SEPTEMBER 2014 SUNRAYS | 7
ONLINE:
SCTXCA.ORG
Let’s Communicate!
Jim Romine, Executive Director
E
achJuly, theCommunityAssociation
(CA) begins developing its budgets
(operating, capital and reserve) for
the following calendar year. It might be
surprising to know that the CA is a $16+
million business encompassing several
different business operations, including
golf, fitness centers, common areas, com-
munications and activities, buildingmain-
tenance and general administration. The
CA generates revenue from assessments
and fees, of which, $7.2million are derived
from member assessments, $4.5 million
from golf revenue and $1.6 million in
activities and advertising revenue. The
remaining balance is made up of various
fitness and administrative fees.
The process starts each year with our CA
Board’s budget direction, which is current-
ly posted on the Board’s website. During
a kick-off meeting between myself; Ann
Dodson, Director of Finance; and all key
members of staff who have budget devel-
opment responsibilities, basic guidelines
and assumptions are discussed in detail
before the CADepartment Directors draft
their respective departmental budgets.
These draft departmental budgets are
reviewed and adjusted by Ann Dodson
andmyself. Revised departmental budgets
are then submitted to various committees
in September for review and input from
the residents serving on those commit-
tees. After the committees have reviewed
their respective budgets, staff will make
additional adjustments and compile one
overall budget, which we then submit to
the Finance Committee.
The Finance Committee spends several
days in October reviewing the budget in
detail, establishing priorities, identifying
challenges, considering options and mak-
ing adjustments accordingly. In addition to
creating the operating budget, the Board,
staff and committees create budgets for
capital repair and replacements, create
a 3-year (long term) financial plan, and
accept Capital Asset Fund expendeture
requests for the year 2015 frommembers
of staff. The Board officially approves the
budget at the November Board meeting.
The CA Board of Directors has provided
staff with some basic direction for the 2015
annual budget. These guidelines include:
ASSUMPTIONS
a. A Developer decision to expand the
community will have no impact on the
2015 operating budget.
b. The number of new homes and resales
for 2015 should be estimated at mid-
year based on 2014 experience.
c. No additional neighborhoods are an-
ticipated for 2015.
d. The Community Association will be
responsible for irrigating Pedernales
Falls Drive from the CowanCreek fish-
ing pond for the entire year.
Budget Guidance for 2015
a.
Boulevards
: A major effort is nec-
essary to repair worn and unsightly
portions of Del Webb and Sun City
Boulevards with emphasis on the
medians. The 2012 Waterwise Task
Force established a guiding principle
to “maintain the same general look and
feel” and “find ways to save on the use
of irrigationwater.” These two concepts
are not totally compatible. In many
cases, the restoration, re-grassing
and xeriscaping will require modifi-
cations to the irrigation zones in order
to achieve a common sense balance
between “look and feel” and “saving
water”. Request Staff and Property
and Grounds to prepare a prioritized
list of areas and zones to be repaired
with a price tag for each.
b.
Irrigation
: Continue the approved
projects to convert frompotable to non-
potable water in the Common Areas.
c.
Firewise andWaterways:
Clearing
is to be continued at a maintenance
level.
d.
Capital Asset Fund
: Prepare a five-
year program (2015-2019) for the pur-
chase of capital assets to include:
(1) Conversion of leased golf equipment
to purchase
(2) Conversion of leased fitness equip-
ment to purchase
(3) Other equipment with emphasis on
utilities savings
e.
Staffing
: Review Community Asso-
ciation staffing level and contract for
outside salary review.
f.
Lake and Fishing Management
Plan
: Provide adequate funding for
the plan being prepared by theWildlife
Management Committee.
g.
CharteredClubFinances
: Staff and
Finance Committee are to prepare a
procedure to monitor club cash bal-
ances and alert the Board and appro-
priate committees when balances are
excessive compared to budget. Also,
recommend a procedure for corrective
action.
h.
Golf
: Operate financially at breakeven
during 2015. Emphasis onmaintaining
high-quality course conditions.
In addition to budgeting for existing ser-
vices and programs, the Board and Fi-
nance Committee consider new services
and programs during the budget process.
Adding new services usually results in
additional expenses. With that said, the
CA will likely assume responsibility for
additional Common Area in 2015, which
will add expense to the CA’s operations.
Lastly, I would like to thank the staff and
committees for their valued time during
this process. It is due to their countless
CA NEWS
2015 Community Association Budget Process
Continued on page 9
