The Board is pursuing a door that is fiberglass, fire-rated, and impact rated. Initial estimates for the door, permits, and installation is $1,000. Any owner interested in participating in this project, please indicate this option on the enclosed form. Once we have a count, the board can pursue with competitive pricing with other vendors.

As always, please contact me or any Board member if you have questions or concerns.

Michelle Blouin

Treasurer

Please return this form to the Association immediately. It MUST be received by December 17, 2010:

Boca South Association, Inc.

2929 South Ocean Blvd., #108

Boca Raton, FL 33432

Unit #______

_____ I would like to have my front door replaced and am interested in having STR Restoration, Inc. perform this service. Please keep me updated as this project advances.

_____ I wish to have a screen enclosure installed on my balcony/patio. The installation cost is $12 per linear foot and the materials cost range from $800 - $1390. These amounts are not included in the initial assessment and must be paid for before any screen is installed.

I can be reached to discuss these matters by:

Email address: ______

Phone #: ______

Mailing Address: ______

______

Owner Signature:______

Print Name:______

Date:______

Email:

Website: