The Preliminary budget was reviewed by line item:1.Office Supplies; includes copier, toner postage,-total expenditure $ 7,500.00.2.Licenses, taxes, fees (slight increase) from $1985.00 to $2,000.00.3.Accounting fees- no increase.4.Legal fees-have exceeded what was previously budgeted due to the increase of courtactions being filed by John on behalf of the Association due to delinquencies.Steve clarified that we have spent $ 6,790.00, but actually budgeted &7,200.00, and mayreduce legal fees to $ 2,000.00.5.Miscellaneous, $2,500.00 spent to date, this includes, screening costs, etc., -increase to$3,000.006.Bad debt expense-Steve spoke about delinquencies to date, but currently $143,900.00 +/-.Have to include in the budget what we won’t be collecting in the next year. Will beincreasing from $17,500.7.Office & Clerical expenses-last year $46,900.00 has increased slightly, this includessalary, insurance, taxes, increase of health insurance.8.Maintenance/Custodial-( one full time person, and an occasional part time person) therewill be a decrease in the next year; from $ 55,980.00 to $ 45,000.00. ( no health insurancein this case).9.Management fee-no increase for the upcoming year.10.Maintenance/janitorial supply-no increase.11.General repairs and maintenance-buildings are aging, repairs increase.12.Pool Operation & Maintenance-no change;; a lot of expenses this year, but we areconfident that we can stay with the current budget13.Fitness Center-There will always be the need for repairs, will increase the budget for nextyear. (currently awaiting repairs).(Sharon interjects and mentions that we are still currently entertaining proposals from anumber of vendors; security, landscaping, etc.).14.Cable television-no change.15. Fire Equipment-decrease due to no lightning strikes.16.Lawn Maintenance and Landscaping- currently entertaining proposals all somewhat inline with each other, others slightly higher with irrigation which we currently pay aseparate company for; anticipated increase (slight).17.Trash Removal-18Extermination-not taking bids, satisfied as is.19.Entry Gate-anticipating some enhanced safety features, therefore increasing the budgetfor the upcoming year.20.Security-entertaining proposals; currently $31, 400-31, 500. May increase for specialcircumstances, i.e. –occasional pool guard.21.Carport/Parking-for damage; no change.22.Ingress/Egress-Shared maintenance with Laurel Lakes.