2023-2024 Budget Presentation

UNIVERSAL FACTORS

 Workers Comp Insurance Rate estimated to stay the same but will have an increase due to wage increases

 8% increase in Employee Benefits (healthcare) at 1/1/2024

 6-8% increase in Water, Electricity and Gas cost

 Wage pool increase for wages and salaries

 Property & Liability Insurance and Earthquake insurance total premium increase at 11/30/2022 from $785,769 to $894,228. This increase is part of the Administration budget

ADMINISTRATION

 Increase of $68,000 in salaries and wages with the expectation that we will be fully staffed

 Increase of $11,000 in equipment rental for the trailer that is being used by staff for offices

 Increase in Employee Recruitment Cost and New Hire expenses by $50,000 based on current year actuals and ongoing challenging job market

 Overall increase in expenses by $415,211 ($6.94 per home per month)

 Administration Expense subsidy at $62.87 per home per month

 Administration Revenue produces $677,677 or $ 11.33 per home per month

 Overall subsidy at $51.54 per home per month

COMMUNICATIONS

 Reduction in Advertisement Revenues by $7,000

 Increase in Cost of Sales for News and Views $26,500 (increase in paper costs)

 Reduction in Gross Profit by $34,000

 Increase in Merchant Fees by $15,000 due to users paying with credit cards

 Subsidy increased by $74,075 ($1.24 per home per month)

 Overall Subsidy at $2.21 per home per month

COMMUNITY PATROL

 Community Patrol contract increase by $88,640 (7%)

 Overall increase in expenses by $102,650 ($1.72 per home per month)

 Overall subsidy at $26.65 per home per month

Post Office

 Total Revenue increase by $34,000

 Cost of Sales increase by $20,600 and expenses increase by $9,500

 Subsidy decrease by $5,200 ($0.09 per home per month)

 Overall Subsidy at $1.83 per home per month

FINANCE

 Increase in Salaries and related expenses by $172,230 due to wage increases and addition of an IT Supervisor position

 Increase in Software Support and Payroll Processing by $70,000 due to the introduction of new processes and updates

 Overall increase in expenses by $240,700 ($4.01 per home per month)

 Overall subsidy at $27.48 per home per month

FOOD AND BEVERAGE

 Daily Grind

 Resume normal operations now that Boulevards is out of Ventana

 Income to remain consistent with prior budgets and actuals with expenses increasing based on allocated overhead, wages and food costs.

 Total subsidy $0.80 per home per month

 Catering

 Gross Profit increase by $80,000

 Expenses increased by $140,000 due to salary and wage increases and rising food costs

 Overall Catering subsidy increased by $61,900 ($1.03 per home per month)

 Total subsidy $3.43 per home per month

FOOD AND BEVERAGE…

 Boulevards

 Increase in Gross Profit by $197,000 based on actual and projected revenue since the remodel.

 Increase in Expenses by $242,000 due to additional staff, wage increases, cost of food and supply increases which are needed to provide service for added seating and meal offerings.

 Overall Subsidy increased by $45,000 ($.76 per home per month)

 Total subsidy of 284,596 ($4.76 per home per month)

 Overall F&B Subsidy is $8.99 per home per month

FACILITIES MAINTENANCE

 Wages and Salaries increased by $48,000

 Electricity decrease of $14,000 due to projected installation of solar in February of 2024

 Natural Gas increase by $64,000 due to actual usage and rate increases

 Other Building Maintenance increase by $18,000 based on this years actuals, estimated work to be done and increase in material costs

 R&M Swimming Pool increase by $42,000 primarily due to chemical costs

 Overall increase in expenses by $173,575 ($2.90 per home per month)

 Overall subsidy at $61.63 per home per month

FITNESS

 Revenue remains consistent with prior year

 Expenses increased by $60,000 due to Salaries, added water aerobic classes and related expenses and increase in R&M and Game Equipment ($1.00 per home per month)

 Overall subsidy at $12.25 per home per month

GOLF SHOP

 Resident Rate Lock Plans and Greens Fees increasing 5%/ Resident Pay as you Play increasing 8%/Guest Round Fees increasing by 10% and Public Play which increasing 16%

 Decrease in Hard and Soft Good Sales Revenue by $5,000

 $55,600 increase in Overall Gross Profit

 Total Expense Increase of due primarily to wages and insurance of $116,850

 Overall Net Profit (Income minus expenses) decrease of $61,000

 Overall contribution to the Association’s operating fund is $3,004,280 or $50.22 per home per month

GOLF COURSE MAINTENANCE

 Increase in Salaries and related expenses by $104,000 directly related to wage pool increase

 Operating / Office Equipment increase by $21,000 due purchase of soil monitoring equipment to scan the rough and fairways on a daily basis

 Seed and Sod decrease by $13,500 due to able to obtain carry over seed from the prior year due to our good relationship with our vendor

 Fertilizers and Chemicals increase by $139,000 due to increase in fertilizer cost and additional chemicals need for nutsedge removal

 Utilities – Water increase by $12,000

 R&M Equipment increase by $24,000 due a lidar that reads soil moisture of golf courses and other needed equipment.

 R&M Well Pump decrease in expenses by $10,000 due to recent work on pumps

 Overall increase in expenses by $330,177 ($5.52 per home per month)

 Overall subsidy $86.47 per home per month

COMMON AREA MAINTENANCE

 Salaries increase by $53,000

 Sand Removal increase by $12,000

 Decrease in water costs by $3,000 do to turf conversions in common areas, primarily around the clubhouses

 Adjacent Greenbelt Maintenance expense increase by $30,000

 Overall increase in expenses by $110,687 ($1.85 per home per month)

 Subsidy at $47.06 per home per month

NCC

 NCC – 100: Assessments will decrease from $212.25 per home per month to $204.75 per home per month

 NCC – 101: Assessments will increase from $202.25 per home per month to $208.75 per home per month

 NCC – 102 OMP: Assessments will increase from $41.25 per home per month to $50.00 per home per month

 NCC – 102 VV: Assessments will increase from $146.75 per home per month to $164.50 per home per month

 NCC – 103: Assessments will increase from $34.00 per home per month to $40.00 per home per month

SPECTRUM CONTRACT RENEWAL

 Goes into effect July 1st, 2023

 Five (5) year contract

 TV Select Plan, Entertainment View, Sports View (Platinum Equivalent)

 Two (2) HD- DVR Set Top Boxes

 Ability to upgrade to the Cloud DVR (cost to be paid by resident)

 500/20 Internet

 Max increase of 3% per year

 Door Fee of $400/door ($1,994,000) paid to the Association

 Reduction in monthly fee for the owners of $5 per home per month

BUDGET SUMMARY