December 10, 1998

Dear Fellow Owner:

Enclosed are your payment coupons, showing condominium fees for 1999, and a copy of the 1999 annual budget for The Lauren, A Condominium. You will see that the Board of Directors has decided that there will be no increase in fees for 1999.

Recent years' increases in fees were driven by the need to build up the Association's capital reserves. The reserve fund, which stood at under $60,000 in early 1992, has grown to nearly $340,000 as of October 31, 1998, in spite of major recent capital expenditures for a new air conditioning chiller, redecoration, and other substantial projects. This improvement in the association's financial health has allowed us to leave fees unchanged for next year.

During 1998 the condominium has kept within the operating costs projected in the 1998 budget. The current projection indicates that we will finish 1998 with an operating surplus. Capital expenditures will be modestly above the 1998 budget projection, primarily because funding on one of the major projected capital expenditures for the year, renovation of the lobby, spanned two fiscal years, while the actual work took place only in 1998.

The projected budget for 1999 anticipates only small changes in most operating accounts. In the capital budget, there are no major anticipated expenditures. However, an engineering study and design for replacement of the roof, which has reached the end of its useful life, will be undertaken. The actual roof replacement is planned for 2000.

I encourage you to read the enclosure from the Marketing Committee describing how the Lauren's website can benefit you as an owner. Please also review the enclosure from Walter Krolman, the Lauren Property Manager, concerning miscellaneous fees.