Lake Carroll February 2019

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Lake Carroll News A publication of the Lake Carroll Association and its Members The Lake Carroll News is online! www.golakecarroll.com News & Events>Newspaper February 2019

www.golakecarroll.com

Letter from Steve Mack

WHAT’S INSIDE

Vol. 47 No. 2

Treasurer of Lake Carroll Association

Dear Fellow Member:

LC Women’s Club celebrates 20 years! Page 18A

2019 Winterfest snowmen, crafts & games.

Page 4B

BOARD MEETINGS Feb 22, Mar 22, Apr 26, May 17, Jun 28, Jul 26, Aug 23, Sep 27, Oct 18, Nov 22, Annual Mtg Dec 1, Dec 20 (if needed)

MARINA SLIP LOTTERY Saturday, March 2, 2019 Conference Center Doors open: 8:00am Lottery begins: 8:30am

CAMPGROUND SITE LOTTERY Saturday, March 2, 2019 Conference Center Doors open: 9:30am Lottery begins: 10:00am

BOAT SAFETY CLASS Saturday, April 20, 2019 Clubhouse Lower Level 8:00am-4:30pm Registration opens as of 03.01.19 Call 815-493-2552, ext 110 or 120

SPECIAL MEMBER MEETING RE: 2019 BUDGET

MARCH 1, 2019 Registration: 6:00pm - Meeting begins: 6:30pm (Bring your LCA ID Card)

2019 Budget Documents Meeting Notice . . . . . . . . . . . . . . . . . . . . . . . 5A Proposed Budget . . . . . . . . . . . . . . . . . . . . 13A Proposed Fixed Asset Budget . . . . . . . . . . . 14A Proposed Fee Schedule . . . . . . . . . . . . . . . . 15A

Related Articles Letter from BOD Treasurer . . . . . . . . . . . . . . 1A President’s Message . . . . . . . . . . . . . . . . . . . 5A

Steve Mack LCA Treasurer

Why you should Vote Yes in February for your 2019 budget. Our Board has passed a budget with all 7 directors in agreement. This means after 7 weeks of constant work by Association staff and volunteers, open debate and open meetings, our Board came together on January 25 and endorsed our budget package, unanimously. It is important that our members now join us and come together to protect our community with a yes vote.

Background summary: ◄◄ On December 3, 2018, our original 2019 budget was rejected by membership’s vote. This was unusual and looking back in time, to our knowledge, has only happened two times in our history. The rejected budget contained a $320 dues increase (raising our dues from $1,608 to $1,928). ◄◄ The new budget asks for your approval to raise our dues by $148 (from $1,608 per year to $1,756 per year) and to raise our fees by 10%. These increases are needed to operate our Association and replace aged equipment. ◄◄ Our new Board and our new GM (hired by our previous, 2018 Board) shaped this new budget, line by line, based on new information and new priorities. This new united, Board approved budget, covering our Association’s 2019 expenses, fixed assets and reserve funding will now be sent to members for a vote. ◄◄ We encourage you to vote yes and to return your signed ballot early to be sure it is counted. You should receive the ballot by early February or can print one from our website. Our Board: Our Board consists of seven members, each with diverse opinions and significant professional experience and all with a goal to treat Lake Carroll as a business. Primary amongst these goals has been to stabilize our budget and to support our amenities (lake, golf course, pool, clubhouse, lodge, hill complex, roads, security and more. If you have sat in on our meetings over the past seven weeks or watched them streaming, you’ve seen the formation of a budget that we firmly believe addresses our immediate shared goals and now looks to the future. Lake Carroll’s Budget: Our budget consists of two components: Operations and Fixed Assets. Operations represent 70% of our 2019 budgeted outlays and are the day-to-day functions of running our community. Generally, this includes opening, operating and closing amenities, offering security, and paying employees. Fixed assets represent 30% of our 2019 budgeted outlays and are represented by the items we use in our Association that generally cost more than $5,000 and are expected to last more than two years. General Manager: Our new General Manager Dick Schwalbenberg, hired December 3, took control of our budgeting process and immediately began working with our staff, Board and committees to construct this new budget. I can tell you from my personal perspective, this has been an exhausting, extremely time-consuming project. Line by line, asset by asset, this budget has been picked apart. Committees have spent hours working, at the Board’s direction, to prioritize replacements and to look towards our long-term planning. Our General Manager has taken this input and presented his proposal, now approved 7-0 by our Board. The New Budget: For reference, the rejected budget called for a $320 dues increase: $200 for fixed assets and $120 for operations. Increase for Fixed Assets reduced from $200 to $6. Yes, this is substantial. It was done with our eye on a five-year plan and with an attempt to smooth needed fixed asset replacement. Some of the major line item changes include: ◄◄ A 2019 reduction in Road spending. As we have reduced this expense, we are also re-evaluating our road infrastructure and hope to improve the length of time our roads can go without replacement. ◄◄ Software licensing and utilization. We have prioritized improving our technology and are looking to add online voting, online news distribution and better tracking of our Association’s management – all in 2019. ◄◄ Golf Course irrigation. We have split the replacement of our aged system to 2019 and 2020. ◄◄ Pool Liner. After 16 years, our pool liner is now leaking significantly and must be replaced. With this replacement, we will also come in to compliance with the Illinois rule mandating our drain covers be upgraded.

◄◄ Campground Road. An irritation for years, the Pod 5 road that has stranded vehicles on rainy days is to be paved with this budget. And, infrastructure to bring wifi to the campground is in this budget. ◄◄ Tractor. Our key tractor, used for mowing will be replaced. This tractor is now 18 years old and is used for mowing, street sweeping, plowing of heavy snow drifts and has back hoe and front end loader attachments. The tractor has 9800 hours which equates to hundreds of thousands of miles for a road vehicle. ◄◄ Lots transfer fees. With the passing of this budget, the Board has agreed to reduce our $600 transfer fee on undeveloped property lot sales from $600 to $300 until 12/31/19. This was part of a series of proposals suggested by our ad-hoc lots committee. A complete list items to be replaced will be placed on our website. Increase for Operations reduced from $120 to $92. Our General Manager has methodically reviewed, line by line, each department’s expenses to maximize the use of our dollars. He has already taken action to improve our efficiency and reduced and reassigned personnel, reconfigured hours, eliminated cost of living increases and streamlined many Association functions. A complete operations budget will be placed on our website. Reserve Contribution of $50. Reserves are the savings we look to build over time to provide for larger expenses in the future and to avoid special assessments like the recent assessment for the Lake Improvement Plan. Increase for Fees of 10%. Fees for items used at Lake Carroll including cars, boats, campers, ATVs, carts increase by 10%. Summary: Our Board has unanimously passed our budget. It will now be sent to members on February 1 for our approval. We encourage you to vote yes and to return your ballot as soon as possible to be certain it is counted. The due date for physical ballots to be received by Lake Carroll Association is March 1. The vote will be counted and announced at a special meeting on March 1 at 6:30pm. Consequences: Please look at this paragraph as simply a tell it like it is. In the event that this budget is unable to be agreed to by a majority of our voting members, our By-Laws instruct our Association to proceed with our previous year’s dues. Operations would continue at 2018’s funding level, which, despite the cost reductions noted above, would likely generate another annual deficit. Additionally, without an approved budget, no fixed asset replacements can be made pursuant to our By-Laws, 31.06.K(4)(f)1. Lake Carroll By-Laws, 31.06.K(4)(f) Should the Membership not approve a proposed annual budget, the prior year’s dues and fees will continue into the next budget year, collecting same dues and fees as in prior year and expending only that portion of monies allocated to the prior year’s operating budget, until a new budget is passed within the first quarter of the new fiscal year.

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This means we will operate on last year’s operational budget and no fixed assets can be purchased and/or improved. The fixed asset portion must be transferred to our fixed asset reserves. Several amenities needing immediate care or replacement, most notable the outdoor pool, a fixed asset, will be unable to operate for the 2019 season. These consequences are not necessary. Opinion: Our Board election was only two months ago. Each of us on our Board has volunteered to work for our members and our Association. I often refer to Lake Carroll as the Premier Lake Community. It is! Do not discount what we have. Go visit other communities and look at their structure and amenities. I have, and I believe we have a treasure. When each of us purchased our Lake Carroll properties, we entered into a diverse community offering recreation, structured amenities and a committed organization to maintain and keep our Association strong. Our Board has taken substantial time to work through a budget that recognizes our immediate needs while addressing future goals. The process is not over and will continue through ours and future Board terms. Our Board unanimously views our membership vote on this budget as critical to maintaining and improving our community. We have come a long way from the original $320 increase. We have made significant progress on stabilizing our Association. A “YES” vote on this budget is a vote to continue that progress. Please remember, we are volunteers and share a majority of our members’ desire to protect our community. We remain available to any member who has questions or would like to help us address and improve our significant investments. Board member contact information can be found on page 6A of this publication. Our owner liaison, Michelle Burton, is standing by as well 815-493-2552 x117, ownerliaison@golakecarroll.com. We sincerely appreciate your support!


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Lake Carroll February 2019 by Lake Carrol News - Issuu