President's Message - April 2004

Norman Salisbury
President

Dear Fellow Owners:

Your Board of Trustees and your Finance Committee have finally arrived at a budget for our operations in the coming fiscal year. We struggled at length with how to deal with rising insurance and utilities costs at a time when our air conditioning assessment is just now going into effect. These two expenses together have risen more than 40% in the past five years and now comprise over one third of our total budget. In these past five years, our assessments have not kept pace with these increases.

At the insistence of several Trustees, the only way we could approve the increase in the operating assessment was to also engage in an aggressive cost cutting program to achieve at least, if not more, savings than the projected increase. Portions of this plan were also suggested by our auditor after last year’s audit. This plan was approved on April 2, 2004 and will take effect on May 1, 2004. We anticipate our cost cutting plan as detailed by our management staff will be transparent to owners and will not affect our services and amenities. We will constantly monitor and evaluate our progress and success in cutting costs while maintaining our levels of service. These cost cutting measures will likely involve staffing levels and your Board will be reviewing these proposed changes and reductions as they are put into effect. We believe that taking these measures will keep American Towers in sound operating condition.

Additionally, I would like to offer a reminder to all residents to please assist us in our efforts to manage our costs. Please monitor and manage appropriately your room temperatures. Help us save water where possible. Small things such as showering before entering the pools and spas saves in chemicals and chlorine and keeps the spas inviting for others. Please accompany your guests and their children in the amenity areas and inform them of the manner in which we like to keep our fine facilities. Visting children should not be joy riding in our elevators.

I thank you again, personally and representing the other trustees, for your patience and cooperation. We all look forward to enjoying a cool and air conditioned summer together.

Sincerely,