• Like

Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

2011 HRCA Draft Budget

  • 795 views
Uploaded on

 

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
795
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
2
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. HRCA Budget • The annual budget is a financial and operational document that is designed to carry out the obligations of the HRCA. • The annual budget also follows the policies of the Board of Directors, which reflects the requests for services and facilities by the members. 2
  • 2. Agenda • 2011 Budget Process • Ongoing Revenue Generation and Expense Controls • Goals & Assumptions • HRCA Finance Committee • 2011 Budget Drafts – Administrative – Backcountry – Recreation – HRCAA & Scholarship • Questions 3
  • 3. Finance Committee • Scott Lemmon, Chair/Treasurer (Telecommunications) • Douglas Campbell, (Banking Management) • Lyle Daley, (Federal Government Agencies) • Sheela Damle, (Management, Consulting) • Christophe Granger, (Hospitality-Country Club) • Dave Martz, (Defense Estimator) • Jody McNerney, (Corporate Banking) • Christopher Tefft, (Financial Analyst) • Kyle Spain, (Telecommunications) • Stephanie Young, (Telecommunications, CPA) 4
  • 4. 2011 Budget Process • June through October 2010 – Draft Budget Development •1,000 hours of staff / supervisor time • August through October 2010 – Finance Committee Review •Meetings to review each aspect of the HRCA, HRCAA, & HRCSF •Over 300 hours of volunteer and staff time • October 12 - Board Review with Finance Committee • October 15 – Budget Draft mailed to Delegates • October 19 - Presentation to Delegates • October 19 - November 16 Community input • November 16 - Board Adoption of a budget 5
  • 5. Revenue Generation (Ongoing Annual Impact) • Transfer fees (increased from $50 to $100) $ 75,000 • Lien Fees (increased from $40 to $75) $ 35,000 • Late Fees (increased from $20 to $25) $ 7,000 • 17 Sub-Associations managed $242,000 – Only added 1.25 FTE(s) • Net gains on sale of lien assignments $ 5,000 – Gains were $54,000 in 2009 • Online Yellow Pages $ 35,000 • New or expanded Recreation Programs $150,000 6
  • 6. Ongoing Expense Controls • Staff related reductions – Cut 15 benefitted positions since 2006 $ 100,000+ – Seasonal employee wages frozen $ 7,500 – Control of Program staffing & contract labor $ 92,000 – Reduced operating hours $ 45,000 – Registration / membership reductions $ 40,500 – Maintenance, janitorial & program positions vacant $ 23,500 – Reduced recruiting/employee development $ 25,000 – Limit pay increases to 1.67% instead of 2% $ 29,000 7
  • 7. Ongoing Expense Controls • Utilities (Savings in utilizing Transport Gas vs. Xcel) $12,000 • Telephone service and maintenance reduction $24,000 • Office supplies contract / controls $ 8,000 • Office Equipment Lease contract / usage / controls $10,000 • Reduced Assessment printing expense $10,000 • Expense reduction on Activity Guide production $ 9,000 8
  • 8. Ongoing Expense Controls • Health Insurance Benefits reduction $123,000 – Reduced benefits and changed carriers to restrict increases – HRCA 5% per year compared to 12% average industry increase • Workers Compensation controls $ 7,000 • Marketing plan expenses $ 10,000 • In house management and control of web site $ 12,000 • Reduced Bond Trustee Fee $ 1,000 • Banking Fees $ 5,000 9
  • 9. Total Annual Savings • Revenue Generation $ 549,000 • Staff Related Reductions $ 304,700 • Expense Controls $ 231,000 Total Annual Savings $1,084,700 10
  • 10. 2011 Budget Assumptions • CPI (Consumer Price Index) for the year ending June 30, 2010 is 1.7%, (US Department of Labor, Bureau of Labor Statistics, All Urban Consumers for the Denver / Boulder CO area) • 150 new properties • No additional increases in late, legal, lien fees • Resale transfers increase 5% • Interest earnings at 0.75% • Sub-Association Services 3% average fee increase • Yellow Page advertising revenue $35,000 11
  • 11. 2011 Budget Assumptions • Overall staff salaries limited to 2% increase based on performance • No increase in benefited positions • Medical benefit maximum increase 5% • Property/Casualty insurance rates remain flat • Operating expenses from 2-4% • Reserve study budgeted at $10,000 12
  • 12. 2011 Budget Assumptions • No change in facility operating hours • Eliminated low use day camp hours • Utilities increase over the 2010 Forecast – Commercial Natural gas prices to increase 15% – Commercial Electricity costs to increase 13% – Commercial Water costs to increase 3% • New HRMD Storm Water maintenance fee $7,500 • Trash service savings $24,000 (Pro Disposal Preferred Provider) • Recreation Reserve transfer increased to $700,000 13
  • 13. Administrative Function • Covenants, Administration and Finance • Sub-Association Management – Serving 17 communities • Community Relations – Community Events • Backcountry Wilderness Area 14
  • 14. Community Relations • Community Events – Farmers Market/Street Market – Recycling Events – July 4th Celebration – Rodeo • July 4th Parade – Film in the Park • July 4th Community Fireworks – Trick or Treat Street – Easter Egg Hunt – Mother Son/Father Daughter – Circus Masquerade Balls – Carnival – Doggie Splash – Teas & Tastings – Hometown Holiday Celebration – Home Improvement Expo – Craft & Jewelry Shows 15
  • 15. Administrative Funds • Administrative Operating Fund • Administrative Reserve Fund • Backcountry Fund • Backcountry Reserve Account • Special Project Account • OSCA Fund 16
  • 16. Administrative Operating Fund Budget Revenues $ 2,867,200 Expenses 2,649,200 Net Operating Revenues 218,000 Transfers 218,000 Due from Prior Years Operating Funds$ 0 17
  • 17. Administrative Revenue Sources Other Revenue Late, legal, lien 3% transfer fees 21% Assessments 53% Sub-Assn Management 10% Community Events 13% 18
  • 18. 19 11 20 et dg Bu 01 0 t2 as rec Fo 9 00 l2 Sub-Association Management Services tua Ac 8 00 l2 tua Ac 7 00 l2 Year tua Ac 6 00 l2 tua Ac 5 00 l2 tua Ac 4 00 l2 tua Ac 250,000 200,000 150,000 100,000 50,000 - Revenues
  • 19. Administrative Expenses Transfers Community Events 8% 7% Employee Other Expenses Expenses 28% 57% 20
  • 20. Administrative Fund Transfers To Capital Equipment $ 9,000 To Administrative Reserve $ 24,000 To Backcountry Fund $ 160,000 To Backcountry from Special Project $ 25,000 Total Administrative Fund Transfers $ 218,000 21
  • 21. Administrative Transfers Capital Equip Special Project to 5% Backcountry 0% 12% Reserve Fund 9% Backcountry Fund 74% 22
  • 22. Administrative Capital / Reserve Budget Capital Computer/Software $ 9,000 Reserve Computer/Software $22,000 (1/2 payment for an Event Tent) 2,000 Total $24,000 23
  • 23. 2011 Backcountry Operating Budget Operating Revenues $ 55,300 Transfer from Admin Fund $ 160,000 Transfer from Special Project Acct $ 25,000 Total Revenues $ 240,300 Less Operating Expenses $ 240,017 Less Capital Equipment Transfer $ 21,500 $ 261,517 Net Operating Revenues (Deficit) ($ 21,217) 24
  • 24. Recreation Function • Facility Operations Function • Recreation Programming Function • Transfers 25
  • 25. Recreation Funds • Recreation Operating Fund • Recreation Reserve Fund 26
  • 26. Recreation Operations • HRCA manages 315,000sq. ft / 7.2 acres of indoor recreation facilities. • Additional Outdoor Pool Cabanas + Buildings total (5) buildings or 8,600 sq. ft. • 700+ Employees – Only 112 Benefited Employees • Avg. Hours of operation,17 Hours/Day • Closed (4) days per year 27
  • 27. Recreation Programs • 3 Planning periods (Activity Guides) per year • Diverse programming for all ages • Fees cover expenses 28
  • 28. 2011 Budgeted Program Revenues • $4,568,000 in revenues • 25% of total revenues • Projecting 4% growth in 2011 revenue over 2010 Forecast 29
  • 29. HRCA Program Revenue Growth Recreation Operating Fund Budget 5.00 4.50 4.00 R e v e n u e s in m illio n s 3.50 3.00 2.50 2.00 1.50 1.00 0.50 - 1997 1999 2001 2003 2005 2007 2009 Budget 2011 Year 30
  • 30. Recreation Operating Expenses Budget Recreation Fund Transfers 24% Facility Operating Staff 43% Programs Operating Expenses 15% Utilities 7% Facility Operating Expenses 31 11%
  • 31. Recreation Operating Fund Budget Revenues $18,439,440 Facility Operating Expenses $ 6,861,210 Program Expenses $ 2,746,880 Multi-Facility Expenses $ 4,488,220 Total Operating Expenses $14,096,310 Net Operating Revenues $ 4,343,130 Transfers $ 4,339,790 Net Operating Revenues after Transfers $ 3,340 32
  • 32. Recreation Operating Fund Budget Recreation Revenue Sources Other 1% Programs 25% Facility Operating 3% Assessments 71% 33
  • 33. Recreation Operating Fund Budget Recreation Expenses Transfers 24% Facility Operating Staff 43% Programs Operating Expenses 15% Utilities 7% Facility Operating Expenses 34 11%
  • 34. Recreation Fund Transfers To Capital Equipment $ 46,000 To Bond Requirements $3,593,790 To Recreation Reserve $ 700,000 Total Recreation Fund Transfers $4,339,790 35
  • 35. Recreation Operating Fund Budget Recreation Transfers Capital Equip Net 1% Reserve Fund 16% Bond Repayment 83% 36
  • 36. Recreation Capital Budget Computer $ 4,000 Ultraviolet Disinfection System WR $ 36,520 SR - Storage Shed 5,480 Total Recreation Capital $ 46,000 37
  • 37. Recreation Reserve Budget Computer/Software/Telephone $ 44,400 Northridge 150,510 Southridge 95,740 Eastridge 158,290 Westridge 91,630 Emergency Reserve 100,000 Total Recreation Reserve $640,570 38
  • 38. Recreation Reserve Fund • Used for replacement of major assets • Reserve study completed in 2006 -Estimated replacement cost and useful life -Estimated interest earnings and inflation -Will perform new reserve study in 2011 • 2011 Transfer of $700,000 from the Recreation Operating Fund 39
  • 39. Recreation Reserve Fund 12/31/09 Balance $3,003,412 2010 Reserve Transfers 600,000 Interest Income 25,000 2010 Expenditures (740,000) Estimated 12/31/10 Balance $2,888,412 2011 Reserve Transfers 700,000 Interest Income 21,000 2011 Expenditures (640,570) Estimated 12/31/11 Balance $2,968,842 40
  • 40. 2010 Accomplishments • Controlled operating costs • Over 100 community events • Developed and implemented preferred provider trash program with Pro Disposal – No trash service fee for HRCA facilities or events – Direct savings for Homeowner, $1.68 Million Dollars – Safer and cleaner neighborhoods with one day per week pick up • Developed and implemented Yellow Pages Directory • CNN Money Magazine, “12th Best Places to Live” • Forbes, One of the best places to move • Business Week, One of the best places to raise your kid 41
  • 41. 2010 Accomplishments • Lifeguarding exceeds industry standards – Highlighted by news media • Partnered with Cherry Hills Community Church a community-wide clean up day – Over 2,500 volunteers (neighbors helping neighbors) • Established an Enrichment Pre-school Program • Expanded Programming in the Backcountry – Archery Range – Wilderness Hikes • Expanded volunteer efforts in the Backcountry to help save money 42
  • 42. Budget Options to offset projected 2011 Recreation function shortfall • 1.75% RFC Assessment increase of $.067 / mo or $8.00 / year Consistent with 2009-10 CPI increase at 1.7% OR A COMBINATION OF SOME OF THE FOLLOWING: Revenue Generating • Charge non-member seniors for facility use $ 6,000 • Charge non-member Metro District/Centennial Water staff recreation use fee $ 8,000 • Charge non-profit organizations for room rentals (Toastmaster, Scouts, Historical Society, etc.) $ 5,000 • Charge all sub-associations for room rentals $ 5,000 Sub-total $ 24,000 • Charge every person $2.00 per visit for outdoor pool use $173,000 • Offer non-resident Annual Recreation Memberships (150 homes @ $750) $112,500 43
  • 43. Budget Options to offset projected 2011 Recreation function shortfall Cost Savings (implemented at all recreation centers) – Reduce facility staff and supplies $150,000 – Reduce parking snow removal plowing at 4” of snow vs. 2” 20,000 – Eliminate TV’s, music and WiFi service 9,000 – Close outdoor pools when school begins (approx August 10th) 38,000 – Reduce volunteer / committee expenses 15,000 – Close “Drop in Childcare” (Nurseries) 12,000 – Sub-total $244,000 – Reduce operating hours at each facility by two hours per day $231,000 • Reduce operating hours at each facility by one hour per day $115,520 • Reducing operating hours at one facility by one hour per day $ 28,880 – Reduce funding for major repairs (Exercise equipment not replaced as needed) $225,000 – Reduce / eliminate proposed staff salary increases (2%) $150,000 44
  • 44. 2010 Proposed Assessment Change Actual Proposed 2010 2011 Increase % Inc Qtr Amt AFCA $ 51.00 $ 51.00 $ 0 0% $ 12.75 RFCA $449.00 $457.00 $ 8.00 1.75% 114.25 Total $500.00 $508.00 $ 8.00 1.57% * $127.00 • The CPI (consumer Price Index) for year ending June 30, 2010 is +1.70%, US Department of Labor, Bureau of Labor Statistics, Denver/Boulder region. 45
  • 45. 2011 Budget Summary • Total Revenues projected: $21,357,290 • Maintain quality facilities and services 46
  • 46. Separate 501(c)3 Cultural Organization • 37 Cultural Events • Event Revenues • SCFD Grant Funded • Community Partner funded 47
  • 47. Cultural Affairs Association Revenues $186,900 ($64,000 SCFD Grant) Operating Expenses $186,900 Net Revenues $ 0 48
  • 48. Scholarship Fund Separate 501(c)3 Organization • Sponsorship Funded • Event Revenues • $127,000 in scholarships in 2004-2010 49
  • 49. Highlands Ranch Community Scholarship Fund Revenues $ 19,274 Operating Expenses 22,650 (includes $20,000 scholarships) Net Revenues (Deficit) ($ 3,376) 50
  • 50. Questions Questions