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CA NEWS
Let’s Communicate!
Jim Romine, Executive Director
2016 Community Association budget process
Each July, the Community Association (CA) begins Property and Grounds Committee in implementing
developing the operating, capital and reserve budgets recommendations from the prioritized list developed in
for the following calendar year. You may be surprised to 2014. Update recommendations as necessary.
learn that the CA is a 16 million dollar business comprised of a
variety of operations which include golf, fitness centers, common B. Irrigation - Continue approved projects converting to
areas, communications and activities, building maintenance non-potable water in the common areas. Are there other
and general administration. Revenue is generated through common areas to be considered for 2016?
assessments and fees, of which $7.7 million is derived from
member assessments, $4.6 million from golf revenue and $1.7 C. Firewise and Waterways - Clearing to be continued at a
million coming from activities and advertising revenue. The maintenance level.
balance is made up of various fitness and administrative fees.
D. Staffing - Review Community Association staffing level
The budget process starts each year with our CA Board’s for current year and future years based on anticipated
budget direction, now posted on the Board’s website. A “Kick- needs related to expansion. Results of compensation study
Off” meeting is held with Director of Finance, Ann Dodson should be a consideration with the 2016 budget.
and all key staff members with budget responsibilities.
Guidelines and assumptions are discussed in detail before E. Chartered Club Finances - Staff to continue to implement
CA Department Directors draft their respective departmental changes to Chartered Club Policy regarding club
budgets, which are reviewed and adjusted by Ann Dodson and net income and cash balances and report to Finance
me. In September, revised budgets are submitted for review by Committee and Board.
various resident-led committees. Once these committees have
completed their reviews, staff make additional adjustments F. Golf - Operate at no less than break-even financially
and compile an overall budget for submission to the Finance during 2016. Emphasis on maintaining high quality
Committee, who spends several days in October reviewing the course conditions.
budget in detail. During this time, they establish priorities,
identify challenges, consider options and adjust the budget G. Departments - Complete the “Unbudgeted Opportunities”
accordingly. section, providing visibility to opportunities for the year.
In addition to creating the operating budget, the Board, staff H. Property Taxes - Monitor property tax situation and
and committees create budgets for the capital asset fund, the potential impact on 2016 and future budgets.
reserve fund and develop a long term, five-year financial plan.
The Board officially approves the budget at the November I. 20th Anniversary - Consideration given to events hosted or
Board meeting. shared with the Developer related to the 20th Anniversary
of Sun City Texas.
The CA Board of Directors provided staff with some basic
directions for the 2016 annual budget, including: J. Restaurant - Budget for revenue related to Putters and
potentially The Oaks facility.
Assumptions:
K. Expansion Task Forces - Work with Task Forces related
1. Economic environment for 2016 will continue to be at to expansion potentials that may be incurred during the
slow growth. period.
2. The number of new homes and resales for 2016 should be L. Five Year Projection - Prepare financial projections for
estimated at mid-year based on 2015 experience. 2017 – 2021 to include Reserve contributions allowing
for a 70% funding level. Complete interim reserve study
3. To anticipate new neighborhoods 58, 63 and 64 for 2016 by end of July 2016 to provide funding requirements for
from the Developer. 2017 budget.
Budget Guidance for 2016 I would like to thank the staff and committees for their valued
time during this process. Special thanks to our Finance
A. Boulevards – Request that staff continue to work with Committee, whose professionalism and expertise guide us to
a budget we can all work and live with. Thanks to all involved
and happy budgeting!
ONLINE: SCTEXAS.ORG OCTOBER 2015 SUNRAYS | 7
