2015 budget presentation with narration

Views:
 
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

PowerPoint Presentation:

The Pointe at Crosswater Budgeting Process Year 2015

PowerPoint Presentation:

Budget Definition: A budget simply stated is an estimate of the income and expenses for a set period of time, in this case, for the calendar year 2015, also the fiscal year of our condominium association.

PowerPoint Presentation:

Budget Components: Beginning operating f und balance—amount in checking account Income—primarily from monthly assessments

PowerPoint Presentation:

Budget Components (continued) Expenses Utilities—water and power Maintenance Administrative

PowerPoint Presentation:

Budget Components (continued) Summary of Expenses Chart Utilities—19% $53,500 Maintenance—54% $154,060 Admin—27 % $76,246 TOTAL EXPENSES: $283,806

PowerPoint Presentation:

Budgeting Components (continued) Maintenance Expenses TOTAL MAINTENANCE: $154,060 Fire Safety 12% Cost Sharing 12% Contingency 12% Landscaping 54% Other 10%

PowerPoint Presentation:

Budgeting Components (continued) Administrative Expenses Morris Mgmt. 34% Insurance 44% Professional 1 0% Misc. 12% TOTAL ADMINISTRATIVE: $76,246

PowerPoint Presentation:

Comparison of 2014 and 2015 Budgeted Operating Expenses

PowerPoint Presentation:

Reserve Study Definition A Reserve Study is the art and science of anticipating, and preparing for an Association’s major common area repair and replacement expenses. Reserve Studies are performed by professional companies. Jeff Samdal & Associates has done our last 2 studies.

PowerPoint Presentation:

Why Do a Reserve Study? Since 2008, unless doing so would cause unreasonable hardship, reserve studies shall be performed and updated annually per state statute. RCW 64.34.380 Without a reserve study, at time of sale there must be a disclosure that there is risk to the purchaser. There may be a need for special assessments…etc.

PowerPoint Presentation:

Benefits of a Reserve Study Fulfills lender requirements Helps to maintain property’s value and appearance Establishes sound financial planning and budget direction Reduces the need for special assessments Fulfills fiduciary responsibility of Board of Directors

PowerPoint Presentation:

Reserve Study Types Level 1 Full Study A “full” reserve study includes an on site visit to review the physical assets of the community, as well as a financial analysis to determine dollars needed to repair and maintain these physical assets 30 years into the future. A Level 1 “full” study was completed in fall of 2011, and again in 2013

PowerPoint Presentation:

Reserve Study Types (continued) Level 3 Update Study A Level 3 update study simply updates the Level 1 site visit study with current information, both physical and financial. There is no site visit with a Level 3 update study. Typically performed annually for two years between Level 1 and Level 2 studies. A level 3 update study has just been completed.

PowerPoint Presentation:

Reserve Study Types (continued) Level 2 Update with Site V isit A Level 2 update study reviews current status of items presented in the Level 1 study. An on-site visit is performed in a Level 2 update study. A Level 2 update study will be performed in 2016, typically every 3 years after the Level 1 study has been completed.

PowerPoint Presentation:

Reserve Study Parts Physical Analysis Component Assessment and Valuation Quantity of each component Units of measure Cost per unit Remaining life Useful life Inflation factor of 3% annually

PowerPoint Presentation:

Reserve Study Parts Financial Analysis Current financial i nformation and funding plan Recommended reserve f unding plans—designed to immediately or gradually get to the financial position that all future expenditures will be fully funded

PowerPoint Presentation:

Financial Analysis Current Financial Information Reserve Fund (Replacement Fund) balance as of August 2014: $437,218 Reserve Fund Balance required for “full funding” at this time should be: $622,911 Currently 70.2% funded

PowerPoint Presentation:

Funding Percentage Discussion Full Funding (100%) means dollars would be available so no special assessments for maintaining the property will be necessary for the 30 year study period Partial Funding means there may (probably will) be a need for special assessments to pay for expenses of property upkeep

PowerPoint Presentation:

What Is a “Good” Level of Funding? ---70.2% The Pointe Funding Level 72% of condos in US are funded below a 70% level

PowerPoint Presentation:

Who Cares, Anyway? You—do you want large future special assessments? Potential buyers—would anyone want to purchase knowing there would be large special assessments? Lenders—for obvious reasons

PowerPoint Presentation:

TOTAL BUDGET: Operating Expenses: $283,806 Reserve Fund: $150,545 TOTAL $434,351 Reserve Fund (Replacement Fund) as Part of Total Budget

PowerPoint Presentation:

The Bottom Line! 2014 Monthly Assessment: $265 2015 Monthly Assessment: $270 Entire increase going toward improving Replacement Fund (Reserve Fund) percentage of Full Funding.

authorStream Live Help