CLCASSOCIATION
Budget and Reserves 101 don’t end at our gas pump or electric panel box but affect vendors that provide services. We have been very fortunate and are thankful for our members who continue to make paying dues a priority. This reduces the need for additional costs spent for collections.
Budget:
bankruptcy, hardship, lack of priorities, abandonment For those of you who may not of lots to foreclosure and know this, unlike a number tax sales. Effort is made of communities in the area, whenever legally possible to our members vote on the pursue unpaid dues by the budget. The CLCA budget is office staff, our attorney and worked on by the Finance through the legal system. Committee. As with all of our Other Inflows/income are Committees, any member in estimated based on history good standing is welcome to and projection. Income The Finance Committee attend the meetings. Work on from resale certificates and would like our Members the budget typically begins transfer fees can fluctuate to have an understanding in June. Averages of actual depending on the home of our Budget and Reserve expenses for the past four market. Schedules. The following is in years are the starting point an effort to walk you through to working on the budget. Expenses these two documents and the Additional consideration There are three different differences between them. for projected increases or payroll expense lines, decreases in costs are also The Budget is for the day one for the office, one for looked at and adjusted to day operation of the maintenance and the third accordingly. community (think of it as payroll is included in the checkbook for daily/monthly There are two parts to the pool supplies and operations. operating expenses) and Payroll bonus applies to budget Inflows (money the Reserve schedule is for all permanent employees. in) and General Operating replacement of large assets Currently there are 9. There (expenses/money out). such as major building are two lines for the Dam. The totals for each of repairs or renovations, There are two road lines. those sections must be the trucks and larger equipment same. That is a balanced One is for repair of the roads replacement (think of it as a budget. There are lines for which can include materials savings account). such as stone, culvert pipes, inflows including dues. It wood for guide rails, signage is important to not confuse etc. In addition to the road Inflows (income/money repair line there is a road in) with General Operating reserve line. In the past those Expenses (money out). funds were utilized to pave Income: dirt roads. Future funds to this account will include The primary source of major repairs to maintain income is dues. If you look the roads. Miscellaneous In an emergency always call 911! at the bottom right side of expense can cover a number the page for the proposed PSP- Blooming Grove Barracks of expenses. Donations to the Main Desk (570)-226-5718 2021/2022 Budget you will Fire Department, Humane note the number of homes, Society or additional Milford Post Office lots and contiguous lots. If Post Master Juan Calle (570)-296-7411 educational expenses for you take the number from staff that may be needed and Dingman Township the Homeowner’s dues are over and above training (570)-296-8455 inflow line and divide it by budget. Website: http://www.dingmantownship.org the number of homes your Dingman Township Volunteer FD answer is the proposed Reserves (570) 686-3696 dues for Homeowners. The Website: http://www.dingmanfire.com On the reverse side of same math applies for lots the Budget is the General Pike Tax Claim and contiguous lots. Dues Reserve schedule. This lists (570) 296-3407 discount is a projected Website: https://www.pikepa.org/tax.html CLCA’s larger owned assets. amount of money that will Nothing lasts forever and reduce dues income as a Dingman Tax Collector Jim Leiser will eventually need to be (570) 296-6360 result of members taking Website: http://www.dingmantownship.org/Tax%20 repaired, roofed, sided, advantage of this payment Collector.html option. The doubtful account windows, septic, well pumps, restored or totally replaced line is the projected amount Pennsylvania Game Commission (570)-675-1143 of money we will not receive or expanded. These funds Website: www.pgc.state.pa.us/ are for that purpose. While from members who fail to pay their dues. This could be we have these items insured, Delaware Valley School District (570)296-1800 for a number of reasons valid maintenance, deterioration and wear and tear are not Website: www.dvsd.org/ and non-valid including but covered by insurance. Thanks not limited to, foreclosure,
Sometime in late August all Members will be receiving a packet in the mail that will contain information regarding the CLCA Annual Meeting. The meeting takes place Saturday September 25th, 2021. Included in that packet will be the 2021/2022 Proposed Budget and the CLCA Reserve schedule. The proposed budget is for a 1 % (one percent) increase. CLCA is among a handful of Communities in the region wherein the membership participates in budget votes. A number of other Communities’ budgets are decided/voted by a Board of Directors and then introduced to the Community and billed. The Finance Committee is committed to preparing a detailed, fair budget each year for the Board’s review. We have enjoyed two previous fiscal years with zero increases. Increased costs for fuel and power impacted by recent inflation are beginning to be seen. These impacts
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to reserves, Conashaugh is free of loans and interest payments for those loans. Reserves have also deterred the need to charge members for long term additional assessments. Not too many HOA’s can say that.
The list is reviewed and items no longer owned and/ or replaced are removed or updated. Funds for removed items that are no longer needed are redistributed to underfunded lines. Replacement costs will fluctuate and be adjusted up and down as needed. It should also be noted that the schedule of listed assets are periodically reviewed and the replacement cost may need to be adjusted (up or down). As for the reserve schedule, the first column after the asset description is the original cost for that item.
The amounts funded for certain items were questioned in the past. The “funded” amounts for the individual line items are not set in stone. In other words, if needed or decided those funds can be moved to another item. An example of what is being said here is as follows:
Say that a vehicle or piece of equipment failed beyond repair and replacement was necessary. The replacement cost for that item (by either or new or used item) is 10,000 but the reserve line for that item was only funded for 5,000.00. The additional 5,000.00 could be moved from another item or items to make up the difference to enable the replacement. Hopefully the above will clarify some of the information concerning the proposed budget and reserve schedule. If you have any questions, please contact the office. Thank you.
CONASHAUGH COURIER • SUMMER2021
