Edinburgh_2020_Financials

Our current bylaws say that the new budget should be presented with the previous year’s budget, so I put that together.  Many of the changes in the 2020 budget make sense when compared with actual spending numbers from 2019.  My biggest concerns with the new budget are the extra expense for the new management company and the security contract.  It looks like there are cuts in other areas to pay for the extra $80,000.

Overall the new budget comes in just 1.4% higher than the 2019 budget, but since the budget anticipates collecting less than we actually collected in 2019 it could balance at the end of the year.

I did not include the 2019 actual spending here because the board has chosen not to send it to our residents and it should come from them and not from me.  Hopefully it will be available to everyone at the Annual Meeting.

Some things of note:

  • The new management company will cost us over $30,000 a year more, a 50% increase.
  • The new security company will cost us almost $50,000 a year more, almost a 9% increase.
  • $6,000 a year more is budgeted for Social Events (an 120% increase)
  • Almost $4,000 per year for Holiday Decorations (matches what was actually spent in 2019)
  • We overspent the 2019 budget by more than $90,000.  Overspending a budget is never a good thing, but if you look at the expenses almost all were either necessary or something that really should have been done.  We did collect almost $23,000 more in revenue than we anticipated which helped reduce the impact.  The largest areas of overspending in dollars:
    • $40,000 in landscaping expenses, which was certainly needed
    • $13,000 extra into the Reserve Accounts, which is not a bad thing
    • $9,000 to repair gates
    • $5,000 for Clubhouse maintenance and repair (could probably be a Reserve expense)
    • $3,300 above budget on Attorney fees
    • $6,670 on a new category, “Additional Contracted Staff”
    • $7,500 on pool maintenance and repair (could probably have been a Reserve expense)
    • $8,600 on Transponder Refunds (we had budgeted it for 2018 but it wasn’t spent then)
  • There is $77,500 in the Reserve Study identified to renovate the clubhouse, not counting $30,000 to refinish the floors.  This money can be used for the clubhouse update and will be greatly appreciated.  There is no money in the budget for any improvements to the clubhouse but the over $100,000 will certainly make a huge difference.
  • The 2019 Reserve Study now includes $25,000/year to maintain our landscape, which previous boards had pushed for.  This will be helpful and hopefully it will be spent each year to help restore some of the deterioration that has occurred over the years.
  • We overfunded the Reserve Funds last year (based on the 2019 Reserve Study) and so the board has chosen to underfund the Reserves this year by a little bit.  This should be fine as long as it is brought back to match Reserve Study recommendations in 2021.

budget_2019_00000315.htm

Description2018 Budget2019 Budget2020 BudgetBudget Change
Income Accounts
Member Assessments$858,000.00$860,000.00$860,000.000.0%
Initiation Fees$24,000.00$19,000.00$24,000.0026.3%
Interest Earned$0.00$0.00$0.00
Architectural Review Fee Inc$2,000.00$2,000.00$2,000.00
Tennis Income$1,500.00-100.0%
Late Fees Collected$0.00$0.00$3,000.00
Interest Charges Collected$0.00$0.00$0.00
Fines Collected$0.00
Abatement Reimbursement$0.00$0.00$0.00
Vehicle Violation Fines$0.00$0.00$0.00
NSF Fees Collected$0.00$0.00$0.00
Gate/Access Remote Income$0.00$0.00$2,500.00
Clubhouse Rental Inc$4,000.00$4,500.00$3,500.00-22.2%
Club Corp of America$35,000.00$35,000.00$40,000.0014.3%
Legal Reimbursements$0.00$0.00$0.00
Other Income$0.00
Gift Fund$0.00
Income Accounts Total$923,000.00$922,000.00$935,000.001.4%
Expense Accounts
Administrative Expenses
Accounting Fees$750.00$450.00$325.00-27.8%
Attorney Fees – HOA$12,000.00$6,000.00$8,000.0033.3%
Management Fees$50,640.00$59,700.00$90,000.0050.8%
ACC/ Architect Review$2,000.00$500.00$500.00
Additional Contracted Staff$0.00
Postage & Mail$2,500.00$2,500.00$2,500.00
Printing & Copies$2,500.00$2,500.00$2,500.00
Insurance$24,000.00$30,000.00$25,000.00-16.7%
Communications Expense
Web Site$6,500.00$6,500.00$7,000.007.7%
Miscellaneous Expenses
Property Taxes$31,000.00$32,000.00$31,000.00-3.1%
Fed and State Income Tax
Misc. General & Admin.$500.00$200.00$250.0025.0%
Annual Fees & Registrations$75.00$75.00$75.00
Gift Fund Donation Expense
NSF Fee Expense$0.00$0.00$0.00
Transponder Deposit Refunds$20,000.00$0.00$0.00
Pool Expenses
Pool Permit$600.00$2,200.00$600.00-72.7%
Pool Op Contract$36,100.00$36,100.00$41,400.0014.7%
Pool- Addt’l Lifeguards$500.00$350.00$350.00
Pool Maint & Repairs$1,500.00$2,000.00$3,000.0050.0%
Pool Supplies$1,000.00$1,000.00$1,000.00
Pool Furniture Maint & Repairs$1,000.00$1,000.00$1,000.00
Clubhouse/Fitness Exp
Clubhouse Supplies$1,500.00$250.00$500.00100.0%
Clubhouse Electricity$13,500.00$14,000.00$14,000.00
Clubhouse Phone$0.00$2,000.00$1,500.00-25.0%
Clubhouse Water & Sewer$5,000.00$5,000.00$5,000.00
Clubhouse TV$900.00$1,000.00$1,000.00
Clubhouse Internet$850.00$900.00$900.00
Clubhouse Maint & Repairs$8,000.00$3,000.00$8,000.00166.7%
Furniture & Fixtures M&R$1,000.00$500.00$1,000.00100.0%
Fitness Equipment Maint$3,000.00$2,000.00$1,500.00-25.0%
Fitness Room Supplies$400.00$800.00$1,500.0087.5%
Clubhouse- Post Rental Cleaning$2,000.00$2,000.00$2,600.0030.0%
Onsite Office Expenses
Onsite Office – Phone$2,000.00$1,000.00$1,150.0015.0%
Onsite Office Supplies$2,000.00$2,000.00$2,000.00
Tennis Expenses
Tennis Court Maint$500.00$500.00$1,000.00100.0%
Tennis Lights- Maint & Repair$2,000.00$1,500.00$3,000.00100.0%
Tennis- Gates & Fences- M&R$700.00$500.00$800.0060.0%
Tennis Court Supplies$1,500.00$800.00$1,400.0075.0%
Tennis Buildings Maint & Repairs$1,000.00$2,500.00$2,000.00-20.0%
Tennis – Water & Sewer$300.00$600.00$600.00
Tennis Internet/Phone
Tennis Electricity$4,500.00$5,000.00$5,500.0010.0%
Tennis Social Expenses
Amenities Expenses
Janitorial Services- Common Areas$12,800.00$11,400.00$15,000.0031.6%
Basketball/ Volleyball$100.00$100.00$300.00200.0%
Playground Maint$1,000.00$1,000.00$500.00-50.0%
Guards & Guardhouse Exps
Guardhouse Maint & Repairs$1,000.00$300.00$1,000.00233.3%
Guardhouse Telephone$3,000.00$1,800.00$1,800.000.0%
Guardhouse Internet$1,600.00$3,000.00$2,500.00-16.7%
Guardhouse Electricity$3,000.00$2,500.00$2,500.000.0%
Guardhouse – Gas Utility Exp$1,000.00$1,000.00$1,000.000.0%
Guardhouse- Water & Sewer$750.00$500.00$500.000.0%
Guardhouse Supplies$6,000.00$1,200.00$1,700.0041.7%
Guard Expense$300,000.00$285,000.00$310,000.008.8%
Guards- Vehicle Expenses$8,000.00$8,000.00$11,000.0037.5%
Guards – Anual Bonus$2,800.00
Entrance Expenses
Entrance Electricity$1,200.00$1,000.00$1,000.000.0%
Entrance Maintenance$1,000.00$2,000.00$2,000.000.0%
Gate(s) Expenses
Gate(s) Equip Maint & Repairs$2,500.00$2,000.00$6,000.00200.0%
Gate Camera Systems M & R$1,500.00$1,000.00$1,500.0050.0%
Gate Access Strips/Devices$2,000.00$3,000.00$5,000.0066.7%
Social/Community Expenses
Welcome Committee$750.00$500.00$750.0050.0%
Social Activity & Events$8,500.00$5,000.00$11,000.00120.0%
Holiday Decorations$6,000.00$6,200.00$10,000.0061.3%
Edinburgh Marlins$2,500.00
Landscape Expenses
Landscaping Contract$44,309.00$58,718.00$58,718.00
Tree Removal/Trimming$0.00
Landscape Exps- Additional$3,000.00$1,000.00$1,000.00
Landscape Abatement Expense$0.00$0.00$0.00
Ground Cover Expense$18,000.00$18,000.00$15,000.00-16.7%
Seasonal Flowers$13,000.00$10,000.00$10,000.00
Irrigation Water$18,000.00$15,000.00$20,000.0033.3%
Irrigation Maint.$3,000.00$3,000.00$3,000.00
General Expenses
Electrical Maint$2,000.00$500.00$1,000.00100.0%
Plumbing Maint.$1,500.00$500.00$500.00
Back Flow Testing$800.00$1,000.00$1,000.00
Fence Maint & Repairs$4,500.00$1,500.00$1,500.00
Storm Damage Exps$1,750.00$1,000.00$500.00-50.0%
Vandalism Repairs$500.00$500.00$500.00
Pressure Washing$2,500.00$2,000.00$2,000.00
General Maint. & Repair$4,000.00$2,000.00$3,000.0050.0%
Common Area Expenses
Trash Removal Services$1,600.00$1,600.00$1,600.00
Pest Control$1,200.00$1,400.00$1,400.00
Termite Bond$0.00$375.00$375.00
Street & Sidewalk Repairs$1,000.00$500.00$1,000.00100.0%
Sinage Expense
Street Light Electricity$23,000.00$24,000.00$23,000.00-4.2%
Reserve Transfers
Reserve Transfer – Out$168,826.00$213,982.00$130,107.00-39.2%
New
Expense Accounts Total$918,000.00$922,000.00$935,000.001.4%

David Hancock’s Internet Base