Board Approved Spending Plan- 2010
As we begin the work of reconciling the spending plan to the financial realities of 2010, it is helpful to understand the magnitude of the funding shortfall. For the 2010 budget year, the Association has a funding shortfall of $256,356. The approved 2010 budget was designed to maintain operations and amenities at their status quo level of operation. This shortfall is based on projections of various revenue sources:
- Dues revenues that are down by $138,410,
- New construction fees and fines that are down by $80,000
- Annual golf memberships that are down by $30,000
- A similar reduction in Health Club revenues that are down by $7,946
These factors combine to equal the shortfall, which represents the magnitude of the problem that must be addressed as we prepare to begin the 2010 fiscal year. The focus next year, therefore, must be to do fewer things, but do them well.
Potential Impact of Necessary Budget Reductions:
Each department has been evaluated for both revenues loss and budget reductions.
Accounting - Staffing is static. There are no revenue changes. Budget reductions total: $13,593.
Architectural Control – Staffing will remain the same, as we have a critical need for the two primary AC staff members to be able to handle the substantial workload of the department. The Compliance Specialist is also retained, as this position is critical to both protecting the property values of the membership by enforcing compliance of the ACC rules and regulations, as well as revenue collections. The lost revenues total: $80,000 and the budget reductions total: $7,443.
Administration – Staffing will remain the same. Administration is staffed at the minimum level for effective administrative oversight, service delivery and Board support. There is no revenue change and budget reductions total: $5,302.
Common Cost – This department includes general insurance, legal fees, the Valley Views and Bob’s Burgers and Brew. There are no revenue changes. Budget reductions total $7,440.
Maintenance – Staffing is reduced by 1.3 FTE positions. Reductions will impact services and maintenance to facilities, roads and grounds. Reductions in revenue: $500. Reductions for labor: $92,498. Reductions for expenses: $1,630. Total budget reductions: $93,628.
Security – Staffing is reduced by .4 FTE security position. The 24/7 coverage is maintained. Reduction in revenue: $5,000. Reduction for labor: $14,596. Expense reductions: $19,014. Total budget reductions: $28,610.
Amenities
Golf Department - Staffing will be reduced by .6 FTE seasonal (2) greens keeper positions. Revenue reduction: $30,000 in membership fees. Reductions for labor: $18,517. Reductions for expenses: $17,918. Total increase in net income: $6,435.
Recreation Department - Staffing and recreational programming will be substantially reduced to the point of virtually eliminating the Recreation Department. Operational result:
1) Cease operation of both pools;
2) Cease all recreational programs and events, and most facility rentals.
3) Close the Adult Center, Rotunda and Dance Barn to maintenance levels, with limited
exceptions. Total budget reductions: $92,092.
Community Center - Certain activities would continue to be housed in the Community Center, such as the Health Club (see below), Coffee Shop and Sunshine Room. Additionally, relocate all Association meetings or club activities to the Community Center. Net operational cost of Center for 2010 (projected): $14,722. There is no estimate for facility rentals, at this time.
Health Club – It is proposed that the Health Club be maintained in its current operational condition. Certain staffing revisions will be necessary. A conservative estimation of potential revenues results in a decrease of $7,946 for the year. Budget reductions total: $1,878. Net income is projected to be $2,323 for the year 2010.
Marina – It is proposed that every reasonable effort be made to ensure maximum rental of the spaced available, even if it included select and limited rentals to non members or residents ($4,000), as a last resort. Additional revenues total: $8,550. Budget reductions total: $5,538.
Tags: 2010 Financial Spending Plan, Financial, Operations Budget