DELEGATE MEETING

October 21, 2014

2015 PROPOSED BUDGET

2

6/9/2014 11/18/2014

7/1/2014 8/1/2014 9/1/2014 10/1/2014 11/1/2014

10/8/20148/15/2014

9/1/2014 10/1/2014

2015 Budget Development Process

Budget creation by Staff.

Budget development by Finance Committee with input from Staff, Delegates, Members.

Budget presentation to Delegates. Only changes due to last minute discoveries.

6/9/2014 - 8/15/2014

Budget Creation

8/15/2014 - 10/1/2014

Budget Development & Review

8/15/2014 - 10/1/2014

Budget Development & Review

8/15/2014 - 10/8/2014

Budget Review & Development

10/8/2014

Staff Review

6/9/2014

BOD Direction to CEO

8/20/2014

Admin Budget

8/11/2014

BOD Direction to FC

9/24/2014

Sub-Assoc Mgmt

10/8/2014 - 11/18/2014

Budget Adoption

9/10/2014

Rec Programs

9/3/2014

Rec Facilities

9/17/2014

Backcountry

11/18/2014

BOD Adopts Budget

8/15/2014 - 10/8/2014

Budget Review & Development

10/13/2014

FC Recommendation to BOD

10/15/2014

Publish Proposed Budget

8/13/2014

Publish Draft Budget

10/1/2014

FC Review

3

2015 Budget Process – Accomplishments

• Implemented process changes from budget survey

– Early BOD direction, early draft budget, add review meetings, simplify presentation

• Organization beginning to adapt to financials by services provided

– Sub-association management, community improvement services, community events…

• Relying less on prior year budget/estimates, more on prior actuals/trends

• Completed new reserve study and aligned with budget

• Introduced 5 year capital plan

• Established min/max “unrestricted fund balances” and aligned with budget

FINANCE COMMITTEE• Jeff Suntken – Chair/Treasurer (Consulting)

• Lyle Daley – Vice Chair (Federal Government Agencies)

• Sheela Damle – (Management, Consulting)

• Shon Payne – (Accounts Receivable)

• Kay Schneider – (Quality Improvement Non-Profit)

• Tom Waters – (Corporate Finance)

• Stephanie Young – (Telecommunications, CPA)

STAFF

• Christina Caputo

• Brian Sheppelman

• Department & Program Managers4

Board Direction• Assessments

– Admin Fund ½ CPI % Increase

– Rec Fund CPI % Increase

• Program Revenue– 5% & 10% increase

• Operating Expenditures– Flat unless justified by additional revenues or business case

– 3% performance based salary increase for permanent employees

– No additional staff unless justified by additional revenue or business

case

• Balanced Budget

5

Fund Structure• Administrative Funds

– Admin Operating Fund

– Admin Reserve Fund

• Recreation Funds

– Rec Operating Fund

– Rec Reserve Fund

– Backcountry Operating Fund

– Backcountry Reserve Fund

• OSCA Fund

• Bond Fund

• Capital Improvement Fund6

Business Cases / Items to Note• New Software – Costs Unknown

– $400k - 2015 & $200k - 2016

• $20k Program Marketing

– Offset by expected revenue in respective areas

• $20k Fireworks (4th of July & Oktoberfest)

• Capital/Reserve minimum increase from $1k-$3k

– Janitorial, Facility Maintenance, Pool Repair & Supplies &

Computer Equip/Software

• 2.0 FTE Backcountry

• Transfers

– Reserves transfer to increase by $600k for new reserve study

– Backcountry transfer to increase by $80k to balance budget and

add additional staffing resources7

2015 Assessments

*June update on the Consumer Price Index (CPI-W) for Urban Wage Earners and Clerical Workers is at 3.0% per the Colorado Department of

Local Affairs for Denver-Boulder-Greeley

8

Fund Actual

2014

Proposed

2015

Increase %

Increase

Quarter

Amount

Quarter

increase

AFCA $48.00 $49.00 $1.00 2.08% $12.25 $0.25

RFCA $492.00 $507.00 $15.00 3.04% $126.75 $3.75

TOTAL $540.00 $556.00 $16.00 2.96% $139.00 $4.00

9

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

1985 1990 1995 2000 2005 2010 2015 2020

CPI VS. HRCA ASSESSMENT INCREASES

HRCA CPI

2015 DRAFT BUDGET

• Administrative functions, Community Events, Subassociation

Management, Community Improvement Services & Transfers for

Capital/Reserves

• Impacts include:• New Events

• Higher Generator Costs

• July 4th & Oktoberfest Fireworks

• Increased transfers to HRCAA & Scholarship due to higher success of events like

Beerfest & Recycling

• New software transfer to reserves 10

ADMINISTRATIVE OPERATING FUND 2015 PROPOSED BUDGET

REVENUES $3,299,310

EXPENDITURES $3,052,962

NET OPERATING REVENUES $246,348

TRANSFERS ($245,000)

NET REVENUE/(EXPENSE) $1,348

2015 DRAFT BUDGET

• Recreation Functions, Facilities, Programs

• Impacts include:• Utility price increases

• Increase of Capital/Reserve minimum from $1k - $3k, impacting operating

• Increase of reserve transfer due to new reserve study

• Increase in Backcountry transfer

• Continuation of Capital Fund transfer

• New software transfer to reserves

• Transfers for:• Bond Payments, Capital/Reserves, Backcountry, Capital Project Fund

11

RECREATION OPERATING FUND 2015 PROPOSED BUDGET

REVENUES $20,372,897

EXPENDITURES $14,495,751

NET OPERATING REVENUES $5,877,146

TRANSFERS ($5,865,000)

NET REVENUE/(EXPENSE) $12,146

2015 DRAFT BUDGET

12

RECREATION FUND TRANSFERS 2015 PROPOSED BUDGET

To Bond Requirements $3,420,000

To Recreation Reserve Fund $1,800,000

To Capital Improvement Fund $250,000

To Backcountry Fund $290,000

To Capital Equipment $105,000

TOTAL RECREATION FUND TRANSFERS 5,865,000

13

Assessments74%

Facilities3%

Programs22%

Other1%

2015 RECREATION FUND REVENUE SOURCES

14

4,000,000

4,100,000

4,200,000

4,300,000

4,400,000

4,500,000

4,600,000

2010 2011 2012 2013 2014 2015

Program Revenues

2015 DRAFT BUDGET

• Backcountry Recreation Programs and Land Management

• Impacts include:• 2.0 FTE for programs and land management

• 31.7% increase over 2013 Actual Revenues, 11.5% increase over 2014 Adopted

Revenues (minus $18k in one-time grant/easement revenue)

• Transfers in for:• Backcountry Operating

15

BACKCOUNTRY OPERATING FUND 2015 PROPOSED BUDGET

REVENUES $244,480

EXPENDITURES $532,326

NET OPERATING REVENUES ($287,846)

TRANSFERS $290,000

NET REVENUE/(EXPENSE) $2,154

2015 DRAFT BUDGET

16

ADMIN CAPITAL / RESERVE 2015 PROPOSED BUDGET

Website Upgrade $20,000

Technology Upgrade $200,000

Computers, Software, Equip & Phones $33,700

Office Furniture $3,000

TOTAL ADMIN CAPITAL / RESERVE $256,700

2015 DRAFT BUDGET

17

REC CAPITAL / RESERVE 2015 PROPOSED BUDGET

Website Upgrade $20,000

Facilities Capital $85,000

Technology Upgrade $200,000

Computers, Software, Equip & Phones $83,844

Facilities Reserves $1,679,960

TOTAL REC CAPITAL / RESERVE $2,068,804

2015 DRAFT BUDGET

18

BACKCOUNTRY CAPITAL 2015 PROPOSED BUDGET

Pasture Fencing $90,000

Equipment $5,500

TOTAL BACKCOUNTRY CAPITAL $95,500

HRCAA & SCHOLARSHIP

19

2015 DRAFT BUDGET

• SCFD Grant Revenue increase by $10k to $90k for 2015

• Continued success at Oktoberfest

20

HR CULTURAL AFFAIRS

ASSOCIATION

2015 PROPOSED BUDGET

REVENUES $245,850

EXPENDITURES $245,850

NET REVENUE/(EXPENSE) $0

2015 DRAFT BUDGET

• Recycling revenue up $3k over 2014 revised forecast and $7k over

2014 Adopted Budget

• Fundraising event with Whole Foods not budgeted in 2014,

anticipating $3k for 2015

• Continued success at Beerfest

• 20 Scholarships at $1,50021

HR SCHOLARSHIP FUND 2015 PROPOSED BUDGET

REVENUES $49,570

EXPENDITURES $33,500

NET REVENUE/(EXPENSE) $16,070

QUESTIONS / COMMENTS

22