Treasurer Report By Bill Dorner,Treasurer As the budget process is now complete, I would like to share a few words about it. Everything begins right after Labor Day. The committee Chair schedules weekly meetings between the members of the finance committee and department heads along with representatives of clubs and Lakes and Wildlife.
The committee works off of the actual year end balances of all line items from the previous 3 years. Each and every line item is reviewed and changed accordingly. For example, over 30 minutes was spent on Recreation Arts and Crafts, a $1,000 line item. Questions were raised why it was over budget from 2021. After a satisfactory explanation it was raised on 2022. Andrew in maintenance had to explain the vehicles needing tires to justify
that expense. Fran and I had a healthy debate concerning ranger staffing which lasted probably 45 minutes. No stone was left unturned. The board of directors had their opportunity to review the budget. Knowing the current employment situation in the Pocono region, a difficult decision needed to be made to attract a great working staff to our community. The board did create and hire the position of full-time recreation director. The board also reviewed other salaries and benefits for staff positions and made adjustments. These actions resulted in an increase of almost $100,000. Every $1,000 increase in the budget is almost $1 dues increase for the membership. Realizing that a $120-plus dues increase was out of the question, cuts were made. Reserve expense, capital, and roads were cut along with other line items based on input from the board analysis. Roads cut? But roads do have other funding. The income section
of the budget has a line item for renter parking permit fee which is dedicated to road improvements only. In 2021 we will collect over $34,000 which will be used for road improvements.
I understand there is concern of why we only spent as of the end of October $1,458,913? On average, the village spends around $150,000 per month on regular operating expenses. Then we have to factor in capital improvement fee collected, advance 2022 dues, renters permit, and escrow fund capital improvement fee for a ball park total of $313,000. Now 2 month of operating expenses $300,000 is $613,000 bring the total 2021 expenses to a little more than $2,000,000. Yes 2021 was a great year financially. Income exceeded our expectations, and our expenses were lower. Staff was a major issue. We budgeted for life guards, could not get anybody. Maintenance never had full staff during the year. Now it’s a full compliment.
Security and administration are both short, but now with realistic salaries, hopefully they will obtain their proper staffing level.
So, the million-dollar question, why doesn’t LLV use surplus for its budget. We follow our financial policies that state surplus gets moved into our reserve or capital accounts.
Applying a surplus to a budget only prolongs the agony. One year we had an $80,000 surplus. LLV applied it to the next year. The following year, cuts were made to avoid $80 dues increase on top of the $56 dollar increase. We need to adequately fund our replacement reserve account and capital account. With a spillway looming at Pine Lake, parking lot to be completed, mailboxes, roads, we need to put money away for the future. With the incident this past year in Florida, I would not be surprised if the Commonwealth put into regulations for a reserve fund. We are ahead of this.
PAGE 8 | LOCUST LAKE VILLAGER | WINTER 2021
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