Hidden Valley Lake Finance Committee
June 20, 2017
Members Present: Linda Hartmann, Jennifer Reuter, Mary Anna Taylor, Bonnie Starks
Members Absent: John Reiniger, Kyle Packer
Board Liaison: Bob Starks
Guests: Bruce Keller
Approval of the April Finance Committee Minutes
Motion by: Mary Anna Taylor
Second by: Bonnie Starks
Voting record: all in favor
Review and Approval of the April & May Financial Reports
Questions presented in advance by John along with responses from Moe and Bruce are available in Appendix A. There were no further questions.
Motion by: Linda Hartmann
Second by: Mary Anna Taylor
Voting record: All in favor
Report from Bruce Keller – Bruce discussed the emergency repairs needed to the under-the-road culvert on Alpine between Cravenhurst and Firewood Way. Cost was $27,000. Further costs to restore the vegetation on the slope and possible further contouring are needed to restore the property. Bruce pointed out that HVL does not have an easement on this property.
Bruce also discussed the need for additional handicapped parking spots near Willies. The preferred spot is an expansion of the road width of the access loop in front of Willies. Another option is to redesign the loop to make it one-way. This is required to maintain the proper road width as a fire lane.
Report from Bob Starks – Bob discussed the emergency loan from HVL to HVGC for the purchase of a used tractor to replace unrepairable old equipment. The loan will be repaid at $750/month. We discussed adding a slight interest charge to accurately reflect the opportunity cost of the loan to HVL and agreed that 0.4% interest would be charged (and applied retroactively for 2 months). This is the amount that HVL would earn in interest on the money if it were retained in our bank account.
Old Business: none
New Business: John is absent because of recent surgery. We wish him well and will send a gift from HVL.
Motion to Adjourn
Motion by: Bonnie Starks
Second by: Mary Anna Taylor
Voting record: All in Favor
Meeting adjourned at 6:35 p.m.
NEXT MEETING: Tuesday, August 15, 2017 at 6 p.m.
Appendix A – Questions on April/MayFinancials
Questions – John R., Responses – Moe M. and Bruce K.
In April about the only comments I have is that it is good we are plus $35,000 to the budget and this includes the extra cost of $9,800 for the shade structures which was reversed in May. Also can there be a better explanation in the exception report, other than higher/lower than anticipated, especially for those larger variances? John unfortunately I don’t know the reason why there is a variance on some items. If I know why, I do indicate it, but most of the exceptions you are talking about are when I have a budget amount and I try to guess what month those expenses may occur – you will probably notice that most of these greatest variances are of repairs in lakes, maintenance, pool and security. I have no way of knowing, nor do they, when expenses will occur. Therefore budgeting is just a guess. The bottom line is that we are not over budget and sometimes items come in early or late, but we are still within the budget.
For May, I have a few more comments:
I noticed a golf course tractor was purchased from our cash. I can’t see where HVGC was charged for this purchase or reimbursed to us from their proceeds or escrow account? The $28,000 is quite a sum to pay out and not receive reimbursement, I believe, and I don’t see where such payment was included in our escrow report. The tractor was purchased for the golf course We will be receiving $750 a month from the golf course for repayment. The amount is included in the Golf Course A/R advances. It would not be listed in our escrow.
I noticed $120,000 was added to our escrow report from cash overage for 2017. We are ahead of budget through May by $61,000 but where is the additional $59,000 coming from? Could this be the POA estimate for the surplus for the rest of 2017 and how was this determined? Bruce will answer this question.[Bruce Keller] John, these are monies that we talked about at the last finance meeting. Monies left from last year and monies not budgeted this year. We suggested the allocation and explained them at the last meeting.
Should the cost of the design for the marina come from escrow rather than as an expense? It depends on what the result of the design will be. If it becomes part of a new dock project then yes, but I want to wait and see where this will be going. I can move it over at any time.
Also I noticed construction occurring near the 20000 block of Alpine Dr.. I wonder what happened, how much this project will cost and where the funds will come from since it was not included in the 2017 escrow projects? Bruce will answer this question. I didn’t know about the project because I was out of town. No bill has been issued for work. [Bruce Keller] We had two culvert pipes cave in with the series of rainstorms we had in May. This is an emergency fix that should be finished this week. My best guess is that the repairs will be from 10 to 20 thousand with the funds coming out of our emergency escrow.
Linda Hartmann, Secretary