Greenbelt Homes, Inc. 2015 Budget October 9, 2014 First Presentation Finance/Board of Directors November 6, 2014 First Reading November 20, 2014 Second Reading and Approval
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TABLE OF CONTENTS Pages i Board President's 2015 Budget Letter Important changes to 2015 budget 1 Summary budget overview 2 Summary budget schedule Supporting Schedules: 3-6 Distribution of 2015 members' charges Schedule A 7-8 Service and other income Schedule B 9-10 Real estate taxes Schedule C 11-12 Insurance Schedule D 13-16 Administration/Board/Membership Schedule E 17-19 Maintenance and improvements Schedule F 20-21 Reserves analysis Schedule G
IMPORTANT CHANGES TO Real estate taxes have been budgeted to reflect the impact of the loss of the Homestead Tax Credit for units which will not be eligible to receive it in 2015 (pages 9 & 10). In house staff needed for replacing smoke detectors is included in the operating budget in the Maintenance - payroll line item. Capital purchases include $14,000 for the purchase of a tractor to be used in court snow removal as well as $30,000 for the conversion of the boiler room to storage space at 10U Southway. Depreciation expense reflect the annual impact these capital items. Summary Budget (page 2) Real estate taxes Insurance Adm/Brd/Member Administrative Schedule E (pages 13/14/16) Office supplies/postage Depreciation Information technology services Maintenance Expense Schedule F (page 17) Fringe benefits Materials Vehicle expense Depreciation Maintenance - Contract Work (page 18) Fence repairs around administration building Pest extermination Power cleaning of storm drains Swale/drainage improvements Tree maintenance (includes an arborist) Replacement Reserves (page 20) Contracts Underground sewer replacement Parking lot reconstruction Replace garage roofs Administrative Schedule E (pages 13/14/16) Board/Audit/Committees Member expenses Maintenance Expense Schedule F (page 17) Maintenance payroll SIGNIFICANT INCREASES IN EXPENDITURES SIGNIFICANT REDUCTIONS IN EXPENDITURES Maintenance - Contract Work (page 18) Fee for service contracted work Grounding and electrical equipment upgrades masonry homes Janitorial services Parking lot repairs Repair cracks masonry homes Replacement Reserves (page 20) In-house Entrance doors frame units Entrance doors masonry units Water heaters replacements Contracts Purchase one van Replace central AC larger homes i
SUMMARY BUDGET OVERVIEW The summary budget is a consolidation of income, expenses and equity for all three budget groups. It provides the basis for the cooperative's operations during 2015. All of the other documentation included as part of the budget presentation consists of supporting schedules and backup material. The summary budget identifies total receipts (income), expenses and equity. As a cooperative operating on a not-for-profit basis, GHI must determine which expenses are necessary, then collect enough income to meet those expenses. In accordance with the bylaws, increases in membership operating charges cannot exceed 10% of last year's operating payments without membership approval. The increase in members' charges for 2015 falls within this limit and provides for enhanced services and improvements. This budget reflects an overall increase in total members charges of 2.4%, as defined in GHI's Mutual Ownership Contracts. 1
SUMMARY RECEIPTS: 2014 Yr End Proposed % Projection 2014 Budget 2015 Budget Change Schedule Members' charges: Operating charges $ 4,329,529 $ 4,329,529 $ 4,353,117 0.5% Real estate taxes 3,136,868 3,152,319 3,249,797 3.1% Replacement reserves 1,411,077 1,411,077 1,499,832 6.3% Addition maintenance reserves 123,620 123,620 128,565 4.0% Total members' charges 9,001,094 9,016,545 9,231,311 2.4% A Other Sources: Service income 442,650 446,170 456,050 2.2% B Other income 594,370 469,350 566,265 20.6% B Total other sources 1,037,020 915,520 1,022,315 11.7% Total receipts $ 10,038,114 $ 9,932,065 $ 10,253,626 3.2% EXPENSES: Real estate taxes 3,136,868 3,152,319 3,249,797 3.1% C Trash collection 429,076 439,802 439,802 0.0% A Insurance 549,080 529,900 561,900 6.0% D Adm/Brd/Memb 1,267,531 1,254,806 1,303,790 3.9% E Maintenance p & improvements 2,945,490 3,020,541 3,069,940 1.6% F Total expenses 8,328,045 8,397,368 8,625,229 2.7% EQUITY: Replacement reserves 1,411,077 1,411,077 1,499,832 6.3% G Addition maintenance reserves 123,620 123,620 128,565 4.0% G Total equity 1,534,697 1,534,697 1,628,397 6.1% Total expense & equity $ 9,862,742 $ 9,932,065 $ 10,253,626 3.2% Depn - member units 604,548 604,548 642,658 6.3%
DISTRIBUTION OF 2015 MEMBERS' CHARGES Schedule A illustrates how total members' charges are distributed among the three budget classes created by GHI's Mutual Ownership Contracts. Since real estate taxes are determined based on the actual real estate tax bill, not all members within the particular budget class (frame, masonry, & larger homes) will increase by the same percentage. For 2015 the total members' charges are reduced $1,022,315 by service and other income (see Schedule B). ABBREVIATIONS USED IN TEXT 1) GHI = Greenbelt Homes, Inc. 2) GDC = Greenbelt Development Corporation 3) ADM = Administration expense 4) BRD = Board expense 5) MEMB = Members expense 6) MAINT= Maintenance 7) FFS = Fee For Service 8) RR = Replacement reserves 9) HTC = Homestead tax credit 10) s/s = Service side 11) g/s = Garden side 12) c/a = Common area 3
DISTRIBUTION OF 2015 MEMBERS' CHARGES Schedule A FRAME MASONRY LARGER TOTAL HOMES HOMES HOMES CHARGES % 2014 2015 2014 2015 2014 2015 2014 2015 Change Real estate taxes $ 1,630,612 $ 1,671,118 $ 1,418,840 $ 1,471,335 $ 102,867 $ 107,344 $ 3,152,319 $ 3,249,797 2 3.1% Trash collection 272,677 272,677 159,209 159,209 7,916 7,916 439,802 439,802 0.0% Insurance 328,538 348,378 191,824 203,408 9,538 10,114 529,900 561,900 6.0% Adm/Brd/Memb 777,980 808,350 454,240 471,972 22,586 23,468 1,254,806 1,303,790 3.9% Maint and improvements 1,815,687 1,927,523 1,150,011 1,083,634 54,843 58,783 3,020,541 3,069,940 1.6% Transfers to reserves 756,554 810,270 629,089 663,060 25,434 26,502 1,411,077 1,499,832 6.3% Transfers to reserves (AM) 71,197 74,045 52,040 54,122 383 398 123,620 128,565 4.0% Total charges 5,653,245 5,912,361 4,055,253 4,106,740 223,567 234,526 9,932,065 10,253,626 3.2% Less service & other income 567,622 633,835 331,418 370,078 16,479 18,402 915,520 1,022,315 11.7% Total members' charges $ 5,085,623 $ 5,278,525 $ 3,723,835 $ 3,736,662 $ 207,088 $ 216,124 $ 9,016,545 $ 9,231,311 2.4% % average change in member charges 3.8% 0.3% 4.4% 2.4% % average change in real estate taxes 1 2.5% 3.7% 4.4% 3.1% % change in transfer to reserves 6.8% 5.3% 4.2% 6.1% % change in operating expenses 5.1% -1.9% 5.7% 2.5% 1 The variation in percent change between home groups reflects the impact of actual assessed values of homes and the HTC for members who are eligible. The 2015 budgeted real estate taxes by home group are a summation of individual unit real estate taxes for that particular home group and include the benefit of any HTC. Not all members within a home group are impacted equally. 2 In 2015 the cooperative will continue to receive the benefit of the Homestead Tax Credit (HTC) for members who are eligible. If the entire cooperative did not receive the benefit of the HTC, GHI's real estate taxes would have increased by 14.2% or $351,013 for the 2015 budget (see page 10). As stated on page 1 of this budget booklet, increases in membership operating charges cannot exceed 10% of last year's operating charges without membership approval. The increase in members' charges for 2015 falls within this limit and provides for enhanced services and improvements.
INCOME Member charges account for 90.0% of 2015 income. Members' charges Service & other income Miscellaneous, 0.9% Fee For Service, 1.5% Sale of services to GDC, 2.6% Interest income, 1.8% Garage rentals, 1.6% Contract processing, 1.4% Storage & boat/trailer yd rental, 0.2% 5
EXPENSES AND EQUITY Reserves 15.9% Real estate taxes 31.7% ` Trash collection 4.3% Maintenance 29.9% Insurance 5.5% Administration 12.7% 6
SERVICE AND OTHER INCOME NARRATIVE SERVICE INCOME Service income of Schedule B is derived from 3 sources: sale of services to Greenbelt Development Corporation, rental garages, and rental of boiler room storage and space in the boat/trailer yards. Sale of services to GDC - GDC will continue to pay its portion of the annual audit, insurance, and a management fee to GHI. This amount is based on a 3% rent increase for the Parkway Apartments. Garage rentals - Closed garages renting for $48/month; open garages renting for $30/month; and garages used for storage renting for $100/month, all remain unchanged for 2015. There are currently 2 vacancies, both are open garages. Boiler room storage units at 9 Southway (4) and 8 Southway (4) renting for $100/month remain unchanged. There are no vacancies. Boat/trailer yard rental - Boat/trailer slots are $25/month while slots for canoes are $5/month. Currently 37 of the total 82 boat/trailer slots and 7 of the total 12 canoe slots are vacant. OTHER INCOME Other income of Schedule B consists of contract processing, interest income, Fee For Service revenue and miscellaneous income from various activities. Contract processing - Consists of membership fees paid by new members and the processing fees on resales. The 2015 budget reflects administrative fees of $940 (seller), $595 (membership) and $75 (MOC change) and is based on 88 resales, 3 MOC changes and 1 membership transfer $138,470. Interest income - This item consists of interest earned on accounts and investments net of those held for specific reserves. Corporate bond interest $312,965, the Vanguard Short Term and Intermediate Bond Funds $157,280, interest on loan to GDC $21,250, and other interest $1,500 less interest for specific reserves of $305,300 result in interest income available for operations of $187,695. Fee For Service - This income consists of an hourly component charged when services are provided by in-house staff and an administration component when services are contracted to outside companies. Expense relating to FFS activities have been budgeted in general maintenance and contract work. Miscellaneous - This item includes sublease fees of $9,000, proceeds from the sale of scrap metal of $5,000, late fees paid by members of $20,700; and various other miscellaneous receipts of $53,800. 7
SERVICE AND OTHER INCOME Schedule B Service Income 2014 Yr End Proposed % Projection 2014 Budget 2015 Budget Change Sale of services to GDC $ 263,490 $ 263,490 $ 268,120 1.8% Garage rentals 159,000 161,200 166,630 3.4% Storage & boat/trailer yd rental 20,160 21,480 21,300-0.8% Total service income $ 442,650 $ 446,170 $ 456,050 2.2% Other Income Contract processing $ 134,390 $ 125,950 $ 138,470 9.9% Interest income 194,420 69,900 187,695 >100% Fee For Service 139,320 200,000 151,600-24.2% Miscellaneous 126,240 73,500 88,500 20.4% Total other income $ 594,370 $ 469,350 $ 566,265 20.6% 8
GREENBELT HOMES, INC REAL ESTATE TAXES $4,000,000 3,249,797 3,136,868 $3,000,000 2,942,447 2,997,509 2,739,947 2,517,646 2,293,428 2,147,143 $2,000,000 1,962,490 1,712,565 $1,000,000 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Budget 9
REAL ESTATE TAXES Schedule C Proposed % 2014 Actual 2014 Budget 2015 Budget Change Real estate assessment $ 182,462,318 $ 182,493,406 $ 182,495,052 0.0% Tax rate (per $100 assessed) 1.9481 1.9656 1.9731 0.4% Total real estate tax $ 3,136,868 $ 3,152,319 $ 3,249,797 3.1% Taxes excluding HTC $ 3,554,548 $ 3,587,090 $ 3,600,810 14.2% Savings from HTC $ 417,680 $ 351,013 If the cooperative were not eligible to receive the HTC, GHI's real estate taxes would have been $3,600,810 for the 2015 budget. The HTC assisted in reducing GHI's total real estate taxes by $351,013. Individual member real estate tax responsibility will vary due to various factors including timing of eligibility of the HTC and assessed home value. Not all members within a home group are impacted equally. 10
TOTAL INSURANCE $600,000 549,080 561,900 $500,000 502,525 463,992 $400,000 354,058 371,960 384,058 330,081 330,896 $300,000 300,897 270,077 $200,000 $100,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Budget 11
INSURANCE Schedule D 2014 Yr End Proposed % Projection 2014 Budget 2015 Budget Change INSURANCE Hazard & extended coverage $ 516,080 $ 514,900 $ 541,900 5.2% (General liability, umbrella, D&O liability, and property damage) Uninsured losses 33,000 15,000 20,000 33.3% Total to insurance (page 2) 549,080 529,900 561,900 (Does not include vehicle & workers' compensation) * Vehicle (included in vehicle expense) 34,000 30,000 35,700 19.0% * Workers' compensation (included in fringe benefits) 50,400 51,700 52,900 2.3% TOTAL $ 633,480 $ 611,600 $ 650,500 GHI uses an insurance broker to find the best insurance prices. Many factors have caused the increased insurance costs over the last couple of years including storm damage, fires, and lawsuits. * These items are included in administration and maintenance schedules. 12
ADMINISTRATION/BOARD/MEMBER EXPENSE NARRATIVE Schedule E Provides a list of expenses of the administrative staff, Board of Directors, elected and appointed committees, and membership activities and services. Payroll - Administration (Increased from 2014 budget of $723,000 to $741,100). This item reflects a 2.5% salary increase with current staff. Fringe Benefits (Increased from 2014 budget of $234,300 to $239,500). This item is based on calculations of 2015 insurance premiums as they relate to administration personnel. Insurance premiums are currently budgeted to increase by 3%. GHI requires all employees to contribute 10% of the cost of their medical/dental insurance premiums. Office Supplies/Postage (Increased from 2014 budget of $25,000 to $35,000). Items included in this category are: member communications, computer supplies, technical service supplies, postage, and in-house printing on GHI equipment. Increased communications to the membership for the upcoming Homes Improvement Program are reflected on this line item. Copier Expense (Increase from 2014 budget of $15,000 to $16,000). This item reflects our current copier contracts and increased usage levels. Telephone & Email (Increased from 2014 budget of $15,000 to $16,000). The increase is reflective of the current usage in telephone and email activity. Hiring and Training (Increased from 2014 budget of 18,625 to $20,625). This item includes advertising costs to fill vacant positions of $5,000 plus classes, seminars and workshops for maintenance and administrative personnel of $9,500. Also included are pre-employment and random drug screening totaling $1,000 as well as staff incentive awards of $5,125. Temporary and Professional Help (Decreased from the 2014 budget of $13,000 to $10,200). This amount consists of $5,200 for payroll services and $5,000 for drainage & swale engineering services. Legal (Increased from 2014 budget of $23,000 to $26,000). This item represents legal fees associated with various issues which the cooperative encounters that call for legal counsel. Audit (Increased from 2014 budget of $16,800 to $17,640). This increase reflects the maximum amount quoted in the proposal accepted from Wegner CPA s. Association Dues and Conferences (Increased from 2014 budget of $1,550 to $2,850). This item includes membership in National Cooperative Business Association (NCBA) $700, the Community Association Institute (CAI) $850 and the National Association of Housing Cooperatives (NAHC) $1,300. Staff Events (No change from 2014 budget of $5,500). This item includes quarterly events promoting staff safety, emergency awareness, and planning. This item also includes the company picnic, holiday party, and other staff events. Board/Audit/Committees (Decreased from 2014 budget of $42,925 to $32,595). Audit Committee $1,000; Communications Committee $1,300; Companion Animal $350; Marketing Committee $6,050; Member Outreach Committee $1,075; Nominations and Elections $2,000; and Woodlands $1,000; stipends for Board and Audit Committee Stipend $16,820, Board strategic planning $3,000. 13
ADMINISTRATION/BOARD/MEMBER EXPENSE NARRATIVE (cont.) Member Expenses (Decreased from 2014 budget of $27,600 to $21,100). This line items consists of the annual meeting $6,000; advertising for meetings $2,500; Communicator newsletter printing and delivery $9,100; and News Review ads $3,500. Utilities (No change from 2014 budget of $28,500). This item includes heat, electricity and water for the office buildings. Personal Property Taxes (No change from 2014 budget of $10,400). Depreciation (Increased from 2014 budget of $17,406 to $21,900). Other (Increased from 2014 budget of $3,000 to $7,900). This item includes fees to professional organizations to maintain staff designations and professional relationships as well as bank fees. Information Technology Services (Increased from 2014 budget of $34,200 to $48,680). This item includes outsourced support, maintenance and remote backup services for computer software, web hosting, and hardware, including Micromain and Jenark. 14
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ADMINISTRATION/BOARD/MEMBERSHIP EXPENSE SUMMARY Schedule E 2014 Yr End Proposed % Projection 2014 Budget 2015 Budget Change EXPENSES Payroll-Administration $ 721,000 $ 723,000 $ 741,100 2.5% Fringe benefits 228,000 234,300 241,800 3.2% Office supplies/postage 33,000 25,000 35,000 40.0% Copier expense 14,000 15,000 16,000 6.7% Telephone & email 16,000 15,000 16,000 6.7% Hiring and training 18,625 18,625 20,625 10.7% Temp & professional help 16,350 13,000 10,200-21.5% Legal 28,000 23,000 26,000 13.0% Audit 16,800 16,800 17,640 5.0% Association dues & conferences 1,550 1,550 2,850 83.9% Staff events 5,700 5,500 5,500 0.0% Board/Audit/Committees 34,600 42,925 32,595-24.1% Member expenses 24,700 27,600 21,100-23.6% Utilities 28,400 28,500 28,500 0.0% Personal property taxes 10,400 10,400 10,400 0.0% Depreciation 17,406 17,406 21,900 25.8% Other 1,000 3,000 7,900 >100% Information technology services 52,000 34,200 48,680 42.3% Total Administration $ 1,267,531 $ 1,254,806 $ 1,303,790 3.9% 16
MAINTENANCE & IMPROVEMENTS EXPENSE SUMMARY Schedule F 0% 2014 Yr End Proposed % Projection 2014 Budget 2015 Budget Change Payroll - maintenance $ 1,582,400 $ 1,586,400 $ 1,609,500 1.5% Fringe benefits 549,200 534,500 587,000 9.8% Materials 225,000 250,200 250,200 0.0% Subtotal 2,356,600 2,371,100 2,446,700 3.2% Contract work 431,700 493,450 457,850-7.2% Vehicle expense 89,000 85,000 91,000 7.1% Dumpsters 8,000 10,000 10,600 6.0% Uniforms 12,400 12,500 12,500 0.0% Sub-meter court lighting 8,300 9,000 9,000 0.0% Depreciation 39,490 39,490 42,290 7.1% Total Maintenance $ 2,945,490 $ 3,020,540 $ 3,069,940 1.6% Note: Fee-for-Service budget expense is $113,000 and is included in Maintenance - payroll ($69K), fringe benefits ($21K), materials ($3K), and contract work ($20K). Depreciation includes $3.5K for new truck. Schedule F-1 2014 Yr End Proposed % Projection 2014 Budget 2015 Budget Change FRAME HOMES Total frame expenses $ 1,826,204 $ 1,815,687 $ 1,927,523 6.2% MASONRY HOMES Total masonry expenses 1,066,267 1,150,011 1,083,634-5.8% LARGER HOMES Total larger homes expenses 53,019 54,843 58,783 7.2% Total Maintenance $ 2,945,490 $ 3,020,541 $ 3,069,940 1.6% 17
Budget Budget % 2014 2015 Change Maintenance - Contract Work (Schedule F, Line 4) Asbestos tile removal (masonry homes) $ 2,000 $ 2,000 0.0% Bathtub reglazing (40) 15,000 15,000 0.0% Fire & burglar alarm system monitoring & repairs 1,800 1,800 0.0% Fire extinguisher servicing (administration building) 750 750 0.0% Fee for service contracted work 52,000 20,000-61.5% Fence repairs around administration building - 12,000 N/A Grounding and electrical equipment upgrades, masonry homes 50,000 - -100.0% Gutter cleaning (Spring and Fall) 62,000 60,000-3.2% Janitorial services (administration building) 21,000 16,300-22.4% Landscape maintenance 43,000 43,000 0.0% Parking lot repairs (seal coating, minor repairs & striping) 25,000 25,000 0.0% Pest extermination 24,000 35,000 45.8% Power cleaning of storm mains (1E-H Ga (s/s), 58 Cr (g/s)) - 5,000 N/A Repairs of concrete porch roofs on masonry homes (1) 2,400 - -100.0% Repair cracks, masonry homes 53,000 - -100.0% Repair Admin garage floor 1,500 - -100.0% Repairs HVAC units in administration building 2,000 2,000 0.0% Repairs HVAC units at larger homes 3,000 5,000 66.7% Swale/drainage improvements, (37K Ri, 45 L&Q Ri, 3M Re, 10 So (c/a), 8 A-D Pl, 59 A-D Ri) 30,000 75,000 >100.0% Tree maintenance & fertilization ( includes cost of aborist monthly preventive maintenance) 105,000 140,000 33.3% Total $ 493,450 $ 457,850 * -7.2% * See page ii - Important changes to 2015 budget PROPOSED CONTRACTS 18
MAJOR MAINTENANCE, REPLACEMENT AND IMPROVEMENT PROGRAMS 2015 2016 2017 2018 2019 2020 Roofs for Rental Garages Roof for Single Family Home Air Condensing Units for Larger Homes Roofs for Rental Garages Roofs for Block Homes Roofs for Rental Garages Roofs for Larger Townhomes Roofs for Block Homes Roofs for Frame Homes Air Condensing Units for Larger Homes Roofs for Rental Garages Roofs for Larger Townhomes Roofs for Block Homes Roofs for Frame Homes Roofs for Block Homes (RR Roofs for Frame Homes Air Condensing Units for Larger Homes Roofs for Block Homes Roofs for Frame Homes Forecast Replacements for Homes Improvement Program 2016-2020 Baseboard and ceiling heaters for all homes Entrance Doors for all homes Windows for all homes Vinyl Siding Replacements for Frame homes Porch decks for frame homes Water heater replacement Porch roofs for masonry homes Sump pumps Underground sewer replacement Sidewalk repair Parking lot reconstruction Parking lot repairs & sealing Crawlspace inspections of GHI homes Gutter cleaning (Spring and Fall) Bathtub re-glazing Trim painting Tree maintenance Pest and animal control Walkway lighting projects Washer drain improvements Baseboard and ceiling heaters for all homes Entrance Doors for all homes Windows for all homes Vinyl Siding Replacements for Frame homes Baseboard and ceiling heaters for all homes Entrance Doors for all homes Windows for all homes Vinyl Siding Replacements for Frame homes Baseboard and ceiling heaters for all homes Entrance Doors for all homes Windows for all homes Vinyl Siding Replacements for Frame homes The following programs occur annually from 2015 through 2020 Baseboard and ceiling heaters for all homes Entrance Doors for all homes Windows for all homes Vinyl Siding Replacements for Frame homes Through 2025 Roofs for Block Homes Roofs for Frame Homes Electric wiring for Masonry and Frame Homes Water and waste piping for Masonry and Frame Homes - Program funded through the Replacement Reserve. 19
RESERVES The 2015 budget will continue to fund the reserves as set forth in the 1987 policy adopted by the Board of Directors. Schedule G illustrates the balances of the reserves, which have grown steadily during most of the past decade. Suggested Replacement Reserve expenditures detailed below are based on the August 2008 Reserve study categories as adjusted to date. In 1987, the Board adopted the goal of having the total Contingency Reserve equal to 10% of the operating budget. In 1993 the Board voted to maintain the Contingency Reserve balance of the 29 larger homes at 35% of their portion of the operating budget. All three classes are expected to be 100% funded by 2014 surpluses. Suggested replacement reserve expenditures: Proposed % 1) In House 2014 Budget 2015 Budget Change a) Baseboard heaters (60), 2014-(60) $ 7,015 $ 7,945 13.3% b) Ceiling heaters (126), 2014-(126) 11,310 11,550 2.1% c) Entrance doors - frame units 2014-(5) 2,675 - -100.0% d) Entrance doors - masonry units 2014-(3) 1,950 - -100.0% e) Frame porch decks (51), 2014-(52) 12,640 13,765 8.9% f) Water heaters replacements (229), 2014-(250) 118,750 110,780-6.7% g) Masonry porch roofs (12), 2014-(13) 12,500 10,855-13.2% h) Sump pumps (21), 2014-(20) 4,175 5,885 41.0% Subtotal 171,015 160,780-6.0% 2) Contracts a) Underground sewer replacement (914 ft.), 2014-(914 ft.) 160,000 165,890 3.7% b) Parking lot reconstruction (3 Ridge, 4 Ridge, 7 Crescent) 30,000 41,360 37.9% c) Purchase one van 30,000 - -100.0% d) Sidewalk replacement 50,000 50,000 0.0% e) Replace rental garage roofs (12) - 14,980 N/A f) Replace one roof for large single family home (8 Wo) 14,330 14,330 0.0% g) Replace central AC (7) - larger town homes 24,500 - -100.0% Subtotal 308,830 286,560-7.2% Total suggested replacement reserve expenditures $ 479,845 $ 447,340-6.8% Suggested addition maintenance reserve expenditures: Proposed 2014 Budget 2015 Budget 1) In House $ 25,000 $ 22,600-9.6% 2) Contracts (roof replacements) 10,000 10,000 0.0% See Schedule G - column (7) Total suggested addition maintenance expenditures $ 35,000 $ 32,600-6.9% 20
ANALYSIS OF REPLACEMENT RESERVES Schedule G (1) (2) (3) (4) (5) (6) (7) (8) Beginning 2014 2014 Allocations Projected 2015 2015 Projected Balance Budgeted Projected From BOD Balance Budgeted Budgeted Balance Frame Homes 12/31/2013 Collections Expenditures 2014 12/31/2014 Collections Expenditures 12/31/2015 Contingency $ 498,900 $ - $ 498,900 $ 498,900 Interest $ 200,575 $ 218,098 Replacement 8,720,673 756,554 $ (267,594) 72,306 9,482,514 810,270 $ (266,967) 10,243,915 9,219,573 957,129 (267,594) 72,306 9,981,414 1,028,368 (266,967) 10,742,815 Masonry Homes Contingency 329,795 7,617 337,412 337,412 Interest 42,407 56,357 Replacement 1,843,765 629,089 (114,656) 49,710 2,450,315 663,060 (158,692) 3,011,040 2,173,560 671,496 (114,656) 57,327 2,787,727 719,417 (158,692) 3,348,452 Larger Homes Contingency 73,477 - - 73,477 73,477 Interest 6,599 5,772 Replacement 286,917 25,434 (71,142) 3,167 250,975 26,502 (21,681) 261,568 360,394 32,033 (71,142) 3,167 324,452 32,274 (21,681) 335,045 Summary Contingency 902,172 - - 7,617 909,789 - - 909,789 Interest 249,581 280,227 280,227 Replacement 10,851,355 1,411,077 (453,392) 125,183 12,183,804 1,499,832 (447,340) 13,236,296 $ 11,753,527 $ 1,660,658 $ (453,392) $ 132,800 $ 13,093,593 $ 1,780,059 $ (447,340) $ 14,426,312 Additions Interest $ 22,602 $ 25,073 Replacement $ 982,716 123,620 $ (38,790) $ 1,090,148 128,565 $ (32,600) $ 1,211,186 $ 982,716 $ 146,222 $ (38,790) $ - $ 1,090,148 $ 153,638 $ (32,600) $ 1,211,186 21