BOARD BUZZ August 2021 - Rick Fisher, Treasurer
Posted on Aug 1st, 2021
Update on Our 2021 Budget Challenge
We began the year knowing that it would be very challenging financially. In the 2021 Budget Town Hall Meeting in November, we discussed the following:
- Managing Agent Financial Audit
- Capital Contributions and Administrative Fees
We have made excellent progress in each of these areas.
The Managing Agent Financial Audit began on May 17th and will conclude at the end of August. At that point in time, the Board of Directors (BOD) will receive an Audit Report which will be posted on the website.
Capital Contributions and Administrative Fees collected at closings for new sales and resales have been deposited in our Operating Savings Account. This has allowed us maximum flexibility to address incremental expenses not identified in the Adopted Budget. In the first six months of the year, a number of unbudgeted expenditures have been required (Note: some projects have been approved for completion but are not yet started):
- Legal expenses associated with the rewrite/revision of our Governing Documents (originally anticipated to begin in late 2021/early 2022)
- Need for two pool lifeguards to address Covid-19 Requirements
- Consulting Services to assist the BOD in formulating the 2022 Budget
- Playground Site improvements to address drainage, landscape screening for slide
- Tree removal in Roper Park
- Employment of an Independent Engineering Firm to inspect assets planned to be transferred from the Developer to the Association
The Village Walk irrigation system is being mapped with the direct involvement of the builder Eagle Construction and significant progress has been made. We are currently spending less in this area than Budgeted.
Major Association Assets identified in the 2019 Replacement Reserve Study, will require repair and replacement earlier than planned. Major items that have already been or must be addressed are:
- Refurbishment of the pool pergola which was completed before the pool opening.
- A complete resurfacing of the pool as well as caulking, filter recharging and skimmer replacements. The resurfacing is set to begin in the September/October time frame. This is two years earlier than planned.
As you can see, the BOD has been very busy addressing a large number of issues, all of which have a financial impact.