BUDGET RATIFICATION MEETING

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Twin Lake HOA is turning 50 this year

BUDGET RATIFICATION MEETING

AGENDA 1. Call Special Meeting to order 2. Introductions 3. Declaration of Posting/Delivery 4. Parliamentary Authority 5. Update to Mid-January "Message from President" email. 6. Presentation of the 2015-2016 Budget 7. Open Forum - protocol handout 8. Budget Ratification 9. Adjournment

BUDGET RATIFICATION MEETING

In the January 2015 “Message from the President” I wrote:

•Here are the biggest budget challenges

• Lake Management

• Reserve Fund

• Legal fees

I have a slide on each one

BUDGET RATIFICATION MEETING

Lake Management•Should have written “….and Repair of Lorene”

•Toxic Algae – Safety issue (Handout available)

•Hired an Aquatic Control Consultant to manage our lakes.

•Public Meeting last month• Waiting Dept of Ecology decision on permit• If approved – experiment starts in May, approximately

$7000.00

• If not approved or if it doesn’t work as planned, Algaecide treatments at $2400 each

•Treatment monies this year come from Reserve Fund, operating account next year.

•Administrative & consultant expenses come from operating account

BUDGET RATIFICATION MEETING

Reserve Fund

•Study determined we were 65% funded

•Recommended to be 70-100%

•Added $30,000 to fund from operating account

• Money obtained from collection process

•No additional funding this year – 98%

• According to this years study, about $24,000 will be

needed next FY

BUDGET RATIFICATION MEETING

Legal Fees

•Budgeted $30,000 last fiscal year

•Fiscal Year expenses to date are about $36,500

•Where the money went:

43%

32%

12%

10%4%

Past Due Assessments & CC&R fines Lake Lorene Litigation CC&R Fines Only

General Matters Past Due Assessments

BUDGET RATIFICATION MEETING

What didn’t go well this past year

• Staff hire

• Loss of Treasurer and Bookkeeper

• Legal costs

• Lake Lorene Conditions

BUDGET RATIFICATION MEETING

• Procuring compliance in assessments and esthetics via ‘opportunities to be heard’ and legal action.. • In August last year, we had 85 delinquent

homeowners owing over $500 each. Total amount of past due was $123,754

• We now have 73 (62 original) owing $74,342.25• 13 have been sent to Small Claims Court• 22 on payment plans• 23 current liens

• Decreasing Banking Costs – HOA experienced banker

• Cheaper Maintenance Company

• Lowering Communication Costs

What went well this past year

BUDGET RATIFICATION MEETING

Fiscal Year 2015-2016

• Continue to pursue collections

• Capital Improvement Fund

• Continue cost cutting

• Part time esthetics employee

• Review copying and mailing expenses

• Investigate Professional Management

BUDGET RATIFICATION MEETING Budget Actuals Budget

INCOME 4/14 - 3/15 4/14 - 12/14 4/15 - 3/16

Membership dues 472,902$ 357,721$ 472,902

Rules & regulation fines 15,000 234,950 15,000

11,000 32,327 11,000

Late Fees 10,000 15,900 10,000

Transfer Fees 10,000 10,200 10,000

Interest income 200 109 110

Bad Debt (26,000) (30,000) (26,000)

TOTAL INCOME 493,102 621,207 493,012

GENERAL & ADMINISTRATIVE EXPENSE

Audit Fees 5,000 3,750 6,000

Office rents & common areas 9,500 7,538 11,000

Legal, Property value protection & operational 30,000 36,710 40,000

Bank fees & lock box rental 7,000 4,693 1,500

Postage & Shipping 12,000 9,033 10,000

Business & liability insurance 6,600 4,276 7,000

Printing & reproduction 12,000 11,166 20,000

Office supplies & expense 5,500 2,997 4,500

Training & seminars 1,000 70 1,500

Computer Software Support/Technology 7,000 4,502 8,000

Dues & subscriptions 750 - 750

Depreciation 7,000 4,434 12,000

Community Relations 7,500 5,889 7,475

Public Relations 1,500

Miscellaneous expense 1,500 1,298 1,500

Annual Meeting 2,000 842 2,000

Payroll processing / Bookkeeping Fees 4,000 3,135 2,400

Office personnel 72,150 58,142 60,000

Employee benefits 2,400 (120) 4,300

Payroll taxes & license 8,000 8,787 4,950

TOTAL GENERAL & ADMINISTRATIVE EXPENSE 200,900 167,142 206,375

Reimbursable Collection costs

BUDGET RATIFICATION MEETING

COMMON AREA UTILITIES EXPENSE

Street lighting & other small utilities 45,000 33,668 45,000

Telephone & communications 2,800 1,762 2,000

TOTAL UTILITIES EXPENSE 47,800 35,431 47,000

COMMON AREA MAINTENANCE

Grounds maintenance contract 78,900 52,779 55,000

Esthetics expense 10,000 4,090 1,500

Common Grounds 25,000 5,997 16,000

Parks 10,000

Lakes maintenance 8,000 6,690 6,800

Capital Improvement 26,000

TOTAL COMMON AREA MAINTENANCE EXPENSE 121,900 69,556 115,300

COMMUNITY SAFETY

Security personnel 85,000 62,936 88,976

Employee benefits 4,600 1,800 7,041

Payroll taxes & license 7,500 3,020 8,008

Vehice operating expense 7,000 3,444 7,500

Uniforms Security 2,500 694 1,500

Vehicle insurance 1,500 969 1,200

Telephone Security 2,000 1,304 2,400

Vehicle depreciation 5,000 3,750 5,000

Security other 1,000 544 1,200

TOTAL COMMUNITY SAFETY 116,100 78,460 122,825

TOTAL EXPENSE 486,700 350,588 491,500

EXCESS OF REVENUES OVER EXPENSES 6,402$ 270,619$ 1,512

BUDGET RATIFICATION MEETING

CURRENT ASSETS 2015 2014Cash and cash equivalents 186,982 163,712$ Member assessments receivable, net 77,004 74,435 Prepaid insurance 2,724 1,041

TOTAL CURRENT ASSETS 266,710 239,188

PROPERTY AND EQUIPMENT

Office furniture and equipment 21,789 16,504 Treasure Island improvements 107,586 101,946 Lake Ponce De Leon improvements 36,521 36,521 Land & common area improvements 120,436 120,436 Vehicles 24,995 24,995

311,327 300,402 Less accumulated depreciation (212,391) (204,207)

PROPERTY AND EQUIPMENT - NET 98,936 96,196

TOTAL ASSETS 365,646 335,383$

CURRENT LIABILITIESAccounts payable 18,004 32,284$ Accrued wages and payroll taxes 782 3,244 Unearned member dues 16,748 15,331

TOTAL CURRENT LIABILITIES 35,534 50,859

MEMBERS EQUITY 330,112 284,924

TOTAL LIABILITIES AND MEMBER'S EQUITY 365,646 335,783$

TWIN LAKES HOMEOWNER'S ASSOCIATIONBALANCE SHEET

DECEMBER 31, 2014 (UNAUDITED) AND MARCH 31, 2014 (AUDITED)

BUDGET RATIFICATION MEETING Capital Improvements ideas for Twin Lakes HOA

•Add lights to path at Treasure Island Park•Fountain for Lake Lorene•Install playground at Hillside Park•Modernize 21st street entry•Install water supply at entrances (flowers)•Add Book Exchanges in several locations•2 way radio system for the Patrol and Office•Covered gazebo in Treasure Island park•Outdoor Pickle-Ball & Shuffle Board courts for seniors•Stock Lake Lorene with Fish•Portable water tank w/power washer.•Add cement slabs under fixed benches •Add more lakeside swings to our parks•Cameras at main entrances to Twin Lakes•Generator for Emergencies •Fitness stations around the path at Treasure Island Park•Add more speed bumps to slow down the traffic •RV Parking•Fix Drainage problem at Treasure Island Park•Twin Lakes designation on our entrance monuments•Add a new Park to “north” side of 320th

•WIFI in the parks•Solar Powered lights at all the entrance monuments•Major upgrade to some of the Cul-de-sac islands•slats missing in the chain link fence at TI Park•Replace some of the sprinkler heads lower volume ones

BUDGET RATIFICATION MEETING

•Open Forum Time

•Ratification – Reading of the requirements

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