WillowWood Homeowners’
Association, Inc.
Financial Report
Strategic Planning
&
2015 Budget Presentation
September 16, 2014
Presented 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 Report
Balance Sheet
3
Current Balance Sheet
WWHOA
Balance Sheet Standard
As of September 16, 2014
09/16/14
Sep 16, '14
ASSETS
Current Assets
Checking/Savings
1001 — FCB Savings Account
1000 — FCB Checking
Total Checking/Savings
Accounts Receivable
1200 — Accounts Receivable
Total Accounts Receivable
Total Current Assets
TOTAL ASSETS
LIABILITIES & EQUITY
Equity
3000 — Opening Balance Equity
Net Income
Total Equity
TOTAL LIABILITIES & EQUITY
21,640.32
18,925.88
40,566.20
(67.50)
(67.50)
40,498.70
40,498.70
47,068.22
(6,569.52)
40,498.70
40,498.70
4
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
•
2.
73% of yearly Base Revenue
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
$52,658
2014 Expenses Versus Base Revenue
With Recurring Plus
NonRecurring from August
$56,230
$60,000
Total Planed Expenses
with Modified CAMP
$54,632
Aug YTD Total Revenue
$50,000
Cumulative Dollars
$54,405
Total Planned
Base Revenue
$40,000
$42,097
$30,000
$37,131
August YTD Expenses
Aug YTD Expenses
$20,000
Actual Expenses
Normalized Spend Line
2014 Revenue
$10,000
$0
Jan
Feb
Mar
Apr
May
Jun
Jul
Month
Aug
Sep
Oct
Nov
Dec
Major Changes in 2014
1.
2.
Don Asher & Associates dropped as Management Company
WWHOA Established Self-Management
•
•
•
•
•
3.
4.
5.
Competitively Selected New Landscape Contractor
Competitively Selected Legal Representation
Successfully Closed Orange County Pond Planting Permit
•
•
6.
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
Coordination with Orange County Pond Revitalization Program
Termination of Pond Maintenance Contract
Obtained Proper Insurance Coverage
Major Common Area Projects
1.
Landscape Contract negotiated with 11 additional
cuttings
•
•
2.
Neighborhood Pride Grant Awarded
•
•
•
3.
5.
6.
WWHOA matching funds of $625
Esplanade and Flagpole Area received upgraded Plantings
More than 45 community volunteers totaled 640 hours
Pressure Washed Sidewalks & Tennis Courts
•
4.
Implementation effective 1 October 2014
$808 savings from proposed price
Installed new Tennis Courts Nets and Basketball Net
Stabilized Washed-out Tennis Court Drainage Control
System at SW Corner and Western Culverts
Performed extensive Tree Pruning of Esplanade Area
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
September 16, 2014
12
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
Results: Common Area Improvements!
13
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
September 16, 2014
14
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
September 16, 2014
15
CAMP Details 1
Averag
e
Deferred Maintenance
Rankin
g
New
Repair SW Drainage
Control at Tennis
Courts & Stabilize the
Water culvert to the
West
New
Raise the height of the
Tennis Court Drainage
culvert
1.0
Park Sidewalk Repair
New
Replace Tennis Court
Entry Platform
1.3
New
1.4
Cost
Comments & Notes
The SW corner of the tennis court drainage
control has become washed out, causing some
collapse and damage to the court surface.
$3,500
Additionally, the culvert structure is inadequate
to control the water flow and the base has
become washed out and in danger o
Raise the height of the Tennis Court Drainage
culvert to adequately hold and divert the storm
$1,200
level water into the drainage pipe with minimal
overflow
Numerous broken sections from Beech to
Tennis Courts, then around main park:
$4,625
Estimated 9/03 as 37each (2x2x0.25) @ $125
=> NOT eligible for Grant
$2,500
Entire slab (10 x 20?) is cracked - need quote
for Excavation/ Replacement
2014
2016
2017
2018
2019
$3,400 Quoted
$1,200
Estimat
ed
Defer $4,625
Defer
Pressure Wash
Actual by Rich Tutolo Pressure Washing Entrance Sidewalks
$800
Done
Completed
(1300 feet)
Replace Vehicle Barrier
Replace with Concrete 4 x 4 posts, 6 foot long (4
Posts @ NE Corner of $1,050 feet above ground) - Estimate 8 @ $100+ $250
Defer
Tennis Court
Install
Pressure Wash Park
Sidewalks, HM
Commercial Proposal 2012 @5% escalation per
$2,200
Done
Sidewalks & Tennis
year
Courts
September 16, 2014
2015
Estimat
ed
Defer $2,500
Estimat
ed
Defer $1,050
Estimat
ed
$2,500
$2,756
16
CAMP Details 2
Averag
e
Deferred Maintenance Cost
Comments & Notes
Rankin
g
Upgrade Esplanade
Estimated Upgrade: 25 @ $80; 3 New
1.6 & Flagpole Area
$3,450 XFR/Timer @ $300; Cable 3 @ $100 and
Lighting to LED
Labor @450 CS Verbal $2,810 Esplanade)
Estimated 165 heads @ $25+ $25 labor per
Replace all Main Park
1.7
$8,250 head => must map head locations by Zones Irrigation Heads
Defer to out years as needed only
Pressure Wash
Actual by Rich Tutolo Pressure Washing 2.0
$450
Tennis Courts
Completed
Replace Tennis
Installation Price by Varsity Courts New
$461
Court Nets
Completed
Resurface Tennis
New
$8,000 Quoted by Varsity Courts August 2014
Courts
Trim, Shape & Clean
Forrest Stump Tree Service for 5 days work
2.0 Main Park Trees
$7,000 crew with lift - Annual Trimming - Defer to
(annual)
2015 @ 5% Escalation
Install Shut-off Timer
Requested to limit usage to 11:00 PM park
2.3 on Tennis Court
$400
usage curfew - Estimated
Power
Weatherproof Waste
Requested by HLS Landscape due to mess
2.4
$225
Barrels
in rain - Completed
HD Pricing: Scotts Turf Builder, Sun & Shade,
WaterSmart Plus @ $30 @ 2,800 SF
Re-seed Main Park
New
$5,500 coverage => 15 bags per acre @ $450 plus
with Bahia
$100 installation => 10 acres => Investigate if
Bahai Seed will take on sand
September 16, 2014
2014
2015
2016
2017
2018
2019
$3,450
Defer
$1,000 $1,000 $1,000 $1,000 $1,000
Done
Done
$8,000
Done
$7,350 $7,718 $8,103 $8,509 $8,934
$400
Done
$5,500
17
CAMP Details 3 & Totals
Deferred Maintenance
2.6
Park Tables and Bench
Platforms
2.7 Dog Waste Stations
2.7 Gazebo/Pergola Replacement
2.9
Mulched play/meeting Area with
Landscape Timbers
2.9
Additional Park Tables and
Benches
2.9
"Memory Garden", West Side of
Gazebo Platform
Additional Irrigation Line &
2.9 Heads to support Garden, West
Side of gazebo platform
Sitting Wall Area + Sidewalk
3.1
Extension
September 16, 2014Total
Cost
Comments & Notes
4 Inch thick Concrete Platforms:
Benches @ 10' Wide x 7' Deep;
$4,100 Price = 8 Each @ $250; Tables
@ 12' Wide x 10' Deep, Price = 7
Each @ $300
Purchase (Amazon) 3 @ $70;
$510 Estimated installation 3 @ $100
each
Need Plan & Proposal - Defer
$6,500
until 2017 Potential Grant?
Estimate log perimeter of 300
$500 linear feet @ $150 plus Labor @
$350 Plus Connectors
Add QTY 5 BarcoBoard benches
@ $490 and QTY 3
new/replacement BarcoBoard
$6,785 tables @ $845, plus $1,000
shipping; Online pricing, Plus
installation (anchorage) @ $100
each
Estimated: Bench @ $250;
Shrubs 25 @ $15; Wall Pavers
$1,075 @ $300; Soil @ $150; HOA
Volunteer Labor Grant
Contribution
Estimated: Add 200' extension
$350 from Bubblers @$200 and 3
Heads @ 150
Estimated $4500 hardscape +
$7,000
$2500 Sidewalk
Deferred
$71,731
Maintenance
$107,815
2014
2015
2016
2017
2018
2019
$4,100
$510
$6,500
$500
$6,785
$1,075
$350
$7,000
18
$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 2014
Split Irrigation Head Replacements 2015/2016 Only as
Needed
Conclusion
Deferred Maintenance Items staged by priority and
affordability
2015 Assessment 15% increase adds $8K per year
September 16, 2014
19
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
September 16, 2014
20
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
September 16, 2014
21
2015 Budget Focal Points
• 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
Continue Implementation of CAMP
September 16, 2014
22
Budget Summary
Cost Category
2014
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
$
61,929
$ 5,267
$61,944
$ 5,684
Total Expenses
Total Income
September 16, 2014
$
56,662
$56,260
$
7,800
23
Income
2013
ACTUAL
YEAR-END
Individual Assessment
INCOME SOURCES
Annual Assessment
Assessmenrts - Other
Interest/Late Fee
Initiation Fees
Tennis Court-Keys
Interest Income
Misc Income
Grant Carry-Over
Un-Paid Assessements
$405
2014
2015
APPROVED
2014
PROPOSED
BUDGET
FORECAST
BUDGET With
With <15% YEAR-END
<15% Increase
Increase
$465
$46,575
$54,405
$534
$54,405
Increase Assessment $69
per household
$62,478
$1,043
$305
$264
$1,500
$1,000
$45
$-
$66
$14
$61
$1,600
$(465)
$(534)
TOTAL INCOME $50,152 $53,905 $56,260
$61,944
September 16, 2014
COMMENTS
$-
$(500)
Risk Managament for two
semi-annual PMTS
24
Expense: Grounds Maintenance
2013
2014
ACTUAL
APPROVED
YEAR- BUDGET With
END
<15% Increase
2014
FORECAST
YEAR-END
2015
PROPOSED
BUDGET
With <15%
Increase
COMMENTS
$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
$-
$-
Landscaping - Other, Tree Trimming
$4,700
$7,105
$7,350
$1,000
$500
$500
$2,200
$365
$-
Landscaping Contract
Landscaping - Other, Storm Damage
$18,982
$2,123
Pressure Washing of Sidewalks
Sidewalk Repairs
$375
$4,625
Covered within Landscape Servces Contract
(N/C)
Trim & Lift Park Oaks = 11 @ $250;Pines
(dead branches) = 10 @ $ 75; Esplanade
(Dead Branches) = 12 @ $100
Risk Management - Projected Storm
Damage
Park Sidewalks Done in 2014 =>Defer to
2016
CAMP => Not eligible for Matching Grant
(8/29 update)
CAMP => Forecast $1,200 overhaul and 20
replacement heads @ $25 each => As
needed only
NE Corner Vehicle Barrier Posts - Defer to
2016
Plantings under Orange County Maintenance
for 2015
Irrigation Repairs
$1,049
$1,700
$8,286
$1,000
Signs / Wall / Trash Can
$3,809
$290
$33
$-
Pond Maintenance
$3,116
$2,100
$525
$-
$-
$300
$850
$500
Normal Repairs
$2,458
$950
$5,312
$400
CAMP => Installation of Shutoff Timer
$-
$-
$625
$-
$1,800
$-
$-
$-
$34,838
$39,506
$35,034
Lighting / Electrical Repairs
Tennis Court Repairs/ Stabilization of Drainage
Grant Matching Funds
Security
TOTAL
September 16,
2014
GROUNDS MAINTENANCE $33,337
If 2015 major matching grant is available, the
matching funds will be transferred from the
Deferred Maintenance Pool
25
Expenses: Management 1
2013
ACTUAL
YEAR-END
Management Fee - DA&A
2014
2015
APPROVED
2014
PROPOSED
BUDGET FORECAST
BUDGET With
With <15% YEAR-END
<15% Increase
Increase
$6,312
$6,312
$2,692
$330
$500
$72
$1,048
$700
$(130)
Office Supplies - DA&A
$105
$250
$2
Storage - DA&A
$120
$120
$87
Office Supplies - HOA
$434
$150
$660
$650
Office Supplies - Bank Coupons
$-
$329
$375
Postage & Copies (HOA)
$-
$263
$350
$80
$78
$80
Postage DA&A
Printing & Copying - DA&A
PO Box Rental
Website
$358
$520
$140
$900
Newsletters
Social Committee
Storage Unit
$224
$221
$479
$$$-
$$247
$489
$$500
$780
Meeting Room
$200
$740
$87
$100
$100
$-
$350
Misc. Expense
September 16, 2014
COMMENTS
DA&A Contract buyout in April 2014 =>
No renewal
DA&A Contract buyout in April 2014 =>
No renewal
DA&A Contract buyout in April 2014 =>
No renewal
DA&A Contract buyout in April 2014 =>
No renewal
DA&A Contract buyout in April 2014 =>
No renewal
Estimated based on 2014/ need
QuickBooks Software Multiple License in
2014
2013 coupons paid in 2014 due to DA&A
late processing/ Pay 2014 in January
2015
Estimated
Actual 2014
Includes new website service @
$62/month, plus start-up
Electronic Newsletters
Budgeted
HOA Public Storage Unit @ $65/month
2015 includes no cost monthly + $100
Annual MTG
Estimated Quickbooks software
26
Expenses: Management 2
2014
2015
2013
APPROVED
2014
PROPOSED
ACTUAL
BUDGET FORECAST BUDGET
YEAR-END With <15% YEAR-END With <15%
Increase
Increase
Corporate Annual Report
Taxes, Registration & Fees
$61
$9
$65
$120
$65
$61
Legal Expense
$1,100
$800
$2,424
Insurance - Liability (HIG)
Insurance - Liability (Bouchard)
$1,485
$1,430
$2,919
$48
$275
$-
Insurance - Worker's Comp
(Volunteers)
$-
$-
Insurance - Property Damage
$-
$-
Insurance - Crime (Board Bond)
COMMENTS
$65 Estimated based on 2013
$120 Estimated based on 2013
2014 August Actuals
@$2,424. Defer $1,200
$5,700 estimated for Planning
Criteria review; 2015 C&R
review estimated @15 hours
$3,000 2014 Actual
Discountinued this carrier
$Required by statute to carry
$275 Bond on the directors - HIG
Quote 10/16
Conflicting information for
volunteer efforts - Never had
$before - HIG Quote 10/16 @
$700
2014 Proposal @ $2,000.
(Self-Insured for 2014,
$continue in 2015)
TOTAL MGMNT AND ADMIN $12,487 $12,162 $10,535 $12,595
September 16, 2014
27
Expenses: Utilities & Totals
2014
2013 ACTUAL APPROVED
YEAR-END BUDGET With
<15% Increase
UTILITIES
Electricity
TOTAL UTILITIES
TOTAL DEFERRED MAINTENANCE POOL
2014
FORECAST
YEAR-END
2015
PROPOSED
BUDGET
With <15%
Increase
$5,629
$5,700
$6,621
$5,629
$5,700
$6,621
$6,500
$-
$-
$-
$7,800
$52,700
$56,662
TOTAL EXPENSES $51,452
$6,500 Estimated based on 2014 - no escalation
Deferred Maintenance Pool => Reserved
for maximum amount of 2015 Matching
Grant
$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
OPERATING ACCOUNT YEAR-END
BALANCE
$4,197
$2,896
$2,495
$2,896
$2,495
$2,510
September 16, 2014
COMMENTS
28
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
September 16, 2014
29