MNW General Meeting  

2009 Budget

            •Objectives / Options

            •Key Assumptions

            •Budget Overview / Expense Analysis
            What is not in the Budget
            2009 Assessment -  No Increase / Comparisons to other subdivisions


2009 Budget Objectives

      όBalanced budget if possible with back-up to use cash reserves

      όMaintain cash reserve for ~ three / six months (rainy day fund) of annual HOA expenses

      όCommunity Center options are a separate discussion


2009 Budget Key Assumptions


    •HOA dues flat @ $400

    •Historical collections ratio (~95%) ; interest income ~ dramatically reduced

    •Community Center rentals flat / misc revenues flat (no insurance refund)

Spending increases for security / insurance / small contingencies / evaluate LT Facility Plan … 

    •Security contract up 3% each year (same number of deputies)

    •Insurance costs up 5-10% 
    Run and Maintain for Community Center ~ flat (most major repairs in 2005 / 2006) but contingencies for club house HVAC and some structural issues / tennis court refurbishing

      όTennis - any major court rebuild part of LT facilities Plan

      όFitness flat spend (purchased new equipment in 2006 / 2007 / 2008)

      όPool contract slight 3% increase from last year (D&S – good performance)

      όAssumes no major repairs for club house

      όElectricity rates ~ flat with 2008 actual spending (long term contract )

    •Long Term Facility plan process WIP


2009 Budget Overview

      Revenues                                                                                                       $860,000

      Expenses                                                                                                       $860,000

      Community Center ( 46% )

      Security ( 27% )

      Common area maintenance / pest control ( 11% )

      Management Company ( 6% )

      Other - Insurance, Legal, Collections, Other  ( 10% )

      Excess Rev / expenses                                                                             $-0-


      For theoretical comparison only… 

      Community center surplus   +$29,000

      Maint Fund deficit                - $29,000


2009 Revenues

All other (Club rentals, etc.) 11%

Assessments            89%


2009 Expenses

16%  All Other
11%  Maint
46% Community Center


What is not in the 2009 Budget

•No “major” Community Center renovations / additions / repairs
( no new tennis courts or major repairs to courts # 1-4 / no re-plastering of pool or new pool (s) / no major fitness or clubhouse refurbishments or new facilities
•No significant exterior entrance monument repairs or renovations such as Cul de Sacs / Sprinklers, etc.
•No repairs to pillars or perimeter homeowner fence.
•No major legal spend /adverse settlement on any HOA / Homeowner lawsuit(s)
•Another major hurricane / damages and or extra trash pick-up
•No monies built in for recoveries if we are granted non-profit 501 c 3 status
•No monies from insurance proceeds from Hurricane Ike


HOA Assessments Overview

Assessement – No Dues Increase
•Given overall economic climate no dues increase for 2009 / we have sufficient cash reserves even if the actual 2009 results are slightly worse that the planned budget @ break-even
•2008 was the first increase in 12 years except 2005 homeowners vote to take over the Community Center
–The CPI has moved up over 35%...
–The 2008 increase reflected the continued inflation for security, maintenance, energy costs and administration
•Community Center assessment of $175 ( 2005) was designed to be sustainable for a facility with significant “catch-up” refurbishments and minor phased renovations but not a major tear-down / renovation.  We have delivered that assumption / the cash surplus we have run each year approximates the debt service for the original ~ $750,000 loan assumption
•Memorial Northwest continues to have lower (lowest) assessments in the area
Funding for Community Center Improvements
•Depending on the vote of the homeowners who may authorize a minor / major rebuild of the community center and to provide funding (if required) we would then raise assessments (if required) to repay debt required to fund minor /major renovations per that vote…


Surplus / Deficit
 Before Capital Spending*** ~ $524          ($ 000s)

2003 primarily due to Section 18,25 revenues
2004 primarily due to security contract reduction
2005 primarily due to Community Center  one time catch-up repairs
2006 / 2007  lower / delayed Community Center spend & increased rental revenues partially offset by maint overspend / 2007 helped by $28,000 insurance settlement for roof damage
2008 primarily extra spending for Hurricane Ike


Capital Fund Activity
$ 000s

•Originally funded $200 in 1999 / Transfer surplus  funds in succeeding years
•1999 Stuebner Airline Entrance
•2000 Champion Forest South
•2001 Champion Forest North / Sprinkler project
•2002 Deep Pines / Sprinkler project  / Started Narmore Entrance 
•2003 Complete Narmore Entrance /  Sec #18,25 Entrance, (no pocket park although was originally in budget)
•2004 Limited spend for minor interior entrance monuments
•2006 /2007/ 2008  No substantive capital spend