Comments on the FY 2005 Budget

Transcription

1 Comments on the FY 2005 Budget Your Board of Directors is proposing a budget of $692,680 for FY05, with a 5.9% increase in condo fees. The condo fees are proposed at $664,080. The Board believes the budget is both responsible and appropriate for meeting our current and future needs. Interest income is expected to be $5,000 less than last year's budget, thus contributing to the need to increase condo fees. The biggest expense increase in this year is for insurance which amounts to a $6,529 increase from last year's budget. There is an increase of $5,000 from last year's budget for administrative miscellaneous, which is expected to cover the expenses of updating and distributing the Mews Welcome Handbook and the printing of the MewsNEWS newsletter. Also increasing from last year is building maintenance which is budgeted at $7,000 more for last year. The grounds contract is budgeted at $2,630 more than the FY04 budget. The contribution to total reserves for FY05 is $240,274. Of that amount, $9,246 is allocated to the general operating reserve to maintain that fund at 25% of the annual assessment. The remainder of $231,028 is allocated to the replacement reserves and constitutes a $4,060 increase from FY04. While we believe that such replacement reserves contribution will help Fairlington Mews to continue to meet its infrastructure requirements in a fiscally responsible manner, the FY05 projected expenditures from the replacement reserves is $329,000 and exceeds the $231,028 replacement reserves contribution by $97,972. Condominum Fees FY2005 Arlington 278 Dominion 254 Barcroft (inside) 191 Edgewood (inside) 198 Barcroft (end) 195 Edgewood (end) 202 Bradford (inside) 154 Essex (inside) 170 Bradford (end) 158 Essex (end) 174 Clarendon (inside) 204 Fairfax 160 Clarendon (end) 208 Georgetown 178 Fairlington Comparisons (inside Clarendon units) Village Fee - Beginning of Budget Year Green October 1, 2003 North September 1, 2003 Commons Calendar Year 2004 Glen Calendar Year 2004 Meadows Calendar Year 2003 Mews August 1, 2004 Arbor November 1, 2003 * Unable to obtain 2004 comparison before printing of this notice 6/2/04.

2 DRAFT FY2005 BUDGET AUGUST 2004-JULY /27/2004 PROJECTED DRAFT COL. 2-5 FY2003 FY MONTHS YEAR END FY2005 % DOLLAR CODE ACTUAL BUDGET ACTUAL FY2004 BUDGET VARIANCE DIFFERENCE INCOME CONDO FEES 627, , , , , % $36, I NTEREST INCOME 35,648 33,000 23,180 30,000 28, % -$5, LATE FEES % $ MISC INCOME % $0 BAD DEBT RECOVERY 3,121 $ 0 TOTAL INCOME 666, , , , , % $31,984 EXPENSES ADMINISTRATIVE UNCOLLECTIBLE INCOME % $ ADMINISTRATIVE MISC. 13,206 10,000 6,127 10,000 15, % $5, AUDITOR 2,800 2,900 2,800 2,800 2, % -$ LEGAUPROFESSIOANAL FEES 1,563 5,000 2,850 4,300 5, % $ MANAGEMENT FEES 51,876 53,427 39,771 53,100 53, % $ I NSURANCE 40,917 49,431 34,241 47,214 55, % $6, I NSURANCE DEDUCTIBLES BAD DEBT TOTAL ADMINISTRATIVE 110, ,758 85, , , % $11,848 UTILITIES ELECTRICITY 5,836 9,000 4,915 9,000 9, % $ WATER AND SEWER 81,970 83,000 58,689 83,000 83, % $0 TOTAL UTILITIES 87,806 92,000 63,604 92,000 92, % $0 MEWS2005XLS Page 1

3 DRAFT FY2005 BUDGET AUGUST 2004-JULY /27/2004 PROJECTED DRAFT COL. 2-5 FY2003 FY MONTHS YEAR END FY2005 % DOLLAR CODE ACTUAL BUDGET ACTUAL FY2004 BUDGET VARIANCE DIFFERENCE REPAIRS AND MAINTENANCE EXTERMINATOR -NON-CONT. 2,390 3,500 2,301 4,100 3, % $ PLUMBING & SEWER MAINT. 3,476 5, , % -$3, BUILDING MAINTENANCE 49,030 44,000 40,172 51,000 51, % $7, FIRE PREVENTION & SAFETY % $ TENNIS COURT % $ LANDSCAPING ,000 18,173 18,173 18, % $ TREE MAINTENANCE 13,764 15,000 12,652 15,000 15, % $0 TOTAL REPAIR & MAINT. 69,560 86,400 73,298 88,273 90, % $4,100 MAINT. SERVICE AGREEMENTS POOL CONTRACT 36,150 37,000 10,961 36,000 37, % $ JANITORIAL CONTRACT 7,061 7,300 4,646 6,400 7, % $ LAWN GROUNDS MAINT. 48,062 44,670 29,885 45,238 47, % $2, SNOW REMOVAL 21,721 14,000 10,255 10,255 14, % $ TRASH REMOVAL 24,259 24,500 18,334 24,471 24, % $0 TOTAL MAINT. SERVICE AGREEMENTS 137, ,470 74, , , % $2,730 MEWS2005XLS Page 2

4 DRAFT FY2005 BUDGET AUGUST 2004-JULY /11/2004 PROJECTED DRAFT COL. 2-5 FY2003 FY MONTHS YEAR END FY2005 % DOLLAR CODE ACTUAL BUDGET ACTUAL FY2004 BUDGET VARIANCE DIFFERENCE TAXES AND LICENSE I NCOME TAXES 4,864 7,000 3,575 7,800 7, % $ LICENSES,FEES & PERMITS % $0 TOTAL TAX AND LICENSE 4,864 7,100 3,785 8,010 7, % $0 TOTAL OPERATING EXPENSES 409, , , , , % $18, TOTAL CONTRIBUTION TO RESERVES 237, , , , , % $13,306 TOTAL OPERATING EXPENSES & REPLACEMENT RESERV 647, , , , , % $31,984 NET SURPLUS/(DEFICIT) 24,262 23,283 2,667 Note: FY2005 Total Operating Expenses & Replacement Reserves of $692,680 includes $9,246 contribution to general operatin See attached Replacement Reserve Schedule and Operating Reserve r serve. MEWS2005XLS Page 3

5 FAIRLINGTON MEWS 6/2/2004 REPLACEMENT RESERVE SCHEDULE AND OPERATING RESERVE AUDIT BUDGET ESTIMATED ESTIMATED BUDGET PROJECTED PROJECTED BUDGET PROJECTED PROJECTED ITEM BALANCE CONTRI. EXPENSES BALANCE CONTRI. EXPENSES BALANCE CONTRI. EXPENSES BALANCE NAME FY2004 FY FY2005 FY FY2006 FY PAINTING (2) 29,396 44,000 ( 97,573) 44,000 ( 41,000) 44,000 ( 40,000) ROOFS (2) 472,588 70,000 ( 93,467) 70,000 ( 83,000) 70,000 ( 83,000) PAVING & SEALING (1) 58,378 50,000 ( 52,595) 50,000 ( 50,000) 50,000 ( 50,000) FENCES 227,013 15, ,000 15,000 COMMON ELEMENTS 59,388 47,968 ( 20,000) 52,028 61,274 SEWER LINES (16,500) ( 58,479) (50,000) ( 50,000) STAIRWELLS (18,370) ( 65,906) POOL ( 45,000) TOT LOT ( 10,000) TENNIS COURTS ( 20,000) ( 10,000) CONCRETE REPAIRS ( 15,000) ( 15,000) ( 15,000) MASONRY REPAIRS ( 25,000) ( 25,000) RESIDENTIAL LIGHTING ( 14,800) ( 15,000) ( 15,000) PARKING LOT SIGNS ( 25,000) Reserve Study (7,950) TOTAL REPLACE.RESERVE 803, , , ,845 TOTAL OPERATING RESERVE 135,000 ( 21,774) 156,774 9, , ,020 TOTAL RESERVES 938, ,968 ( 489,594) 676, ,274 ( 329,000) 587, ,274 (288,000) 539,865 FY2004 EXPENDITURES: 1. Painting of Courts 1-6, Phase 1 of 3 -$32,000 plus cost for chemically peel areas & painting/window casings. equals $41,730 plus rotten wood - estimate $15,000 - Await bill. plus Crts 7-11 commencing in June - Phase 2 Of 3 equals $28,800 plus painting of window casing & rotten work replacement 2. Continue Roof Repairs/Replacement Program -3 roofs in Court 6 = $93, Paving & Sealing - Restripped and numbered parking lots + Start resurfacing/new curbing for parking lots $50, Drainage Work in Courts 9 & Lining of sewer lines - Contract $50,000 a year for 10 years 6. Complete Refurbishment of 16 stairwells 7. Sidewalk Repairs - Trip Hazards/Drainage Problems - $15, Masonry Repairs Estimate 9. Replace Carriage Lamps in Courts 10 & Replace Parking Lot Signs FY2005 EXPENDITURES: 1. Painting of Courts 12-15, Phase 3 of 3 - $27,500 plus chemical peel areas and painting of window casings. 2. Continue Roof Repairs/Replacement Program. - one asbestos roof 3. Paving & Sealing - Continue resurfacing and new curbing of parking lots $50, Lining of sewer lines - Contract $50,000 a year 5. Replace Pool deck - $45, Tot Lot Refurbishment 7. Tennis Court Resurfacing - Double Courts Page 1 In accordance- Exhibit C of the Master Deed - Property Maint. Agree.pgs. 56 & 57: 1. 3% annual assessment contributed to Paving each yr.- $18,812/FY2005-$19, % annual assess. contributed to Roofs/Painting each yr - $18,812/FY $19,922 Items 1 & 2 meet the requirement of the documents 3. The General Operating Reserve fund needs to be kept at 25% of the annual assessments - $664,080 = $166,020

6 REPLACEMENT RESERVE SCHEDULE AND OPERATING RESERVE 6/ 1/ Sidewalk Repairs -Trip Hazards/Drainage Problems -Budget $15, Continue Masonry Repairs l0.continue Replacement of Residential Lighting FY2006 EXPENDITURES: 1. Painting of Courts 1-6, Phase 1 of 3 -$32,000 plus cost for chemically peel areas & painting/window casings. $41,730 plus rotten wood 2. Continue Roof Repairs/Replacement Program - one asbestos roof 3. Paving & Sealing - Continue resurfacing and new curbing of parking lots $50, Lining of sewer lines - Contract $50,000 a year 5. Sidewalk Repairs -Trip Hazards/Drainage Problems -Budget $15, Continue Masonry Repairs 7.Continue Replacement of Residential Lighting Page 2