2019 Budget Overview +2,500 BY 2040 - Hot Springs...
Transcript of 2019 Budget Overview +2,500 BY 2040 - Hot Springs...
2019 Budget Overview
Lesley Nal ley, CEO
Liz Mathis, Control ler
OUR
LONG
TERM
VISION:
+2,500
BY 2040
WHY INCREMENTAL
GROWTH?
*Source: CMP Section 6, Pages 316-346
The CMP notes a funding gap of $5M to $7M
per year*
2,500 additional improved assessments, a
suspension strategy, new revenue streams
and predictable annual inflationary increases
close that gap
The 2019 budget addresses $6M of the
$45M in O&M*
What’s the
Status Quo & 2%=
$5mil/yr
@ 10 years
Incremental Growth
& 5% = $10mil/yr @
10 years
The choice is ours.
The
CMP
IS:
A LONG
TERM
ROADMAP
“The Comprehensive Master Plan is intended
to serve as a guidebook for both growth and
preservation of the Village over the next few
decades” – Dave Roberts, VP Planning, Crafton
Tull, CMP Section 1, Page 9
Strategies within this plan are initially
presented on a long-term scale, with
prioritization following in later sections. Be
aware that a small percentage of the total
vision is achievable within a 20-year horizon. –
CMP Section 2 Village Structure
Growth of 2,500 units over 20 years is
ambitious, yet it represents just 10% of unbuilt
capacity.– CMP Section 2 Village Structure
A build it and they will come plan – we’ve
already been through that phase and have
9 golf courses, 12 lakes, 500 miles of
paved roads and $45mil +/- in deferred
maintenance to prove it.
A mass marketing referendum – we’ve
already been through that phase with
NRPI, who operated in several CCI
communities, leaving HSV with millions of
dollars in bad debt.
The POA attempting to be a developer
THE 2019 CMP IMPLEMENTATION
PLAN IS NOT:
CMP SECTION 5, PAGE 291
WE INVITED CCI TO PARTICIPATE AND SOUGHT
ADVICE FROM BELLA VISTA & CHEROKEE VILLAGE
JUNE 2017 IN HOT SPRINGS VILLAGE
CCI DECLINED TO OFFER A PLAN
PROPERTY OWNERS INFORMED
THE CMP’S CONTENT October 23, 2017 kickoff meeting and interactive
exercises at Coronado Center
November 30 th, 2017 charrette opening meeting,
hands on activities
Open studio hours between November 28 th and
December 6 th
December 6 th, 2017 charrette closing meeting –
compilation of outcomes
March 2018 CMP Presentation
April 2018 CMP Adopted
6 months of interaction between property
owners and planners
Over 4,000 responses between three surveys
Two mailed white papers
Webpage on explorethevillage.com with Q&A’s,
presentations, etc.
CMP Steering Committee, 9 subcommittees,
with minutes posted to the web page
THROUGH AN INTERACTIVE AND
TRANSPARENT PROCESS
THE PLAN HAS ALREADY PAID
FOR ITSELF, SAVING $600K!
Empty
Nesters &
Retirees
61%
Traditional
& Non-
traditional
families
28%
Younger
Singles &
Couples
11%
OUR TARGET MARKET
WAS DEFINED
Source: CMP Section 4, page 166
570
482
213 185 184
# of Mentions in the CMP
THE
RESULTING
PLAN WAS
MULTI
FACETED
WITH
MAINTENANCE
MENTIONED
3 X MORE
THAN OTHER
TOPICS
A THREE PRONG APPROACH
TO BUDGETING EMERGED
Service Gaps
Growth
Maintenance
MAINTENANCE PRIORITIES
JUNE 20TH BOARD MEETING
Visit http://explorethevillage.com/wp-content/uploads/2017/11/CMP-Phase-I-
Implementation.pdf for full presentation
SERVICE GAP PRIORITIES
JUNE 20TH BOARD MEETING
Visit http://explorethevillage.com/wp-content/uploads/2017/11/CMP-Phase-I-
Implementation.pdf for full presentation
INNOVATION PRIORITIES
JUNE 20TH BOARD MEETING
Visit http://explorethevillage.com/wp-content/uploads/2017/11/CMP-Phase-I-
Implementation.pdf for full presentation
“MAINTAINING CURRENT VALUE”
2019 STRATEGIES:
1. Capital spending on infrastructure exceeds
depreciation expense
2. Members’ equity remains stable, at a minimum
3. Operating results yield cash sufficient to bring
capital reserve balances to 3/5th of the 5 -year
reserve plan (i.e. the plan began in 2017 and
forecasted by 2021, total util ity reserves of $1.7mil
and total non-util ity reserves of $2.3mil)
4. Repair 25% of culverts identified in the three-year
culvert replacement plan (TBD by Dec) in each of
the next three years.
5. By June, present Balboa Golf Course & Clubhouse
project proposal to the Board.
6. By February, complete Lake Balboa dredging plan.
“ADDRESSING SERVICE GAPS”
2019 STRATEGIES:
1. By December, place wifi in Coronado Center and
Ponce/Woodlands complex.
2. Implement a mobile recycling program for at least
4 events in 2019.
3. By June, align staffing structure to support CMP
pillars, while keeping total compensation expense
below 2018 levels, plus budgeted merit increase.
4. By August and in collaboration with the HSV
Chamber of Commerce, present a path-forward
report to the Board for lodging and east -end
grocery solutions.
5. By July, present a lot suspension strategy and
timeline to the Board.
“CREATING NEW VALUE”
2019 STRATEGIES:
1. By December, sell 30 POA owned lots.
2. By December, increase number of improved
properties by 60.
3. By June, present first pocket neighborhood
proforma and sales launch plan to the Board.
4. By August, hold a deliberative engagement
session on the CMPs Coronado Center ideas.
5. By September, hold a deliberative engagement
session on the CMPs town center ideas.
97% OF SPENDING IS ON
MAINTENANCE & SERVICE GAPS
BUDGET ASSUMPTIONS
IRC SECTION 528 EDUCATION
JEFF CRONE, EGP PLLC
CONSOLIDATED BUDGET
OVERVIEW
New revenue streams for discovery
packages and housing starts
$435K for Lake Balboa Dredging
Additional $685k for road
maintenance expense
FTEs are flat
Total compensation expense is less
than 3% merit budget
No Golf fee increases
No Water/Waste Water Increases
Investor and developer recruitment
2
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RESERVE OVERVIEW