The Peregrine Master Association, Inc. 2020 Annual Budget Meeting 9 th October 2019
Agenda The 2020 Budget Process Budget Review Income Expenses – fixed and variable Reserves Projects Q&A
The Budget Process January 2019 Annual Meeting – Budget Committee announced March - Budget Committee formed with 4 independent homeowners + 1 Board member: Jim Sawyer, Hank Scarangella, Shane Millburn, Duane Jones, Jim Medley Budget Committee begins work: April - PMA structure and financial framework May - PMA Reserves – Smart Property tool May – June - 2019 Forecast and 2020 Budget Model development July - 2020 Annual Budget completed for submission to the PMA Board August – 2020 PMA Budget accepted by the Board
2020 PMA Income - $407,064 * Annual Assessment: $420 Sub-Association Assessment 12% PMA Assessment 88% *Trash/Recycling is a pass-through, excluded from this income number.
2020 PMA Income & Expenses $407,064 450000 Net Income – 17% $69,204 400000 Net Income 350000 Variable Expenses – 39% 300000 $131,500 Variable 250000 200000 Fixed Expenses - 61% 150000 Fixed $206,360 required or annual contracts 100000 50000 0
2020 Fixed Expenses - $206,360 Administration Audit 3% 1% Insurance 6% Bookkeeping Utilities - Water & 8% Electric 31% Landscaping Maintenance Contract 24% Management Fee 27% % of fixed expenses only
2020 Variable Expenses - $131,500 Legal Community Projects IT Support 1% 1% 4% Contingency Security/Extra 8% Duty Patrols 22% Community Events 8% Administration 8% Gen Maint & Repairs 20% Sprinkler Repairs 13% Snow Removal 15% % of variable expenses only
2020 Reserves Projection Assessment $500,000 $450 $400 $400,000 $350 $300,000 $300 $200,000 $250 $200 $100,000 $150 $0 $100 ($100,000) $50 ($200,000) $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Assessment Reserve Spending Reserve Funding Ending Balance
Peregrine A Premier Mountainside Community The Value of Infrastructure & Landscaping $$$$$ Fresh & Appealing $$$$ Just OK….. Demand Drives $$$ Tired & Old Property Values Dilapidated $$ Derelict $
Project Priorities Infrastructure and Landscaping 2020 Projects: Fence Stain, Capstone Repairs, Capstone Sealing (Part 1) $15K Irrigation “in the ground” Repairs for Standardization $14K Mulch to Rock Conversion at Vantage/W. Woodmen (West) $15K Mulch to Rock Kittridge / W. Woodmen (East side, N and S) $15K Annual Bedding Plants $ 1K Total $60K 2021 Projects Orchard Valley Repair, Renew & Rejuvenation $35K Fence Stain, Capstone Repairs, Capstone Sealing (Part 2) $15K Irrigation “in the ground’ Repairs for Standardization $12K Annual Bedding Plants $ 1K Total $63K
Project Priorities Infrastructure and Landscaping 2022 Projects: Complete mulch to rock conversion $35.5K - Two beds west side of West Woodmen @ North Valley - Edenderry / West Woodmen, East & West beds @ North Lands Fence Partial Repairs, Spring & Fall $ 6K Irrigation “in the ground” Repairs for Standardization $12K Annual Bedding Plants $ 1K Total $54.5K
Project Priorities Infrastructure and Landscaping Other Projects Wildfire Mitigation ($48K over 4 years) $12K pa Irrigation Control Valves ($60K+ over 4 years) $15K pa min. Fence Partial Repairs, Spring & Fall $ 6K Irrigation “in the ground” Repairs for Standardization $12K Update Irrigation Controllers for Alpine Glen $16K Corner Landscape Concept, W.Woodmen & Kittridge (JJ2) $30K Erosion Control, Blodgett west of Cedar Canyon sign Bluffview to Blodgett Upgrade southwest entrance to Peregrine Enhancements Along West Woodmen in Upper Peregrine
Abridged Questions from the Community SG - Another raise in dues. An increase in dues of approximately 5.5%. After 12% increases in prior 2 years (2018, 2019) SG - I would question any other organization that raised dues roughly 30% over three years. (It’s actually 38% over 10 years, annual compound rate of 3.25%) TM - Why does our HOA need to have such a large projected profit? I read through the budget & raising fees makes no sense? DP - I would question any organization that increased its budget above inflation. We would like a say in how the money is spent. Is there a further breakdown of expenses? DP - I see one-line item for Management at $55,000, or approximately 18% of the budget. What goes into that expense? CK - I'm not sure how many people realize that the Peregrine HOA paid for the beautification of the city owned area near the new 3 way stop, somewhere near $37,000. (It’s actually $29,690) LB - Communication/marketing costs $2,000? Is that an increase? Difficult to know in what they sent out. If so, Why? CC - A cursory look at the “BUDGET” sheet we received in the mail supports conclusions that some gratuitous fees are being applied (e.g. $6,600 Annual Meeting Expense!?). We have lived all over the country and have never experienced the magnitude or types of “association” fees reflected in the distributed “2020 BUDGET” document. The Board’s first responsibility should be fiduciary to the community members; not to increase local business margins or to some unseen entity that swallows almost a half million dollars per year to “maintain” our community. DC - Why does the 2020 budget pay for a speed check sign on a city street? DC – Why the 2020 budget double CSPD patrols, a city responsibility. LB - I think we need to question the effectiveness of the extra patrols. And why are we putting up the speed check sign.
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