Hideout POA - 2010 Budget Committee Minutes

August 6 - Attendees: J. Barcarola, B. Carpenter, B. Dehl, D. Dimmick, R. Passarella, M. Krause, V. Sabia. Excused: C. Myskowski. Board Candidates: A. Milidantri, F. Sakacs, S. Wilmot. Staff: R. Graf, D. Kiely. Meeting called to order at 1pm. Minutes of July 23 meeting were reviewed and approved. R. Graf made an overview presentation. 2011 budget draft reflects no salary increases. A 3% increase would be about $70,000. Medical benefits are projected to increase 11% - 70% is covered by the Hideout and 30% by the employee. D. Kiely indicated the budget was prepared with NO increase in the operational part of the annual dues. She is using a dues collection rate of 92.5% and 3,775 lots. Currently collections are slightly behind this rate and will be monitored for the final budget. Discussion followed on use of prior year surplus ($77)-based on new bylaw change, does the surpluses go into the contingency fund in 2011, or can it be used as additional revenue in 2011? Did the bylaw intend for it to start in 2012. This will be further reviewed since it would have an impact on what is available for the 2011 budget. Next departmental budgets were reviewed. (These are all considered draft submissions for the budget committee review. The cost of gas is $3.50 used in all departments-currently an upside) Security is budgeting $50,000 in revenue, $30,000 from fines and citations, and $20,000 in access badges. These numbers are consistent with the current forecast for 2010. There are no new full time personnel additions. It does appear an increase in part time staffing is needed, particularly for peak weekends. This will be reviewed. Employee benefits reflect the increase in health insurance. Workers Compensation is showing a nice reduction ($10,000) due to the reclassificatioN of dispatchers that Ralph was able to negotiate. Operating supplies of $11,000 appeared low and will be reviewed. Vehicle maintenance reflecting one leased vehicle will be gone, which will be reflected in a new vehicle purchased in the Capital Section. Laurel Park budget reflects 17 camping sites being used. There will be no increase in the boat storage rate. Ski Hill – revenue is conservatively budgeted at $129,000. The forecast for 2010 is $146,000, which included a very good winter skiing season. Weather is a key to the revenue. Staffing is set, with no changes from 2010. One area for further review is repairs and maintenance. Is there sufficient money for repairs of all the equipment and the lift? Lakes/Marina-no change in revenue budgeted for dock spaces, boat registration and storage. Electricity showing a $3,000 increase over 2010, due to increase in lighting and aeration pumps at Brooks and Deerfield Lakes. Environmental Control expense does not reflect fish stocking. The fish stock could be negatively affected by the lake takedown for the Dam. Stocking would cost $6,500. Could this be considered a Capital item? Needs an accounting review. Pools/ Beaches – No major change in revenue budgeted. Electricity increased by $3,000. Should chemical expense be increased to cover higher costs? Recreation Complex – Revenues are conservatively budgeted at $156,000, versus a 2010 forecast of $154,000. Overall, the new facility has shown an increase in member usage in all areas. Some are not revenue generators (cards, chess). One area impacting revenue is the outsourcing of the day camp. This has been a very successful change. An area for review is the vending in game room. Expenses reflect staff changes. The office administrator has moved from part time to a full time position. Part time wages in the Fitness Center are increasing to cover the expanded hours. Golf Department – No increase in golf fees budgeted. No change in staffing of pro shop. Should the telephone cost be increased to reflect the actual usage – is it being charged to the Clubhouse? To be reviewed. Lease carts are increasing. Golf Maintenance-No increase in staffing budgeted. No major changes in spending. Arts and Crafts-No major changes from 2010. Maintenance-No changes in revenue (building permits). Salaries reflect change in department structure. Public Works Director position changed to Facilities Manager and Supervisor changed to Lead Man. This generates a saving in total from one open position, which will be kept in budget for further consideration. Employee benefits increasing by $22,000 as more employees opt into the medical plan. A sign of the economy? Operating supplies need to be changed to reflect a typo. Road repairs and snow removal need further review as possible opportunities. Woodworkers-Revenues reflect 100 members. No further changes. Grounds – No change. This completed the first phase of the department reviews. Next meeting will address Administration, Community Relations, Clubhouse and Lodge. Meeting adjourned at 3pm. Next meeting: August 20 ---------------------------------------- August 20 - Attendees: R. Azzato, J. Barcarola, B. Carpenter, B. Dehl, D. Dimmick, M. Krause, R. Passarella, V. Sabia. Board Candidates: F. Sakacs, S. Wilmot Staff: G. Graff, D. Kiely. Guest: M. FaLabella, Long Range Planning Comm. R. Graf reviewed Maintenance Dept. restructuring, changing Public Works Director to Facilities Manager. Some concern expressed over the need to increase review of plans before and after construction. Need to tighten up the function. D. Kiely updated the committee on the dues collection rate. It is currently at 90.2%, and 91.3%, with payment plans. In total it is 98.4% of budget. Ralph and Donna feel it will increase with the next phase of collection efforts. Administration-Revenues are budgeted below the current forecast by $19,000. This is in need of review. Short-term rentals appear low by $10,000. Staffing wages reflect an addition of a Network Administrator. Currently work done by a part time outsource person. The additional salary is being offset by a reduction in outside IT expense. The change is expected to make a major improvement IT service. The use of credit card expense was again discussed and the committee recommends increasing dues by $40 and providing a credit of $40 to those who pay by cash or check. No other changes. Community Relations-D. Kiely was asked to review the revenue versus commission calculation. Clubhouse-Food revenues are budgeted below the current forecast, needs further review. Gross margin from food and beverage still appears to be a challenge. Same old problem, gross margin is not high enough to absorb the expenses of overhead. Is there pressure to maintain costs for golf outings at prior year levels? How does manager generate more volume? The current forecast also came into question and will be reviewed. Tab Master-Revenue of $45,000, appears out of line with recent forecast and history. Profit is reflected at 22%, iS that appropriate? Lodge-Revenues are budgeted below current forecast and prior year, needs review. Committee has a concern over low percentage of cost of sales for food, only 25%. Will the quality be affected? Low quality mean low usage. Lodge assistant in 2011, not in 2010. This is not a new position, needs review. Part time wages also increased to reflect additional staffing. Is the issue with Tiki Bar service, the number of servers or the need to speed up the kitchen flow? This completes the first review of all departments Amenity fees-no increases reflected at this time. Fitness Center yearly rate should be on a fiscal year basis, not calendar. Trash/Recycle-Extended hours has generated an increase in tonnage and an increase in recycled items. This has caused an increase in removal cost. Trash revenue based on different rates for improved lots versus unimproved. This is an amenity and committee members feel there should be no difference. Salaries and benefits should be reviewed, appear overstated. Vehicle maintenance appears overstated. Solid waste removal increasing by $7,000 reflecting rate increases. This completes the operating section of the budget. Next meeting scheduled for August 27, at 1:00, will focused on Capital expenditure requests. Budget needs to go to the Board in early September for their review.