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Brandermill Community Association

Community Meeting

October 19, 2013

Proposed Budget FY 2014

A Community Project

Prepared and Presented by

John S. Bailey, Community Manager

Reviewed by Finance Committee

Budget Process

• Finance Committee develops draft of Budget Guidelines

• Board of Directors considers, revises, and adopts Budget Guidelines

• Community Manager works with department heads and any committees to develop DRAFT budget

• PROPOSED Budget presented and reviewed with the Finance Committee

Budget Process

• FC hosts Community Meeting and CM presents Proposed Budget to the Membership

• FC & CM meet to consider any changes to the Proposed Budget as a result of the Community Meeting and other comments that have been submitted

• CM forwards RECOMMENDED Budget to the Board

Budget Process

• November 4 – CM presents Recommended Budget to the Board; Board receives comments from members on the Recommended Budget

• November 5-17 – Board continues review of Recommended Budget with CM

• November 18 – Board considers amendments to the budget, adopts Final Budget, and sets the annual assessment

• Adopted Consolidated Budget sent to Membership

Today

• Finance Committee hosts Community Meeting

• CM presents Proposed Budget to the Membership

• Members ask questions, make comments, and provide suggestions

3 Parts

• Operating Budget

• New Capital Budget

• Replacement Capital Budget

Summary

• Proposed increase in assessment of 4% / $18 a year Residential • Operating Budget

– Reduced Revenue $ 16,300* – Increased Expenditures $ 29,600*

• New Capital – Add Revenue with contribution by general membership

$ 10,000* – Expenditures $ 25,000 – Net increase in fund balance $ 13,000

• Replacement Capital – Increase contribution (CTR) $ 25,000* – Expenditures $428,132 – Net reduction in fund balance $151,827

PROPOSED Budget

• Assessment Income = $2,015,155

• Contribution to Replacement Capital

$276,305

• Contribution to New Capital (New)

$ 10,000

• Assessment Revenue available for Operating

$1,728,850

PROPOSED Budget

• Other Operating Income $550,250 Late/Finance Charges 47,500 Village Mill / Directory 105,000 Disclosure Packages 50,000 Marina 33,600 Boat Space Rental 34,000 Storage Center 19,500 Pools 228,000 Other 32,650

PROPOSED Operating Budget

• Assessment Revenue available for Operating $1,728,850 • Other Operating Income $ 550,250 • Total Revenue available for Operating Budget $2,279,100

Operating Revenue

Assessment

Other Income

Operating Revenue

• Increases in Revenue $14,500

• Decrease in portion of Assessment available $35,000

• Decreases in General Operating Revenue $30,800 Net Reduction in Revenue = $51,300

Operating Expenditures

• Reductions in Expenses $118,200

• Increases in Expenses $147,800

NET Increase in Expenses = $29,600

Employee Expense

• 2013 $1,182,250 52.6% of Budget

• 2014 $1,120,800 49.2% of Budget

Total Reduction = $61,450

Staffing Level

2013 18 FT / 2 PT $20K seasonal

2014 16 FT / 5 PT $10K seasonal

Health Benefits

BCA contribution was 100% for Employee Only

Board directed that the BCA contribution be converted to 80/20

Savings = $52,100

Salaries

5% Increase to offset move to 80/20 on health benefit

Net budget impact still $5,200 LESS than 2013

Expenditures by Department

25%

10%

35%

9%

10%

11%

Operating Budget

Admin

Property Mgmt

Maintenance

Communications

Community Svcs

Pools

Administration

• Equipment Leases / Service Contracts $11,500

• Annual Audit $12,500 • Annual Election $ 6,000 • Bank / Credit Card Fees $31,000 • Bad Debts $ 9,000 • Legal Fees $15,000 • Insurance $75,000* • Office Supplies $15,000 • Postage $22,000 • Reserve Study $15,000**

Property Management*

Staffing changes Was 2 FT and 1 PT (5,200 hours) Now 1 FT and 3PT (6,032 hours) Shift also in Management Responsibility really adds another 1,500 hours Purchases $ 2,500 Tablets and printer Architectural Services $18,000* Legal Fees $20,000

Maintenance

• 8 FT and $10K for seasonal

• Gasoline $ 30,000

• Drainage Work $ 10,000

• Tree Removal $ 30,000

• Tree Management $ 55,000

• Landscaping/Mowing Contract $135,000*

• General Repairs & Maint $ 40,000

• Equipment Repair & Maint $ 20,000

Communications*

• Revenue down $20,000

• Staffing 2 FT and 1 PT • Postage $ 4,500 • Delivery $ 4,500 • Printing (VM) $14,000 • Printing (Directory) $12,000 • Web Site Maintenance $ 7,500**

Community Services

• Sailing Center, Branderbelle, Entertainment, Marina, Boat Space, Clubhouse, Heritage Farms, Pavillion, Storage Center

• Security $35,000* • Marina $18,000 • BCA 40th Anniversary $10,000** • Entertainment $13,000 • July 4th Celebration $24,000* • Community Cleanup $30,000*

Pools

• Membership Fee Structure Changed

• Repairs & Maint $ 12,000

• Swim Team contribution $ 3,500

• Electricity $ 17,500

• Water & Sewer $ 12,000

• Management Contract $183,000

New Pool Fee Schedule

Type Resident Non-Resident Family $220 $300 Single $150 $200 Add-On $ 75 $100 Daily $ 5 $ 7

New Capital Budget*

New Capital Reserve*

What’s covered?

How is it funded?

New Capital Budget Summary

Fund Balance as of September 30, 2013 = $125,975 Proposed Revenue = $38,000 Capital Fee $28,000 Contribution from Assessment $10,000 **(New) Proposed Expense = $25,000 Projected Ending Fund Balance = $138,975 Variance = + $13,000

New Capital Budget

Proposed New Capital Projects for 2014

Off Road Trail $ 5,000

Electronic Message Board $20,000

for Harbour Pointe Road

Replacement Capital Budget*

Replacement Capital Reserve

What’s covered?

How is it funded?

Reserve Study

Required every 5 years

Cash Flow vs Component

Replacement Capital Budget

Prior Year Projects Not Undertaken during FY11-13

• Admin – asphalt seal coat $ 2,566 • Admin – flat roof maintenance bays $18,900 • Admin – phone system $ 8,500 • Sunday Park Boat Center – roof $ 550 • Harbour Pointe – Guardhouse patio $ 4,375 • Landing – restroom siding and trim $ 2,208 • Waterside Park – wood retaining wall $ 5,040 • Genito Road Tunnel retaining wall $11,500 • North Beach Tunnel retaining wall $ 8,600 • Maint – Mowers $13,000 • T-Racks $ 8,000 • Harbour Pointe Tunnel retaining wall $11,500 • Sunday Park – Waterfront deck wood $ 2,400 • Commodore Point Deck surface $ 1,104 • Waterside Park Play equipment $ 2,750

TOTAL $100,993

Replacement Capital Budget

Items Identified by Reserve Study for FY 2014 • Asphalt Paths $44,000 • Path Bridges $16,250 • Community Signs $19,000 • T-racks $ 8,000 • Sunday Park – Tot Lot – swingset $ 1,100 • Landing – restroom fixtures $ 1,650 • Maint - Mower $ 6,500 • Maint – Blower $ 1,500 TOTAL $98,000

Replacement Capital – Pools 2011 to 2014

• North Beach $98,301

• St Ledger’s $84,855

• Harbour Pointe $45,983

TOTAL $229,139

Replacement Capital - Pools

• North Beach $98,301 – Whitecoat – Waterline tile – Fence – Wading pool concrete – Wading pool whitecoat – Wading pool waterline tile – Sidewalks – Access road asphalt & seal coat – Furniture – Pump – Chemical feed system

Replacement Capital - Pools

• St. Ledger’s $84,855 – Whitecoat – Waterline tile – Expansion joints – Pool House roof – Deck – Deck coating – Furniture – Chemical feed system – Doors – Restroom light fixtures

Replacement Capital - Pools

• Harbour Pointe $45,983 – Whitecoat – Waterline tile – Wading whitecoat – Wading tile – Wading pump – Deck – Deck coating – Furniture – Asphalt parking & seal coat – HVAC – Irrigation

Replacement Capital Budget FY 2014

• Backlog Projects $100,993

• FY 2014 Projects $ 98,000

• Pool Projects $229,139

TOTAL $428,132

Replacement Capital Reserve

Fund Balance as of September 30, 2013 = $1,262,532

Proposed “Revenue” (CTR) = $276,305*

Proposed Expense = $428,132

Projected Ending Fund Balance = $1,110,705

Variance = - ($151,827)

Revenue Summary

Less Revenue available for the Operating Budget from the general assessment $35,000 Less Revenue projected for Other Operating Income streams $16,300 Total Less Revenue for Operating Budget $51,300

Expenditure Summary

Net Increase in Operating Expenses

$29,600

Add New Capital Reserve Contribution

$10,000

Increase Replacement Capital Reserve Contribution

$25,000

Assessment Impact

Net Income / Expense compared to current assessment

Less Revenue $51,300

More Expense $29,600

-(80,913)

Residential Membership accounts for about 85% of the total assessment

Residential Lots = 3,771

Assessment increase needed to balance = $18 / 4.18%

What does my assessment pay for?

• Administration $120 • Property Management $ 40 • Maintenance $181 • Communications $ 23 • Community Services $ 23 • Pools $ 6 • New Capital $ 2 • Replacement Capital $ 63 Total = $458

What does my assessment pay for?

26%

9%

40%

5%

5% 1%

0% 14%

Assessment

Admin

Property Mgmt

Maintenance

Communications

Community Svcs

Pools

New Capital

Replacement Cap

What’s Next?

• October 28th Finance Committee and CM meet to consider changes to Proposed Budget

• October 30th CM forwards Recommended Budget to BOD

• November 4th CM presents any changes in the Recommended Budget and BOD formally receives Member Comment on the Budget

• November 5th-17th Board continues review of Recommended Budget

• November 18th BOD votes on amendments, adopts final budget, and sets the assessment for 2014

Ask Questions

Make Comments

Provide Suggestions

Talk to Others

Come to Board Meeting

Thanks for participating!