2000 Proposed Cash Budget

Transcription

1 Hawthorne Residents Cooperative Association, Inc. Volume 17, Number 10 P.O.Box , Leesburg, FL November 19,1999 JACK WINTERS, President ED ANDERSON, Vice President GRACE WHITECAR, Secretary JAN FADEL Y, Treasurer JACK ERVIN, Director EDWARD HOBBS, Director TOM O'NEILL. Director BETTY SMITH. Director AL WIANT, Director 2000 Proposed Cash Budget January 1, 2000 through December 31,2000 (Based on 1168 Unit Owners) THE FOLLOWING PROPOSED CASH BUDGET FOR 2000, BASED ON 1168 SHAREHOLDERS, WAS REVIEWED BY THE HRCA BOARD AT THE NOVEMBER 18th REGULAR BOARD MEETING. FINAL ACTION AND APPROVAL OF THE BUDGET WILL BE TAKEN AT THE DECEMBER BOARD MEETING TO BE HELD IN THE CLUBHOUSE AT 1:30 P.M., THURSDAY, DECEMBER 9th, Operating Expenses: Payroll & Related Expenses Maintenance & Repair Advertising Insurance Supplies Garbage & Sewage Fees Professional Fees Telephone & Electricity Hawthorne Program Expense Income Taxes Non-Income Taxes Other Expenses Total Operating Expenses ANNUAL EXPENSES $ 2,058, ,300 88,200 58, , ,500 38, ,000 19,700 15,600 53,300 3,202,800 MONTHLY EXPENSES $ 171,525 20,608 7,350 4,833 9,175 29,542 3,233 13,250 1,642 1,300 4, ,900 EXP'S PER MO. PER UNIT (1168) $ Operating Revenues: Net Revenues (Excl. Maint. Fees) Increase in Working Capital transfer to Fund B Total Operating Revenues (624,700) 42,900 (581,800) (52,058) 3,575 (48,483) (44.57) 3.06 (41.51) NET OPERATING (OPERATING EXPENDITURES BUDGET) $ 2,621,000 $ 218,417 $ Capital Expenditures Addition to Reserves 311,400 10,968 25, CAPITAL APPROPRIATION $ 322,368 $ 26,864 $ TOTAL 2000 EXPENDITURES $ 2,943,368 $ 245,281 $

2 1999 Cash Budget January 1, 1999 through December 31, 1999 (Based on 1169 Unit Owners) THE 1999 CASH BUDGET BELOW IS INCLUDED IN THIS GREEN SHEET FOR COMPARISON PURPOSES WHEN REVIEWING THE 2000 PROPOSED CASH BUDGET ANNUAL MONTHLY EXP'S PER MO. EXPENSES EXPENSES PER UNIT {1168} Operating Expenses: Payroll & Related Expenses $ 2,009,200 $ 167,433 $ Maintenance & Repair 245,800 20, Advertising 90,000 7, Insurance 57,800 4, Supplies 108,000 9, Garbage & Sewage Fees 354,700 29, Professional Fees 40,500 3, Telephone & Electricity 155,500 12, Hawthorne Program Expense 19,500 1, Income Taxes Non-Income Taxes 15,300 1, Other Expenses 48,000 4, Total Operating Expenses 3,144, , Operating Revenues: Net Revenues (Excl. Maint. Fees) (593,300) (49,442) (42.29) Increase in Working Capital transfer to Fund B 72,200 6, Total Operating Revenues (521,100) (43,425) (37.15) NET OPERATING EXPENDITURES $ 2,623,200 $ 218,600 $ (OPERATING BUDGET) Capital Expenditures 349,150 29, Reduction to Reserves (26,506) (2,209} {1.89} CAPITAL APPROPRIATION $ 322,644 $ 26,887 $ TOTAL 2000 EXPENDITURES $ 2,945,844 $ 245,487 $

3 ANALYSIS OF CAPITAL REPLACEMENT RESERVES (BUDGETED) FOR THE YEAR 2000 FUND A - RESTRICTED CAPITAL RESERVE ROOF PAVEMENT BUILDING REPLACEMENT & PARKING PAINTING TOTAL Projected Balance $ 40,833 s 475,381 $ 23,500 $ 539,714 $3.00 x 1168 x12 months 19,524 19,524 3,000 42,048 Capital Improvements (25,000) (7,000) (1,500) (33,500) Projected Balance $ 35,357 $ 487,905 $ 25,000 $ 548,262 FUND 8 - UNRESTRICTED CAPITAL FUND Projected Balance $ 820,424 $19.00 x 1168 x 12 months 266,304 Cable TV Net Revenue 59,000 Capital Improvements: Land Improvements $ 8,000 \ 1 Building Improvements 1, Air Conditioning Units-Clubhouse 66, Pickup Truck 14,800 Bus 75, Utility Vehicles 24,000 Lawnmowers, decks, engine 13,200 Maintenance Equipment 21,900 Furniture, Office Equipment 18,800 Contingency 35,000 (277,900) Transfer frorn Operating Fund 42,900 Projected Balance $ 910,728 FUND C - ACTIVITY FACILITIES FUND Projected Balance $1.00 x 1168 x 12 months $ 28,040 14,028 Projected Balance $ 42,068

4 NOTE (4) - Reserves are funded per F.S There are two options for funding of reserves. 1) Less than full funding, per this budget, would require contributions of $3.00 per month per unit to Fund A - Restricted Capital Reserve, $19.00 per month per unit to Fund B - Unrestricted Capital Fund and $1.00 per month per unit to Fund C - Activity Facility Fund. 2) Full funding would require a contribution of $65.64 per month per unit for Full funding of reserves may be waived by association action. MONTHLY ANNUAL MONTHLY EXPENSE PER 1) Less than Full Funding Reserve Funding EXPENSE EXPENSE UNIT (1168) Fund A - Restricted Capital Reserve Roof 20,274 1, Pavement and Parking 20,274 1, Building Painting 1, $ 42,048 $ $ 3.00 Fund B - Unrestricted Capital Fund $ 266,304 $ 22,192 $ Fund C - Activity Facility Fund $ 14,016 $ 1,168 $ ) Reserve Funding to Fully Fund Land Improvements $ 429,891 $ 35,824 $ Buildings 215,157 17, Vehicles 124,998 10, Maintenance Equipment 77,399 6, Office Equip/Furniture & Fixtures 72,567 6, (Detailed Schedule Below) $ 920,012 $ 76,668 $ The above Reserve Funding to Fully Fund shows a breakdown of the total dollars that would be required to fully fund capital expenditures and deferred maintenance reserve account for 2000 using the 'suggested' formula of State Legislationfor Cooperatives. A detailed schedule to fund the reserve is disclosed below as required by State Statute. ASSET DESCRIPTION FULLY FUNDED RESERVE DETAIL SCHEDULE (Adjusted Annually) LIFE IN YEARS REPLACEMENT COST 2000 RESERVE Cable TV Bridge Sewer System Water System Drainage System Irrigation Electrical Landscaping Seawall Floating Dock Streets Patio and Walks Fencing putting Greens Gates Tennis & Gazebo Bocce Courts Clubhouse Shuffleboard Courts Sales Office Operations Office Maintenance Garage Laundry Building Marina/Guardhouse Vehicles Maintenance Equipment Office Equipment Furniture/Fixtures , ,055 1,461,984 1,291, , , , , , , , , ,657 13, , ,176 15,352 3,355, , ,523 84, ,389 77, , , , , ,274 14,516,356 32,639 12,544 92,646 59,242 16,610 17,671 29,453 13,773 6,540 20,298 35,511 10,617 19, ,946 5,446 1, ,930 13,976 14,188 7,704 8,159 5,890 26, ,998 77,399 15,041 57, ,012

5 Cash & Investments /.fr -. / ACTUAL ~ ~ ) V -I '1v /f-- )\l-- -: 7 ""t I PROJECTED $2,600,000 $2,400,000 $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 APPROVAL OF BUDGET BY THE BOARD WILL BE AT THE REGULAR BOARD MEETING TO BE HELD IN THE CLUBHOUSE AUDITORIUM THURSDAY, DECEMBER 9,1999, AT i:30 PM The Proposed Cash Budget, in the format specified by the State Division of Land Sales, Condominiums and Mobile Homes, is available in the Accounting Office at the Administration Buildinq and will be posted on the HRCA Bulletin Board in the Clubhouse. Also, additional detailed budget worksheets are available in the Accounting Office.

6 .~- ;fil~~' November 19, 1999 r~\a.l'th~rri~ Residents Cooperative Association, Inc. Post Office Box Leesburg. Florida Telephone (352) FAX (352) Dear Members; Is it just that I'm getting older, or can it possibly be true that time is going by much faster than it used to? Not only is the year 1999 fast coming to a conclusion, but so too is the 20th Century! In another 43 dayswe will be celebrating the beginning of a new millenium - the year 2000! I hope it's a good one for all of you! 1999 has been a significant and good year for Hawthorne - Our cable TV and Emergency Alarm system has been paid off; a new roof and gutter system has been installed on the Clubhouse; the Woodcrafter's building has been completed; a new web-site was developed and put into operation; construction of our new Multi-Purpose building was started (we look forward to this project being completed by the end of this year, and within its budget); last, but by no means least, Hawthorne not only operated within its budget for the year, but it's anticipated that we will realize savings that exceed our projections by a substantial margin. This means we can go into the year 2000 with no increase in our maintenance fees. It was a very good year! On the next few pages of this report you will find our proposed Cash Budget along with an analysis of the Capital Reserves for the year Our investment assets continue to be substantial, as well as being extremely conservative; $2,510,114 as of October 1, 1999 vs $2,489,274 for the same period in Some of the highlights of the year 2000 budget are as follows; Total projected net operating revenues Total projected net operating expenses Projected Net Operating Income $3,245,700 $3,202,800 $42,900 One of our continuing high priorities is to properly maintain our Park. Accordingly, the following. expenditures are included in the operating expenses shown above; Continuing Maintenance and Repair costs... $247,300 Included in this catagory are such items as repairs to our various buildings, utilities, landscaping, vehicles, and streets. Part of our monthly fees go toward continuing to upgrade our Park and facilities - The year 2000 budget includes the following items dedicated to upgrading and improving Hawthorne. Capital improvements and purchases... $311,400 The major items here are; Clubhouse - 3 new air conditioning units $66, 000 Replace 1985 Thomas Bus $75, 000 Maintenance equipment replacement $59,1 OQ Shuffleboard Courts - repair existing roofs $25, 000 Many thanks to all of the people who spent a considerable number of hours working together to produce what I consider to be a good, realistic, and attainable budget for the year President, Jack A. Winters HRCA Board of Directors