Hidden Valley Lake Finance Committee
April 18, 2017
Members Present: John Reiniger, Linda Hartmann, Jennifer Reuter, Mary Anna Taylor, Kyle Packer and Bonnie Starks
Members Absent: none
Board Liaison: Bob Starks
Guests: Bruce Keller
Approval of the March Finance Committee Minutes
Motion by: Bonnie Starks
Second by: Mary Anna Taylor
Voting record: Ayes: Mary Anna, Bonnie, Jennifer, John, Linda. Abstaining: Kyle; approved
Review and Approval of the March, 2017 Financial Reports (questions in Appendix) In addition to John’s specific questions, we discussed Accounts Payables procedures for approving and auditing miscellaneous charges especially those on credit card purchases. Mary Anna requested that Bruce and Bob bring an example of how such charges are reviewed to the next meeting.
Motion by: Jennifer Reuter
Second by: Bonnie Starks
Voting record: All in favor
Report from Bruce Keller – Based on current budget projections, there is $120,000 available for allocation to new expenditures (if approved by the board) and to accelerate maintenance projects. One such expense is the upcoming repaving of Hidden Valley Drive.
Report from Bob Starks – Bob indicated that the pickle-ball court and marina shelter are not board approved projects. Further decisions are awaiting review of a community survey being developed by the Future Planning Committee.
Old Business: none
New Business: 1st quarter financial statements for the Golf Course were not available for review.
Motion to Adjourn
Motion by: Jennifer Reuter
Second by: Bonnie Starks
Voting record: All in Favor
Meeting adjourned at 6:33 p.m.
NEXT MEETING TO BE HELD ON TUESDAY, June 20, 2017 at 6:00
Appendix A – Questions on March Financials
Questions – John R. Responses – Moe M. and Bruce K.
- I note dues and assessments are the same for the month and year-to-date for the 2107 budget, 2107 actual and the 2016 actual, but shouldn’t they be higher since we have members prepaying for 2017 dues?
- This was the actual budget we had before we approved the increase. So based on the Master Report, there really was only a difference of $320 versus the year before – they weren’t exactly the same.
- I have since adjusted the budget to the correct amount which is currently $150,835. Credits would not be reflected on this since the credits collected are in fact 2017 dues not 2018.
- Y-T-D dock rental is incorrect. It should be $18,785 and therefore the Y-T-D difference would be only $215. Correct?
- Yes. We were under for the month by $1385, but I forgot to update the YTD total which was $18785.00
- Since we did not budget administrative deed fees, what is your estimate for being over the budget for the rest of 2017? Three months + $10,000/12 months = $40,000?
- We did budget the increase ($30,000) and I made the adjustment which should be $2500 per month. Discussed with Chris, and she feels that we will be way over that budget by around $16,000 for the year – so anticipated income $46,000.
- Still we are $60,000 ahead of our 2017 budget…unless there are expenses due but not paid yet. Example is salt and sand where you state no bill to date but since we did not get any salt to date, would there be a bill outstanding?
- Not sure all depends on the weather at the end of this year.
- In regards to vehicle expense: For the backhoe, what is a Helac which was replaced?
- Sorry – no idea, but I guess it needed it.
- Why no maintenance of security vehicles since they were purchased? The license #6785 shows 7,023 miles, the license #6786 shows 8,051 miles and the license #6787 shows 11,527 miles. Do we have a program for routine maintenance and who monitors it?
- [Bruce Keller] We have always had a preventative maintenance program for each one of our vehicles. There is a process for our Deputies where they turn their cars in at 4500 miles for oil change. Remember our security vehicles are still under warrantee.
- Cash information: I understand the Board wants us to give them recommendation of purchase of certain capital projects. If this is so, I don’t believe we have seen any capital projects forms for any projects and also the Board is looking for community input on certain projects. Yes, we have certain projects in progress and certain other projects pending, but do we know the exact cost of a marine restroom on the cost to finish the pickle ball court? If so please share this with the finance committee. It just seems these two projects are the primary items to be done, unless the Board is aware from other committees their requests.
- John, you are correct, but the board is of the opinion that we still need the community to tell us where to spend money on new amenities. Remember, the restroom and pickle ball have not been approved. As a reminder one of the things that has caused us some problem is the lack of foresight on maintenance concerning these amenities. One thing we need to budget for next year is new docks at the marina. The Future Planning Committee is developing a survey now and should have it within the next two months.
- So the cash available, as I see it, as of March 31, 2017 would be the excess at the year-end of $99,000 and the excess cash per the 2017 budget of $21,000 (and year-to-date we are ahead of budget by $60,000) for a total of $120,000. So the Board and committees should prioritize what is most important. And I question if a survey of the community is necessary since we have told them are capital needs and escrow information previously.
- Moe and I will be going over what we believe are the right places for this money. We need to shore up some of our Escrow Monies, add some extra to the pool etc. I do not believe there will be monies for amenities for a few years.
- I am curious if we will need to purchase security vehicles in the future or will county vehicles be available as in the past?
- I believe that ship has sailed and we will be escrowing for new vehicles in the future.
- I am curious if we really need to spend $100,000 per year for paving especially since all roads have a top which we wanted to complete?
- When we changed our philosophy on paving 9 years ago, the point was made that 100,000 plus inflation would needed to finish our roads with a second lift and to maintain them in the future. If there is a year where we had any unspent monies in road paving escrow, it should be saved for the day when we have to make an emergency repair. Also, Bob and I along with the County Engineer did a study of our roads and during that study it was determined that the correct amount to spend on the amount of roads we have is about 110,000 to 125,000 dollars a year. We are pretty close.
- I am also curious when the dredging will be completed so we will no longer need the $50,000 per year? I know you have told us when it will be done but in searching my records, I believe I failed to write the information down. Silly me!
- So far we have spent approx. 600,000. At this point we will escrow 55,000 through 2021. We should be finished by then. At that point we would still escrow about 10,000 a year for future projects. Remember two things. This is the first major dredging since our main lake and smaller lakes were built. The second is that the planners of our dredging project, projected the cost at 1.6 to 2.1 Million. It looks like we will finish at about 850,000.
- I know dues and assessments weren’t exactly the same but weren’t they pretty close? Also you mentioned “Credits would not be reflected on this since the credits collected are in fact 2017 dues not 2018”. Just puzzled about this comment since what does 2018 have to do with the 2017 budget?
- I mentioned 2018 because you wanted to know if the budget should be higher due to the prepayments. Prepayments made after July 2017 are for the 2018 budget. That is why I mentioned it. Didn’t mean to confuse the issue.
- Yes, administrative deed fees increase. Any complaints from the realtors or new owners?
- A few, but nothing to cause a worry.
- Do we have any time table on completion of the new second lift of paving?
- [Bruce Keller] The second lift is done and we are now on a regular paving program which will cost a little over 100,000 a year.