Presentation on theme: "HHOA General Meeting February 12, 2013 Treasury Report."— Presentation transcript:
HHOA General Meeting February 12, 2013 Treasury Report
Key Messages Good year in 2012 – $56K surplus – Accounts receivables down 29% vs 2011 ($42K > $30K) Clubhouse renovation completed on time/budget Maintenance person on board Significant work by Strategic Planning Committee on Common Area Reserve needs Driveways for Berkshire/Porthcawl completed per plan No homeowner fee increase in 2013 budget
HHOA 2012 P&L Summary
HHOA 2012 P&L Detail
HHOA 2012 Balance Sheet $393,595
HHOA 2012 Balance Sheet - Detail See reserve detail next chart
2012 Reserve Fund Balance
HHOA 2012 Clubhouse Renovation On budget & on time
HHOA 2013 Budget, Income: $443, 380
HHOA 2013 Budget, Expenses: $443, 890
HHOA Issues being evaluated for financial/budgeting impact Pyle’s Mountain Road storm water management under-crossing – Short term expense to upgrade for dedication to NGT Strategic reserve account – Needs based on asset life & replacement cost
Pyle’s Mountain Road Issues During the 2005 Dedication of Hartefeld roads, New Garden Township didn’t accept part of PMR due to issues with the condition of the 150’ under-road crossing. Drainage for all of Hartefeld south of Sharp Road flows through this crossing (five of nine Villages & 12 of 18 golf course holes). Dedication of the entire road will avoid HHOA costs for snow removal ($2,400/yr.) as well as maintenance Reserves for road repaving and guardrail replacement ($40, yr. life). Meeting with Township Board of Supervisors in November, 2012 affirmed the willingness of Township to reconsider Dedication of road if crossing issue is resolved. Bellevue Homes made repairs to the pipe in 2007 without involvement of Township. We have hired a consulting Engineer to work with the Township engineer to assess condition of the crossing and determine any required repairs for acceptance by the Township. Total replacement of pipe could be very expensive. Recent assessment indicates it may only require lower cost repairs-in-place. Will advise on required repairs and cost in letter once we have definitive information from engineers.
Strategic Reserve Account Purpose – Funds to pay to replace major physical assets and avoid special assessments
Strategic Reserve Account Current assessment with changes indicate that reserve is not adequate for future projected expenditures. With the revised estimate the Reserve balance should be $402,446. At the end of 2012 the balance was $238,450. So annual Reserve payments will need to gradually reduce this deficit over time Budget contributes $57,345 versus the revised minimum requirement of $49,778. Good news, with the improved updates, is the contribution amount should be about right and we should be able avoid significant future assessments beyond potential Pyle’s Mountain Road crossing issue.