This document provides an update on the 2018 budget process for the organization. It outlines the timeline for developing the budget, including initial presentations to delegates in June 2017 and ongoing department staff and finance committee meetings through August 2017. Themes for the 2018 staff budget include transparency and early community involvement. It notes recent accomplishments and challenges. Assumptions for the 2018 budget include a small number of new homes and increases to utilities, benefits, and insurance. Proposed assessment increases of $15/household for recreation and $1/household for administration are outlined, along with examples of how these funds would be used. Questions are invited from delegates on the budget process and proposals.

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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