HRCA Budget Presentation | August 15, 2017

1. 2018 BUDGET UPDATE
DELEGATE MEETING
August 15, 2017

2. Budget Process Update
• June 20th –
• First Presentation to Delegates: timeline; process overview &
BOD directives
• June 2017 –
• Department staff met with Finance to discuss trends and
planning for budget process
• July 2017 –
• Department staff prepared first draft of budget and met with
Finance and CEO for review
• August 2017 –
• Delegate budget update
• Finance Committee budget meetings begin!
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4. 2018 Staff Budget Themes
•Transparency, Transparency, Transparency!!
•Focus on department level participation
•Remember budget is a cumulative process
•Focus on early delegate/community involvement
•All Finance Committee budget meetings
are open to the public
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5. 5
Remember – Transfers are just
moving from one “pocket” to
the other!
Annual Transfers –
Admin Reserve
Rec Reserve
Backcountry Reserve
Backcountry Operating
Bond Payment

6. 2017 Accomplishments
•Consistency!
•Northridge remodel
•Technology upgrade
•Growth in high school aged programming
•Increased focus on inter-organization coordination
•501(c)(3) growth
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7. 2017 Challenges / Issues
•Facility maintenance and funding
• Northridge remodel
• Tennis pavilion
• Eastridge remodel
•Technology
• Staying relevant
•Marketing
• New competitors / staying relevant
•Staffing
• Hiring / retention
• Regulatory changes
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8. 2018 Assumptions & Open Items
•Assumptions & Data Inputs:
• ~120 new homes
• 3.1% Performance based salary increase
• Utilities increased ~5% to align with actuals
•Open Items:
• Benefits & liability insurance renewals – assume 5-
10% increase
• Technology, transfers and end of summer results –
pending budget meetings 8

9. Proposed Assessments
Note – June update on the Consumer Price Index (CPI-W) for Urban Wage Earners and Clerical Workers is at 3.18%
per the Colorado Department of Local Affairs for Denver-Boulder-Greeley (change from 2nd half 2016 + 1st half 2017).
Note – Admin Assessments last updated in 2015 budget process, based on 2014 mid-year expectations
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10. Significant Items Funded by
Proposed Increase - Rec
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$15/house/year = ~$1.2M in Total

11. Significant Items Funded by
Proposed Increase - Admin
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$1/house/year = ~$40k in Total

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What does this mean for me?
• 55% of our total Admin Operating budget is funded by Assessments (~$2M)
• 45% of our total Admin Operating budget is funded by Operations (~$1M)
• In 2018 – your assessment will fund:
• $45.00/year/household to Administrative Functions – Assessments,
Covenant Improvement Services, Community Events
• $5.00/year/household to Transfers (Reserves)
2018 Budget Snapshot – Admin
$1.4M
$0.1M
$1.5M

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What does this mean for me?
• 75% of our total Rec Operating budget is funded by Assessments (~$17M)
• 25% of our total Rec Operating budget is funded by Programs & Operations
(~$6M)
• In 2018 – your assessment will fund:
• $325/year/household to Facility Operations & Maintenance
• $217/year/household to Transfers (Rec Reserve, Capital Equipment,
Capital Improvements & Bonds)
2018 Budget Snapshot – Rec

14. QUESTIONS / COMMENTS
FINAL REMINDERS:
• ~$25M total budget
• Budget meetings begin August 21
• Next Delegate presentation October 17th (proposed budget)
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