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CHRIS HARRIS
David Stoll was our Treasurer until he moved away in July and I took
over. David Nelson is currently assisting me in this position.
2006 Operating Budget:
We finished the year with a surplus. In January the Board
transferred $13,000 to the Major Repairs restricted account to partially
fund the repair work at James Court. The annual audit has been completed
and the tax return was filed this week. Results of the audit showed our
financials records to be accurate and in good order.
2007 Operating Budget:
We’ve earned $11,748 in Reserve account interest, expenses remain under
budget, and we are under budget today and expect to finish the year
at-or-under budget. Committees are always urged to use good fiscal
judgment and not spend unnecessarily just because they have the funds.
If they find themselves in a position of not having to spend, our
year-end is likely to come in under budget, similar to last year. The
Board will likely transfer any unused funds to our reserves. All
our financial record keeping is now being done at the Community
Association Office and, I might add, done very well! Approved
Capital projects for 2007 have come in at-or-under budget.
Recap of the 2008 Operating Budget:
A Community Meeting was held in August to present the proposed 2008
Operating and Capital Budgets. Committee Chairs and the Board responded
to the questions and concerns that were raised. The key drivers to the
budget increase and resulting dues increase are the maintenance and
repair of our facilities (i.e. Bay Cub exterior painting), employee
related expenses, and increased reserve funding for Mayor Repairs and
Replacements.
Our Reserve Model was verified this year by an outside engineering firm
and found to be in good shape. They confirmed that we are under
funded for Major Repairs & Replacements by about $160,000. While
they suggested that the shortfall be funded immediately, recent Boards
have taken the approach that we will fund this shortfall incrementally
over the next 10 years and, in fact, $15,000 has been added to the 2008
budget for this purpose. The importance of this is to ensure that funds
are available to replace (YOUR) Major Assets when they reach end-of-life
instead of using assessments. We currently have $344,736 in the Major
Repairs & Replacements Account with $102,927 to be added from the 2008
Budget, and $47,071 to be used to resurface the Bay Club pool.
I have prepared a few slides to show how our income and expenses are
distributed. You’ll note that 86.8% of our Revenue comes from
assessments & interest. On the Expense/Monies for Reserve Account
side, the Buildings & Grounds Committee (facilities maintenance &
repair, & utilities), personnel & insurance, and Monies for Reserve
Accounts take up 78.7% of our dollars. Administration & Other take
up 8% and include our ten (10) smaller but very important operating
committees (Architectural Control, Art, Board & Treasurer, Community
Association Management, Cultural & Education, Environmental, Finance,
Long Range Planning, Marketing and Security). The Bay Club
(including the bar) which is almost self-supporting takes up 7.3%; Our
Fitness Center, Tennis Courts and Pools take up 3.3%; and, the
Newsletter and Social Committees are self supporting and take up 2.7%.
(See attached)
Thank you for your attention!
Respectfully submitted,
Chris Harris
Slide Presentation
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