The Community Association's Financials for September 2020 were presented to the Board by Ann Dodson, Director of Finance. HOA revenue of $966,941 was reported for the month of September compared to the budgeted amount of $1,130,553. Home closings for the month were 21 on a budget of 29. The Golf revenue was $377,546 compared to the budgeted amount of $363,905. Golf expenses were $380,539 compared to budgeted expenses of $403,989. Overall, the CA ended the month with a surplus of $11,063 on a budgeted deficit of $1,417 for a favorable variance of $12,480. The October financials will be posted on the website on Wednesday, November 18. Action will be taken on the August, September and October 2020 financial statements at the November 19 Board Meeting.
2021 Board of Directors Meeting Schedule
CA staff presented the Board with the schedule of regular Board activity including Workshops and Meetings for 2021. All of the workshops and meetings will be in the ballroom and all will be live on channel 18 for resident viewing.
2021 CA Holiday Schedule and Closure Lists
2021 Budget and Related Schedules
- Follows budget direction from the CA Board of Directors
- Assumes average number of homes in 2021 to be 8564
- Overall conservative due to COVID-19 concerns
- This draft budget includes a $25 (which represents 2%) increase for HOA assessments raising the annual assessments to $1225
- Golf- Proposal to go “private” on our courses
- Not sure when we get back to pre-pandemic activity and revenue
- Assumes shorter amenity hours through Q2, pre-Covid hours after that
Financials
This proposed budget achieves a break even status for the HOA and golf
- $25 dues increase produces revenue to the CA of approximately $214K. New homes contribute approximately $273K.
- Projecting 230 home closings for 2020 (ending 2020 with approximately 8444 homes)
- Budgeting 240 home closings in 2021 - ending 2021 with approx. 8684 homes
- Number of resales for 2021 is projected to be 516 (43 per month/ 6% of homes)
- Average resale price for 2020 is approximately $315K.
- 2021 Budget-$300K on resales
- Proposal includes the proposed Fee Schedule for 2021.
- Budget reflects continued efforts to be energy responsible
- Capital Asset Fund- Contributions from operating budget of $0K HOA, $100K Golf
- Reserves- $1.05M contributions for 2021. Reserves end 2021 slightly over 70% fully funded.
- Assumes interest rates remain same as 2020
- LMH funds LMH
- 9th year for the CA to fund the retaining wall fund- $30K (first two years funded by Del Webb). At the end of 2020 this fund will have a balance of approximately $260K and at the end of 2021, approximately $290K
- Property Taxes- slight increase over 2020 rates due to additional land and the Retreat
- Insurance: $500K increase in overall rate vs. 2020. This is a result of our hail storms (2013 and 2020) and liability claim/ payout in early 2020.
Property
- Utilities- based on history and actual trends
- Natural gas rate- We are unaware of any increases at this time and have gone off of our averages and history for the 2021 budget.
- 8th year with Brightview Landscaping- 2% increase in rate over 2020 rates, only increase due to additional common areas to maintain
- Maintenance of Austin (housekeeping contractor)- 4.5% contractual increase in fees in 2021 and then 0 % increases in 2022 and 2023
- Provides funding for preventative maintenance on our generators (Retreat, CC and the Social Center)
- Provides funding for deer trapping and processing
- Provides continued funding for Firewise and waterways management
- Provides funding for the Emergency Management Committee operations
- Restaurant: budget reflects rental income from Mulligan’s
- Includes continued funding for pond/ aquatic management
Golf
- Budget reflects 8% increase in fees and away from public play
- Reflects a break even at year-end
- Conservative revenue numbers
- Budget proposes a $100K to Capital Asset Fund
- Still provides for some Key Outside Play Tournaments
Staffing
- Assumes 3% Salary Adjustment
- Assumes 5% increase in medical benefit costs
- Continues our relationship with Employers Resource
- Continues to fund tenure awards, employee development
- Provides funds to continue to recognize and support our volunteers although reduced from previous budgets
- Budget includes a IT addition at mid-year and monitors for the new multipurpose building in Q4
CA Insurance Renewal Proposal
Ann Dodson, Director of Finance, discussed the CA’s property and liability insurance coverage processes for 2021. The broker for the CA is working with carriers to finalize proposals that will meet all of the CA’s needs. Once the CA receives proposals, they will be shared with the Board for approval.
Federal and State Income Tax Returns
Director of Finance, Ann Dodson, reported that the 2019 Federal and State Tax returns were filed in September. The Board will review both during the next two weeks and will vote to ratify these at the November 19 Board Meeting.
Audit Firm
Staff sent a Request for Proposal to three companies to bid on conducting the CA’s annual audit. We received one bid from Calhoun, Thomson + Matza, LLP. who is a firm the CA has previously used. The Audit Committee has approved the recommendation to proceed with Calhoun, Thomson + Matza, LLP. and the Board will vote on this at the November 19 Board Meeting.
Hail Damage – Roof Repair
Having filed an insurance claim after the most recent hail storms, staff solicited bids for repairing the CA’s building roofs throughout the community. Staff is recommending the Board approve a bid from Remedy Roofing to repair the hail damaged roofs with metal (24 gauge) rather than replace damaged shingles with shingles. Staff will also determine an amount needed to replace many skylights in the community while the roof work is being completed. Both the Property & Grounds and Finance Committees have approved of this recommendation and the Board will take action on this item at the November 19 Board Meeting.
Resale Certificate Fee / Enforcement
With the assistance from the CA’s HOA attorney, staff is recommending a change to policy regarding deed restriction enforcement and clarification that authorizes the CA to charge a resale certificate fee. The Board will vote on this item at the November 19 Meeting.
Election Timeline
Staff provided the Board with the election dates and timeline for the 2021 resident director Board election. This timeline will also be announced and voted on at the November 19 Board Meeting.
Burr Oak Connector Trail Proposal
The Board was presented with a proposal from the Trails Sub Committee of Property & Grounds Committee to create a connector trail linking Burr Oak Trail to Blue Heron Trail on County land (approximately .7 of a mile). The CA’s agreement with the County provides the CA permission to have a walking trail on this land and to keep the creek clear for flooding/Firewise purposes. Property & Grounds recently voted to approve this proposal and the Board will take action on this item at the November 19 Board Meeting.
Resident Funded Multi-Purpose Facility
The Board discussed the concept of building a resident funded multi-purpose facility. The funds would be used from the remaining monies in the existing amenities funds, the Capital Asset fund and a Developer contribution. The building would be located in the area off CR245 where the 12 new Pickleball courts will be installed and be open by the fourth quarter of 2021. Building plans have been reviewed by the Property & Grounds and Charter Club Committees. Further, input has been received from the Clubs anticipated to use this space. The 2021 draft budget does include funds for utilities and staffing in the fourth quarter. The Board will vote on this proposal at the November 19 Board Meeting.
Political Sign Policy
The Board reviewed recommended amendments to the Political Sign Policy; amendments include a correction to internal elections that allow for signage in resident yards and signage should be limited to window displays. Other amendments are in regards to local, state and federal elections related to prohibiting signage with negative messages and signage that has been repurposed from its original content. Further, flags may be transformed into a ground-mounted banner and the resulting banner may not be larger than 24-square feet. The Board will vote on these recommendations at the November 19 Board Meeting.
Energy Management Policy
There are no proposed changes to the Energy Management Policy. The policy was due for review per the Policy Review Schedule. The Board will take action on this policy at the November 19 Board Meeting.
