As part of this report, I’m including the Current Budget – Current year as of 8/31/2022, the Current Budget - 2023, and a 9-year Budget Projection.
Current Budget - Current Year – We received more income than we had budgeted for this year due to the storm. We received an insurance settlement to repair the Tennis court fence and the Pavilion. We also received a donation from a Pine Canyon Resident. The $5000 Donation and $3000 of the insurance settlement were used to clean up the pavilion and tennis court area of fallen trees and to clean up the common areas along the road. This is the amount show in Storm Clean-up expenses. When our current dues structure was set up in 2014, it set lake expenses at $5000/yr and Tennis court at $1000/yr to be accrued each year. This year we expended those accrued funds to resurface the Tennis court and treat weeds in the lake.
Current Budget – 2023 – In this budget, you will see Storm Clean-up expenses of $11,000. This is what we will use to repair the Pavilion and Tennis court fence. We have $10,000 of the insurance settlement in the bank, plus $1000 to make up for the insurance deductible. We are in the process of getting bids at this time.
9-year Budget Projection – What we are trying to show in this document, is a projection of our income verses expenses for the next 9 years. Our association collects dues at the end of the fiscal year, which means we need to start the next year with enough funds in our account to cover all the expenses for that fiscal year. As you can see by the projection, if we continue our current spending pattern, we will need to review dues in 2030.At this time, we have some dedicated residents working on a Lake Management Plan, which will affect the projection, as they are recommending that we contract the care of the lake to a company, which will affect what we have budgeted for the Lake expenses. The board should review this 9-year projection every year.
Any Questions – please email me at KLM1@aol.com or call 440 453 3780
Kevin Miller Treasurer
Explanation of the spreadsheet
Budget Projections – this line shows the Physical Year as our year for budgeting is from September 1st to August 31st.
Bank Balance – this is the projected bank balance at the start of the fiscal year. It is Important that this value cover the expenses for the year, as our dues are not collected until the end of the fiscal year.
Improved and Unimproved lots – this is our income at $225 per improved lot (48) and $175 (12) for unimproved lots. There are not 48 houses in Pine Canyon, but if a house is built such that it is on 2 lots, they are both considered improved lots.
Administration – PO box fee, Printing, Postage, Budget software, and website expenses.
Insurance – For our common areas, pavilion, tennis court, and board members
Legal – We have had legal fees in the past, but we have no budget for them at this time.
General Maintenance Common Areas – Expenses for maintaining the trails, tennis court, pavilion, and other common areas. This would be for the chipper service we had after the ice storm in 2021.
Lake Expenses – Quality, weeds, fish – this should cover all expenses for maintaining the lake.
Mowing Common Areas – Covers mowing of all common areas and along the roadways.
Tennis Court Repair – Covers major repairs to the tennis court which happen about every 8 years.
Social – Hospitality and annual meeting expenses.
Steuben County Lakes Council – Annual Membership Fee
Property Tax – for the common areas.
Total Expenses – Total of expenses paid that year
Net Income – Income for the fiscal year minus Expenses for the fiscal year.
Ending Bank Balance – Projected bank balance at the end of the fiscal year. This amount must be enough to cover all expenses for the next year as our income is not available until the end of the year. Using our current level of expenses, a dues increase will be required in 2030. If we increase our expenses before then, we may have to raise them earlier.
Lake Maintenance Accrual – Currently we have been treating the Lake every 3 years, so we are accruing a third of the cost each year.
Tennis Court Maintenance Accrual – We are accruing over 8 years the cost of major repairs to the tennis court.
Available Bank Balance – this is the amount of funds in the bank to pay expenses for that fiscal year after subtracting the accrual amounts from the ending bank balance.
Inflation set at 3% - this is an estimate of inflation for the 9 years.