2
HRCA BudgetHRCA Budget•
The annual budget is a financial and operational document that is designed to carry out the obligations of the HRCA.
•
The annual budget also follows the policies of the Board of Directors, which reflects the requests for services and facilities by the members.
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AgendaAgenda
•
2011 Budget Process
•
Ongoing Revenue Generation and Expense Controls
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Goals & Assumptions
•
HRCA Finance Committee
•
2011 Budget Drafts
–
Administrative–
Backcountry–
Recreation–
HRCAA & Scholarship
•
Questions
4
Finance CommitteeFinance Committee
•
Scott Lemmon, Chair/Treasurer (Telecommunications)
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Douglas Campbell, (Banking Management)
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Lyle Daley, (Federal Government Agencies)
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Sheela Damle, (Management, Consulting)
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Christophe Granger, (Hospitality-Country Club)
•
Dave Martz, (Defense Estimator)
•
Jody McNerney, (Corporate Banking)
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Christopher Tefft, (Financial Analyst)
•
Kyle Spain, (Telecommunications)
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Stephanie Young, (Telecommunications, CPA)
5
2011 Budget Process2011 Budget Process•
June through October 2010 –
Draft Budget Development
•1,000 hours of staff / supervisor time
•
August through October 2010 –
Finance Committee Review
•Meetings to review each aspect of the HRCA, HRCAA, & HRCSF
•Over 300 hours of volunteer and staff time
•
October 12 -
Board Review with Finance Committee
•
October 15 –
Budget Draft mailed to Delegates
•
October 19 -
Presentation to Delegates
•
October 19 -
November 16 Community input
•
November 16 -
Board Adoption of a budget
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Revenue GenerationRevenue Generation (Ongoing Annual Impact)(Ongoing Annual Impact)
•
Transfer fees (increased from $50 to $100)
$ 75,000
•
Lien Fees (increased from $40 to $75)
$ 35,000
•
Late Fees (increased from $20 to $25)
$ 7,000
•
17 Sub-Associations managed
$242,000
–
Only added 1.25 FTE(s)
•
Net gains on sale of lien assignments
$ 5,000
–
Gains were $54,000 in 2009
•
Online Yellow Pages
$ 35,000
•
New or expanded Recreation Programs
$150,000
7
Ongoing Expense ControlsOngoing Expense Controls
•
Staff related reductions
–
Cut 15 benefitted positions since 2006
$ 100,000+
–
Seasonal employee wages frozen
$ 7,500
–
Control of Program staffing & contract labor
$ 92,000
–
Reduced operating hours $ 45,000
–
Registration / membership reductions
$ 40,500
–
Maintenance, janitorial & program positions vacant
$ 23,500
–
Reduced recruiting/employee development
$ 25,000
–
Limit pay increases to 1.67% instead of 2%
$ 29,000
8
Ongoing Expense ControlsOngoing Expense Controls
•
Utilities (Savings in utilizing Transport Gas vs. Xcel)
$12,000
•
Telephone service and maintenance reduction
$24,000
•
Office supplies contract / controls
$ 8,000
•
Office Equipment Lease contract / usage / controls
$10,000
•
Reduced Assessment printing expense
$10,000
•
Expense reduction on Activity Guide production
$ 9,000
9
Ongoing Expense ControlsOngoing Expense Controls
•
Health Insurance Benefits reduction
$123,000
–
Reduced benefits and changed carriers to restrict increases
–
HRCA 5% per year compared to 12% average industry
increase
•
Workers Compensation controls
$ 7,000
•
Marketing plan expenses
$ 10,000
•
In house management and control of web site
$ 12,000
•
Reduced Bond Trustee Fee
$ 1,000
•
Banking Fees
$ 5,000
10
Total Annual SavingsTotal Annual Savings
•
Revenue Generation
$ 549,000
•
Staff Related Reductions
$ 304,700
•
Expense Controls
$ 231,000
Total Annual Savings
$1,084,700
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2011 Budget Assumptions2011 Budget Assumptions
•
CPI (Consumer Price Index) for the year ending June 30, 2010 is 1.7%, (US Department of Labor, Bureau of Labor Statistics, All Urban Consumers for the Denver / Boulder CO area)
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150 new properties
•
No additional increases in late, legal, lien fees
•
Resale transfers increase 5%
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Interest earnings at 0.75%
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Sub-Association Services 3% average fee increase
•
Yellow Page advertising revenue $35,000
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2011 Budget Assumptions2011 Budget Assumptions•
Overall staff salaries limited to 2% increase based on performance
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No increase in benefited positions
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Medical benefit maximum increase 5%
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Property/Casualty insurance rates remain flat
•
Operating expenses from 2-4%
•
Reserve study budgeted at $10,000
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2011 Budget Assumptions2011 Budget Assumptions
•
No change in facility operating hours
•
Eliminated low use day camp hours
•
Utilities increase over the 2010 Forecast
–
Commercial Natural gas prices to increase 15%
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Commercial Electricity costs to increase 13%
–
Commercial Water costs to increase 3%
•
New HRMD Storm Water maintenance fee $7,500
•
Trash service savings $24,000 (Pro Disposal Preferred Provider)
•
Recreation Reserve transfer increased to $700,000
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Administrative FunctionAdministrative Function
•
Covenants, Administration and Finance
•
Sub-Association Management
–
Serving 17 communities
•
Community Relations–
Community Events
•
Backcountry Wilderness Area
15
Community RelationsCommunity Relations
•
Community Events
–
Farmers Market/Street Market
–
July 4th
Celebration•
July 4th
Parade
•
July 4th
Community Fireworks
–
Easter Egg Hunt
–
Circus
–
Carnival
–
Teas & Tastings
–
Home Improvement Expo
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Craft & Jewelry Shows
–
Recycling Events
–
Rodeo
–
Film in the Park
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Trick or Treat Street
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Mother Son/Father Daughter Masquerade Balls
–
Doggie Splash
–
Hometown Holiday Celebration
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Administrative FundsAdministrative Funds
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Administrative Operating Fund
•
Administrative Reserve Fund
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Backcountry Fund
•
Backcountry Reserve Account
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Special Project Account
•
OSCA Fund
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Administrative Operating Fund BudgetAdministrative Operating Fund Budget
Revenues
$ 2,867,200
Expenses
2,649,200
Net Operating Revenues
218,000
Transfers 218,000
Due from Prior Years Operating Funds$ 0
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Administrative Revenue Sources
Other Revenue3%
Assessments53%
Community Events13%
Sub-AssnManagement10%
Late, legal, lien transfer fees21%
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-
50,000
100,000
150,000
200,000
250,000Re
venu
es
A ctual 200 4A ctual 200 5A ctual 200 6A ctual 200 7A ctual 200 8A ctual 200 9Foreca st 2 010B udge t 201 1
Year
Sub-Association Management Services
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Administrative Expenses
Community Events7%
Transfers8%
EmployeeExpenses
57%Other Expenses
28%
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Administrative Fund TransfersAdministrative Fund Transfers
To Capital Equipment
$ 9,000
To Administrative Reserve
$ 24,000
To Backcountry Fund
$ 160,000
To Backcountry from Special Project
$ 25,000
Total Administrative Fund Transfers
$ 218,000
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Administrative Transfers
Reserve Fund9%
Capital Equip5%
0% Special Project to
Backcountry12%
Backcountry Fund74%
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Administrative Capital / Reserve BudgetAdministrative Capital / Reserve Budget
CapitalComputer/Software
$ 9,000
ReserveComputer/Software
$22,000
(1/2 payment for an Event Tent) 2,000
Total
$24,000
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2011 Backcountry Operating Budget2011 Backcountry Operating Budget
Operating Revenues
$ 55,300Transfer from Admin Fund
$ 160,000
Transfer from Special Project Acct
$ 25,000Total Revenues
$ 240,300
Less Operating Expenses
$ 240,017Less Capital Equipment Transfer
$ 21,500$ 261,517
Net Operating Revenues (Deficit)
($ 21,217)
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Recreation FunctionRecreation Function
•
Facility Operations Function
•
Recreation Programming Function
•
Transfers
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Recreation FundsRecreation Funds
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Recreation Operating Fund•
Recreation Reserve Fund
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Recreation OperationsRecreation Operations•
HRCA manages 315,000sq. ft / 7.2 acres of indoor recreation facilities.
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Additional Outdoor Pool Cabanas + Buildings total (5) buildings or 8,600 sq. ft.
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700+ Employees–
Only 112 Benefited Employees
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Avg. Hours of operation,17 Hours/Day
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Closed (4) days per year
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Recreation ProgramsRecreation Programs
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3 Planning periods (Activity Guides) per year
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Diverse programming for all ages
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Fees cover expenses
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2011 Budgeted Program Revenues2011 Budgeted Program Revenues
•
$4,568,000 in revenues
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25% of total revenues
•
Projecting 4% growth in 2011 revenue over 2010 Forecast
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Recreation Operating Fund BudgetRecreation Operating Fund Budget
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00R
even
ues
inm
illio
ns
1997 1999 2001 2003 2005 2007 2009 Budget2011
Year
HRCA Program Revenue Growth
31
Recreation Operating Fund BudgetRecreation Operating Fund BudgetRecreation Expenses
Programs OperatingExpenses
15%
Utilities7%
Transfers24%
Facility OperatingExpenses
11%
Facility OperatingStaff43%
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Recreation Operating Fund BudgetRecreation Operating Fund Budget
Revenues
$18,439,440
Facility Operating Expenses
$ 6,861,210
Program Expenses
$ 2,746,880
Multi-Facility Expenses
$ 4,488,220
Total Operating Expenses
$14,096,310
Net Operating Revenues
$ 4,343,130
Transfers
$ 4,339,790
Net Operating Revenues after Transfers
$ 3,340$ 3,340
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Recreation Operating Fund BudgetRecreation Operating Fund BudgetRecreation Revenue Sources
Other1%
Programs25%
Facility Operating3%
Assessments71%
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Recreation Operating Fund BudgetRecreation Operating Fund BudgetRecreation Expenses
Programs OperatingExpenses
15%
Utilities7%
Transfers24%
Facility OperatingExpenses
11%
Facility Operating Staff43%
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Recreation Fund TransfersRecreation Fund Transfers
To Capital Equipment
$ 46,000
To Bond Requirements
$3,593,790
To Recreation Reserve
$ 700,000
Total Recreation Fund Transfers
$4,339,790
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Recreation Operating Fund BudgetRecreation Operating Fund BudgetRecreation Transfers
Capital Equip Net1%
Bond Repayment83%
Reserve Fund16%
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Recreation Capital BudgetRecreation Capital Budget
Computer
$ 4,000Ultraviolet Disinfection System WR
$ 36,520
SR -
Storage Shed
5,480
Total Recreation Capital
$ 46,000
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Recreation Reserve BudgetRecreation Reserve Budget
Computer/Software/Telephone $ 44,400
Northridge
150,510Southridge
95,740
Eastridge
158,290Westridge
91,630
Emergency Reserve
100,000
Total Recreation Reserve
$640,570
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Recreation Reserve FundRecreation Reserve Fund
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Used for replacement of major assets
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Reserve study completed in 2006-Estimated replacement cost and useful life-Estimated interest earnings and inflation-Will perform new reserve study in 2011
•
2011 Transfer of $700,000 from the Recreation Operating Fund
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Recreation Reserve FundRecreation Reserve Fund
12/31/09 Balance $3,003,412
2010 Reserve Transfers
600,000
Interest Income
25,000
2010 Expenditures
(740,000)
Estimated 12/31/10 Balance $2,888,412
2011 Reserve Transfers
700,000
Interest Income
21,000
2011 Expenditures
(640,570)
Estimated 12/31/11 Balance
$2,968,842
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2010 Accomplishments2010 Accomplishments
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Controlled operating costs
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Over 100 community events
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Developed and implemented preferred provider trash program with Pro Disposal–
No trash service fee for HRCA facilities or events
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Direct savings for Homeowner, $1.68 Million Dollars
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Safer and cleaner neighborhoods with one day per week pick up
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Developed and implemented Yellow Pages Directory
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CNN Money Magazine,
“12th
Best Places to Live”
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Forbes,
One of the best places to move
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Business Week, One of the best places to raise your kid
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2010 Accomplishments2010 Accomplishments•
Lifeguarding exceeds industry standards
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Highlighted by news media
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Partnered with Cherry Hills Community Church a community-wide clean up day–
Over 2,500 volunteers (neighbors helping neighbors)
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Established an Enrichment Pre-school Program
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Expanded Programming in the Backcountry
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Archery Range
–
Wilderness Hikes
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Expanded volunteer efforts in the Backcountry to help save money
43
Budget Options to offset projected 2011 Budget Options to offset projected 2011 Recreation function shortfallRecreation function shortfall•
1.75% RFC Assessment increase of $.067 / mo or $8.00 / yearConsistent with 2009-10 CPI increase at 1.7%
OR A COMBINATION OF SOME OF THE FOLLOWING:Revenue Generating•
Charge non-member seniors for facility use
$ 6,000•
Charge non-member Metro District/Centennial Water staff recreation use fee
$ 8,000
•
Charge non-profit organizations for room rentals (Toastmaster, Scouts, Historical Society, etc.)
$ 5,000•
Charge all sub-associations for room rentals
$ 5,000Sub-total
$ 24,000
•
Charge every person $2.00 per visit for outdoor pool use
$173,000•
Offer non-resident Annual Recreation Memberships (150 homes @ $750) $112,500
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Budget Options to offset projected 2011 Budget Options to offset projected 2011 Recreation function shortfallRecreation function shortfallCost Savings (implemented at all recreation centers)
–
Reduce facility staff and supplies
$150,000–
Reduce parking snow removal plowing at 4”
of snow vs. 2”
20,000–
Eliminate TV’s, music and WiFi
service
9,000–
Close outdoor pools when school begins (approx August 10th) 38,000–
Reduce volunteer / committee expenses
15,000–
Close “Drop in Childcare”
(Nurseries)
12,000–
Sub-total
$244,000
–
Reduce operating hours at each facility by two hours per day $231,000•
Reduce operating hours at each facility by one hour per day
$115,520 •
Reducing operating hours at one facility by one hour per day $ 28,880
–
Reduce funding for major repairs(Exercise equipment not replaced as needed)
$225,000
–
Reduce / eliminate proposed staff salary increases (2%)
$150,000
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2010 Proposed Assessment2010 Proposed Assessment ChangeChange
Actual
Proposed
2010
2011
Increase
% Inc
Qtr Amt
AFCA $ 51.00
$ 51.00
$ 0 0%
$ 12.75
RFCA
$449.00
$457.00
$ 8.00
1.75%
114.25
Total
$500.00
$508.00 $ 8.00
1.57% *
$127.00
•
The CPI (consumer Price Index) for year ending June 30, 2010 is +1.70%, US Department of Labor, Bureau of Labor Statistics, Denver/Boulder region.
46
2011 Budget Summary2011 Budget Summary
•
Total Revenues projected: $21,357,290
•
Maintain quality facilities and services
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•
37 Cultural Events•
Event Revenues
•
SCFD Grant Funded•
Community Partner funded
Separate 501(c)3 Cultural Organization
48
Cultural Affairs AssociationCultural Affairs Association
Revenues
$186,900($64,000 SCFD Grant)
Operating Expenses
$186,900
Net Revenues
$ 0
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•
Sponsorship Funded•
Event Revenues
•
$127,000 in scholarships in 2004-2010
Separate 501(c)3 Organization
Scholarship FundScholarship Fund
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Highlands Ranch Community Scholarship Highlands Ranch Community Scholarship FundFund
Revenues
$ 19,274
Operating Expenses 22,650(includes $20,000 scholarships)
Net Revenues (Deficit)
($ 3,376)
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