RIVERS EDGE GOLF & PLANTATION PROPERTY OWNERS ASSOCIATION, INC . - - PDF document
RIVERS EDGE GOLF & PLANTATION PROPERTY OWNERS ASSOCIATION, INC . 2016 BUDGET WORKBOOK 526 Unit Basis 1. 2016 Budget Summary 2. 2016 Detailed Monthly Spreadsheets: Revenue & Expense Projections, Assessment Calculation and Reserve
RIVERS EDGE GOLF and PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Summary
526 Unit Basis
REVENUES
Regular Assessments 573,493 $ Interest Income 5,323 $ Vacant Property Maintenance Income 26,560 $ Miscellaneous Income 972 $ Fine Income 2,108 $
TOTAL REVENUES 608,455 $ OPERATING EXPENSES Repairs & Maintenance
Pool Supplies 9,400 $ Pool & Equipment Maintenance 1,025 Contract Pool Maintenance Service 9,490 Pool Licenses & Fees 800 Building Pressure Washing 1,710 General Maintenance 10,500 HVAC Repairs & Service 1,875 Fitness Equipment Maintenance 1,040 Contract Landscape Maintenance 104,150 Common Area Bushhogging 1,200 Irrigation Maintenance 3,000 Tree Maintenance & Supplies 2,500 Replacement & Additional Plantings 4,000 Vacant Property Maintenance 26,560 Interior Pest Control 1,530 Termite Treatment 210 Security & Emergency Equip. Maintenance 8,797 Elevator Maintenance 4,596 Contract Janitorial Service 21,540 Janitorial Supplies 4,184 Window Cleaning Services 905 Roadway & Parking Maintenance 7,000 Signage Maintenance 1,200 Lake & Fountain Maintenance 2,889 Storm Water Maintenance 10,000 Prop Maint Comm Discretionary Fund 3,000
Total Repairs & Maintenance 243,101 $ General & Administrative
Office Supplies 565 $ Printing 1,305 Postage 1,741 Website Expense 1,020 Legal Services 2,300 Audit Services 3,000
Page 1 of 2
RIVERS EDGE GOLF and PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Summary
526 Unit Basis
OPERATING EXPENSES (Cont.)
Management Services 42,606 $ ARB Administration Expense 10,000 Insurance Expense 19,905 Access Device Expense 1,280 Activities/Social Committee Expense 1,000 Association Meeting Expense 400 License & Fees 1,342 Bank Charges 90 Income Tax Expense 2,800 Bad Debt Allowance 12,000
Total General & Administrative 101,354 $ Utilities
Electricity 66,932 $ Water & Sewer 5,819 Propane Fuel 13,074 Trash Removal 84 Cable TV 1,998 Telephone 7,332
Total Utilities 95,239 $ Watchman Services
Contract Watchman Services 53,584 $ Identification Expense 600
Total Watchman Services 54,184 $ Reserves & Other Expenses
General Reserves 100,749 $ Painting Reserves 7,687 Association Property Tax 1,000 Operating Contingency 5,141
Total Reserves & Other Expenses 114,576 $ TOTAL OPERATING EXPENSES Capital Improvements
Planned Capital Improvements
Total Capital Improvements
TOTAL EXPENSES 608,455 $ 2016 ASSESSMENT RATES: Unimproved Homesite 941.48 $ Improved Homesite 1,344.96 $
Page 2 of 2
RIVERS EDGE GOLF PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Detailed Worksheet
526 Unit Basis
REVENUES Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Regular Assessments 573,493 $
$ Interest Income 304 580 554 528 501 475 448 422 396 372 372 372 5,323 Vacant Property Maint. Income 26,560
Miscellaneous Income 81 81 81 81 81 81 81 81 81 81 81 81 972 Fine Income
713
TOTAL REVENUES
600,438 $ 661 $ 2,030 $ 1,321 $ 582 $ 556 $ 529 $ 503 $ 477 $ 453 $ 453 $ 453 $ 608,455 $
OPERATING EXPENSES Repairs & Maintenance
Pool Supplies 600 $ 600 $ 700 $ 800 $ 800 $ 1,000 $ 1,000 $ 1,000 $ 900 $ 800 $ 600 $ 600 $ 9,400 $ Pool & Equipment Maintenance 75 75 75 75 100 100 100 100 100 75 75 75 1,025 Contract Pool Maintenance 620 695 620 870 945 870 870 945 870 870 695 620 9,490 Pool Licenses & Fees
Building Pressure Washing
General Maintenance 875 875 875 875 875 875 875 875 875 875 875 875 10,500 HVAC Repairs & Service 306 100
100
100 250 306 100
Fitness Equipment Maintenance
Contract Landscape Maintenance 7,263 7,263 7,263 15,763 7,263 7,263 7,263 7,263 7,263 15,763 7,263 7,263 104,150 Common Area Bushhogging
Irrigation Maintenance
350 350 350 350 350 350 450
Tree Maintenance & Supplies
Replacement & Additional Plantings
2,000
Vacant Property Maintenance
Interior Pest Control 105 105 105 105 195 105 195 105 195 105 105 105 1,530 Termite Treatment
Security & Emergency Equip. Maint. 1,214 2,850 255 759 200 200 1,369 550 200 799 200 200 8,797 Elevator Maintenance
65
175
Contract Janitorial Service 1,795 1,795 1,795 1,795 1,795 1,795 1,795 1,795 1,795 1,795 1,795 1,795 21,540 Janitorial Supplies 328 328 373 328 328 373 328 328 391 346 346 391 4,184 Window Cleaning Services
Roadway & Parking Maintenance
500 1,250
500
Signage Maintenance 50 250
250
250
250
Lake & Fountain Maintenance 241 241 241 241 241 241 241 241 241 241 241 241 2,889 Storm Water Maintenance
Prop Maint Comm Discretionary Fund 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Total Repairs & Maint.
13,721 $ 20,293 $ 14,811 $ 41,046 $ 18,387 $ 14,736 $ 15,111 $ 19,497 $ 13,964 $ 39,830 $ 19,290 $ 12,414 $ 243,101 $
Page 1 of 8
RIVERS EDGE GOLF PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Detailed Worksheet
526 Unit Basis
General & Administrative Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Office Supplies 95 $ 20 $ 130 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 $ 130 $ 50 $ 565 $ Printing 30 30 465 30 30 30 30 30 30 30 540 30 1,305 Postage 86 86 431 86 86 105 86 86 86 86 86 431 1,741 Website Expense 105 150
150
150
150
Legal Services
Audit Services
Management Services 3,551 3,551 3,551 3,551 3,551 3,551 3,551 3,551 3,551 3,551 3,551 3,551 42,606 ARB Administration Expense 833 833 833 833 833 833 833 833 833 833 833 833 10,000 Insurance Expense 1,659 1,659 1,659 1,659 1,659 1,659 1,659 1,659 1,659 1,659 1,659 1,659 19,905 Access Device Expense
Activities/Social Committee Expense
1,000 Association Meeting Expense
Licenses & Fees 270
1,342 Bank Charges 50 10
90 Income Tax Expense
2,800 Bad Debt Allowance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Total General & Admin.
7,679 $ 7,589 $ 10,069 $ 8,104 $ 12,129 $ 8,058 $ 7,534 $ 7,579 $ 7,679 $ 7,284 $ 8,199 $ 9,456 $ 101,354
Utilities
Electricity 6,206 $ 6,746 $ 5,876 $ 5,401 $ 4,976 $ 5,251 $ 5,501 $ 5,201 $ 5,026 $ 4,976 $ 5,551 $ 6,221 $ 66,932 $ Water & Sewer 673 32 566 32 566 42 1,078 61 1,488 32 1,218 32 5,819 Propane Fuel 1,980 1,980 1,584 1,239 1,062 531 354 354 708 708 990 1,584 13,074 Trash Removal
Cable TV 166 166 166 166 166 166 166 166 166 166 166 166 1,998 Telephone 611 611 611 611 611 611 611 611 611 611 611 611 7,332
Total Utilities
9,637 $ 9,536 $ 8,803 $ 7,450 $ 7,381 $ 6,601 $ 7,794 $ 6,393 $ 8,000 $ 6,494 $ 8,537 $ 8,615 $ 95,239 $
Watchman Services
Contract Watchman Services 4,553 $ 4,200 $ 4,499 $ 4,339 $ 4,563 $ 4,352 $ 4,555 $ 4,495 $ 4,415 $ 4,487 $ 4,495 $ 4,631 $ 53,584 $ Identification Expense 50 50 50 50 50 50 50 50 50 50 50 50 600
Total Watchman Services
4,603 $ 4,250 $ 4,549 $ 4,389 $ 4,613 $ 4,402 $ 4,605 $ 4,545 $ 4,465 $ 4,537 $ 4,545 $ 4,681 $ 54,184 $
Reserves & Other Expenses
General Reserves 100,749 $
100,749 $ Painting Reserves 7,687
Association Property Tax
1,000 Operating Contingency 428 428 428 428 428 428 428 428 428 428 428 428 5,141
Total Reserve & Other Exps.
108,864 $ 428 $ 428 $ 428 $ 428 $ 428 $ 428 $ 428 $ 428 $ 428 $ 428 $ 1,428 $ 114,576 $
Page 2 of 8
RIVERS EDGE GOLF PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Detailed Worksheet
526 Unit Basis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total TOTAL OPERATING EXPS.
144,504 $ 42,096 $ 38,660 $ 61,417 $ 42,938 $ 34,224 $ 35,472 $ 38,443 $ 34,536 $ 58,572 $ 40,999 $ 36,594 $ 608,455 $
Capital Improvements
Planned Capital Improvements
Total Capital Improvements
TOTAL EXPENSES
144,504 $ 42,096 $ 38,660 $ 61,417 $ 42,938 $ 34,224 $ 35,472 $ 38,443 $ 34,536 $ 58,572 $ 40,999 $ 36,594 $ 608,455 $
Monthly Cash Flow
455,934 $ (41,434) $ (36,630) $ (60,096) $ (42,356) $ (33,669) $ (34,943) $ (37,940) $ (34,059) $ (58,120) $ (40,546) $ (36,141) $ $
Cumulative Cash Flow
455,934 $ 414,500 $ 377,869 $ 317,773 $ 275,417 $ 241,748 $ 206,806 $ 168,866 $ 134,807 $ 76,687 $ 36,141 $ $
Page 3 of 8
RIVERS EDGE GOLF PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Detailed Worksheet
526 Unit Basis
Annual Assessment Computation Total Total Unimprvd. Imprvd. Per Unit Total Assess. Assess. Unimprvd. Imprvd. Assess. Assess. Annual Assess. $$$$ % Dwelling Property Lots Dwellings Basis Basis Assess. Income Change Change ID
Section 1 - Unimproved 1-9 6 0.001642 941.48 $ 5,649 $ 0.29 $ 0.03% Section 1 - Dwelling 3 0.002345 1,344.96 4,035 0.41 0.03%
2,5,7
Section 2 - Unimproved 5-20, 22-45, 22A 20 0.001642 941.48 18,830 0.29 $ 0.03% Section 2 - Dwelling 21 0.002345 1,344.96 28,244 0.41 0.03%
5, 8,9,11,12,14,16,18,19,24,25,28,31,33,34,37,39,42,43,44,45
Section 3 - Unimproved 1-36, 26A, 40-49 32 0.001642 941.48 30,127 0.29 $ 0.03% Section 3 - Dwelling 15 0.002345 1,344.96 20,174 0.41 0.03%
3,7,8,18,19,20,23,24,25,28,30,34,40,41,43
Section 4 - Unimproved 5-39 23 0.001642 941.48 21,654 0.29 $ 0.03% Section 4 - Dwelling 1 11 0.002345 1,344.96 14,795 0.41 0.03%
7,8,10,14,16,18,21,23,29,30,33
Section 5 - Unimproved 6-93 59 0.001642 941.48 55,547 0.29 $ 0.03% Section 5 - Dwelling 29 0.002345 1,344.96 39,004 0.41 0.03%
9,10,14,16,18,19,20,21,23,26,33,34,36,40,46,48,49,53,58,64,69,70,75,80,87,88,89,92,93
Section 6 - Unimproved 1-25 19 0.001642 941.48 17,888 0.29 $ 0.03% Section 6 - Dwelling 6 0.002345 1,344.96 8,070 0.41 0.03%
8,9,15,16,20,24
Section 7 - Unimproved 1-11 8 0.001642 941.48 7,532 0.29 $ 0.03% Section 7 - Dwelling 3 0.002345 1,344.96 4,035 0.41 0.03%
2,4,5
Section 8 - Unimproved 1-7 5 0.001642 941.48 4,707 0.29 $ 0.03% Section 8 - Dwelling 2 0.002345 1,344.96 2,690 0.41 0.03%
1,6
Section 9 - Unimproved 3-11 7 0.001642 941.48 6,590 0.29 $ 0.03% Section 9 - Dwelling 2 0.002345 1,344.96 2,690 0.41 0.03%
8,11
Section 10 - Unimproved 2-4, 19-73 2 56 0.001642 941.48 52,723 0.29 $ 0.03% Section 10 - Dwelling 1 0.002345 1,344.96 1,345 0.41 0.03%
32
Section 11 - Unimproved 1-9 9 0.001642 941.48 8,473 0.29 $ 0.03% Section 11 - Dwelling 0.002345 1,344.96
0.03% Section 14 - Unimproved 1-17 17 0.001642 941.48 16,005 0.29 $ 0.03% Section 14 - Dwelling 0.002345 1,344.96
0.03% Section 15 - Unimproved 1-11 11 0.001642 941.48 10,356 0.29 $ 0.03% Section 15 - Dwelling 0.002345 1,344.96
0.03% Section 17 - Unimproved 1-19 19 0.001642 941.48 17,888 0.29 $ 0.03% Section 17 - Dwelling 0.002345 1,344.96
0.03% Section 18 - Unimproved 10-16, 19-20 9 0.001642 941.48 8,473 0.29 $ 0.03% Section 18 - Dwelling 0.002345 1,344.96
0.03% Section 19 - Unimproved 1-16 & 23 17 0.001642 941.48 16,005 0.29 $ 0.03% Section 19 - Dwelling 0.002345 1,344.96
0.03% The Bluffs Townhomes - Dwellings 39 0.002345 1,344.96 52,454 0.41 0.03%
The Gallery Townhomes - Dwellings 62 0.002345 1,344.96 83,388 0.41 0.03%
Rivers Edge Golf Club - Unimproved 15 0.001642 941.48 14,122 0.29 $ 0.03%
Equal 15 Unimproved Assessments
ASSESSMENT TOTALS 332 194 573,493 $
1 - Lots 16 & 17 Combined into 16 2 - Lots 47 & 48 Combined into 47
Page 4 of 8
RIVERS EDGE GOLF PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Detailed Worksheet
526 Unit Basis
Replacement Reserve Schedule General Reserves Replace Funds Balance Useful Remain. 2016 2015 Target Actual % Foot Item Cost On Hand Needed Life Life Contrib. Contrib. Amt. Amt. Funded Notes
Roadways - Phase I (42,701 yds.) 256,206 $ 198,206 $ 58,000 $ 20 3 19,333 $ 4,540 $ 217,775 $ 198,206 $ 91%
2, 3, 4, 7, 8,13,16,20,23,38,40,45,46
Roadways - Phase II (12,182 yds.) 73,092 18,275 54,817 20 15 3,654 3,655 18,273 18,275 100% Roadways - Phase III (est. 8,000 yds.) 48,000 2,400 45,600 20 19 2,400 2,400 2,400 2,400 100% Signage 12,000 1,350 10,650 5 5 2,130 3,651
#DIV/0!
40,43,45
River Hall Parking Seal (4,600 yds.) 8,050
7 5 1,610
50
River Hall Parking Pave (4,600 yds.) 27,600 9,000 18,600 20 10 1,860 900 13,800 9,000 65%
3,6,16,17,50
River Hall Security Equipment 20,000 4,603 15,397 10 6 2,566 2,569 8,000 4,603 58%
24,38,40
Fountains (2) 16,000 14,380 1,620 10 1 1,620 6,000 14,400 14,380 100%
10,14,16,18,21,38,39,44,45
River Hall Roof 42,470 2,022 40,448 30 20 2,022 2,022 14,157 2,022 14%
40
River Hall Furnishings 25,000 14,728 10,272 15 5 2,054 1,664 16,667 14,728 88%
45
River Hall Floor Covering 19,032 2,085 16,947 12 7 2,421 417 7,930 2,085 26%
11,50
River Hall Wall Covering 10,500 7,000 3,500 15 5 700 700 7,000 7,000 100% River Hall Appliances 8,980 4,468 4,512 15 5 902 447 5,987 4,468 75% River Hall HVAC Systems 26,250 458 25,792 10 2 12,896 7,909 21,000 458 2%
24,38,40,45
River Hall Dehumidifier System 70,000 12,100 57,900 10 3 19,300 2,234 49,000 12,100 25%
9,15,16,19,22,24,38,50
River Hall Fitness Equipment 25,000 15,000 10,000 15 6 1,667 2,094 15,000 15,000 100%
7,38,44,50
River Hall Gutters 2,000
10 10 200
49
River Hall Shutters 12,000
12 4 3,000
49
Sauna & Equipment 10,000 6,668 3,332 15 5 666 667 6,667 6,668 100% Outdoor Pool Finish 17,000 17,000
6
17,000 400%
24,25
Outdoor Spa Finish 3,000 1,800 1,200 5 2 600 600 1,800 1,800 100%
25
Indoor Pool Finish 8,000 8,000
6
8,000 400%
24,25
Indoor Spa Finish 3,000 1,800 1,200 5 2 600 600 1,800 1,800 100%
25
Pool & Spa Equipment 13,500 6,041 7,459 8 6 1,243 314 3,375 6,041 179%
24,38,45
Pool Decking 11,375 11,375
1
10,238 11,375 111%
44
Tennis Courts Fencing 27,000 9,720 17,280 25 16 1,080 1,080 9,720 9,720 100%
7
Gatehouse Roof 4,950 1,859 3,091 40 25 124 124 1,856 1,859 100% Covered Bridge Roof 2,550 1,275 1,275 30 15 85 85 1,275 1,275 100% Covered & Pedestrian Bridges Repair 7,000
10 5 1,400
50
Entry Gate Controls 27,000 21,600 5,400 10 2 2,700 2,700 21,600 21,600 100% Entry Gates 20,000 6,400 13,600 25 17 800 800 6,400 6,400 100% Beach Club Landscaping (Overhaul) 5,000 1,000 4,000 10 8 500 500 1,000 1,000 100%
38
Beach Club Parking/Driveway 5,352 699 4,653 30 20 233 233 1,784 699 39% Beach Club Deck & Boardwalk 5,000
20 10 500
50
Beach Club Access Equipment 6,000 6,000
1
5,400 6,000 111%
38,40,44
Beach Club Roof 4,550 1,050 3,500 20 10 350 350 2,275 1,050 46% Beach Club Furnishings 12,250 2,948 9,302 5 2 4,651 2,150 7,350 2,948 40%
45,47
Beach Club Floor Covering - Carpet 500 125 375 8 6 63 62 125 125 100%
26,32,38
Beach Club Floor Covering - Hdwood 4,250 981 3,269 20 10 327 327 2,125 981 46%
General Reserves Continued Replace Funds Balance Useful Remain. 2016 2015 Target Actual % Foot Item Cost On Hand Needed Life Life Contrib. Contrib. Amt. Amt. Funded Notes
Beach Club Appliances 3,550 $ 2,130 $ 1,420 $ 12 2 710 $ 710 $ 2,958 $ 2,130 $ 72%
Page 5 of 8
RIVERS EDGE GOLF PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Detailed Worksheet
526 Unit Basis
Beach Club HVAC Systems 13,800 3,450 10,350 8 6 1,725 1,725 3,450 3,450 100%
27,33
Beach Club Exterior Plumb Fixtures 400 400
3
400 250% Beach Club Exterior Lighting Fixtures 880 906 (26) 5 3 (9)
906 257%
28,34
Beach Club Exterior Lift Door 6,000 2,280 3,720 10 8 465 1,140 1,200 2,280 190%
29,35,38,50
Beach Club Fire Sprinkler System 8,000
10 5 1,600
50
Beach Club Gutters 2,800 2,800
1
2,520 2,800 111%
44
Total General Reserves 934,887 $ 424,382 $ 510,505 $ 100,749 $ 60,759 $ 533,368 $ 424,382 $ 80%
Painting Reserves Replace Funds Balance Useful Remain. 2016 2015 Target Actual % Foot Item Cost On Hand Needed Life Life Contrib. Contrib. Amt. Amt. Funded Notes
River Hall - Exterior 25,000 $ 15,120 $ 9,880 $ 5 4 2,470 $ 2,470 $ 5,000 $ 15,120 $ 302%
12,40,41
River Hall - Interior 22,000 20,000 2,000 7 4 500 500 9,429 20,000 212%
12,40
Covered & Ped. Bridges (2) 3,925 1,457 2,468 9 6 411 411 1,308 1,457 111%
5,7,12,38
Tennis Courts Surface 25,200 18,900 6,300 12 3 2,100 2,100 18,900 18,900 100%
6,7
Beach Club - Exterior 11,000 1,846 9,154 4 4 2,289 4,319
#DIV/0!
30,36,38,40,42,48
Beach Club - Interior 4,000 4,500 (500) 8 6 (83)
4,500 450%
31,37
Total Painting Reserves 91,125 $ 61,823 $ 29,302 $ 7,687 $ 9,800 $ 35,637 $ 61,823 $ 173% TOTAL RESERVES 1,026,012 $ 486,205 $ 539,807 $ 108,436 $ 70,559 $ 569,005 $ 486,205 $ 85%
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RIVERS EDGE GOLF PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Detailed Worksheet
526 Unit Basis
RESERVE SCHEDULE FOOTNOTES
1 = Reserve Components RH Floor Covering ($990), Pool Deck Furniture ($3,571), Janitorial Equipment ($750), Gatehouse Exterior Painting ($1,000) & Gatehouse Interior Painting ($700) eliminated from Reserve Schedule, with the total $7,011 accumulated "On Hand" funding eliminated from Reserve Fund balance to repay a portion of the Main Entry gate funding 2 = Component's "On Hand" balance increased by Road Impact Fees of $2,500 collected in 2007 (added to the 2008 "On Hand" total); $1,500 collected in 2008 (added in 2009l); $2,000 collected in 2009 (added in 2010), $2,500 collected in 2010 (added in 2011), $1,500 collected in 2011 (added in 2013), $2,000 collected in 2012 (added in 2014), $3.500 collected in 2013 (added in 2015), $2,000 collected in 2014 (added in 2016) 3 = Replacement Cost increased by $.10 per yard in 2011 Schedule to reflect current component pricing (crude oil cost) 4 = Component's "On Hand" year beginning balance reduced in the 2009 Schedule by $66,783 (at the time of budget prep) to reflect the transfer of accumulated reserve funds to the Association's operating account, during 2008, to cover un-budgeted expenditures, such as the Entry Gate balance, RH HVAC repairs, etc. 5 = Component's Useful & Remaining Lives increased by 2 years in 2009 schedule to reflect current condition 6 = Component's "On Hand" balance increased by $382 in 2009 Schedule, taken from the Tennis Court Surface component's excess of "Target" funding, to take the River Hall Parking component to 100% of "Target" funding 7 = Component's "On Hand" balance increased by $5,883 in 2009 Schedule, taken from the following component's excess of "Target" funding: Tennis Court Surface - $2,609, Lake Bridge Painting - $1,121, Tennis Court Fencing - $ 994 & River Hall Fitness Equipment - $1,159 to move the Roadways component toward 100% of "Target" funding 8 = Component's "On Hand" balance was increased by a $15,000 contribution from 2008 operating surplus. The 2010 schedule, indicating an additional $15,000 surplus contribution, from 2009 operations was incorrect and a $15,000 correcting deduction was made in the 2011 schedule 9 = Component's "On Hand" balance reduced by $1,260 in the 2011 schedule, reflecting the 2010 replacement of a Pool Pak contactor unit. The Life Cycle remained static 10 = Component's "On Hand" balance reduced by $725 in the 2011 schedule, reflecting the 2010 complete re-work of the Arnold Palmer Lake fountain. The Life Cycle remained static 11 = A reserve component was added to the 2011 schedule to fund the replacement of the new floor covering in the R H Lounge area based on the 2010 installation information, with a projected 12 year life 12 = Component's Useful & Remaining Lives increased by 1 year in 2012 schedule to reflect current condition and Board decision to delay replacement 13 = Component's "On Hands" funds increased by $16,774 in the 2012 schedule from the $22,279 contribution from 2010 operating surplus towards component "Target Funding" 14 = Component's "On Hands" funds increased by $3,159 in the 2012 schedule from the $22,279 contribution from 2010 operating surplus to component "Target Funding" 15 = Component's "On Hands" funds increased by $2,346 in the 2012 schedule from the $22,279 contribution from 2010 operating surplus to component "Target Funding" 16 = The 2006 - 2010 accumulated earned interest on the investment of the reserve fund, totaling $17,590 (2006 - $75, 2007 - $3,367, 2008 - $6,945, 2009 - $1,304 & 2010 - $5,899), was allocated to four (4) individual reserve components, as is indicated in Notes 15 - 18, in an effort to bring these components to 100% of "Target" funding in the 2012 schedule 17 = Component's "On Hands" funds increased by $70 to 100% of "Target" funding thru the component allocation of 2006 - 2010 accumulated Earned Interest ($17,590 total) from reserve fund investment 18 = Component's "On Hands" funds increased by $544 to 100% of "Target" funding thru the component allocation of 2006 - 2010 accumulated Earned Interest ($17,590 total) from reserve fund investment 19 = Component's "On Hands" funds increased by $1,008 to 100% of "Target" funding thru the component allocation of 2006 - 2010 accumulated Earned Interest ($17,590 total) from reserve fund investment 20 = Component's "On Hands" funds increased by $15,968 towards "Target" funding thru the component allocation of 2006 - 2010 accumulated Earned Interest ($17,590 total) from reserve fund investment 21 = Component's "On Hands" funds decreased in the 2012 schedule due the expenditure of $3,159 for the replacement of the Laurel Valley fountain motor 22 = Component's "On Hands" funds decreased in the 2012 schedule due the expenditure of $2,346 for the replacement of the Pool Pak motor 23 = Component's "On Hands" funds increased in the 2013 schedule by $20,000 reflecting a Y/E 2012 contribution from 2012 operating surplus 24 = Component's "On Hands" funds decreased in the 2013 schedule, reflecting the following 2012 reserve expenditures: RH Dehumidifier - $1,960 for the replacement of the Pool Pak compressor; RH HVAC - $3,137 for replacement of the 1st floor compressor (serving foyer & library); Indoor Pool Finish - $2,750 for the indoor spa refinish; Outdoor Pool Finish - $2,750 for the outdoor spa refinish; Pool & Spa Equip - $2,703 Indoor spa heater replaced; Pool & Spa Equip - $2,740 for replacement of Indoor pool heater; River Hall Security Equip - $2,075 fire alarm motherboard replaced (Note: This component's "On Hand" adjustment made in the 2014 schedule as expense was made after 2013 budget adopted). Total 2012 Reserve Expenditures: $18,115 25 = The Indoor & Outdoor Pool & Spa Finish components were separated in the 2013 schedule. Both of spas were refinished with epoxy coating in 2012, with each Pool & Spa's component "On Hand"
balance reduced by $2,750 (refinish cost). New reserve cycles were commenced in the 2013 schedule for each Spa at $3,000, with a new 5 year Life Cycle. The Replacement Cost of each Pool Finish component was reduced by $3,000 in the 2013 schedule, with no other "On Hand" or Life adjustments
26 = Component's "On Hands" funds established in the 2013 schedule at $168 (Target Funding) from the $20,000 Y/E 2012 contribution from 2012 operating surplus 27 = Component's "On Hands" funds established in the 2013 schedule at $5,678 (Target Funding) from the $20,000 Y/E 2012 contribution from 2012 operating surplus 28 = Component's "On Hands" funds established in the 2013 schedule at $854 from the $20,000 Y/E 2012 contribution from 2012 operating surplus 29 = Component's "On Hands" funds established in the 2013 schedule at $1,000 (Target Funding) from the $20,000 Y/E 2012 contribution from 2012 operating surplus 30 = Component's "On Hands" funds established in the 2013 schedule at $8,800 (Target Funding) from the $20,000 Y/E 2012 contribution from 2012 operating surplus
RESERVE SCHEDULE FOOTNOTES CONTINUED
31 = Component's "On Hands" funds established in the 2013 schedule at $3,500 (Target Funding) from the $20,000 Y/E 2012 contribution from 2012 operating surplus 32 = Component's "On Hands" funds increased in the 2014 schedule by $24 from the additional $5,000 Y/E 2012 contribution from 2012 operating surplus 33 = Component's "On Hands" funds increased in the 2014 schedule by $811 from the additional $5,000 Y/E 2012 contribution from 2012 operating surplus
Page 7 of 8
RIVERS EDGE GOLF PLANTATION PROPERTY OWNERS ASSOCIATION, INC.
2016 Operating Budget Detailed Worksheet
526 Unit Basis 34 = Component's "On Hands" funds increased in the 2014 schedule by $26 from the additional $5,000 Y/E 2012 contribution from 2012 operating surplus 35 = Component's "On Hands" funds increased in the 2014 schedule by $1,439 (Recent Estimate) from the additional $5,000 Y/E 2012 contribution from 2012 operating surplus 36 = Component's "On Hands" funds increased in the 2014 schedule by $2,200 from the additional $5,000 Y/E 2012 contribution from 2012 operating surplus 37 = Component's "On Hands" funds increased in the 2014 schedule by $500 from the additional $5,000 Y/E 2012 contribution from 2012 operating surplus 38 = Component's "On Hands" funds decreased in the 2014 schedule due to the following 2013 reserve expenditures: RH HVAC Systems - $8,600 for the replacement of the Fitness Room In/Out unit (Remaining Life increased to 4 years); RH Security Equip - $7,125 for the replacement of the fire alarm system (lightning damage) & Roadways Phase I - $6,075 for the balance of the fire alarm system replacement (total replacement cost $13,200 - Remaining Life increased by 6 yrs. in 2014); Fountains - $2,288 for the replacement of Copas Road fountain power unit; BC Lift Door - $2,439 for the replacement of the exterior lift door & locking controls & BC Exterior Painting - $3,236 for the balance of the BC Lift Door replacement (total replacement cost $5,675); BC HVAC System - $7,300 for replacement of the two (2) exterior units with protective coating & BC Exterior Painting - $400 for the balance of the BC HVAC units (total replacement cost $7,700); BC Floor Covering Carpet - $216 for replacement of the stairway carpet & BC Exterior Painting - $269 for the balance of the BC carpet replacement (total replacement cost $485); BC Exterior Painting - $6,000 for the exterior flashing replacement and associated repainting; RH Dehumidifier - $6,100 for the replacement of the Pool Pak controllers ($4,200) & fan motors ($1,900) (lightning damage - Remaining Life increased to 5 years); BC Landscaping - $1,667 for replacement of the front landscape bed plants and gravel replacement & Roadways Phase I - $2,478 for the balance of the BC Landscape replacement; Pool & Spa Equip. - $2,509 for the replacement of the indoor pool heater circuit board; Lake Bridges - $3,290 for the cleaning and repainting of the 2 lake bridge structures; BC Access System - $1,307 for the replacement
39 = In 2015 schedule, component's Replacement Cost increased to $16,000, Useful Life reduced to 10 years, Remaining Life established at 1 year 40 = Component's "On Hands" funds decreased in the 2015 schedule due to the following 2014 reserve expenditures: RH Roof Repairs - $12,744 (Reserve accumulated balance thru 2014) for replacement of the roof over the rear portico (Total cost was $26,259, with the $13,515 balance being funded thru the Operating Contingency; RH Security Equip - $486 for the replacement of the pool door card reader; Signage - $1,301 for replacement of traffic control signs; BC Access Equip - $500 for replacement of the side door card reader; Roadways Ph I - $1,200 for core drilling & Engineering evaluation services; RH HVAC - $5,650 for complete replacement (in/out units) for the library; RH Exterior Painting - $12,350 for the repainting of exterior trim; RH Interior Painting - $2,500 for the repainting of the Fitness Room; BC Exterior Painting - $3,500 for the repainting of the exterior trim. Total 2014 Reserve Expenditures: $40,231 41 = Component's Useful Life reduced to 5 years in 2015. All other component factors remained unchanged 42 = Component's Useful Life reduced to 4 years in 2015. All other component factors remained unchanged 43 = Component's Replacement Cost increased to $12,000 in 2015. All other component factors remained unchanged 44 = Component's Remaining Life extended by 1 yr in the 2016 schedule, as the component replacement is not anticipated to be needed in 2016 45 = Component's "On Hands" funds decreased in the 2016 schedule due to the following 2015 reserve expenditures: Pool & Spa Equip - $1,496 for the replacement of Indoor pool heater; Fountains - $1,620 for installation of LED lighting & power cables on both fountains; Roadways Ph I - $60,000 for the resurfacing of various road sections; RH HVAC - $9,975 for replacement of 3-ton & 2-ton Ext & Int units; RH Furnishings - $1,955 for purchase of 8 additional round tables & 4 bistro tables for Lounge; BC Furnishings - $3,502 for replacement of 2 sofas; Pool & Spa Equip - $1,160 for replacement of Indoor pool heat exchanger; Pool & Spa Equip - $2,922 for replacement of Indoor spa heater; Signage - $7,000 for signage replacement & additions; BC Ext. - $4,836 for building exterior wall repainting. Total 2015 Reserve Expenditures: $94,466 46 = With the "major" roadway repair & repaving work completed in 2015, component's Remaining Life was extended by 3 yrs. in the 2016 schedule to lessen the impact on the 2016 annual assessment by spreading the recovery of the reserve funds expended for the 2015 repairs 47 = Component's Replacement Cost increased by $1,500 in the 2016 schedule to reflect actual sofa costs expended in 2015. Life Cycle adjusted in the 2016 schedule to a 5 year basis 48 = Component's "On Hand" reduced by $4,475 with the 2015 exterior repainting. No Replacement Cost adjustment made - based on 2014 & 2015 actuals. New Life Cycle commenced in 2016, with $2,207 of
residual "On Hand" funding remaining in tact
49 = New component added in the 2016 schedule with Replacement Cost based on 2015 actuals and commencement of a full Life Cycle 50 = Component adjusted or added as a new reserve component per 2015 Reserve Study Recommendations. See Documentary Notes for adjustment details.
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RIVERS EDGE GOLF and PLANTATION PROPERTY OWNERS ASSOCIATION, INC. 2015 to 2016 Comparison w/Actuals thru September 30, 2015
ACCOUNT 2015 OCT 2015 2016 $$$ % DESCRIPTION BUDGET ACTUALS BUDGET CHANGE CHANGE REVENUES
Regular Assessments 581,923 $ 582,864.15 $ 573,493 $ (8,430) $
Interest Income 5,614 1,793.36 5,323 (291)
Road Impact Fees
Vacant Property Maintenance Income 27,040 26,000.00 26,560 (480)
Working Capital Contribution
Miscellaneous Income 1,320 858.46 972 (348)
Fine Income 1,407 2,222.71 2,108 701 49.81%
TOTAL REVENUES
617,304 $ 615,438.68 $ 608,455 $ (8,849) $
OPERATING EXPENSES Repairs & Maintenance
Pool Supplies 7,000 $ 7,854.50 $ 9,400 $ 2,400 $ 34.29% Pool & Equipment Maintenance 850 1,346.20 1,025 175 20.59% Contract Pool Maintenance Service 4,800 4,000.00 9,490 4,690 97.71% Pool Licenses & Fees 800 800.00 800
Building Pressure Washing 1,660 2,164.00 1,710 50 3.01% General Maintenance 11,820 3,658.94 10,500 (1,320)
HVAC Repairs & Service 2,675 420.50 1,875 (800)
Fitness Equipment Maintenance 920 663.21 1,040 120 13.04% Landscape Mulch Material 16,406
Contract Landscape Maintenance 87,463 77,722.20 104,150 16,687 19.08% Common Area Bushhogging 2,500 480.00 1,200 (1,300)
Irrigation Maintenance 1,250 670.00 3,000 1,750 140.00% Tree Maintenance & Supplies 1,000 500.00 2,500 1,500 150.00% Replacement & Additional Plantings 15,655 18,573.89 4,000 (11,655)
Vacant Property Maintenance 27,040 13,080.00 26,560 (480)
Interior Pest Control 1,530 1,050.00 1,530
Termite Treatment 210 303.09 210
Security & Emergency Equip. Maint. 9,732 10,816.27 8,797 (935)
Elevator Maintenance 4,703 3,417.89 4,596 (107)
Contract Janitorial Service 21,408 18,224.00 21,540 132 0.62% Janitorial Supplies 3,218 3,483.23 4,184 966 30.01% Window Cleaning Services 905 905.00 905
Roadway & Parking Maintenance 4,000 216.10 7,000 3,000 75.00% Signage Maintenance 500
700 140.00% Lake & Fountain Maintenance 2,594 2,722.59 2,889 295 11.36% Storm Water Maintenance 2,000
8,000 400.00% Prop Maint Comm Discretionary Fund
3,000 new item
Total Repairs & Maintenance
232,639 $ 173,071.61 $ 243,101 $ 10,462 $ 4.50% #DIV/0!
General & Administrative
Office Supplies 605 $ 278.01 $ 565 $ (40.0) $
Printing 1,405 760.93 1,305 (100)
Postage 1,199 485.23 1,741 542 45.20% Website Expense 1,200 530.80 1,020 (180)
Legal Services 2,300 1,225.00 2,300
Audit Services 2,800 3,000.00 3,000 200 7.14%
ACCOUNT 2015 OCT 2015 2016 $$$ % DESCRIPTION BUDGET ACTUALS BUDGET CHANGE CHANGE
Management Services 43,416 $ 35,370.00 $ 42,606 $ (810) $
ARB Administration Expense
10,000 new item Insurance Expense 23,835 18,372 19,905 (3,930)
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RIVERS EDGE GOLF and PLANTATION PROPERTY OWNERS ASSOCIATION, INC. 2015 to 2016 Comparison w/Actuals thru September 30, 2015 Access Device Expense 800 1,227.62 1,280 480 60.00% Activities/Social Committee Expense 1,000
Association Meeting Expense 500 382.20 400 (100)
License & Fees 1,322 437.20 1,342 20 1.54% Bank Charges 120 44.00 90 (30)
Income Tax Expense 3,255
(455)
Bad Debt Allowance 10,000 1,286.09 12,000 2,000 20.00%
Total General & Administrative
93,757 $ 63,399.40 $ 101,354 $ 7,597 $ 8.10% #DIV/0!
Utilities
Electricity 65,312 $ 53,452.35 $ 66,932 $ 1,620 $ 2.48% Water & Sewer 4,845 4,938.34 5,819 974 20.11% Propane Fuel 20,230 8,469.57 13,074 (7,156)
Trash Removal 79 84.00 84 5 6.33% Cable TV 2,435 1,849.44 1,998 (437)
Telephone 6,756 5,448.72 7,332 576 8.53%
Total Utilities
99,657 $ 74,242.42 $ 95,239 $ (4,418) $
#DIV/0!
Watchman Services
Contract Watchman Services 53,521 $ 43,059.07 $ 53,584 $ 63 $ 0.12% Identification Expense 600 288.47 600
Total Watchman Services
54,121 $ 43,347.54 $ 54,184 $ 63 $ 0.12%
Reserves & Other Expenses
General Reserves 60,749 $ 60,749.00 $ 100,749 $ 40,000 $ 65.85% Painting Reserves 9,728 9,728.00 7,687 (2,042)
Reserve Study Expense 9,000 9,000.00
Beach Club Principal 18,000 18,489.33 Beach Club Interest 19,000 13,883.78 Association Property Tax 900
100 11.11% Operating Contingency 5,438 2,689.60 5,141 (297)
Current Year Reserve Expense
Total Reserves & Other Expenses
122,815 $ 200,508.91 $ 114,576 $ (8,239) $
#DIV/0!
TOTAL OPERATING EXPENSES
#DIV/0!
Capital Improvements
Planned Capital Improvements 14,316 $ 5,181.00 $
(14,316) $
Total Capital Improvements
14,316 $ 5,181.00 $
(14,316.0) $
TOTAL OPR. & CAPITAL EXPS
617,305 $ 559,750.88 $ 608,455 $ (8,850) $
BUDGET BASIS 2015 2016 CHANGE CHANGE LOTS 536 526
ASSESSMENT RATES Unimproved Homesite 941.19 $ 941.48 $ 0.29 $ 0.03% Improved Homesite 1,344.55 $ 1,344.96 $ 0.41 $ 0.03%
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2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 1
2016 Operating Budget 526 Lot Basis Documentary Notes & Financial Management Plan
1. Regular Assessments - (Acct # 30-40-4000) $573,493. The Regular Assessment income is generated by payment of annual assessments. The assessment rates are illustrated on page 2 of the budget detail worksheet. The individual assessments are based on the utilization of a percentage of ownership for each lot, depending upon improved or unimproved status. This percentage is derived by dividing the “initial” individual base assessment for each of the 526 platted and assessable lots, which is comprised of the 511 residential lots and the 15 golf course assessable lots ($350 for each
assessment amount of $213,200, the value of all 526 lots. This calculation derives each unimproved lot’s “assessment basis” of .001641651, which has been rounded to .001642 and each improved lot “assessment basis” of .002304522, which has been rounded to .002345. By multiplying the total expenses, less the ancillary sources of income, by this assigned percentage basis, equates each lot’s annual assessment rate. The annual assessment is to be paid in one (1) annual installment, due January 1st. The 2016 annual assessment rates, reflecting a 0.03% (3/10ths of 1 percent) increase over 2015, are: Lot
Assessment Annual Type Lots Basis Assess. Unimproved 332 .001642% $941.48 Improved 194 .002345% $1,344.96 2. Interest Income - (Acct # 30-40-4200) $5,323. Interest Income is projected as the return the Association will earn from the investment of the accumulated reserve funds and surplus operating funds. The Association will begin 2016 with an accumulated reserve fund balance of approximately $486,200, with $108,436 to be contributed to the account in February 2016. These funds will be invested in insured CDs and local banking money market accounts at an estimated average return of three- quarters of one percent (0.0075) during 2016. In addition, the Association will invest its surplus operating cash, generated by the payment
allowance for A/R ($80,000). This should generate a surplus for investment of approximately $376,000. This surplus will be invested in February and it will be reduced monthly by approximately $42,200 to provide funding to meet the Association’s monthly expense obligations. 3. Vacant Property Maintenance Income - (Acct # 30-40-4305) $26,560. An annual revenue projection of $26,560 has been included to reflect the receipt of $80 per vacant lot, which funds the annual bushhogging/cutting, two (2) times annually, of each of the estimated 332 vacant lots (number of vacant lots at the time of budget prep). The revenue will be billed and received in conjunction with the annual assessment in January and will serve as the offsetting “contra item” for the Vacant Property Maintenance expense.
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 2
4. Miscellaneous Income - (Acct # 30-40-4800) $972. Miscellaneous Income is generated primarily thru the purchase of access cards and key
1 key fob monthly at $41 each, throughout the year. 5. Fine Income - (Acct # 30-40-4810) $2,108. The Fine Income is the projected income the Association will receive from various sources
no rule violation fines are projected. The Assessment Collection Policy provides for a late fee of $20 monthly to be levied beginning in February on all delinquent assessments remaining unpaid after the due date of January 31st. Using historical data, an estimated 45 late fees will be levied in February, with payment received in March. Based on prior years’ collection data, 40 of these late fees are estimated to be collected, with the remainder being abated for various reasons. An estimated 25 late fees will be levied in March, with payment received in April, with 20 of these late fees being collected. No further late income is projected, as all delinquent accounts will have been referred to the attorney as of May. (There may be some additional Late Fees collected by the attorney, however, this is not budgetable.) In addition to the late fee, the Collection Policy provides for application of an interest penalty of 18% per annum, levied monthly until the delinquency is brought current. Using historical delinquency data and using the projected annual assessments of $941 and $1,345, the monthly interest penalties will be Unimproved - $14.12 and Improved - $20.18. Based on the above delinquency numbers, this income stream projects collection of 35 Unimproved penalties and 5 Improved penalties in March, 15 Unimproved penalties and 5 Improved penalties in April.
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 3
Repairs & Maintenance:
1. Pool Maintenance & Supplies – (Acct # 30-10-6410) $9,400. Funding is provided to purchase chemicals and other supplies for maintenance of the swimming pools and spas by Aqua Tech (“AT)”). The allocation is based on AT projections and expense history. AT will provide chemicals and supplies on a bulk purchased basis to the Association. The monthly projections in the spreadsheet have been made to reflect the “off-season” for the outdoor pool facilities. 2. Pool & Equipment Maintenance – (Acct # 30-10-6412) $1,025. Funding is provided to maintain and repair the pool & spa equipment, beyond routine services of the maintenance contract. Budget allocation is $75 monthly Jan – April & Oct – Dec and $100 monthly May – Sept., reflecting the peak open season for the outdoor pool. 3. Contract Pool Maintenance (Acct # 30-10-6414) $9,490. The allocation provides for the contracted employment of Aqua Tech (“AT”) to maintain the pool and spa facilities. AT will routinely check the pool facilities and perform the required maintenance for proper operation of the pools, correctly balance the water quality and clean the pool facilities. The one (1) year service contract, January 1 – December 31, requires AT to perform maintenance daily during the “pool open” season – April 1 thru October 31 and inspected daily, cleaned on an as needed basis the remainder of the year. The fee for this service is $870 monthly during the “open season” and $620 monthly for the remainder
vendor directly billing the Association for the same. AT will purchase all chemicals and supplies and bill the Association, at cost, for the same. In addition, pool maintenance services outside the routine schedule will incur a $50 charge for service calls and additional labor charged at $50 per hour. An additional $300 annually has been allocated for this, spread at $75 quarterly. 4. Pool Licenses & Fees (Acct # 30-10-6416) $800. Funding is provided for the County required annual pool permit fees issued through the Brunswick County Health Department. The allocation is based on $200 for each pool (2) and each spa (2), four (4) pool facilities. The fee is payable in February. 5. Pressure Washing Services $1,710. Facilities – (Acct # 30-10-6418) $990. Funding is provided to secure contracted pressure washing services for River Hall. The vendor will be A+ Window Cleaning (“AWC”). AWC will perform a full pressure washing of the exterior of River Hall, the exterior pool buildings, the pool decking and the pool deck furniture, storing the furniture for the off-season, in October for a fee of $990. Property Maintenance – (Acct # 30-20-6418) $600. AWC will pressure wash the Covered & Pedestrian bridges in April for a fee of $600. Security – (Acct # 30-30-6418) $120. AWC will pressure wash the Copas Road entry gatehouse and adjacent sidewalk & curbing in October for a fee of $120.
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 4
6. General Maintenance $10,500. Funding has been provided to purchase materials, supplies and professional repair services, both labor and materials, for the Association’s common property and facilities. The allocation is segregated by Committee function: Facilities, Property Maintenance, Security and Beach Club. Such services include electrical, plumbing, appliance, non- contract HVAC, painting, carpentry, glass repair, drywall repairs, non-contract landscape maintenance, etc. This category provides the funding to accomplish both routine and preventive maintenance for the common facilities, serving as the “maintenance catch-all”, differentiating from those maintenance activities where a service contract exists. The allocation will fund any new project (non-capital in nature), which is not budgeted elsewhere and provides the funding for all general maintenance activities not covered as capital repairs/replacements, which are funded by the Reserves. The allocations are historically based and reflect any specific maintenance requests of the Committee Chairs for 2015. Facilities – (Acct # 30-10-6420) $4,800. A general, all-inclusive allocation of $400. monthly, $4,800. annually, primarily for River Hall related maintenance, inclusive of the pool lamppost repainting & indoor pool ceiling repairs. Property Maintenance – (Acct # 30-20-6420) $600. A general, all-inclusive allocation of $50. monthly, $600. annually, for common property maintenance. Security - (Acct # 30-30-6420) $300. A general, all-inclusive allocation of $25. monthly, $300. annually, for the main entry gatehouse maintenance needs and purchase of janitorial cleaning & paper supplies. Beach Club - (Acct # 30-50-6420) $4,800. A general, all-inclusive allocation of $400. monthly, $4,800. annually, for the Beach Club facility maintenance, including landscaping. 7. HVAC Repairs & Service $1,875. Facilities – (Acct # 30-10-6434) $1,225. Sandpiper Heating & Air - annual service contract for River Hall HVAC systems, including seasonal system servicing (per-heat & pre cool – 8 HVAC units & 1 Pool Pak dehumidifier) with quarterly checks and interior filter changes - $625 annually, paid quarterly at $156.25 in Jan, April, July & Oct. No fee increase for 2016. In addition to the annual service contract, a quarterly allocation of $150 is made to fund HVAC equipment repairs discovered in the routine preventative maintenance checks – Jan, April, July & Oct. Beach Club – (Acct # 30-50-6434) $650. Fulford Heating & Cooling - annual service contract for the Beach Club HVAC systems, including seasonal system servicing (per-heat & pre cool – 2 HVAC units) with quarterly checks and filter changes - $250 annually, fully paid in September. No increase for 2016. In addition to the annual service contract, a quarterly allocation of $100 is made to fund HVAC equipment repairs discovered in the routine preventative maintenance checks – Feb, May, Aug & Nov. 8. Fitness Equipment Maintenance - (Acct # 30-10-6440) $1,040. An annual allocation to secure an annual service contract from Coastal Fitness for the exercise equipment. The cost is $460 each service in Mar & Oct. No additional equipment repair allocation, over the service contract, has been made for 2016.
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 5
In addition to the annual service contract, an annual allocation of $120 has been made to fund another service call, aside from the two (2) annual services, as may be needed. 9. Contract Landscape Maintenance - (Acct # 30-20-6452) $104,150. An annual allocation of $104,150 is made to employ Carolina Creations to provide the Association with all inclusive landscape maintenance service for all completed common areas and paved roadway shoulders. The contract term is three (3) years, January 1, 2016 thru December 31, 2018. It is inclusive of labor, insurance, equipment, operation, supplies & materials, annual color (plants & labor in May & Oct), routine irrigation adjustments, at a fixed annual price of $87,150, payable monthly at $7,262.50, without any increase during the term for the landscaping improvements in place at the beginning of the contract term. The annual re-mulching activity, inclusive of labor & material, will occur in April & October and will be billed at $8,500 each application in addition to the base contract fee. 10. Common Area Bushhogging - (Acct # 30-20-6457) $1,200. An annual allocation of $1,200. has been made to fund the Common area bushhogging as is determined needed by the Property Maintenance Committee. The allocation is spread at $600 in May & $600 in November. 11. Irrigation Maintenance - (Acct # 30-20-6454) $3,000. An annual allocation of $3,000 has been made to fund the servicing and repair of the common area irrigation systems, including the Spring system “start-up” in April and the system winterization in November. The checks and repair services will be performed by Carolina Creations. These checks and repairs are in addition to the service contract’s routine system adjustments. Such repairs will be replacement of damaged heads, clock/timer repair/replacement, installation of additional heads, etc. The allocation is spread at $450 in April & Nov and $350 May – Oct., the normal period for irrigation. 12. Tree Maintenance & Supplies - (Acct # 30-20-6455) $2,500. An annual allocation of $2,500 has been made to fund the trimming and/or removal of dead
$1,250 in April & Nov, which follows winter storm and hurricane seasons. 13. Replacement & Additional Plantings - (Acct # 30-20-6456) $4,000. An annual allocation of $500 has been made to fund the replacement of dead or damaged shrubs in the common area landscape improvements. This allocation is spread at $300 in March and $200 in October, the typical months for new plant installation. An allocation of $1,500 has been made, as requested by the Property Maintenance Committee, to fund further enhancement of the landscaping improvements completed in 2015 for the main entrance, allocated in March. An allocation of $2,000 has been made, as requested by the Property Maintenance Committee, to fund further enhancement of the landscaping improvements completed in 2015 for the Fairway Crest entrance area, allocated in April. 14. Vacant Property Maintenance - (Acct # 30-20-6495) $26,560. An allocation of $80 per lot for two (2) times annually bushhogging and/or cutting of each of the estimated 332 vacant lots (number of vacant lots at the time of budget prep) payable at $40 each service. The service is to occur in April & October. Funding is assessed at $80
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 6
per lot, payable with the regular assessment in January, generating a “contra item” off- setting this expense. No fee increase for 2016. 15. Interior Pest Control $1,530. Facilities – (Acct # 30-10-6460) $1,080. Brunswick Pest Control – annual interior service contract - $90 monthly for River Hall. Security – (Acct # 30-30-6460) $180. Brunswick Pest Control – annual interior service contract - $15 monthly for Gatehouse. Beach Club – (Acct # 30-50-6460) $270. Brunswick Pest Control – annual interior service contract - $90 per service for Beach Club in May, July & Sept. 16. Termite Treatment $210. Facilities – (Acct # 30-10-6462) $100. Brunswick Pest Control – annual termite inspection & warranty bonding for River Hall - $100 payable in November. This facility will require retreatment in 2017 to maintain the warranty bond. Beach Club – (Acct # 30-50-6462) $110. Brunswick Pest Control – annual termite inspection & warranty bonding, $110 payable in
bondable period, with the payment of the annual inspection fee, for 10 years thru 2024. 17. Security & Emergency Equipment Maintenance $8,797. Facilities – (Acct # 30-10-6470) $3,402. Diebold – annual service contract for River Hall access control system - $1,177.48 annually, payable at $294.37 quarterly (6.75% tax added) – January, April, July & October Allegiance Fire Protection – annual service, inspection & certification of River Hall sprinkler systems, with reports to Shallotte fire department - $350 in August Hooks Alarm Service – River Hall annual fire alarm monitoring contract - $420 in January Hooks Alarm Service – annual testing & certification contract on River Hall fire alarm system, with reports to Shallotte fire department - $600 in July BFPE – annual service contract, including re-charging and tagging of all fire extinguishers (7) in River Hall per the Shallotte fire department code – payable at $55 in October Allocation for required maintenance “outside” the scope of the annual service contract coverage - $200 per quarter, middle month of calendar quarter – Feb, May, Aug & Nov Security – (Acct # 30-30-6470) $3,450. Carolina Time – annual service contract for main gate maintenance - $2,650 in February Allocation for required maintenance “outside” the scope of the annual service contract coverage - $200 per quarter, last month of calendar quarter – Mar, June, Sept & Dec Beach Club – (Acct # 30-50-6470) $1,945. Diebold – service arrangement (as needed) for the Beach Club access control system – estimated at $600 annually, spread at $150 quarterly – Jan, April, July & Oct BFPE – annual service, inspection & certification of the Beach Club sprinkler systems, with reports to Holden Beach fire department – $315, payable in April BFPE – annual allocation of $300 for exposed fire sprinkler parts replacement due to ocean front environment, payable in October with annual service/inspection
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Diebold – Beach Club fire alarm annual monitoring contract – $350, payable in January Diebold – annual testing and certification contract for the Beach Club fire alarm system, with reports to Holden Beach fire department – $325, payable in July BFPE – annual service contract, including re-charging and tagging of all fire extinguishers (3) in the Beach Club per the Holden Beach fire department code - payable at $55 in March 18. Elevator Maintenance $4,596. Facilities – (Acct # 30-10-6471) $3,531. ThyssenKrupp Elevator - (installer) full-service annual PM contract for the River Hall
five (5) years, beginning in 2012 & ending in 2016. The PM contract provides a master maintenance program with monthly servicing of the car, hydraulics and controllers. The contract includes an allowance for holiday & after-hour emergency response and includes scheduled operational parts replacement. No additional repair funding is anticipated, short
projected 3.5% increase in 2016 bringing the May, Aug & Nov quarterly billings to $846.25. NC Division of Labor annual inspection and licenses fee - $175 in paid September. Beach Club – (Acct # 30-50-6471) $1,065. Above All Elevator – $1,000 allocated for “non-contract” service on request for all repairs, inclusive of labor and materials & the annual inspection for the Beach Club lift, spread at $250 quarterly – Feb, May, Aug & Nov. NC Division of Labor annual inspection and licenses fee - $65 payable in June.
$21,540. Facilities – (Acct # 30-10-6480) $16,800. Maid 2 Clean – annual service contract for River Hall – labor and equipment for the facility’s janitorial services, with service three (3) days a week, year-round routine cleaning of the facility interior. Specific routine tasks include the cleaning and sanitization of all bathrooms & showers, disposal of all trash and replacement of receptacle liners, replenishment of all bathroom, kitchen, and fitness area consumables. Specific weekly tasks (once per week) include all routine tasks, plus a comprehensive cleaning of all areas, including mopping and/or vacuuming of all floors, cleaning of all kitchen areas & appliances, cleaning & sanitizing of all fitness equipment, cleaning & sanitizing of sauna, front entrance (exterior) and elevator floor swept, all furniture/woodwork cleaned & polished, all bathrooms receive expanded cleaning. Monthly washing & cleaning of all baseboards. Quarterly washing & cleaning the interiors of all first tier windows (reachable without a ladder). The contract is for a one (1) year term, with an annual fee of $16,800, payable monthly at $1,400. No increase over 2015 pricing. Beach Club – (Acct # 30-50-6480) $4,740. A+ Pro Window Cleaning – annual service contract for Beach Club – labor and equipment for the facility’s janitorial services, with year round weekly service of the facility interior. Specific routine tasks include the cleaning and sanitization of the kitchen (including appliances) and all bathrooms, cleaning and straightening of furniture and glass tables, the removal of all trash and replacement of plastic receptacle liners, replenishment of all bathroom consumables, plus mopping and/or vacuuming of all floors. Dusting of the ceiling fans and cleaning of the interior and exterior windows on a quarterly basis. The contract is for a one (1) year term, with an annual fee of $4,740, payable monthly at $395.00, representing a 2.9% increase over the 2015 pricing.
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20. Janitorial Supplies $4,184. Facilities – (Acct # 30-10-6482) $4,004. An allocation of $85 monthly for purchase of cleaning & paper supplies (direct Association purchase) for River Hall. UniFirst – River Hall safety floor mat rental contract – monthly change outs - three 4x6 mats at the entry doors, two 3x5 rubber mats in the showers and eight 3x10 “runner” mats in the hallways from the pools to the restrooms. A current 2016 monthly fee of $242.59 with a projected 7.5% increase in September 2016 bringing the monthly fee to $260.78. Beach Club – (Acct # 30-50-6482) $180. An allocation of $45 quarterly for purchase of cleaning & paper supplies (direct Association purchase) for the Beach Club – Mar, June, Sept & Dec. 21. Window Cleaning Services $905. Facilities – (Acct # 30-10-6483) $785. Funding is provided to secure contracted window cleaning services for River Hall. The vendor will be A+ Window Cleaning (“AWC”). AWC will clean the interior and exterior of all windows one time annually in October for a fee of $785. Security – (Acct # 30-30-6483) $120. AWC will clean the interior and exterior of all windows in the main entry gatehouse in October for a fee of $120. No fee increase for 2016. 22. Roadway & Parking Maintenance - (Acct # 30-20-6490) $7,000. An annual allocation of $2,000 has been made to fund the minor routine repairs (pot hole patch, etc.) of the roadways and parking areas. The allocation is spread at $500 quarterly – Feb, May, Aug & Nov. At the request of the Property Maintenance Committee, an annual allocation of $5,000 has been included in the 2016 budget for the repair & refurbishment of damaged street curbing. This allocation will fund crack sealing, broken curb section replacement, etc. throughout the
the weather – Apr, June, Aug & Oct. 23. Signage Maintenance $1,200. Property Maintenance – (Acct # 30-20-6448) $1,000. Annual funding of $1,000 per the request of the Property Maintenance Committee for signage improvements throughout the community. This portion of the allocation is spread at $250 quarterly – Feb, May, Aug & Nov. Security – (Acct # 30-30-6448) $200. An annual allocation of $200 has been made to fund the minor routine repairs (painting, re- lettering, etc.) of the various street and directional signage throughout the community. This allocation reflects the major signage rehab project completed in 2015 and is spread at $50 in the first month of the calendar quarter.
$2,889. Estate Management – annual service contract for the maintenance & servicing of the lake fountains and lake # 6. The contract term is one (1) year. The 2015 fee is $1,904.64, plus
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$900 for lake # 6 maintenance, a total of $233.72 monthly and is projected to increase by 3% for 2016 to a total of $2,888.78, payable monthly at $240.73 for the service. The replacement of fountain motors, impeller, controls, etc. are funded thru reserves. Note: REPOA will advance the 2016 monthly cost of $59.17 for lake # 2 maintenance, under one (1) combined service agreement, with the RE Golf Course reimbursing the POA for the advanced cost – dollar for dollar, resulting in a contra off-set (reimbursement credited to expense line item).
$10,000. An annual allocation of $10,000 has been made, per the Property Maintenance Committee’s request and in compliance with the Reserve Study recommendation, for the maintenance and repair of the community storm water drainage system. The allocation is spread at $2,500 in middle month of the calendar quarter.
$3,000. An annual allocation of $3,000, to serve as a discretionary fund for the Property Maintenance Committee, has been allocated, per the Property Maintenance Committee’s
TOTAL REPAIRS & MAINTENANCE: $243,101.
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General & Administrative:
1. Office Supplies (Acct. # 30-40-6610) $565. Funding has been provided to purchase necessary office supplies required for the Association’s administrative operation. The allocation includes: $75 to setup the Association’s annual administrative & accounting files in January and $30 in December for year-end “file close-out” & storage (boxes) for archived files. $110 in March for envelopes for the Annual Meeting mailing and $110 in November for window envelopes for the annual assessment mailing. The general allocation is $20 monthly for all other office supplies. 2. Printing (Acct # 30-40-6612) $1,305. Funding has been provided to cover the cost of printing and copying incurred in the Association’s routine administrative operation. This service will be provided by management and re-billed as out-of-pocket expenses on a monthly basis as utilized. The projection allocates funding historically based at $30 monthly. This category includes $425 allocated for the “outsourcing” of the Annual Meeting Notice assembly, printing & mailing in March; $500 for the outsourcing of the annual assessment billing assembly, printing and mailing in December. Outsourcing these two (2) jobs is more efficient & economical than preparing in-house, due to volume discount from the local printer and includes the printing of envelopes as a part of the assembly job. 3. Postage (Acct # 30-40-6614) $1,741. Funding has been provided to cover the cost of postage incurred in the Association’s routine administrative operation. This service will be provided by management and re-billed as out-of-pocket expenses on a monthly basis as utilized. The projection allocates funding for the mailing of the Annual Meeting Notice package in March and the mailing of the annual budget and assessment billing in November. The allocation also covers the postage expense for all other routine postage requirements. The category’s general allocation is projected at $26 monthly, plus $345 in March - Annual Meeting Notice (est. 500 packets at $0.69 each), plus $345 in December for the Annual Assessment mailing (est. 500 letters at $.69) – Developer packages hand delivered. In addition, a monthly allocation of $60 has been included to reimburse the Manager for use
The allocation also includes $19.00 in June for the annual post office box rental ($76 cost split with Bluffs, Gallery & Pointe West). 4. WebSite Expense (Acct # 30-40-6617) $1,020. Intercoastal Net Designs – monthly hosting fee of $35 for community web site - paid quarterly in advance at $105 ($35 x 3 = $105) in Jan., Apr., July & Oct. Annual allocation of $600 for on-going web site maintenance, site enhancement & improvements as required, allocated at $150 quarterly in Feb., May, Aug., & Nov. 5. Legal Services (Acct # 30-40-6620) $2,300. Funding has been included to cover the cost of legal assistance with collection of delinquent assessments. The Association’s delinquent assessment collection process is subject to the Fair Debt Collection Act. The collection system utilized by the Association, which complies with the Act, does not generally result in a lawsuit before collection is
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recovery, is $1,250. This allocation allows for the filing of 10 liens in May. Additionally, $50 is allocated in May to for the annual fee to employ Ward & Smith as the Association’s Registered Agent. Funding for general legal counsel and assistance for the Board in its administration of the Association’s affairs is $1,000 annually, spread at $250 in the middle month of the quarter. 6. Audit Services (Acct # 30-40-6622) $3,000. Funding has been provided to employ a CPA accounting firm to complete an annual audit
annual financial report for the membership and the completion of the Association’s 2015 federal and state tax returns. The service will include meeting with the Budget & Finance Committee/Board to review the audit report and presentation of the report to the membership at the Annual Meeting. The fee for this service is $3,000, payable in May following the completion and filing of the tax returns, the financial report review meeting with the Budget & Finance Committee and the completion of the audit and annual financial statements. 7. Management Services (Acct # 30-40-6624) $42,606. Funding has been provided to employ a management service to provide the Association with a full-service management function, including finance & accounting services, administrative services, physical property inspection as needed and day-to-day representation for the Association with local governmental agencies, etc. The manager will work directly under the auspices of the Board of Directors. The fee for this service is based
2016, the budget allocation is based on 526 assessable units and the fee billed will reflect the actual number of units “on the books” for each billing month. The contract term is for
party with sixty (60) days advance notice. No fee increase for 2016. 8. ARB Administration Expense (Acct # 30-40-6626) $10,000. Funding has been included for the Association’s assumption of the administration of the Architectural Review Board. This allocation will provide for the employment of the services
follow-up to meetings, handle the required correspondence, etc. In addition, this allocation will provide funding for the employment of professionals, such as architects, home designers landscape architects, etc., as are required by the committee in the performance
9. Insurance Expense (Acct # 30-40-6630) $19,905. The following itemization reflects the funding required to secure the Association’s property and liability insurance coverages for the “owned and used” common facilities. Currently, the Association owns only the Holden Beach Club facility and has not taken possession of any other common areas or facilities from the Declarant. The 2016 budget includes an allocation for the reimbursement of the cost of property insurance coverage for the River Hall Resident’s Clubhouse currently carried by the Developer, the property coverages for the Beach Club facility and the Association’s Directors & Officers liability insurance,
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providing protection for the Association governing body. The allocation is spread at an even amount monthly for all coverages. The full premiums will be paid as they become
the balance of the total premium reflected as “Pre-paid Insurance” on the balance sheet. COASTAL REIMBURSEMENT SUMMARY: Under the use arrangement, the POA will be required to reimburse the Developer for the cost of the property insurance coverage on the River Hall facility, valued at $1,000,000, with no contents coverage. The base property coverage (fire, etc.) is with Cincinnati Insurance, with a $5,000 deductible and the wind is with the NCJUA pool, with a $50,000 deductible. The renewal (7/29/16) premium is estimated at a composite rate (both policies) of approximately $.56 per $100 of coverage. The premium is payable in September upon invoice delivery. Estimated 2016 Reimbursement Premium: $5,600. BEACH CLUB PROPERTY COVERAGES (Dec 10): Blanket, all-risk, replacement cost coverage, including wind, but excluding flood
contents – 10,000, with a $1,000 per occurrence deductible and a 5% (TIV) wind
Estimated 2016 Property Premium: $3,560. BEACH CLUB FLOOD COVERAGE (Jan 10): $310,000 total values, including $10,000 contents, through a flood policy with NFIP for the Beach Club, with a $5,000 per occurrence deductible. Premium allocation represents a 2% increase of the 2015 actual. Estimated 2016 Flood Premium: $7,875. GENERAL LIABILITY COVERAGE (Dec 10): Comprehensive general liability coverage for all POA owned property exposures, with a limit of $1,000,000/$2,000,000. The allocation represents a 2% increase over the 2015 actual. Estimated 2016 Liability Premium: $345. DIRECTOR & OFFICERS LIABILITY (June 2): $1,000,000 Director & Officers Errors and Omissions Liability Coverage insuring action of the Board members and Committees taken in conducting the affairs of the
monies & securities protection for the Association’s financial assets. Premium allocation represents a 4% increase of the 2015 actual. Estimated 2016 D & O Premium: $2,525. TOTAL ESTIMATED 2016 INSURANCE PREMIUMS: $19,905. 10. Access Device Expense (Acct # 30-30-6640) $1,280. Funding is provided to purchase an inventory supply of remote gate controllers (key fobs) for existing and new residents. The fobs cost $41 each, inclusive of tax & shipping. This expense is offset by owner purchase of controllers at $41 each. The 2016 allocation projects purchase of two (2) boxes of ten (10) fobs in April to sustain the inventory.
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In addition, the purchase of a box of 100 access mag cards will be required in June to maintain adequate inventory to meet owner and tenant distribution requirements. These cards cost $4.60 each, inclusive of tax & shipping. This expense is offset by owner/tenant purchase of replacement cards at $10.00 each. 11. Social Committee Expense (Acct # 30-40-6642) $1,000. A $1,000 annual allocation has been provided to create funding assistance for the Association’s Social Committee functions and events. The allocation is spread at $250 in May, $250 in July and $500 in December to correspond with planned “major events”. 12. Association Meeting Expense (Acct # 30-40-6644) $400. Funding has been provided to cover the cost of conducting the Association’s Annual
equipment for the Annual Meeting to be held in April. The rental fee will be paid in March. 13. Licenses & Fees (Acct # 30-40-8129) $1,342. Funding has been provided to cover the payment of the Sewer Capital Recovery fee to the Town of Holden Beach for the sewer service to the Beach House and the recovery of capital cost of the County waste treatment plant. This fee is based on the square footage and the Town’s tax valuation of the facility. This fee will continue annually until the treatment facility cost is fully recovered and the bonds are paid. The 2016 allocation is $497.30, which anticipates no increase over the 2015 fee. The fee is payable in December. An allocation of $200 is made to fund the annual Tri-Beach Fire Department (Holden Beach) fire fee for the Beach Club, billed & collected by the County, payable in December An allocation of $100 has been made to fund the annual Town of Shallotte Fire Marshall’s inspection fee for the River Hall Beach Club, payable in September. The allocation also provides $175 for the Association’s annual ABCPOA membership and dues, payable in December for the following year. Funding is provided to secure internet access to the Door King Activity website, providing access information on fobs/cards use for the Main Gate. River Hall & Beach Club. This service incurs an activity based annual fee, projected at $270 in 2016, payable in January. 14. Bank Charges (Acct # 30-40-6155) $90. Funding has been provided to cover the cost incurred for bank service charges such as deposits, NSF, etc. The allocation is historically based and spread at $30 in December, $50 in January and $10 in February, reflecting the most active months of deposits. 15. Income Tax Expense (Fed & State) (Acct # 30-40-8135) $2,800. An allocation has been made to fund the estimated State and Federal income tax expense the Association will incur for the year ending December 31, 2015. The projection is based
ancillary income derived outside of assessments, which is primarily interest income on the investment of the surplus operating and accumulated reserve funds. Applying the 37% tax rate to the 2015’s estimated interest, fine & miscellaneous income, less allowable deductions for management, equals an estimated 2015 year-end tax liability of approximately $1,600, which will be payable in March 2016. Based on the year-end tax liability, the allocation includes the payment of $400 quarterly estimates for year-end 2016 in June, September & December. The total projected 2016 tax expense is $2,800.
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16. Bad Debt Allowance (Acct # 30-40-8126) $12,000. Funding has been provided, to cover the anticipated shortfall in accounts receivable due to uncollectable assessments, foreclosure, bankruptcy, etc. This amount is an estimate, historically based on the Association’s previous years’ collection activity and taking into consideration the lenders’ foreclosure actions and delinquencies. The 2016 annual allocation is projected on a fixed amount monthly.
TOTAL GENERAL & ADMINISTRATIVE: $101,354.
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Utilities:
1. Electricity $66,932. Funding is provided to cover the cost incurred in securing electrical power service for the various common areas. Brunswick Electric Membership Coop. (“BEMC”) will furnish the electrical service for the common areas, including the street lighting through leased fixtures. The various common area facilities are separately metered and billed on a monthly basis. The allocation expense is historically based on the past billing and consumption data, by individual meter and is itemized by departmental cost center, as follows: Facilities – (Acct # 30-10-6710) $25,400. Jan. $2,700. July $ 2,000. Feb. 3,200. Aug. 1,700. Mar. 2,400. Sept. 1,600. Apr. 2,000. Oct. 1,600. May 1,600. Nov. 2,100. June 1,800. Dec. 2,700. Annual Total $25,400. Property Maintenance – (Acct # 30-20-6710) $8,112. A monthly average allocation of $676 for Copas Road Fountain - ($320), Arnold Palmer Drive Irrigation – ($28), Laurel Valley Fountain – ($300), River Village Irrigation – ($28). Security – (Acct # 30-30-6710) $31,835. Under the leased lighting program, BEMC bills for the power consumption, fixture cost recovery & maintenance at a fixed monthly fee of $20.47, plus 7% tax, or $21.90 per fixture for 62 fixtures, $36.21, plus 7% tax, or $38.74 for 23 fixtures, $17.05, plus 7% tax, or $18.24 per fixture for 11 fixtures (7 - Main Entry wall & 4 - Community section/amenity signs) & $20.55 plus 7% tax, or $21.99 per fixture for the 2 Main Entry pole lights. A monthly total of $2,493.92, rounded to $2,500, has been allocated for all leased street lighting anticipated to be in place during 2016. No other street lighting is planned for addition in 2016. Gatehouse Jan. $210. July $ 125. Feb. 230. Aug. 125. Mar. 200. Sept. 125. Apr. 125. Oct. 100. May 100. Nov. 150. June 125. Dec. 220. Annual Total $1,835. Beach Club – (Acct # 30-50-6710) $1,585. Jan. $120. July $ 200. Feb. 140. Aug. 200. Mar. 100. Sept. 125. Apr. 100. Oct. 100. May 100. Nov. 125. June 150. Dec. 125. Annual Total $1,585.
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2. Water & Sewer $5,819. The allocation for the Water & Sewer expense is historically based on the billing and consumption data, by individual facility and is itemized by Committee, as follows: Facilities – (Acct # 30-10-6720) $2,916. Water & sewer services are provided by the Town of Shallotte, billed bi-monthly in arrears. Water services for River Hall’s outdoor pool and irrigation is provided by a separate meter, without any sewer charges. This incurs a bi-monthly base charge of $34.54 for the 1st 6,000 gallons consumed, with all other consumption billed at $5.09/1,000 - 6,000 to 10,000, $6.05/1,000 - 10,000 to 20,000, $6.29/1,000 - 20,000 to 30,000, $6.52/1,000 - 30,000 to 40,000, $6.76/1,000 - 40,000 to 50,000 and $6.89/1,000 over 50,000 gallons. Billing Period Consumption Billing
15,000. $ 85.15
15,000. 85.15 May – July 35,000. 210.90 July – Sept. 50,000. 311.10
50,000. 311.10
40,000. 243.50 Annual Total $1,246.90 River Hall’s potable water & sewer service, including the indoor pool, is provided by a separate meter. This incurs a bi-monthly base charge of $34.54 for water and $67.18 for sewer - 1st 6,000 gallons consumed. In addition to the water charges, sewer consumption is billed at $9.03/1,000 - 6,000 to 10,000, $10.94/1,000 - 10,000 to 20,000, $11.28/1,000 - 20,000 to 30,000, $11.63/1,000 - 30,000 to 40,000, $11.99/1,000 - 40,000 to 50,000 and $12.84/1,000 over 50,000 gallons. The following represents this portion of the allocation: Billing Period Consumption Billing
15,000. $ 243.15
15,000. 243.15 May – July 15,000. 243.15 July – Sept. 30,000. 503.80
15,000. 243.15
12,000. 192.18 Annual Total $1,668.58 Property Maintenance – (Acct # 30-20-6720) $1,832. Allocation for irrigation water needs for the Arnold Palmer/Latrobe Drive and the Copas Road (Main Entry) areas. Currently, all other irrigation is supplied thru the golf course irrigation sources. The Town of Shallotte provides the water, without regard to meter size. The base charge is $34.54 for the 1st 6,000 gallons, with consumption billed at the above rates (no sewer charge). Consumption is historically based. Arnold Palmer Drive & Latrobe Drive Irrigation: Billing Period Consumption Billing
1,000. $ 34.54
1,000. 34.54 May – July 1,000. 34.54 July – Sept. 1,000. 34.54
1,000. 34.54
1,000. 34.54 Annual Total $207.24
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Copas Road Main Entry Gate Area Irrigation: Billing Period Consumption Billing
1,000. $ 34.54
5,000. 34.54 May – July 50,000. 311.10 July – Sept. 60,000. 380.00
60,000. 380.00
5,000. 34.54 Annual Total $1,174.72 Fairway Crest Entry Area Irrigation: Billing Period Consumption Billing
1,000. $ 34.54
2,000. 34.54 May – July 20,000. 115.40 July – Sept. 20,000. 115.40
20,000. 115.40
2,000. 34.54 Annual Total $449.82 Security – (Acct # 30-30-6720) $610. Water & sewer services are provided by the City of Shallotte for the main Entry Gatehouse thru a bi-monthly base water charge of $34.54 & $67.18 base sewer charge for the 1st 6,000 gallons, with all other consumption billed at the above rates. The gatehouse is projected to average 1,000 gallons per billing cycle. Billing Period Consumption Billing
1,200. $101.72
1,200. 101.72 May – July 1,200. 101.72 July – Sept. 1,200. 101.72
1,200. 101.72
1,200. 101.72 Annual Total $610.32 Beach Club – (Acct # 30-50-6720) $462. Water & sewer services are provided by the Town of Holden Beach, billed and paid in arrears for potable water & sewer service, including irrigation, for the Beach Club facility through a 1” meter. The Town charges a monthly water availability fee of $18.00, which includes 2,000 gallons base consumption. Water rates are $3.10 per 1,000 gallons after the base consumption. The sewer availability fee is $14.10 monthly with consumption billed at $6.45 per 1,000 gallons over the base. No rate increase is projected for 2016. The Beach Club is estimated to use consumption per the table below, with the monthly billing rounded up to the next whole dollar: Billing Period Consumption Water Sewer Billing January 1,000. $18.00 $14.10 $ 32.10 February 1,000. 18.00 14.10 32.10 March 1,000. 18.00 14.10 32.10 April 1,000. 18.00 14.10 32.10 May 2,000. 18.00 14.10 32.10 June 3,000. 18.00 14.10 41.65 July 5,000. 27.30 33.45 60.75 August 5,000. 27.30 33.45 60.75 September 3,000. 18.00 14.10 41.65
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Billing Period Consumption Water Sewer Billing October 2,000. 18.00 14.10 32.10 November 1,000. 18.00 14.10 32.10 December 1,000. 18.00 14.10 32.10 Annual Total $461.60 3. Propane Fuel (Acct # 30-10-6750) $13,074. Funding has been provided to cover the cost incurred in purchasing propane gas to provide fuel to heat River Hall’s indoor pool & spa (no heating of the outdoor pool & spa) and water heaters from R. D. White & Sons of Shallotte. The allocation is based on historical
discount of approximately 35% off retail price. The 2016 budgeted commercial price for January – March and November – December is projected to be $1.859 per gallon. The 2016 projected per gallon price for April – October is $1.659. This price is subject to 6.75% State sales and fuel taxes. This nets to a per gallon cost of $1.98 for Jan – Mar & Nov – Dec and $1.77 per gallon for Apr – Oct. In addition, a $3.50 HAZMAT fee is added for each delivery, projected to be 2 times monthly throughout the year. The allocation is based on the following table (rounded to the nearest 100 gallons and even dollar): Month Consumption Billing January 1,000. $1,980. February 1,000. 1,980. March 800. 1,584. April 700. 1,239. May 600. 1,062. June 300. 531. July 200. 354. August 200. 354. September 400. 708. October 400. 708. November 500. 990. December 800. 1,584. Totals 6,900. $13,074. 4. Trash Removal – (Acct # 30-10-6760) $84. Funding is provided for the contracted annual rental and collection of one (1) additional “roll-off” trash receptacle, provided by Waste Industries for River Hall. The County provides
program for RH. The receptacles will be collected weekly, year-round. For 2016, the additional receptacle incurs an annual cost of $84.00, payable in July. 5. Cable TV $1,998. Facilities – (Acct # 30-10-6770) $1,122. Atlantic Telephone Membership Coop. (ATMC) will provide cable TV service to River Hall. River Hall’s service provides three (3) outlets, 2 in the Fitness room and 1 in the Lounge/Meeting Area. The Lounge facility’s TV is digital cable ready, without the need for a converter, with the 2 Fitness room TV’s requiring converter box rental. Service for River Hall includes the basic channels, plus expanded digital & HD tiers. The 2015 monthly fee for this service is $89.87. A 4% increase is projected for 2016, resulting in a projected monthly fee of $93.46, $1,121.52 annually.
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Beach Club – (Acct # 30-50-6770) $876. A change will be made in cable TV service to the Beach Club, switching from Time Warner to ATMC. The Beach Club service provides one (1) outlet in the 2nd floor Lounge area. This TV is digital cable ready. Service for the Beach Club includes the basic channels, plus 1st level expanded digital tier. The 2015 Time Warner monthly fee for this service was $108.37, with a projected 6% increase, resulting in a monthly fee of $114.87. The same level of service is available from ATMC for $68.25 monthly, plus fees of $4.78, or a monthly billing of $73.03, $876.36 annually, a savings of $502.08. As this is a new service, no 2016 rate increase is projected. 6. Telephone $7,332. Telephone service is provided by ATMC. The 2016 allocation is based on the following schedule, which is segregated by facility and departmental cost center, with monthly projections rounded up to the nearest dollar. A 4% rate increase is projected for 2016: Facilities – (Acct # 30-10-6780) $3,288.
(7 lines) 754-9165 - Elevator – line for direct dial to 911 $ 40./mo. 754-9204 - Fire Alarm - primary auto-dialer line 38./mo. 754-9248 - Access Modem - analog line access system 38./mo. 754-9251 - Fire Alarm Roll-over – secondary auto-dialer line 38./mo. 754-3570 - Indoor Pool – line for direct dial to 911 40./mo. 754-3659 - Fitness Room – line for direct dial to 911 40./mo. 754-8507 - Outdoor Pool – line for direct dial to 911 40./mo.
Department Monthly Total: $274./mo. Security – (Acct # 30-30-6780) $1,296.
(2 lines) 754-2231 - Gatehouse – dedicated line $ 70./mo. 754-9646 Main gate control – analog line access system 38./mo.
Department Monthly Total: $108./mo. Management – (Acct # 30-40-6780) $900.
REPOA LD: Reimburse for long distance expenses (est.) $ 75./mo.
Department Monthly Total: $75./mo. Beach Club – (Acct # 30-50-6780) $1,848.
(4 lines) 842-6493 - Lift – line for direct dial to 911 $ 40./mo. 842-6489 - Fire Alarm - primary auto-dialer line 38./mo. 842-8932 - Access Modem - analog line access system 38./mo. 842-3477 - Fire Alarm Roll-over – secondary auto-dialer line 38./mo.
Department Monthly Total: $154./mo. Monthly Telephone Total: $611./mo.
TOTAL UTILITIES: $95,239.
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Watchman Services:
1. Contract Watchman Services (30-30-7110) $53,584. Universal Protection Services – annual contract – 11.5 hours coverage Sat – Thurs, year round 6:00 AM - 5:30 PM. 11.0 hours coverage Friday, year round 6:00 AM - 5:00 PM. 4,183 total coverage hours in 2016 (80 hrs/wk – Leap Year) $12.50 per man-hour rate for regular staff, $12.85 per man-hour for supervisory staff and the Holiday rate is $18.75 per man-hour holiday rate for regular staff and $19.28 per man hour-rate for the supervisory staff. There are 8 recognized holidays - New Year’s Day, Memorial Day, July 4th, Labor Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve & Christmas Day. The allocation is spread monthly on a projected man-hour coverage basis. 2. Identification Expense (30-30-7120) $600. An annual allocation of $600 has been made to provide funding to the Access & Safety Committee for the purchase of material and supplies to implement the “Gate Pass Program”. This allocation will fund the purchase of paper, copying supplies, etc. for the “in- house” generation of the gate passes to be distributed by the staff. The allocation is spread monthly at $50 for the year.
TOTAL WATCHMAN SERVICES: $54,184.
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Reserves & Other Expenses:
1. General Reserves – (Acct # 30-40-8110) $100,749. The funding requirements for General and Painting Reserves are illustrated in the Replacement Reserve Schedule beginning on page 5 of the Detailed Budget Worksheet. These reserve allocation projections utilize the life expectancy computation method, which recovers the estimated replacement cost over the expected life of each component. This schedule will require adjustment annually for changes in replacement costs. As reserve funding was not commenced until the 2005 budget year, a number of components have been in place for a period of time and an estimate of the remaining life has been made, based on physical condition observation, for the effected components; however, the schedule will take the years of no funding into account and automatically calculate the amount of “make-up funding” required to be “On Target” with the funding requirements at the expiration of the component’s life. The schedule illustrates the current status of the General & Painting Reserve funding for the budget year and takes into consideration any reduction in the “On Hand” accumulated balance for Board approved use of existing reserves funds for improvements made thru 2014, as well as the additional contributions from Road Impact fees and contributions from operating surpluses thru 2014. In follow-up to the 2015 Criterium Engineers Reserve Study, various individual reserve components in the “pre study” reserve schedule were adjusted from a Replacement Cost, Useful Life and/or Remaining Life perspective, as was recommended by the Beach Club, Facilities and Property Maintenance Committees. The details of any such adjustments are
designated by an “RSA”: Most components are straightforward as to the calculation basis; however, each component calculation basis is listed and explained below: Roadways (All Phases): $377,298 - Itemized by developmental phase with yardage provided by the design engineering firm, with asphalt pavement replaced with a 1” overlay at $5.90 per surface sq. yd., recovered over 20 years. Phase I paving in place – 42,701 sq. yds. of asphalt surface, estimated to have 10 years remaining life with repairs in 2005 (Note: Replacement cost increased 2007 & 2009) (Note: Collected Road Impact Fees added to “On Hand” in year following year collected – Reference Budget Detail Notes) (Note: Component’s “On Hand” balance reduced by $66,783 in the 2009 schedule to reflect use of reserve funds to cover un-budgeted and/or excess expenditures over revenues during 2008) (Note: $15,000 of surplus from 2008 operating was added to “On Hand” in 2009 and deducted in 2010 – no 2008 surplus contribution was made) (Note: $15,000 of surplus from 2009 operating added to “On Hand” in 2010)
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 22
(Note: Phase II Roadways represents development Section 10, which was completed in 2010 and added to the reserve schedule in the 2011 budget, with a segregated Life Cycle) (Note: Replacement cost increased to $6.00 per yard from $5.90 in 2011) (Note: $16,774 added in 2011 to the Phase I Roadways “On Hand” balance from the $22,279 contribution from the YE 2010 operating surplus) (Note: $20,000 of surplus from 2012 operating added to “On Hand” in 2013) (Note: Phase III Roadways represents the 2014 infrastructure completed in Sections 11 & 19 and added to the 2015 schedule, with a new Life
based on size relationship to Section 10) (Note: $1,200 reserve deduction in Phase I Roadways made in 2014 for road core testing & evaluation report – no Cost/Life adjustments) (Note: $60,000 of Phase I “On Hand” funds were expended in 2015 to fund various roadway repairs throughout the community. The recovery
timeframe, by extending the Remaining Life in the 2016 schedule, to lessen the impact on the 2016 assessment (original scheduled replacement projected for 2016) Signage: $12,000 – A general allocation for the replacement
etc.) signage throughout the community and refurbishment of lettering on brick faced main entry and River Hall monuments, recovered over 5 years (Note: $1,301 reserve deduction made in 2014 to fund replacement/additional traffic control signs, no Life adjustments made) (Note: The Replacement Cost increased by $2,000 in 2015 to reflect the additional signage added throughout the community and in Section 10, Life cycle adjustments made) (Note: $7,000 reserve deduction made in 2016 schedule to reflect 2015 “major signage
Cycle commenced, with “On Hand” residual balance remaining intact)
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 23
River Hall Parking Seal: $8,050 – Petroleum based sealing of RH parking lot &, recovered over 7 years RSA – This component added to the 2016 schedule with a $8,050 Replacement Cost, a 7 year Useful Life with 5 years of Remaining Life River Hall Parking Pave: $27,600 – Asphalt yardage provided by the engineering firm, with asphalt pavement replaced with a 1” overlay at $5.90 per surface sq. yd., recovered over 20 years (Note: Replacement cost increased 2007 & 2009) (Note: Replacement cost increased to $6.00 per yard from $5.90 in 2011) RSA – This component’s Replacement Cost increased in the 2016 schedule based on the Reserve Study’s yardage of 4,600 vs previous 3,000 yards at $6.00/yd, with no Life Cycle adjustments River Hall Sec. Equip: $20,000 - Access card reader system, including mag locks, readers, modem, etc ($6,500). Fire alarm system, including control panel, pull stations, etc. ($13,500), recovered over 10 years (Note: The fire alarm system replaced in 2013 at a cost of $13,200 (lightning damaged). The component’s remaining life adjusted up to 8 years to reflect the average remaining life between the fire alarm and access systems) (Note: The pool access door card reader replaced in 2014 - $486 reserve deduction, no Cost/Life adjustments) Fountains (2): $16,000 - Replacement of pump motor, fittings, control & float switches, etc. for the fountains located in the lake adjacent to Copas Road and the lake in River Village, recovered over 12 years (Note: In 2011, $3,159 expended from the reserve allocation to replace the fountain pump motor & power unit for the Laurel Valley fountain. This expenditure was deducted from the “On Hand” balance and replaced with a $3,159 addition to the component’s “On Hand” balance from the $22,279 contribution from the YE 2010 operating surplus made in 2011) (Note: In 2013, $2,288 expended to replace the power unit on the Copas Road fountain, with no adjustment to the life cycles)
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 24
(Note: In 2015, Replacement Cost increased by $6,000 to $16,000. Useful Life reduced to 10 years and Remaining Life set at 1 year for 2015) River Hall Roof: $42,470 – Main building and poolside gazebos – 137 squares (125 sqs – bldg + 12 sqs. – 2 gazebos) of Elk 30 lb. shingles, including new felt underlayment, flashing & sheathing repairs, replaced at $310 per square, recovered over 30 years (Note: 2014
expended from component’s “On Hand” balance to repair the rear portico roof. “On Hand” balance zeroed in 2015 schedule, no Life Cycle adjustments made) River Hall Furnishings: $25,000 - Replacement of interior furniture for lobby, library & multi-purpose area, including serving tables, chairs, TV’s, stereo system, decoration & accessories, pictures, etc., recovered over 15 years River Hall Floor Cover: $19,032 - Replacement of 120 yds of commercial carpeting in the RH Lounge at $25/yard – $3,000; replacement of 222 sq ft of laminate flooring in RH Lounge at $9/sq ft - $2,000, recovered over 12 years RSA – This component adjusted in the 2016 schedule by adding 106 sq. yds – Fitness Center carpeting at $36/yd, with a 12 year Useful Life with 7 years of Remaining Life ($3,816); increased previous Residents Club Lounge carpeting to 156 sq. yds at $36/yd ($5,616); increased Residents Club laminate flooring allocation to 1,200 sq. ft. at $8/sq. ft. ($9,600) with no Life Cycle adjustments River Hall Wall Cover: $10,500 - Replacement of commercial grade wallpaper in the Residents Club restrooms, kitchen & fitness areas, estimated at 3,000 sq. ft wall space, covered at $3.50 per sq. ft., recovered over 15 years River Hall Appliances: $8,980
kitchen appliances including icemaker, refrigerators (2), DW, range/oven, microwave, outdoor grills (2), recovered
River Hall HVAC Sys: $26,250 – Three (3) 5-ton heat/cool units for non- pool areas – outside compressor& inside air handler unit – $8,750, recovered over 10 years (Note: See Detail Notes for 2012 expenditures) (Note: The Replacement Cost increased to $8,750 per unit, in the 2014 schedule reflecting the Fitness In/Out Unit replacement made in
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 25
(Note: $5,650 reserve deduction made in 2014 to fund replacement of library in/out HVAC units, no Cost/Life adjustments made) River Hall Dehumidifier: $70,000 – Two (2) Pool Pak dehumidifier heat/cool unit for the indoor pool area: indoor coils - $5,000 each, inside evaporator/dryer unit - $2,000 each,
fan motor - $500 each, recovered over 10 years (Note: See Notes for 2011 & 2012 expenditures) (Note: The Pool Pak controls and fan motors replaced in 2013 - $6,100 (lightning damaged). Remaining Life increased to 5 years) RSA – This component’s Replacement Cost increased in the 2016 schedule to $70,000 based on the Reserve Study recommendation utilizing new technology and regulatory requirements River Hall Fitness Equip: $25,000 - Replacement of all fitness equipment, recovered over 15 years (Note: Replacement cost decreased in 2007) RSA – This component’s Replacement Cost increased in the 2016 schedule to $25,000 to include all fitness equipment, with Useful & Remaining Lives increased by 5 years River Hall Gutters: $2,000 - Replacement of facility’s gutters & downspouts, recovered over 10 years (based on 2015 cost) River Hall Shutters: $12,000
facility’s shutters, recovered over 12 years (Note: Initial Life Cycles in 2016 schedule based
Sauna & Equipment: $10,000 - Replacement of sauna interior walls, sitting area, heater & controls, timers, steam rock, door seal system, recovered over 15 years Outdoor Pool Finish: $17,000 - Water containing surfaces re-coated, with new main drains, crack repairs and new tiles replaced, recovered over 8 years (Note: Outdoor Pool & Spa Finish components separated in 2013 Schedule, with both resurfaced in 2012) Outdoor Spa Finish: $3,000 - Water containing surfaces re-coated, with new main drains, crack repairs and new tiles replaced, recovered over 5 years
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Indoor Pool Finish: $8,000 - Water containing surfaces re-coated, with new main drains, crack repairs & tiles replaced, recovered over 8 years (Note: Indoor Pool & Spa Finish components separated in 2013 Schedule) Indoor Spa Finish: $3,000 - Water containing surfaces re-coated, with new main drains, crack repairs and new tiles replaced, recovered over 5 years Pool & Spa Equipment: $13,500 - Replace primary components for indoor &
($2,000), filters (4) - ($4,000), control valves (4) - ($1,600), chlorinators (4) – ($1,400), heaters (2) - ($4,500), etc., recovered over 8 years (Note: Indoor Spa heater ($2,922) and the Indoor Pool heat exchanger & thermostat ($1,160) were replaced in 2015. On Hand funds reduced by $4,082 for both.). No life cycle adjustments made Pool Decking: $11,375 - Re-coating of all pool (indoor & outdoor) “kool deck” surfaces, with crack repairs, expansion joint replacement & drain cap replacement, etc. –
recovered over 10 years Tennis Courts Fencing: $27,000 - Replacement of vinyl coated chain link type fencing (wire mesh, support poles & gates) surrounding tennis courts, recovered over 25 years Gatehouse Roof: $4,950 – Main Entry Gatehouse – Est. 9 squares of standing seam copper roofing, including new felt, flashing & sheathing repairs, replaced at $550 per sq, recovered over 40 years Covered Bridge Roof: $2,550 – Est. 6 squares of cedar shake shingles, Including new felt & sheathing repairs, replaced at $425 per sq, recovered over 30 years Covered & Ped. Bridges Repair: $7,000 – Structural repairs to bridges, including pilings, joists, support cross-members, flooring, etc. repaired as needed, recovered over 10 years RSA – This component added to the 2016 schedule with a $7,000 Replacement Cost, a 10 year Useful Life with 5 years of Remaining Life Entry Gate Controls: $27,000 – Replacement cost estimate based on
recovered over 10 years Entry Gates: $20,000 – Replacement cost estimate based on $5,000 per gate section, recovered over 25 years
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 27
Beach Club Landscaping: $5,000 - A general overhaul of landscaping, (Major Overhaul) including plants, mulch, irrigation, driveway rock & timbers, including the street side signage, using a landscape professional, recovered over 10 years (Note: Landscaping, including new gravel, in 2013; a new Life Cycle started in 2014 schedule) Beach Club Parking/Drive: $5,352 – Est. 2,000 sq. ft. (223 sq. yds) of concrete parking surface, removed and re-poured with 4”’ concrete, at $24.00 per yd., recovered over 30 years Beach Club Deck & Boardwalk: $5,000 – Repair structural members comprising the exterior decking and beach access boardwalk, pre the Reserve Study, recovered over 10 years RSA – This component was added to the 2016 schedule with a Replacement Cost of $5,000, with a Useful Life of 20 years & Remaining Life of 10 years Beach Club Access Equip: $6,000 – Building access card reader system, including mag locks, readers, modem, etc, recovered over 10 years (Note: The Replacement Cost increased in 2014 by $1,000 to add the 2013 installation of the motion detectors (Fire Marshall required). No adjustment was made to the Life Cycles) (Note: $500 reserve deduction (2014) to fund side door card reader, no Cost/Life adjustments) Beach Club Roof: $4,550 – 3-tab architectural shingle, simulated slate, estimated at 14 squares replaced at $325 per square, recovered over 20 years. Component reflects a shorter life due to oceanfront environment Beach Club Furnishings: $12,250 - Replacement of interior furniture in the two (2) lounge areas, including 2 sofas ($1,000 each), 1 love seat ($750), 2 side chairs ($350 each), 6 tables & 4 chair sets ($600 each), 2 restroom cabinets ($500 each), lamps, decoration & accent pieces, artwork ($1,500 all inclusive, 52” LCD Projection TV ($1,200), etc., recovered over 12 years Beach Club Carpet: $500 - Replacement of 126 sq. ft. (14 sq. yds.) of carpeting on the stairs with similar indoor grade, at $35.71 per sq. yd. installed (carpet, padding & stair tread installation), recovered over 8 years (Note: The Replacement Cost increased in 2013 to reflect the actual cost for the stair carpet & padding replacement made in 2013, with a new Life Cycle established at 8 years)
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 28
BC Hardwood Flooring: $4,250 - Replacement of 1,000 sq. ft. of hardwood laminate flooring in the lounge and restrooms at $4.25 per sq. ft. installed, recovered over 25 years Beach Club Appliances: $3,550 - Replacement of kitchen & utility appliances, including Dishwasher, Convection/Microwave oven, Small Microwave, Small, under counter Refrigerator,
Heater, recovered over 12 years Beach Club HVAC System: $13,800 - Replacement of two (2) 1 ½ ton heat/cool units for lounge areas, one (1) unit for each floor of lounge area - outside compressor unit -$3,400, inside air handler unit – $3,000 for each system, plus exterior “SeaCoast coating”. recovered over 8 years. (Note: The Replacement Cost was increased in 2014 to reflect the 2013 exterior unit replacement and “SeaCoast” coating ($1,000) costs and a new Life Cycle was established at 8 years) Beach Club Ext. Plumbing: $400 - Replacement of exterior shower control valves and spray heads, spigots, etc. beneath the facility, recovered over 5 years Beach Club Ext. Lighting: $880 - Replacement of exterior lighting fixtures beneath facility, inclusive of fixtures, materials & labor, replaced at $110 each for the estimated 8 fixtures, recovered over 5 years Beach Club Ext. Lift Door: $6,000 - Replacement of the ground floor exterior lift shaft metal door, with auto locking-operation control mechanism, recovered over 5 years (Note: The Replacement Cost was increased in 2014 to reflect the cost of replacement of the lift door & locking controls in 2013. A new Life Cycle was commenced) RSA – This component’s Replacement Cost increased to $6,000 in the 2016 schedule with Useful & Remaining Lives increased by 5 years BC Fire Sprinkler System: $8,000 - Replacement of the fire sprinkler system component, including piping, valves, sprinkler heads,
RSA – This component was added to the 2016 schedule with a Replacement Cost of $8,000 with a 10 year Useful Life & a 5 year Remaining Life Beach Club Gutters: $2,800 - Replacement of gutters and downspouts for facility, recovered over 10 years
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 29
2. Painting Reserves – (Acct # 30-40-8120) $7,687. River Hall - Exterior: $25,000 – Re-coating of siding material with exterior flat latex; re- coating of wooden trim & trim with exterior semi-gloss latex, recovered over 5 years (Note: Useful & Remaining Lives increased by
(Note: $12,350 reserve deduction made in 2014 to fund complete exterior trim repainting, no Cost adjustment made, with Life reduced to 5 years) River Hall - Interior: $22,000 – Re-coating of interior walls with flat latex; re-coating of kitchen/restrooms walls with “washable” latex; re-coating of wood trim with semi-gloss latex; re-coating of natural finish wooden ceiling with clear polyurethane, recovered over 6 years Covered & Ped. Bridges (2): $3,925 – Re-coating of covered bridge wooden siding material, exterior & interior walls, with spray application of penetrating stain ($2,800); re-coating
exterior semi-gloss latex ($900); re-coating of small pedestrian bride railings & trim with exterior semi- gloss latex ($225), recovered over 8 years (Note: Useful & Remaining Lives increased by
current condition delaying replacement) (Note: Component’s Useful & Remaining Lives increased to 7 years & 2 years respectively in the 2009 Schedule to reflect current condition (partial repair & re-painting by Developer in 2005) Tennis Courts Surface: $25,200 – Re-coating the 3 tennis courts asphalt playing surface with cushioned sports surface coating material, including all “alligator” crack repairs, re-striping & setting of net poles at $8,333 per court, recovered over 12 years (Note: The Tennis Court Lighting reserve Component was eliminated in 2008 and the accumulated funds of $1,365 were added to the Tennis Court Surface component in 2008) Beach Club – Exterior: $11,000 – Sprayer/roller application of a solid body (Siding & Trim) exterior grade latex re-coating of Hardee board siding material – $4,500. Brush application of solid body, exterior latex re- coating all exterior exposed wooden, trim and other non-siding painted surfaces, including the painted sections of the beach access walkway - $3,500
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Roller & sprayer application of a penetrating exterior sealer on all exterior non-painted wooden surfaces, including access steps and beach walkway – $2,000 Brush application of exposed pipes & metal surfaces with an exterior grade oil based acrylic - $1,000 All re-coating will include the scraping and re- caulking of all open wooden joints and other required “prep” work, recovered over 5 years (Note: All exterior flashing was replaced with vinyl material in 2013 with all associated repair areas being repainted. No Replacement Cost adjustment was made and the Remaining Life Cycle was increased to 3 years) (Note: $3,500 reserve deduction made in 2014 to fund the repainting of the exterior trim, with no Cost adjustment made, with Useful Life reduced to 4 years, with Remaining Life unchanged) (Note: $4,836 reserve deduction made in 2015 to fund the repainting of all the exterior siding, with a new Life Cycle commencing in 2016, no adjustment in Replacement Cost) Beach Club - Interior: $4,000 – Re-coat interior walls (drywall) with “washable” interior grade acrylic ($2,500). Re- coating of trim with oil based enamel ($1,500), recovered over 8 years 3. Association Property Tax - (Acct # 30-40-8130) $1,000. An allocation of $900 is made to fund the payment of the Association’s property taxes billed by the Town of Holden Beach on the Beach House under the new law of 2012 requiring Associations to pay taxes on common property located in another governmental jurisdiction separate from its primary development location. The allocation is based on the projected taxes to be billed for 2015, with the billing is projected for payment in December. 4. Operating Contingency - (Acct # 30-40-8140) $5,141. Funding of one & one-half percent (.015) of the total budgeted expenditures, excluding the “Reserves & Other Expenses” category and “Vacant Lot Maintenance” expense item, has been provided to serve as a general contingency for any extraordinary and unexpected items not previously budgeted and to provide financial flexibility for the Association’s on- going operation in emergency situations at the discretion of the Board of Directors. The annual allocation is spread equally over 12 months.
TOTAL RESERVE & OTHER EXPENSES: $114,576.
2016 Operating Budget Documentary Notes & Financial Management Plan – 526 Lot Basis Page 31
Planned Capital Improvements – (Acct # 30-40-8125) $0.
The following outlines the planned capital improvements & acquisitions for the 2016 budget. The existing reserve schedule will be adjusted where “On Hand” funds are used to offset a project expenditure, where applicable. The Replacement Cost and Life Cycles will be adjusted for each component from which reserve funds are expended. New reserve components will be added as appropriate. The explanation below stipulates the impact on the reserve schedule. The details below describe the improvement/acquisition, the cost, the supplying vendor, the planned timing of the expense and what, if any, impact it will have on the reserve schedule. NO CAPITAL IMPROVEMENT PROJECTS ARE PLANNED FOR 2016. Total 2016 Capital Improvements $0.
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2016 Planned Reserve Expenditures - (Acct # 30-40-8123) $900.
The 2016 Planned Reserve Expenditures are itemized below. The descriptions provide details of the planned expenditure of “On Hand” reserve funds for the indicated reserve component. Components impacted will be adjusted in the 2017 reserve schedule, with appropriate adjustment to the Replacement Cost and/or Life Cycle to reflect actuals, along with the adjustment of any component’s residual “On Hand” fund balance.
$900.
Replacement of the Beach Club refrigerator. This improvement will be accomplished in
quotation by the Beach Club Committee, will be funded from the “On Hand” balance accumulated in the BC Appliances reserve component. The BC Appliances reserve component “On Hand” funds will be reduced by $900 in the 2017 schedule, the funds remaining in this component’s accumulated “On Hand” balance after the expense deduction will offset future replacement needs and no Life Cycle adjustments will be being made.
Adopted: 11/17/15
RIVERS EDGE RESERVE FUND ANALYSIS
2005 - 2016
(Input = Whole Numbers)
Budget Year 2005 2006 2007 2008 2009 2010 2011 CUMULATIVE Budget Unit Basis 532 532 554 543 543 541 541 TOTALS NOTES
Year Beginning Reserve Fund Balance
25,000 $ 165,000 $ 208,951 $ 184,203 $ 275,184 $ 314,347 $
General Reserve Annual Budget Contribution
25,000 $ 52,364 $ 32,457 $ 35,294 $ 48,154 $ 42,821 $ 50,799 $ 286,889 $
1,2,6
Painting Reserve Annual Budget Contribution
11,494 11,252 11,327 11,327 5,766 64,591
Road Impact Fees Added To Roadway Component
1,500 2,000 2,500 8,500
4
Working Capital Allocated to Reserve Fund
3
Operating Surplus Allocated to Reserve Fund
(15,000) 22,279 37,279
7,9
Earned Investment Interest Allocated to Reserve Fund
17,590
10
Withdrawals from Reserve Fund for Operating Expenses
5
Less: Reserve Fund Expenditures
(5,505) (7,490)
8
Net Annual Contribution to Reserve Fund 25,000 $ 140,000 $ 43,951 $ (24,748) $ 90,981 $ 39,163 $ 93,429 $ 407,776 $ Year Ending Reserve Fund Balance 25,000 $ 165,000 $ 208,951 $ 184,203 $ 275,184 $ 314,347 $ 407,776 $ Budget Year 2012 2013 2014 2015 2016 2017 2018 CUMULATIVE Budget Unit Basis 541 537 541 536 526 TOTALS NOTES
Year Beginning Reserve Fund Balance
407,776 $ 435,686 $ 473,562 $ 498,411 $ 477,922 $ 588,358 $ 588,358 $
General Reserve Annual Budget Contribution
43,925 $ 54,064 $ 53,063 $ 60,749 $ 100,749 $
599,439 $
1,2,6
Painting Reserve Annual Budget Contribution
2,100 4800 5,017 9,728 7,687
Road Impact Fees Added To Roadway Component
2,000 3,500 2,000
4
Working Capital Allocated to Reserve Fund
3
Operating Surplus Allocated to Reserve Fund
5,000
7,9,11
Earned Investment Interest Allocated to Reserve Fund
10
Withdrawals from Reserve Fund for Operating Expenses
5
Less: Reserve Fund Expenditures
(18,115) (62,488) (40,231) (94,466)
8
Net Annual Contribution to Reserve Fund 27,910 $ 37,876 $ 24,849 $ (20,489) $ 110,436 $
588,358 $ Year Ending Reserve Fund Balance 435,686 $ 473,562 $ 498,411 $ 477,922 $ 588,358 $ 588,358 $ 588,358 $
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RIVERS EDGE RESERVE FUND ANALYSIS
2005 - 2016
(Input = Whole Numbers)
Reserve Analysis Clarifying Notes
for each component based its "current age", with no funds "On Hand" for the 2006 scheduled components, excepting the $25,000 for Roadways from the 2005 budget.
"Target Funding" as of 1/1/07. The funding for this contribution was provided by the Working Capital Fund, generated by the payment of a Working Capital Contribution from each purchaser at closing. The result of this contribution was a move from 19% of "target funding" at YE 2006 to 100% "target funding:" at year beginning 2007.
balance), $2,000 (collected in 2009 - added to the 2010 Y/B balance), $2,500 (collected in 2010 - added to the 2011 Y/B balance), $1,500 (collected in 2011 - added to the 2013 Y/B balance), $2,000 (collected in 2012 - added to the 2014 Y/B balance), $3,500 (collected in 2013 - added to the 2015 Y/B balance), $2,000 (collected in 2014 - added to the 2016 Y/B balance)
to the Association's operating account during 2008, to fund un-budgeted expenditures, including the Entry Gate construction, RH HVAC repairs, etc. In addition, reserve components RH Floor Covering ($990), Pool Deck Furniture ($3,571), Janitorial Equipment ($750), Gatehouse Exterior Painting ($1,000) & Gatehouse Interior Painting ($700) were eliminated from the Reserve Schedule (Y/B 2009 balance), with this total of $7,011 of accumulated "On Hand" funds being transferred to the operating account to fund a portion of the Main Entry gate construction cost, resulting in a "Net" 2008 reduction in Reserve funds of $73,794 in the 2009 Year Beginning Balance.
excess of "Target" funding, to bring the River Hall Parking component to 100% "Target" funding. The Roadway component's "On Hand" balance was increased by the re-allocation of $5,883 of existing funds, taken from the following components "excess of Target funding" in the 2009 schedule: Tennis Court Surface - $2,609, Lake Bridge Painting - $1,121, Tennis Court Fencing - $ 994 & River Hall Fitness Equipment - $1,159. This re-allocation was taken for the purpose of bringing the Roadways component closer to 100% of "Target" funding. This action did not add any funding to the reserve account, but merely re-allocated or moved existing funds among components.
2011 schedule, with a reserve fund deduction of $15,000, as it was determined that only Y/E 2008 had generated a $15,000 operating surplus contribution.
balances in the Y/B 2012 schedule (Dehumidifier - $2,346) & (LV Fountain - $3,159). $18,115 in Reserve fund expenditures was deducted from the "On Hand" balances in the Y/B 2013 schedule (PoolPak Compressor - $1,960), (RH Compressor - $3,137), (In & Out Spa Finish - $5,500 - $2,750 each), (Indoor Spa Heater - $2,703), (Indoor Pool Heater - $2,740) & (Fire Alarm motherboard replaced - $2,075). $62,488 in Reserve fund expenditures was deducted from the "On Hand" balances in the Y/B 2014 schedule (RH HVAC Systems - $8,600), (RH Security Equip. - $7,125), (Roadways Phase I - $6,075 - difference in RH Sec. Systems cost), (CR Fountain - $2,288), (BC Lift Door - $2,439), (BC Ext Painting - $3,236 - difference in BC Lift Door cost), (BC HVAC System - $7,300), (BC Ext Painting - $400 - difference in BC HVAC cost), (BC Floor Covering Carpet - $216), (BC Exterior Painting - $269 - difference in BC Floor Covering cost), (BC Exterior Painting - $6,000), (RH Dehumidifier - $6,100), (BC Landscaping - $1,667), (Roadways Phase I - $2,478 - difference in BC Landscaping cost), (RH Pool & Spa Equip - $2,509), (Lake Bridges repainted - $3,290) (BC Access Equip - $1,307), (RH Fitness Equip - $1,189). $40,231 in Reserve funds expenditures was deducted from the "On Hand" balances in the YB 2015 schedule (RH Roof Repairs - $12,744 - Reserve accumulated balance thru 2014 rear portico roof replacement - Total cost $26,259, $13,515 balance funded thru Operating Contingency), (RH Security Equip - $486), (Signage - $1,301), (BC Access Equip - $500), (Roadways Ph I - $1,200), (RH HVAC - $5,650), (RH Exterior Painting - $12,350 ext trim), (RH Interior Painting - $2,500), (BC Exterior Painting - $3,500 ext trim). $94,466 in Reserve fund expenditures was deducted from the "On Hand" balances in the Y/B 2016 schedule (Pool & Spa Equip - $1,496), (Fountains - $1,620), (Roadways Ph I - $60,000), (RH HVAC - $9,975), (RH Furnishings - $1,955), (BC Furnishings - $3,502), (Pool & Spa Equip - $1,160), (Pool & Spa Equip - $2,922), (Signage - $7,000) & (BC Ext - $4,836)
components (Roadways I - $15,968, RH Parking - $70, Fountains - $544 & RH Dehumidification - $1,008), in an effort to bring these components to 100% of "Target" funding in the 2012 budget's reserve schedule. Beginning in 2011 and forward, per the Board's directive, all earned interest income from the Reserve fund investment is to be available and utilized for operating expense funding
BC components' "On Hand" balance ($168 - Carpet Floor Covering, $5,678 - HVAC, $854 - Ext. Light Fixtures, $1,000 - Lift Door, $8,800 - Ext. Painting & $3,500 - Int. Painting); $5,000 was allocated in the 2014 Schedule to the following BC components' "On Hand" balance ($24 - Carpet Floor Covering, $811 - HVAC, $26 - Ext. Light Fixtures, $1,439 - Lift Door, $2,200 - Ext Painting & $500 - Int Painting - after the 2013 budget was adopted) Page 2