Lake Currents 07/20/2017

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The Official Newsletter of the Lake of the Woods Association, Inc. Vol. 14, No 13

540.972.2237

General Manager’s Proposed FY17 Budget Presentation January 28 Budget Advances Board Goals Dear Members, As the Association crosses the 50-year milestone line, I am transmitting for your review and consideration the Proposed Operating, Contribution to Reserves (CTR), and Capital Budget for Fiscal Year 2017-2018, which begins May 1, 2017. The proposal is a balanced budget representing $9,609,027 in total authorized spending. Through this budget, the Lake of the Woods Association is able to effectively carry out its obligations to maintain the common areas, lakes and dams; operate the amenities; enforce Association regulations; and provide adequate gate access and common area security. The budget is the means to implement several of the stated Board Goals including the Lakes Management Plan to improve the health of our lakes. The budget will likely be modified on the way to Board adoption Feb. 15 as we receive updates and consider Board, committee, and member input. Members are invited to attend a budget presentation Jan. 28 at 10 AM in the Community Center. Operating Budget Highlights Revenue. After counting amenity and administrative revenues, the budget requires slightly less than $5.9 million for cash break even. This translates to an annual lot assessment of $1,385, which is $45 (3.3 percent) above the current level. Compare the increase to the Consumer Price Index which as of October 2016 was 1.6 percent. Capital expenses account for $26 of the $45 increase. But for capital, the assessment increase would be $19 or less than 2 percent. The operating budget no longer uses New Construction and Renovation (NCR) Fee revenues, which are now strictly for capital. Expected Tenant Fee revenue is down almost $18,000 reflecting a decline in tenant properties. The Fee Schedule will remain the same except as follows:  Tenant Fee: $1,380 ($5 less than assessment).  Boat registration: Rounding up of $2 to $5 in each category.  RV/Boat Storage: New temporary parking fees of $10/daily and $45/weekly – same as campground temporary parking.  Golf Club: Single cart fee of $10 means we adjust rates after 11 AM by $1 to $3. Handicapping is $32  Racquet Club (Tennis/Pickleball): $50 family, $25 individual, and $10 junior. Expenditures. The Proposed Operating Budget totals $8,027,414, which is $147,608 more than the current year. The increase is attributed to salary increases, Roads positions, soccer field maintenance, cost of goods, and 50th Anniversary. I worked to keep operations as flat as possible while including expenditures that are necessary to care for the common areas and carry out the

LOWA.org

January 20, 2017

Lake of the Woods Association, Inc.

FY 2017 - 2018 Summary of Proposed Operating Budget, CTR and Capital Budget November 21, 2016 Department

Revenue

Expense

Net

Administration Security Communications Fitness Equestrian Environmental Resources Pools Community Activities Golf - ProShop Clubhouse Golf - Fareways General Maintenance Roads Grounds Golf - Maintenance

729,400 57,500 150,500 80,000 91,850 421,129 13,000 45,267 532,910 1,226,706 350,000 1,500 3,750 -

1,515,056 726,998 221,233 24,771 187,479 516,579 138,442 236,039 356,453 1,366,840 375,099 832,048 675,359 367,136 487,883

(785,656) (669,498) (70,733) 55,229 (95,629) (95,450) (125,442) (190,772) 176,457 (140,135) (25,099) (830,548) (671,609) (367,136) (487,883)

Budgeted Results from Operations 3,703,512

8,027,414

(4,323,902)

Budgeted Contribution to Reserves for FY 17-18 Repair and Replacement New Asset and Improvement Contingency

1,454,366 100,000 15,000

(1,454,366) (100,000) (15,000)

Total Contribution to Reserves

1,569,366

(1,569,366)

Note 1

Assessment Necessary for Cash Break Even Billable Lots

-

5,893,268

5,893,268

4,256

Total Budget

9,596,780

Operating Assessment Capital Assessment

$ $

1,016 369

Assessment per Lot

$

1,385

Capital Spending Budget Total Authorized Spending

9,596,780

-

$1,581,613 $9,609,027

Note 1 -- Revenue is based on the Proposed Fee Schedule for FY 2017-2018

See Transmittal Letter on p. 4

President's Letter Board Agendas Association News Calendar Viewpoints Orange County News Classifieds

2 2-3 3-9,11 9-10 16 21 22-23

Members: Lake Currents can be read online at: LOWA.org/Lake-Living/Lake-Currents

Jan. 24 Coffee & Conversation With Board Members 10 AM, Woods Center Jan. 28 GM Proposed FY2017-18 Budget Presentation 10 AM, Community Center Jan. 30 Town Hall Meeting on Equestrian Ring 7 PM, Community Center

Jan. 31 Meet the Management 9 AM-noon, Holcomb Reading Room Feb. 1 Quarterly Assessments Due Feb. 4 LOWA Regular Board Meeting 10 AM, Community Center

Feb. 14-15 LOW 50th Anniversary Concert/Dance Live music by The Rave-Ons Tickets: LOWPlayers.org Feb. 15 LOWA Regular Board Meeting 2 PM, Community Center Feb. 20 Presidents’ Day LOWA Offices Closed OC Trash Compactor Closed


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