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Transcript of WillowWood Homeowners’ Association, Inc. Financial Report Strategic Planning & 2015 Budget...
WillowWood Homeowners’ Association, Inc.
Financial Report
Strategic Planning
&
2015 Budget Presentation
September 16, 2014Presented By: Treasurer
And Finance Committee
Presentation Outline
• Balance Sheet• Historical Perspective of Assessments• Current and Future Plans
– Fundamental HOA Needs: Current and Long Range– Capital, Repairs, Enhancements, Contingency– Strategies
• 2015 Budget– Highlights and Details
• Recap – Conclusions and Recommendation
2
Treasurer’s Financial ReportBalance Sheet
3
Current Balance Sheet
4
WWHOABalance Sheet Standard 09/16/14As of September 16, 2014
Sep 16, '14ASSETS
Current AssetsChecking/Savings
1001 — FCB Savings Account 21,640.321000 — FCB Checking 18,925.88
Total Checking/Savings 40,566.20Accounts Receivable
1200 — Accounts Receivable (67.50)Total Accounts Receivable (67.50)
Total Current Assets 40,498.70TOTAL ASSETS 40,498.70LIABILITIES & EQUITY
Equity3000 — Opening Balance Equity 47,068.22Net Income (6,569.52)
Total Equity 40,498.70TOTAL LIABILITIES & EQUITY 40,498.70
Finance Committee
A Five-Year Strategic Plan:
Common Area Master Plan“The CAMP”
5
Finance Committee Report
September 16, 2014
WWHOA Annual Meeting
Finance Committee Report—Sep 2014
1. August cumulative expenditures total $37,131• 73% of yearly Base Revenue
2. The 2014 Year-end forecast indicates a near-neutral position
• Emergency repairs required totaled $7,742• Main Park Well failed – was replaced• Esplanade irrigation system required extensive repairs
– New Heads, Repaired Lines, Replaced Timer, Replaced valves• Certain CAMP Items deferred to next year
– Sidewalk Repairs– Main Park Irrigation head replacement– Esplanade Lighting Upgrade
$52,658With Recurring Plus Non-
Recurring from August
$42,097August YTD Expenses
2014 Expenses Versus Base Revenue
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Cu
mu
lati
ve D
oll
ars
Actual Expenses
Normalized Spend Line
2014 Revenue
$54,405Total Planned Base Revenue
$37,131Aug YTD Expenses
$56,230Total Planed Expenses with Modified CAMP$54,632
Aug YTD Total Revenue
Major Changes in 2014
1. Don Asher & Associates dropped as Management Company
2. WWHOA Established Self-Management• Finance Committee – track and forecast expenditures• Treasurer – new bank account, bill processing, assessment collection• Architectural Review Board – restart inspections, standardize violations• Homeowner Interface – active communications, new website• Established Public Storage Facility for WWHOA Materials
3. Competitively Selected New Landscape Contractor
4. Competitively Selected Legal Representation
5. Successfully Closed Orange County Pond Planting Permit• Coordination with Orange County Pond Revitalization Program• Termination of Pond Maintenance Contract
6. Obtained Proper Insurance Coverage
Major Common Area Projects
1. Landscape Contract negotiated with 11 additional cuttings
• Implementation effective 1 October 2014• $808 savings from proposed price
2. Neighborhood Pride Grant Awarded• WWHOA matching funds of $625• Esplanade and Flagpole Area received upgraded Plantings• More than 45 community volunteers totaled 640 hours
3. Pressure Washed Sidewalks & Tennis Courts• Installed new Tennis Courts Nets and Basketball Net
4. Stabilized Washed-out Tennis Court Drainage Control System at SW Corner and Western Culverts
5. Performed extensive Tree Pruning of Esplanade Area6. Mulched the Picnic Area, new plantings, flagpole area,
benches, tables, selective trees (with no grass)
Major Common Area Projects
7. Orange County Pond Revitalization• Part of the Lake Butler Chain of Lakes Nutrient Project• No Cost to WWHOA• Pond water quality was measured as excellent• Algic growth occurred this year throughout Lake Butler chain• Extensive cypress, shrub & grass plantings provided around the
pond• 23 Storm Drains upgraded with leaf & debris filters• Runoff to Wetlands area cleared of shrubs,
– Almost ½ Acre cleared west of the large concrete weir– Planting 60-80 cypress, magnolia, and other trees– Planting grasses along edge of runoff from pond
2015 Budget
12September 16, 2014
Historical Considerations
• HOA Purpose: Promote the recreation, health, safety, and welfare of the residents (per By Laws)—a positive effect on property values
• 2013 and 2014 Board of Directors and Committees established a solid framework for long term sustainment– Requires additional incremental assessment increases to build up proper
deferred maintenance account (reserves)• Common Area Master Plan (CAMP) established
– Defines projects (by priority) and time-phased funding requirements– Five-year rolling wave for future budget planning– Flexible tool for current and future Boards
• Assessments increased, but still remain below level of inflation• Grants have and will continue to help offset income limits
13
Results: Common Area Improvements!
Why a Comprehensive Plan?
• Common property amenities are key to long-standing neighborhood quality, desirability and property values
• Picturesque Hidden Pond Park and Nature Park are unique to WillowWood
• Common areas showing age after 30 years—progress made in 2014 to address key issues
• Infrastructure deterioration causing maintenance issues and safety concerns
Continued Funding of extensive refurbishment and upgrades are required to
maintain quality of WillowWood
14September 16, 2014
Strategic Planning Process
• A Roadmap with a 5 year focus– Establish mission, vision and goals– Develop integrated plans to achieve goals
• Common Area Master Plan (CAMP)—integrates specific projects and programs to achieve overall Association objectives– Infrastructure (Irrigation, Sidewalks, Lighting)– Landscape– Pond– Capital (Tennis Court, Benches, Entry…)
Planning supports Budget development
15September 16, 2014
CAMP Details 1
September 16, 2014 16
Average Ranking Deferred Maintenance Cost Comments & Notes 2014 2015 2016 2017 2018 2019
New
Repair SW Drainage Control at Tennis Courts & Stabilize the Water culvert to the West
$3,500
The SW corner of the tennis court drainage control has become washed out, causing some collapse and damage to the court surface. Additionally, the culvert structure is inadequate to control the water flow and the base has become washed out and in danger o
$3,400 Quoted
NewRaise the height of the Tennis Court Drainage culvert
$1,200
Raise the height of the Tennis Court Drainage culvert to adequately hold and divert the storm level water into the drainage pipe with minimal overflow
$1,200 Estimated
1.0 Park Sidewalk Repair $4,625
Numerous broken sections from Beech to Tennis Courts, then around main park: Estimated 9/03 as 37each (2x2x0.25) @ $125 => NOT eligible for Grant
Defer $4,625 Estimated
New Replace Tennis Court Entry Platform $2,500 Entire slab (10 x 20?) is cracked - need quote for
Excavation/ Replacement Defer Defer $2,500 Estimated
1.3Pressure Wash Entrance Sidewalks (1300 feet)
$800 Actual by Rich Tutolo Pressure Washing - Completed Done
NewReplace Vehicle Barrier Posts @ NE Corner of Tennis Court
$1,050 Replace with Concrete 4 x 4 posts, 6 foot long (4 feet above ground) - Estimate 8 @ $100+ $250 Install
Defer Defer $1,050 Estimated
1.4
Pressure Wash Park Sidewalks, HM Sidewalks & Tennis Courts
$2,200 Commercial Proposal 2012 @5% escalation per year Done $2,500 $2,756
CAMP Details 2
September 16, 2014 17
Average Ranking Deferred Maintenance Cost Comments & Notes 2014 2015 2016 2017 2018 2019
1.6Upgrade Esplanade & Flagpole Area Lighting to LED
$3,450 Estimated Upgrade: 25 @ $80; 3 New XFR/Timer @ $300; Cable 3 @ $100 and Labor @450 CS Verbal $2,810 Esplanade)
$3,450
1.7 Replace all Main Park Irrigation Heads $8,250
Estimated 165 heads @ $25+ $25 labor per head => must map head locations by Zones - Defer to out years as needed only
Defer $1,000
$1,000
$1,000
$1,000
$1,000
2.0 Pressure Wash Tennis Courts $450 Actual by Rich Tutolo Pressure Washing -
Completed Done
New Replace Tennis Court Nets $461 Installation Price by Varsity Courts -
Completed Done
New Resurface Tennis Courts $8,000 Quoted by Varsity Courts August 2014
$8,000
2.0Trim, Shape & Clean Main Park Trees (annual)
$7,000 Forrest Stump Tree Service for 5 days work crew with lift - Annual Trimming - Defer to 2015 @ 5% Escalation
Done $7,350
$7,718
$8,103
$8,509
$8,934
2.3 Install Shut-off Timer on Tennis Court Power $400 Requested to limit usage to 11:00 PM park
usage curfew - Estimated $400
2.4 Weatherproof Waste Barrels $225 Requested by HLS Landscape due to mess
in rain - Completed Done
New Re-seed Main Park with Bahia $5,500
HD Pricing: Scotts Turf Builder, Sun & Shade, WaterSmart Plus @ $30 @ 2,800 SF coverage => 15 bags per acre @ $450 plus $100 installation => 10 acres => Investigate if Bahai Seed will take on sand
$5,500
CAMP Details 3 & Totals
September 16, 2014 18
Deferred Maintenance Cost Comments & Notes 2014 2015 2016 2017 2018 2019
2.6 Park Tables and Bench Platforms $4,100
4 Inch thick Concrete Platforms: Benches @ 10' Wide x 7' Deep; Price = 8 Each @ $250; Tables @ 12' Wide x 10' Deep, Price = 7 Each @ $300
$4,100
2.7 Dog Waste Stations $510 Purchase (Amazon) 3 @ $70; Estimated installation 3 @ $100 each
$510
2.7 Gazebo/Pergola Replacement $6,500 Need Plan & Proposal - Defer until 2017 Potential Grant? $6,500
2.9 Mulched play/meeting Area with Landscape Timbers $500
Estimate log perimeter of 300 linear feet @ $150 plus Labor @ $350 Plus Connectors
$500
2.9 Additional Park Tables and Benches $6,785
Add QTY 5 BarcoBoard benches @ $490 and QTY 3 new/replacement BarcoBoard tables @ $845, plus $1,000 shipping; Online pricing, Plus installation (anchorage) @ $100 each
$6,785
2.9 "Memory Garden", West Side of Gazebo Platform $1,075
Estimated: Bench @ $250; Shrubs 25 @ $15; Wall Pavers @ $300; Soil @ $150; HOA Volunteer Labor Grant Contribution
$1,075
2.9Additional Irrigation Line & Heads to support Garden, West Side of gazebo platform
$350 Estimated: Add 200' extension from Bubblers @$200 and 3 Heads @ 150
$350
3.1 Sitting Wall Area + Sidewalk Extension $7,000 Estimated $4500 hardscape +
$2500 Sidewalk $7,000
Total Deferred
Maintenance $71,731 $107,815 $4,600 $13,375 $34,828 $17,603 $27,475 $9,934
CAMP Notes
September 16, 2014 19
NOTE 1: Possibly Part of 2016 Grant Scope of Work
NOTE 2: Possibly Part of 2018 Grant Scope of Work
Planned Expenses:
Well pump: Esplanade in 3 yrs @ $3,600; Park in 7 years
New MTC Item added => Re-seeding Main Park
Tennis Court resurfacing - Need estimated timeframe
Assumptions
2015 => 15% Assessment Increase
5% escalation on yearly recurring expenses (REC & NR)
No additional Tree Work in 2014Split Irrigation Head Replacements 2015/2016 Only as Needed
ConclusionDeferred Maintenance Items staged by priority and affordability2015 Assessment 15% increase adds $8K per year
Planning Considerations
• Draft 5-Year Plan used to support 2015 Budget recommendations– Critical near term maintenance needs funded
• Current revenues do not support all common area refurbishments or upgrades—must time phase
• Master planning to continue as key tool for Board decisions– County Grants have leveraged HOA funds—more coming
• 5-Year Plan funding will require additional annual assessment increases– Securing Grants to fund projects offset costs to HOA– Special Assessments may be required—Homeowners’ approval
needed. None planned in current CAMP
20September 16, 2014
2015 Budget Assumptions
• Expenses projected from ten-year history and 2014 actual outlays
• Achieve Year-End Neutral Position• Manage to Base Revenues• Revert to Self-Managed HOA—Management
Company contract terminated effective April 2014• Price All Support (No Volunteer Effort) in case
volunteers not available
Requires $69 Annual Assessment Increase to Achieve Operating Account Balance
21September 16, 2014
2015 Budget Focal Points
Continue Implementation of CAMP
22
• Landscape Maintenance Plan– Modified (increased) servicing schedule to keep up with growth
• Landscape Plan– Continue maintenance of Plant-a-Palooza plantings (County Grant)– Continue Irrigation repairs/replacement/extensions to dry areas– Monitor well pumps for performance (replaced 5HP main pump in 2014)
• Pond Plan– Orange County to maintain newly planted shoreline. – HOA has no financial obligation for coming year (we just enjoy!)
• Safety– Tree pruning started. Sidewalk cleaning done, repairs in 2015 budget.
• Self-Managed HOA returns ~$6,000 to support operations and CAMP
September 16, 2014
Budget Summary
23
Cost Category2014
Projected Year End
2015 Budget Change
Grounds Maintenance $ 39,506 $ 35,034 $ (4,472)
Management & Admin $ 10,535 $ 12,595 $ 2,060
Utilities $ 6,621 $ 6,500 $ (121)
Deferred Maintenance $ - $ 7,800 $ 7,800
Total Expenses $ 56,662 $ 61,929 $ 5,267
Total Income $56,260 $61,944 $ 5,684
September 16, 2014
Income
September 16, 2014 24
2013
ACTUAL YEAR-END
2014 APPROVED
BUDGET With <15% Increase
2014 FORECAST YEAR-END
2015 PROPOSED
BUDGET With <15% Increase
COMMENTS
Individual Assessment $405 $465 $534 Increase Assessment $69 per household
INCOME SOURCES
Annual Assessment $46,575 $54,405 $54,405 $62,478
Assessmenrts - Other $1,043
Interest/Late Fee $305 $264
Initiation Fees $1,500 $1,000
Tennis Court-Keys $45 $-
Interest Income $66 $14
Misc Income $61
Grant Carry-Over $1,600
Un-Paid Assessements $- $(500) $(465) $(534)Risk Managament for two semi-annual PMTS
TOTAL INCOME $50,152 $53,905 $56,260 $61,944
Expense: Grounds Maintenance
September 16, 2014 25
2013 ACTUAL YEAR-END
2014 APPROVED
BUDGET With <15% Increase
2014 FORECAST YEAR-END
2015 PROPOSED
BUDGET With <15% Increase
COMMENTS
Landscaping Contract $18,982 $17,428 $15,905 $20,659
Negotiated based on 2014- Includes 2014 Full Service scope increasing cuttings for Ot, Nov, Jan, Feb (2x Month) for 38 Total Cuttings, plus hard edging all beds, front & back - pond perimeter NOT edged. New Contract Period of Performance Oc-Sep
Landscaping Contract - Additional Scope $2,150 $- $- Optional Services Deleted for 2015 Contract
Landscaping Contract - Nature Park $1,645 $- $- Covered within Landscape Servces Contract (N/C)
Landscaping - Other, Tree Trimming $4,700 $7,105 $7,350 Trim & Lift Park Oaks = 11 @ $250;Pines (dead branches) = 10 @ $ 75; Esplanade (Dead Branches) = 12 @ $100
Landscaping - Other, Storm Damage $2,123 $1,000 $500 $500 Risk Management - Projected Storm Damage
Pressure Washing of Sidewalks $2,200 $365 $- Park Sidewalks Done in 2014 =>Defer to 2016
Sidewalk Repairs $375 $4,625 CAMP => Not eligible for Matching Grant (8/29 update)
Irrigation Repairs $1,049 $1,700 $8,286 $1,000 CAMP => Forecast $1,200 overhaul and 20 replacement heads @ $25 each => As needed only
Signs / Wall / Trash Can $3,809 $290 $33 $- NE Corner Vehicle Barrier Posts - Defer to 2016
Pond Maintenance $3,116 $2,100 $525 $- Plantings under Orange County Maintenance for 2015
Lighting / Electrical Repairs $- $300 $850 $500 Normal Repairs
Tennis Court Repairs/ Stabilization of Drainage $2,458 $950 $5,312 $400 CAMP => Installation of Shutoff Timer
Grant Matching Funds $- $- $625 $- If 2015 major matching grant is available, the matching funds will be transferred from the Deferred Maintenance Pool
Security $1,800 $- $- $-
TOTAL GROUNDS MAINTENANCE $33,337 $34,838 $39,506 $35,034
Expenses: Management 1
September 16, 2014 26
2013
ACTUAL YEAR-END
2014 APPROVED
BUDGET With <15% Increase
2014 FORECAST YEAR-END
2015 PROPOSED
BUDGET With <15% Increase
COMMENTS
Management Fee - DA&A $6,312 $6,312 $2,692 DA&A Contract buyout in April 2014 => No renewal
Postage DA&A $330 $500 $72 DA&A Contract buyout in April 2014 => No renewal
Printing & Copying - DA&A $1,048 $700 $(130) DA&A Contract buyout in April 2014 => No renewal
Office Supplies - DA&A $105 $250 $2 DA&A Contract buyout in April 2014 => No renewal
Storage - DA&A $120 $120 $87 DA&A Contract buyout in April 2014 => No renewal
Office Supplies - HOA $434 $150 $660 $650 Estimated based on 2014/ need QuickBooks Software Multiple License in 2014
Office Supplies - Bank Coupons $- $329 $375 2013 coupons paid in 2014 due to DA&A late processing/ Pay 2014 in January 2015
Postage & Copies (HOA) $- $263 $350 Estimated
PO Box Rental $80 $78 $80 Actual 2014
Website $358 $520 $140 $900 Includes new website service @ $62/month, plus start-up
Newsletters $224 $- $- $- Electronic Newsletters
Social Committee $221 $- $247 $500 Budgeted
Storage Unit $479 $- $489 $780 HOA Public Storage Unit @ $65/month
Meeting Room $200 $740 $87 $100 2015 includes no cost monthly + $100 Annual MTG
Misc. Expense $100 $- $350 Estimated Quickbooks software
Expenses: Management 2
September 16, 2014 27
2013
ACTUAL YEAR-END
2014 APPROVED
BUDGET With <15% Increase
2014 FORECAST YEAR-END
2015 PROPOSED
BUDGET With <15% Increase
COMMENTS
Corporate Annual Report $61 $65 $65 $65 Estimated based on 2013
Taxes, Registration & Fees $9 $120 $61 $120 Estimated based on 2013
Legal Expense $1,100 $800 $2,424 $5,700
2014 August Actuals @$2,424. Defer $1,200 estimated for Planning Criteria review; 2015 C&R review estimated @15 hours
Insurance - Liability (HIG) $1,485 $1,430 $2,919 $3,000 2014 Actual
Insurance - Liability (Bouchard) $48 $- Discountinued this carrier
Insurance - Crime (Board Bond) $275 $- $275 Required by statute to carry Bond on the directors - HIG Quote 10/16
Insurance - Worker's Comp (Volunteers)
$- $- $-
Conflicting information for volunteer efforts - Never had before - HIG Quote 10/16 @ $700
Insurance - Property Damage $- $- $- 2014 Proposal @ $2,000. (Self-Insured for 2014, continue in 2015)
TOTAL MGMNT AND ADMIN $12,487 $12,162 $10,535 $12,595
Expenses: Utilities & Totals
September 16, 2014 28
2013 ACTUAL
YEAR-END
2014 APPROVED
BUDGET With <15% Increase
2014 FORECAST YEAR-END
2015 PROPOSED
BUDGET With <15% Increase
COMMENTS
UTILITIES
Electricity $5,629 $5,700 $6,621 $6,500 Estimated based on 2014 - no escalation
TOTAL UTILITIES $5,629 $5,700 $6,621 $6,500
TOTAL DEFERRED MAINTENANCE POOL $- $- $- $7,800 Deferred Maintenance Pool => Reserved for maximum amount of 2015 Matching Grant
TOTAL EXPENSES $51,452 $52,700 $56,662
$61,929
NET PROFIT/LOSS ON BASE REVENUE $(1,301) $1,205 $(2,722) $15
YEAR-END BALANCE (TOTAL REVENUE) $(1,301) $1,205 $(402) $15
PRIOR YEAR CARRY-FORWARD AMOUNT $4,197 $2,896 $2,495 OPERATING ACCOUNT YEAR-END
BALANCE $2,896 $2,495 $2,510
Conclusions & Recommendations
• 30 Years Old – a mature, sought-after neighborhood• Finances stabilized through team effort (fully understood finance
position and go-forward path)• Financial Management processes in place
– Key areas of need identified– Initial short and long term strategies outlined
• 2015 Budget continues adjustments to support the next 30 years• 2015 expense projections require additional assessment of 14.9%• Common Area Master Planning process implemented to ensure
Common Area quality and value for all WillowWood homeowners
2015 Budget Supports Continuing CAMP Strategy
29September 16, 2014