willowwood homeowners’ association, inc. financial report strategic planning & 2015 budget...

WillowWood Homeowners’ Association, Inc.

Financial Report

Strategic Planning

&

2015 Budget Presentation

September 16, 2014Presented By: Treasurer

And Finance Committee

Presentation Outline

• Balance Sheet• Historical Perspective of Assessments• Current and Future Plans

– Fundamental HOA Needs: Current and Long Range– Capital, Repairs, Enhancements, Contingency– Strategies

• 2015 Budget– Highlights and Details

• Recap – Conclusions and Recommendation

2

Treasurer’s Financial ReportBalance Sheet

3

Current Balance Sheet

4

WWHOABalance Sheet Standard 09/16/14As of September 16, 2014

Sep 16, '14ASSETS

Current AssetsChecking/Savings

1001 — FCB Savings Account 21,640.321000 — FCB Checking 18,925.88

Total Checking/Savings 40,566.20Accounts Receivable

1200 — Accounts Receivable (67.50)Total Accounts Receivable (67.50)

Total Current Assets 40,498.70TOTAL ASSETS 40,498.70LIABILITIES & EQUITY

Equity3000 — Opening Balance Equity 47,068.22Net Income (6,569.52)

Total Equity 40,498.70TOTAL LIABILITIES & EQUITY 40,498.70

Finance Committee

A Five-Year Strategic Plan:

Common Area Master Plan“The CAMP”

5

Finance Committee Report

September 16, 2014

WWHOA Annual Meeting

Finance Committee Report—Sep 2014

1. August cumulative expenditures total $37,131• 73% of yearly Base Revenue

2. The 2014 Year-end forecast indicates a near-neutral position

• Emergency repairs required totaled $7,742• Main Park Well failed – was replaced• Esplanade irrigation system required extensive repairs

– New Heads, Repaired Lines, Replaced Timer, Replaced valves• Certain CAMP Items deferred to next year

– Sidewalk Repairs– Main Park Irrigation head replacement– Esplanade Lighting Upgrade

$52,658With Recurring Plus Non-

Recurring from August

$42,097August YTD Expenses

2014 Expenses Versus Base Revenue

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Cu

mu

lati

ve D

oll

ars

Actual Expenses

Normalized Spend Line

2014 Revenue

$54,405Total Planned Base Revenue

$37,131Aug YTD Expenses

$56,230Total Planed Expenses with Modified CAMP$54,632

Aug YTD Total Revenue

Major Changes in 2014

1. Don Asher & Associates dropped as Management Company

2. WWHOA Established Self-Management• Finance Committee – track and forecast expenditures• Treasurer – new bank account, bill processing, assessment collection• Architectural Review Board – restart inspections, standardize violations• Homeowner Interface – active communications, new website• Established Public Storage Facility for WWHOA Materials

3. Competitively Selected New Landscape Contractor

4. Competitively Selected Legal Representation

5. Successfully Closed Orange County Pond Planting Permit• Coordination with Orange County Pond Revitalization Program• Termination of Pond Maintenance Contract

6. Obtained Proper Insurance Coverage

Major Common Area Projects

1. Landscape Contract negotiated with 11 additional cuttings

• Implementation effective 1 October 2014• $808 savings from proposed price

2. Neighborhood Pride Grant Awarded• WWHOA matching funds of $625• Esplanade and Flagpole Area received upgraded Plantings• More than 45 community volunteers totaled 640 hours

3. Pressure Washed Sidewalks & Tennis Courts• Installed new Tennis Courts Nets and Basketball Net

4. Stabilized Washed-out Tennis Court Drainage Control System at SW Corner and Western Culverts

5. Performed extensive Tree Pruning of Esplanade Area6. Mulched the Picnic Area, new plantings, flagpole area,

benches, tables, selective trees (with no grass)

Major Common Area Projects

7. Orange County Pond Revitalization• Part of the Lake Butler Chain of Lakes Nutrient Project• No Cost to WWHOA• Pond water quality was measured as excellent• Algic growth occurred this year throughout Lake Butler chain• Extensive cypress, shrub & grass plantings provided around the

pond• 23 Storm Drains upgraded with leaf & debris filters• Runoff to Wetlands area cleared of shrubs,

– Almost ½ Acre cleared west of the large concrete weir– Planting 60-80 cypress, magnolia, and other trees– Planting grasses along edge of runoff from pond

2015 Budget

12September 16, 2014

Historical Considerations

• HOA Purpose: Promote the recreation, health, safety, and welfare of the residents (per By Laws)—a positive effect on property values

• 2013 and 2014 Board of Directors and Committees established a solid framework for long term sustainment– Requires additional incremental assessment increases to build up proper

deferred maintenance account (reserves)• Common Area Master Plan (CAMP) established

– Defines projects (by priority) and time-phased funding requirements– Five-year rolling wave for future budget planning– Flexible tool for current and future Boards

• Assessments increased, but still remain below level of inflation• Grants have and will continue to help offset income limits

13

Results: Common Area Improvements!

Why a Comprehensive Plan?

• Common property amenities are key to long-standing neighborhood quality, desirability and property values

• Picturesque Hidden Pond Park and Nature Park are unique to WillowWood

• Common areas showing age after 30 years—progress made in 2014 to address key issues

• Infrastructure deterioration causing maintenance issues and safety concerns

Continued Funding of extensive refurbishment and upgrades are required to

maintain quality of WillowWood


Strategic Planning Process

• A Roadmap with a 5 year focus– Establish mission, vision and goals– Develop integrated plans to achieve goals

• Common Area Master Plan (CAMP)—integrates specific projects and programs to achieve overall Association objectives– Infrastructure (Irrigation, Sidewalks, Lighting)– Landscape– Pond– Capital (Tennis Court, Benches, Entry…)

Planning supports Budget development


CAMP Details 1

September 16, 2014 16

Average Ranking Deferred Maintenance Cost Comments & Notes 2014 2015 2016 2017 2018 2019

New

Repair SW Drainage Control at Tennis Courts & Stabilize the Water culvert to the West

$3,500

The SW corner of the tennis court drainage control has become washed out, causing some collapse and damage to the court surface. Additionally, the culvert structure is inadequate to control the water flow and the base has become washed out and in danger o

$3,400 Quoted

NewRaise the height of the Tennis Court Drainage culvert

$1,200

Raise the height of the Tennis Court Drainage culvert to adequately hold and divert the storm level water into the drainage pipe with minimal overflow

$1,200 Estimated

1.0 Park Sidewalk Repair $4,625

Numerous broken sections from Beech to Tennis Courts, then around main park: Estimated 9/03 as 37each (2x2x0.25) @ $125 => NOT eligible for Grant

Defer $4,625 Estimated

New Replace Tennis Court Entry Platform $2,500 Entire slab (10 x 20?) is cracked - need quote for

Excavation/ Replacement Defer Defer $2,500 Estimated

1.3Pressure Wash Entrance Sidewalks (1300 feet)

$800 Actual by Rich Tutolo Pressure Washing - Completed Done

NewReplace Vehicle Barrier Posts @ NE Corner of Tennis Court

$1,050 Replace with Concrete 4 x 4 posts, 6 foot long (4 feet above ground) - Estimate 8 @ $100+ $250 Install

Defer Defer $1,050 Estimated

1.4

Pressure Wash Park Sidewalks, HM Sidewalks & Tennis Courts

$2,200 Commercial Proposal 2012 @5% escalation per year Done $2,500 $2,756

CAMP Details 2


Average Ranking Deferred Maintenance Cost Comments & Notes 2014 2015 2016 2017 2018 2019

1.6Upgrade Esplanade & Flagpole Area Lighting to LED

$3,450 Estimated Upgrade: 25 @ $80; 3 New XFR/Timer @ $300; Cable 3 @ $100 and Labor @450 CS Verbal $2,810 Esplanade)

$3,450

1.7 Replace all Main Park Irrigation Heads $8,250

Estimated 165 heads @ $25+ $25 labor per head => must map head locations by Zones - Defer to out years as needed only

Defer $1,000

$1,000

$1,000

$1,000

$1,000

2.0 Pressure Wash Tennis Courts $450 Actual by Rich Tutolo Pressure Washing -

Completed Done

New Replace Tennis Court Nets $461 Installation Price by Varsity Courts -

Completed Done

New Resurface Tennis Courts $8,000 Quoted by Varsity Courts August 2014

$8,000

2.0Trim, Shape & Clean Main Park Trees (annual)

$7,000 Forrest Stump Tree Service for 5 days work crew with lift - Annual Trimming - Defer to 2015 @ 5% Escalation

Done $7,350

$7,718

$8,103

$8,509

$8,934

2.3 Install Shut-off Timer on Tennis Court Power $400 Requested to limit usage to 11:00 PM park

usage curfew - Estimated $400

2.4 Weatherproof Waste Barrels $225 Requested by HLS Landscape due to mess

in rain - Completed Done

New Re-seed Main Park with Bahia $5,500

HD Pricing: Scotts Turf Builder, Sun & Shade, WaterSmart Plus @ $30 @ 2,800 SF coverage => 15 bags per acre @ $450 plus $100 installation => 10 acres => Investigate if Bahai Seed will take on sand

$5,500

CAMP Details 3 & Totals


Deferred Maintenance Cost Comments & Notes 2014 2015 2016 2017 2018 2019

2.6 Park Tables and Bench Platforms $4,100

4 Inch thick Concrete Platforms: Benches @ 10' Wide x 7' Deep; Price = 8 Each @ $250; Tables @ 12' Wide x 10' Deep, Price = 7 Each @ $300

$4,100

2.7 Dog Waste Stations $510 Purchase (Amazon) 3 @ $70; Estimated installation 3 @ $100 each

$510

2.7 Gazebo/Pergola Replacement $6,500 Need Plan & Proposal - Defer until 2017 Potential Grant? $6,500

2.9 Mulched play/meeting Area with Landscape Timbers $500

Estimate log perimeter of 300 linear feet @ $150 plus Labor @ $350 Plus Connectors

$500

2.9 Additional Park Tables and Benches $6,785

Add QTY 5 BarcoBoard benches @ $490 and QTY 3 new/replacement BarcoBoard tables @ $845, plus $1,000 shipping; Online pricing, Plus installation (anchorage) @ $100 each

$6,785

2.9 "Memory Garden", West Side of Gazebo Platform $1,075

Estimated: Bench @ $250; Shrubs 25 @ $15; Wall Pavers @ $300; Soil @ $150; HOA Volunteer Labor Grant Contribution

$1,075

2.9Additional Irrigation Line & Heads to support Garden, West Side of gazebo platform

$350 Estimated: Add 200' extension from Bubblers @$200 and 3 Heads @ 150

$350

3.1 Sitting Wall Area + Sidewalk Extension $7,000 Estimated $4500 hardscape +

$2500 Sidewalk $7,000

Total Deferred

Maintenance $71,731 $107,815 $4,600 $13,375 $34,828 $17,603 $27,475 $9,934

CAMP Notes


NOTE 1: Possibly Part of 2016 Grant Scope of Work

NOTE 2: Possibly Part of 2018 Grant Scope of Work

Planned Expenses:

Well pump: Esplanade in 3 yrs @ $3,600; Park in 7 years

New MTC Item added => Re-seeding Main Park

Tennis Court resurfacing - Need estimated timeframe

Assumptions

2015 => 15% Assessment Increase

5% escalation on yearly recurring expenses (REC & NR)

No additional Tree Work in 2014Split Irrigation Head Replacements 2015/2016 Only as Needed

ConclusionDeferred Maintenance Items staged by priority and affordability2015 Assessment 15% increase adds $8K per year

Planning Considerations

• Draft 5-Year Plan used to support 2015 Budget recommendations– Critical near term maintenance needs funded

• Current revenues do not support all common area refurbishments or upgrades—must time phase

• Master planning to continue as key tool for Board decisions– County Grants have leveraged HOA funds—more coming

• 5-Year Plan funding will require additional annual assessment increases– Securing Grants to fund projects offset costs to HOA– Special Assessments may be required—Homeowners’ approval

needed. None planned in current CAMP


2015 Budget Assumptions

• Expenses projected from ten-year history and 2014 actual outlays

• Achieve Year-End Neutral Position• Manage to Base Revenues• Revert to Self-Managed HOA—Management

Company contract terminated effective April 2014• Price All Support (No Volunteer Effort) in case

volunteers not available

Requires $69 Annual Assessment Increase to Achieve Operating Account Balance


2015 Budget Focal Points

Continue Implementation of CAMP

22

• Landscape Maintenance Plan– Modified (increased) servicing schedule to keep up with growth

• Landscape Plan– Continue maintenance of Plant-a-Palooza plantings (County Grant)– Continue Irrigation repairs/replacement/extensions to dry areas– Monitor well pumps for performance (replaced 5HP main pump in 2014)

• Pond Plan– Orange County to maintain newly planted shoreline. – HOA has no financial obligation for coming year (we just enjoy!)

• Safety– Tree pruning started. Sidewalk cleaning done, repairs in 2015 budget.

• Self-Managed HOA returns ~$6,000 to support operations and CAMP

September 16, 2014

Budget Summary

23

Cost Category2014

Projected Year End

2015 Budget Change

Grounds Maintenance $ 39,506 $ 35,034 $ (4,472)

Management & Admin $ 10,535 $ 12,595 $ 2,060

Utilities $ 6,621 $ 6,500 $ (121)

Deferred Maintenance $ - $ 7,800 $ 7,800

Total Expenses $ 56,662 $ 61,929 $ 5,267

Total Income $56,260 $61,944 $ 5,684

September 16, 2014

Income


2013

ACTUAL YEAR-END

2014 APPROVED

BUDGET With <15% Increase

2014 FORECAST YEAR-END

2015 PROPOSED


COMMENTS

Individual Assessment $405 $465 $534 Increase Assessment $69 per household

INCOME SOURCES

Annual Assessment $46,575 $54,405 $54,405 $62,478

Assessmenrts - Other $1,043

Interest/Late Fee $305 $264

Initiation Fees $1,500 $1,000

Tennis Court-Keys $45 $-

Interest Income $66 $14

Misc Income $61

Grant Carry-Over $1,600

Un-Paid Assessements $- $(500) $(465) $(534)Risk Managament for two semi-annual PMTS

TOTAL INCOME $50,152 $53,905 $56,260 $61,944

Expense: Grounds Maintenance


2013 ACTUAL YEAR-END

2014 APPROVED



2015 PROPOSED


COMMENTS

Landscaping Contract $18,982 $17,428 $15,905 $20,659

Negotiated based on 2014- Includes 2014 Full Service scope increasing cuttings for Ot, Nov, Jan, Feb (2x Month) for 38 Total Cuttings, plus hard edging all beds, front & back - pond perimeter NOT edged. New Contract Period of Performance Oc-Sep

Landscaping Contract - Additional Scope $2,150 $- $- Optional Services Deleted for 2015 Contract

Landscaping Contract - Nature Park $1,645 $- $- Covered within Landscape Servces Contract (N/C)

Landscaping - Other, Tree Trimming $4,700 $7,105 $7,350 Trim & Lift Park Oaks = 11 @ $250;Pines (dead branches) = 10 @ $ 75; Esplanade (Dead Branches) = 12 @ $100

Landscaping - Other, Storm Damage $2,123 $1,000 $500 $500 Risk Management - Projected Storm Damage

Pressure Washing of Sidewalks $2,200 $365 $- Park Sidewalks Done in 2014 =>Defer to 2016

Sidewalk Repairs $375 $4,625 CAMP => Not eligible for Matching Grant (8/29 update)

Irrigation Repairs $1,049 $1,700 $8,286 $1,000 CAMP => Forecast $1,200 overhaul and 20 replacement heads @ $25 each => As needed only

Signs / Wall / Trash Can $3,809 $290 $33 $- NE Corner Vehicle Barrier Posts - Defer to 2016

Pond Maintenance $3,116 $2,100 $525 $- Plantings under Orange County Maintenance for 2015

Lighting / Electrical Repairs $- $300 $850 $500 Normal Repairs

Tennis Court Repairs/ Stabilization of Drainage $2,458 $950 $5,312 $400 CAMP => Installation of Shutoff Timer

Grant Matching Funds $- $- $625 $- If 2015 major matching grant is available, the matching funds will be transferred from the Deferred Maintenance Pool

Security $1,800 $- $- $-

TOTAL GROUNDS MAINTENANCE $33,337 $34,838 $39,506 $35,034

Expenses: Management 1


2013

ACTUAL YEAR-END

2014 APPROVED



2015 PROPOSED


COMMENTS

Management Fee - DA&A $6,312 $6,312 $2,692 DA&A Contract buyout in April 2014 => No renewal

Postage DA&A $330 $500 $72 DA&A Contract buyout in April 2014 => No renewal

Printing & Copying - DA&A $1,048 $700 $(130) DA&A Contract buyout in April 2014 => No renewal

Office Supplies - DA&A $105 $250 $2 DA&A Contract buyout in April 2014 => No renewal

Storage - DA&A $120 $120 $87 DA&A Contract buyout in April 2014 => No renewal

Office Supplies - HOA $434 $150 $660 $650 Estimated based on 2014/ need QuickBooks Software Multiple License in 2014

Office Supplies - Bank Coupons $- $329 $375 2013 coupons paid in 2014 due to DA&A late processing/ Pay 2014 in January 2015

Postage & Copies (HOA) $- $263 $350 Estimated

PO Box Rental $80 $78 $80 Actual 2014

Website $358 $520 $140 $900 Includes new website service @ $62/month, plus start-up

Newsletters $224 $- $- $- Electronic Newsletters

Social Committee $221 $- $247 $500 Budgeted

Storage Unit $479 $- $489 $780 HOA Public Storage Unit @ $65/month

Meeting Room $200 $740 $87 $100 2015 includes no cost monthly + $100 Annual MTG

Misc. Expense $100 $- $350 Estimated Quickbooks software

Expenses: Management 2


2013

ACTUAL YEAR-END

2014 APPROVED



2015 PROPOSED


COMMENTS

Corporate Annual Report $61 $65 $65 $65 Estimated based on 2013

Taxes, Registration & Fees $9 $120 $61 $120 Estimated based on 2013

Legal Expense $1,100 $800 $2,424 $5,700

2014 August Actuals @$2,424. Defer $1,200 estimated for Planning Criteria review; 2015 C&R review estimated @15 hours

Insurance - Liability (HIG) $1,485 $1,430 $2,919 $3,000 2014 Actual

Insurance - Liability (Bouchard) $48 $- Discountinued this carrier

Insurance - Crime (Board Bond) $275 $- $275 Required by statute to carry Bond on the directors - HIG Quote 10/16

Insurance - Worker's Comp (Volunteers)

$- $- $-

Conflicting information for volunteer efforts - Never had before - HIG Quote 10/16 @ $700

Insurance - Property Damage $- $- $- 2014 Proposal @ $2,000. (Self-Insured for 2014, continue in 2015)

TOTAL MGMNT AND ADMIN $12,487 $12,162 $10,535 $12,595

Expenses: Utilities & Totals


2013 ACTUAL

YEAR-END

2014 APPROVED



2015 PROPOSED


COMMENTS

UTILITIES

Electricity $5,629 $5,700 $6,621 $6,500 Estimated based on 2014 - no escalation

TOTAL UTILITIES $5,629 $5,700 $6,621 $6,500

TOTAL DEFERRED MAINTENANCE POOL $- $- $- $7,800 Deferred Maintenance Pool => Reserved for maximum amount of 2015 Matching Grant

TOTAL EXPENSES $51,452 $52,700 $56,662

$61,929

NET PROFIT/LOSS ON BASE REVENUE $(1,301) $1,205 $(2,722) $15

YEAR-END BALANCE (TOTAL REVENUE) $(1,301) $1,205 $(402) $15

PRIOR YEAR CARRY-FORWARD AMOUNT $4,197 $2,896 $2,495 OPERATING ACCOUNT YEAR-END

BALANCE $2,896 $2,495 $2,510

Conclusions & Recommendations

• 30 Years Old – a mature, sought-after neighborhood• Finances stabilized through team effort (fully understood finance

position and go-forward path)• Financial Management processes in place

– Key areas of need identified– Initial short and long term strategies outlined

• 2015 Budget continues adjustments to support the next 30 years• 2015 expense projections require additional assessment of 14.9%• Common Area Master Planning process implemented to ensure

Common Area quality and value for all WillowWood homeowners

2015 Budget Supports Continuing CAMP Strategy


willowwood homeowners’ association, inc. financial report strategic planning & 2015 budget...

Documents

total assets40

total equity40

total checkingsavings40

total accounts receivable67

total current assets40

total planed expenses

total liabilities equity40

flagpole area