Understanding the ACC 2014 Budget
anthem community council
ACC Assessment Increase for Property Owners Anthem HOA Budget Summaries Included Inside: • Country Club • Parkside • The Village
Highlights & Department Descriptions
executive budget letter Honorable President and Board of Directors and Anthem Property Owners: We are pleased to present the Anthem Community Council (ACC) Annual Operating Budget for the fiscal year beginning January 1, 2014 in the amount of $11,023,435, an increase of 3.7% compared to 2013 budget. The Budget was approved by the Board of Directors at the monthly meeting on October 23, 2013 after much dialogue on the part of the Board, staff, Fiscal and Resource Management Committee (FaRM) and the public. The budget is intended to present to a comprehensive picture of proposed operations for the year to meet the needs of the Anthem residential, commercial and non-residential property owners. Last year, the ACC projected that an assessment increase may be necessary to cover rising operational costs, despite the efforts of the ACC which resulted in $2.4 million in savings over the past three years. After careful and objective evaluation of every facet of our operations and conducting financial forecasting, the ACC determined that an increase in assessments, the first in seven years, was necessary to continue to provide services to residents which protect property values and enhance the quality of life. Costs are rising, as is the annual contribution to the reserve fund, and quality cannot be maintained without additional financial support. The budget is balanced due to reductions in costs and an increase in assessments. The assessment increase is critical to ensure that the assets and amenities that exist to serve the Anthem public, now and into the future, will be maintained through a stable and sufficient reserve fund. The increase, which is described in more detail on pages 10 and 11, is NOT needed to fund the new civic building. We invite the public to attend the civic building grand opening on January 25 to learn more about this new public space for Anthem. The ACC continues to take strategic approaches to meet community needs and Boardestablished priorities (see page 3) through the budget, building on the following principles:
• Maintain a fiscally responsible, balanced budget • Align with Anthem Community Council strategic priorities • Continuously evaluate contracts, workloads and efficiencies in order to deliver services in the most effective manner
• Identify fiscal and community impacts through cost benefit analyses • Maintain adequate reserves for maintenance of community assets, a key measurement of a community’s financial health
• Scrutinize all expenditures and develop a budget tied to community needs and Board direction
The ACC is committed to being good stewards of the Anthem community’s dollars, and this budget continues the tradition of providing quality programs and services and maintaining top notch amenities for Anthem property owners. The budget is the result of the dedicated efforts of many people, and we extend our sincerest appreciation to all involved in the process. Respectfully submitted,
Jenna R. Kollings, Community Executive Officer
Doug Greenstein, Community Finance & Administration Officer
Neal Shearer, Community Operations Officer
ACC Budget overview
The ACC Board’s strategic priorities include: • Finalize adoption of the comprehensive community master plan to address community needs and ensure the future vitality of Anthem, with a focus on completing the civic building project and pursuing implementation of Opportunity Way Park. • Constantly evaluate programs and services; make changes as necessary to ensure that they are provided in the most cost effective and efficient manner while maintaining a high level of customer service. • Devote resources to supporting, developing, and implementing programs to support the local business economy and economic development. • Focus on creating a safe environment for Anthem. In doing so, ACC will be an advocate for appropriate law enforcement coverage and public safety services in the community as well as maintain a safe environment at all ACC facilities and amenities for residents and patrons.
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Notice of the Amount of Annual Assessments Department Descriptions Departmental Funding Budget Highlights Programs & Services Continue Approved Budget Consolidated Summary Country Club (ACCCA) Parkside (APCA) The Village at Anthem Anthem Community Council ACC Budget-in-Brief 3
acc annual assessments Notice of the Amount of Annual Assessments There is an increase in the Anthem Community Council general assessment effective Jan. 1, 2014. • Residential assessments increase $6/ month or $18/quarter (from $187.50 to $205.50/quarter) • Non-resident/commercial assessments, calculated based on acreage, increase from $62.50 to $68.50 per acre/month. • Village assessments increase $4/month or $16/quarter (from $127.50 to $139.50/ quarter). Please note that the increase only applies to the ACC assessments; the individual homeowners associations assessments are NOT changing in 2014.
This is the first increase in ACC assessments since January 2007. The ACC has worked diligently over the past seven years to trim costs, saving over $2.4 million in the past three years, and has transferred excess cash into the reserve fund over the past two years to offset the need for an increase until now. Most recently, the ACC has trimmed in the following areas: • Bad debt and collections • Information Technology (IT) • Legal services • Newsletter and printing • Third-party management The increase is to accommodate rising operational and reserve costs rather than new programs or services. The chart below demonstrates the distribution of additional assessment dollars:
Anthem Country Club, Parkside, and Village homeowners will not see an increase in HOA assessments for 2014. It’s important to note that the HOA assessments are different from those of the Anthem Community Council (ACC) as outlined above. For the ACC Consolidated Budget Summary go to page 10. For more HOA assessment information: • Country Club (ACCCA): Page 12 • Parkside (APCA): Page 13 • Village: Page 14
acc department descriptions Administration Includes Finance/Accounting, Human Resources, Office Management, Front Desk/ Customer Service for Council and HOAs, Commercial Code Compliance for Council, and the offices of the Community Executive Officer, Community Operations Officer, and the Community Finance & Administration Officer. Its mission is to drive service delivery excellence by providing leadership and administrative support services; implementing Board policy direction and priority initiatives; coordinating interagency and HOA relationships, economic development outreach, legal services, and the annual budget process; providing support to ACC Committees and special ad hoc committees relating to such key issues as governance, water/wastewater rates, and the Veterans Memorial; overseeing all ACC operations, finance, and personnel; and creating an organizational culture that promotes integrity, teamwork, and customer service.
implementation of the Anthem Community Councilâ€™s public affairs, media relations, employee communications, and marketing and public relations programs; as well as website management and event publicity. This department oversees the creation, design, implementation, and production of the ACC Resource Guide, Community Center Activity Guide, and the OnlineAtAnthem.com and ExperienceAnthem.com websites. Its mission is to support the Anthem Community Council by providing effective and efficient avenues of communication within and beyond the community; and further increase and strengthen the awareness of the Council and its programs and services to the broader residential and business communities.
Community Center Administration
Civic Building Accounts for all costs associated with operating 3701 W. Anthem Way, the communityâ€™s new civic building, including utilities, janitorial services, and other operational costs. The Anthem Community Council acquired this building in late June 2012. Renovations began in mid-2013, and a grand opening to the community is scheduled for January 2014. The civic building is planned to include the following programs: large multi-purpose space for Board and community meetings; law enforcement wing for the Maricopa County Sheriffâ€™s Office and other law enforcement partners; business conference center; quiet recreational space for arts and crafts and other programming; welcome and information center; space for community administration and services; open gathering spaces for studying, card playing, senior games; fitness room; and space for lease/use by local non-profits, local organizations, and residents. Renovation costs are funded out of the Enhancement Fund.
Communications & Marketing Provides overall direction, management, and
Provides resident services including facility rentals, contracted vending, and retail sales, and oversees operations including facility
ACC Budget-in-Brief 5
acc department descriptions management, personnel administration, contract administration, and events such as resident appreciation and open houses. Its mission is to provide the highest level of customer service and ensure that residents’ needs are being met through programming and the consistent operation of the Community Center complex.
Community Center Maintenance Responsible for cleanliness and maintenance of the two-story, 43,000 square foot complex, including lap pool and dive well, water park, tennis courts, rock wall, multi-purpose rooms, gymnasium, fitness floor, group exercise studio, locker rooms, and lobby and office areas. Its mission is to maintain Anthem’s “crown jewel” Community Center complex in top-notch condition for residents to use and enjoy, strive for the highest level of safety and cleanliness, and maintain a cost-effective budget and environmentally sound approach.
Community Center Programs Offers a full complement of programs, including children’s programs, camps, youth and adult sports leagues, tennis, fitness and wellness, dance and gymnastics, teen programs, specialty classes, rock wall, and swimming and diving. Its mission is to provide and maintain programs and activities for the diverse Anthem population that promotes learning and a healthy lifestyle. The ACC continues to diversify its recreation offerings, and has expanded to include programs such as bounce bootcamp and TRX classes.
Parks & Facilities Maintenance Responsible for the maintenance and upkeep of ACC-owned common areas and facilities, including the 64-acre Community Park with high quality sports fields, fishing lakes, Veterans Memorial, and other popular amenities; Liberty Bell Park and Splash Pad; the Anthem Civic Building; the Anthem entrance fountains; 15 miles of trails; 1,400 acres of protected washes and open space; 350 acres of desert landscaping with ground cover; 50 acres of turf; 20,000 trees; and 4.4 million square feet of common walls and view fences. This department also oversees
a variety of service contracts relating to landscape maintenance, lake and pump maintenance, janitorial cleaning and support, and painting. Its mission is to provide high quality and cost effective maintenance services to ensure that the ACC’s amenities are clean, safe, attractive, and a source of continual pride for Anthem residents.
Paseo The ACC oversees maintenance and landscaping in the Paseo subdivision; these costs are covered by Paseo residents through a benefited assessment with modest support from the overall 2013 ACC budget.
Special Events Provides overall direction, management, planning and implementation of the Anthem Community Council sponsored special events (Anthem Days, Autumnfest, Independence Day, Music in May, and Veterans Memorial ceremonies). This department also serves as liaison to community groups and independent organizations that request and schedule events in the ACC Community Park; coordinates internal and external event logistics, license, insurance, and permitting requirements with vendors, businesses, and government entities; and oversees banner and signage policies for the Park. Its mission is to create a welcoming community environment whereby residents come together to enjoy a lifestyle where traditions are created and memories are made.
acc departmental funding
2014 Net Revenues By Department
2014 Operating Expenses By Department
*Assessments are collected in 3240 - Council Administration - and used to offset program and service costs across all departments.
ACC Budget-in-Brief 7
acc budget highlights burden of increasing reserve assessments The 2014 ACC Budget brings many benefits to in future years and allow the ACC to keep the Anthem community. It sustains community the transfer amount stable for a number programs, events, and services that promote of years. Planned expenditures from the Anthem as a desirable place to live and do Reserve Fund in 2014 are approximately business. It endeavors to positively impact $2,000,000 and include significant painting property values through continual investments of common walls and wrought iron in maintenance, infrastructure, and economic fencing, as well as the replacement of the development. It reflects responsive leadership Community Park Adventure Playground. and fosters transparency. It preserves and As the community infrastructure ages, protects community amenities that showcase the pressure on the Reserve Fund grows why Anthem is an award-winning Master to keep pace with needed repairs and Planned Community and a desirable place maintenance, a necessary element for in which to live, work, and play. Through the community safety, as well as maintaining leadership of elected officials, guidance and overall community appeal and property commitment from many volunteer community values. members, and the professionalism and expertise of staff, Anthem continues to be a fiscally strong The priority of the ACC Board and Staff is to and well-maintained community. design a budget which emphasizes providing efficient and cost effective services to the The ACC has three major funds: the community, day-in and day-out. This 2014 Enhancement Fund, the Reserve Fund, and the budget recognizes cost increases in insurances, Operating Fund. While this document focuses on the Operating Fund, the other two funds and utilities, infrastructure and turf maintenance, safety, janitorial services, payroll taxes their relationship to the Operating Fund are and benefits, and selected support costs. described, below: Conversely, the Board and Staff continue to • The Enhancement Fund, which was find opportunities to internalize previously established through the governing outsourced services, resulting in cost savings, documents, is based on 1/4 of 1% of the along with realizing savings opportunities sale price of each resold property. The in legal, professional support, bad debt, fund is designated for major new projects technology, and other areas. and amenities that benefit the Anthem The 2014 Budget includes expenditures which enhance the quality of community life, enhance property values, emphasize business development through economic development and marketing, refurbish the infrastructure, and strengthen public safety. Improvements in the ACC Community Center, from a newer The Reserve Fund is the “savings account” and wider range of fitness equipment, to which provides for the repair and replacement of major common assets within continuous pool maintenance and upgrades, the ACC. For 2014, the ACC will contribute to WiFi access, speak to assessment dollars at work. Improved ACC Community Park turf and $1,860,000 from collected assessments, an increase of $475,000 from 2013 funding. In sports fields maintenance, security, granite replacement, refreshed landscaping, and 2013, the ACC conducted a detailed audit lighting also assist in maintaining the appeal of the community infrastructure which and inviting nature of the common elements identified new assets acquired since 2011 of Anthem, assisting Anthem in retaining its plus over 300 common area assets not historic desirability for families to live. previously identified in the former 2010 As the Anthem business community continues Reserve Study. to expand, and new businesses emerge to offer From 2011 through 2013, the ACC Board high quality family services, the ACC Board and Staff moved approximately $1,100,000 and Staff review its current Community Center of additional cash from the Operating programs to supplement local offerings. As Fund to the Reserve Fund, which resulted in previous years, the ACC will trim programs from savings opportunities and lessen the Community, including proposed amenities as identified within the Anthem Master Plan, such as Opportunity Way Park. For 2014, the ACC estimates that this Fund will generate $519,675, a slight increase from previous years’ budgets. •
acc budget HIGHLIGHTS which demonstrate reduced community interest and reinvest in strengthening the core programs that residents continue to enjoy and support. The ACC Budget includes support for funding selected HOA related services, including office space, website services, communications, and general office and support services. Additionally, the ACC provides landscaping services to adjacent lands owned by Parkside
Association (APCA) and Country Club Association (ACCCA) which results in a more efficient use of overall resident assessment dollars. The ACC and our partner HOAs work collaboratively to efficiently utilize property owner assessments for services such as auditing, insurance, collection matters, and reserve studies with the intent to obtain the best pricing and services for the overall community.
Additional budget information, including the budget power point and frequently asked questions (FAQs): www.OnlineAtAnthem.com
ACC Programs & Services Continue in 2014 The 2014 ACC Operating Budget sustains many programs and services that have been provided over the years and many of these programs will evolve in 2014, including but not limited to the following:
• The ACC Resource Guide will continue to be printed and mailed to all properties in Anthem, but in six issues instead of eleven. However, we will be launching an updated website in early 2014, and will debut an “app” that will provide up to the minute ACC information and news via any mobile device.
• The ACC’s economic development efforts continue with a new map and business directory
on the website as well as creation of a commercial property database for new and existing businesses.
• Many critical maintenance projects are funded through the Reserve Fund, including a major overhaul to Adventure Playground.
• The ACC continues to update workout machines at the Community Center, and this budget
provides for purchase of fitness equipment including an incline bench, rower, and bar rack.
• Maintaining the aesthetics, safety, and condition of Community Park’s sports fields, leisure
areas, open space, and trails throughout the community is a top priority of the ACC. To that end, landscape maintenance is one of the ACC’s largest expenditures. 2014 projects include continued maintenance as well as tree trimming, erosion control, and repairs related to the 2012 storm, and granite replacement throughout the community.
• The Board will focus on increased community outreach through various citizen engagement programs as a way of interacting with the Anthem public, sharing information, and gathering feedback.
• Community programs, such as the drug prevention program (Anthem Family Day) will
continue, and additional educational and other series will be added at the Anthem Civic Building.
• As meetings move over to the new Civic Building, space in the Community Center will be
designated for Anthem teens and will offer tables to talk and study, and games such as ping pong and billiards.
The ACC is committed to evaluating programs and services to ensure responsiveness to community needs, and looks forward to offering these and other programs to the Anthem community in 2014. ACC Budget-in-Brief 9
acc operating budget
ACC consolidated summary
ACC Budget-in-Brief 11
Country Club (ACCCA)
2014 Budget The 2014 annual budget for the Anthem Country Club Community Association (ACCCA) was approved at the October 24 Board of Directorâ€™s meeting. The budget includes no change in the quarterly assessments paid by homeowners to the ACCCA. The budget is summarized below. Country Club homeowners will continue to pay $225 per quarter in 2014 for ACCCA assessments. This supports the operation and maintenance of the infrastructure for the Country Club community.
$2,679,600 % of Total Expense
Operating Expenses Administrative Electricity Water Common Area Maintenance Management Agreement Landscape Agreement Access Control Agreement Other Contracted Services Total Operating Expenses Transfer to Reserve Fund Total Expenses
$ 268,252 271,200 188,052 106,800 322,000 429,732 535,500 78,064 $2,199,600
10 11 7 7 12 16 20 3
This assessment excludes what is billed each quarter by the Anthem Community Council. Additional details about specific budget items along with a breakdown of what each entity oversees may be found online at www. OnlineAtAnthem.com. Printed copies of the budget may also be obtained at the HOA office at the Anthem Civic Building, 3701 W. Anthem Way.
Club Corp Property Owners
The governing documents for property owners within the Anthem Country Club Community Association (ACCCA) provide that ACCCA property owners pay assessments to the Anthem Community Council (ACC), the ACCCA, and also to the Anthem Golf and Country Club (Club Corp). Club Corp is an independent third-party organization which has NO legal relationship with the ACC or the ACCCA, but is the owner and operator of the two golf courses and the dining and exercise facilities which are located within the ACCCA. Under ACCCA governing documents, all Country Club property owners are obligated to either be Social Members or Golf Members of Club Corp. Club Corp independently sets its dues, which are invoiced monthly to ACCCA property owners. Country Club property ownersâ€™ monthly payments to Club Corp should NOT be sent to the ACC, but rather mailed to the following address: Anthem Golf & Country Club (Club Corp), 2708 W. Anthem Club Drive, Anthem, AZ 85086. For more information: 623-742-6000.
Parkside (APCA) that offers a win-win for the Association and the Parkside community.
Landings Benefited Assessment The Landings benefitted assessment incurred no increase and will stay the same per unit at $59.40 per quarter. This assessment will continue to cover the regular maintenance of the Landings gates and streets.
2014 Budget The Parkside Community Association budget was approved unanimously by the Board of Directors at the regular monthly meeting on Oct. 17, 2013. The 2014 Budget is streamlined, structurally balanced, and includes no increase in assessments. Assessments shall remain the same per household at $48.45 per quarter. This budget brings many benefits to the Parkside community including maintaining neighborhood parks, landscaping and compliance. It provides for continued high-quality services for the Parkside community which makes Parkside a desirable place to live.
Parkside Community Association Board of Directors Kristen Rensmeyer, President Jim Lasky, Vice President Loren Linscott, Treasurer Bettye Ruff, Secretary Thomas Woodward, Director
Financial Advisory Committee Bill Bobbitt, Chair Millie LaFave Doug Sutherland
Water Conservation Measures ValleyCrest Landscape Maintenance has put into place a very comprehensive water management plan for the Parkside community that has resulted in significant savings even during several water rate increases. The Parkside Community Association has partnered with Utility Audit, Inc. to negotiate savings on water and electricity through EPCOR and APS for the Association. This ensures the best rate
For more information: Annette McCarthy Parkside Community Manager 623-742-6004 firstname.lastname@example.org
Parkside residents are encouraged to contact the Parkside Community Association with any questions regarding the 2014 Parkside Budget. www.OnlineAtAnthem.com/parkside ACC Budget-in-Brief 13
the village AT anthem 2014 Budget The Village Board of Directors is pleased to present the 2014 Village Condominium Budget document. This budget calls for NO CHANGE in the quarterly assessment in 2014, remaining at $746.00 per quarter per property owner. Please note, however, that the assessment paid to the Anthem Community Council has increased in 2014 to $139.50 per quarter. The total quarterly obligation to be paid will be $885.50. Effective Nov. 1, 2013, the Board of Directors has engaged RealManage, Inc. to professionally manage The Villages community. The Board of Directors will continue to oversee the well-being of the properties and amenities of the Village. RealManage will facilitate the Board’s plans and directions through its on-site personnel and local management team. While this change will benefit the day-to-day operations of Village, please note that the Anthem Community Council (ACC) will continue to be responsible for all invoicing, collections, and accounts receivable activities for Villages; and the ACC will continue to utilize the services of AAM, Inc. Therefore, each member of the Village will continue to receive an invoice from AAM directing them to make payment to their lockbox in Los Angeles, CA or to make payment to the Council offices at 3701 W. Anthem Way, 2nd Floor, Anthem, AZ 85086. For members who utilize the “SurePay” monthly direct debit system, this service can continue to be utilized The Village at Anthem without changes. For members who use another Board of Directors automated payment plan, that service can Don Crane, President continue to be utilized as well, however please note the revised total payment amount effective Emily Wrinkle, Vice President Adnan Azam, Treasurer with the January 2014 assessment. Ed McCabe, Secretary For daily operations, CC&R violations, and/ Denny Leach, Director or facility maintenance issues, please contact RealManage at 1-866-473-2573. They are available 24/7 to assist members of The Villages. For questions specific to assessment invoices, payments, or any type of accounts receivable issue, please contact the Anthem Community Council at 623-742-6050.
Anthem community council Preserving, Protecting, and Enhancing a Genuine Sense of Community The Anthem Community Council (ACC) serves as a unifying entity for the overall Anthem community. Our mission is to establish and maintain a governing structure that will preserve, protect, and enhance the plans, policies, infrastructure, and resources needed to support a genuine sense of community, facilitate sound economic development, and promote quality of life for all Anthem residents.
ACC Board of Directors Holly Matson, President Ray Norris, Vice President John Balzer, Treasurer Ryan Halleran, Secretary John Birdseye
stayconnected For up-to-date, community-wide information the ACC offers the following:
Tim Fyke Rob Linder
ACC Fiscal & Resource Management Committee Steve Marr, Chairperson Michael Banach Steve Champion Glenn Klinksiek Loren Linscott Terry Mullarkey
ACC Budget Team Jenna Kollings, Community Executive Officer Neal Shearer, Community Operations Officer Doug Greenstein, Community Finance & Administration Officer Natalie Beryozkin, Controller
Department Directors Michele DeMichele, Special Events Kevin Shaffer, Community Center
Anthem411 Text Alerts: OnlineAtAnthem.com/anthem-411 eNews: Receive regular news briefings in your email OnlineAtAnthem.com/signup-enews Emergency Information Hotline: Provides recorded updates in the event of a community-wide emergency 623-742-6129 Facebook: Facebook.com/ AnthemCommunityCouncil Resource Guide: ACC news and information delivered to your home Twitter: Twitter.com/anthemAZcouncil
Shannon Wallace, Communications & Public Affairs
ACC Budget-in-Brief 15
3701 W. Anthem Way Anthem, AZ 85086 Office: 623-742-6050 - Fax: 623-742-6170 www.OnlineAtAnthem.com CREATED NOVEMBER 2013