The Peregrine Master Association, Inc. 2020 Annual Budget Meeting 9 - - PowerPoint PPT Presentation

The Peregrine Master Association, Inc. 2020 Annual Budget Meeting

9th 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

PMA Assessment 88% Sub-Association Assessment 12%

*Trash/Recycling is a pass-through, excluded from this income number.

2020 PMA Income & Expenses

50000 100000 150000 200000 250000 300000 350000 400000 450000

$206,360 $131,500 $69,204 Variable Fixed Net Income

Net Income – 17% Variable Expenses – 39% Fixed Expenses - 61% required or annual contracts

$407,064

2020 Fixed Expenses - $206,360

Utilities - Water & Electric 31% Management Fee 27% Landscaping Maintenance Contract 24% Bookkeeping 8% Insurance 6% Administration 3% Audit 1%

% of fixed expenses only

2020 Variable Expenses - $131,500

Security/Extra Duty Patrols 22% Gen Maint & Repairs 20% Snow Removal 15% Sprinkler Repairs 13% Administration 8% Community Events 8% Contingency 8% IT Support 4% Legal 1% Community Projects 1%

% of variable expenses only

2020 Reserves Projection

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 ($200,000) ($100,000) $0 $100,000 $200,000 $300,000 $400,000 $500,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Assessment Reserve Spending Reserve Funding Ending Balance Assessment

Peregrine

A Premier Mountainside Community

Demand Drives Property Values Fresh & Appealing Just OK….. Tired & Old Dilapidated Derelict

The Value of Infrastructure & Landscaping $$$$$ $$$$ $$$ $$ $

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

• r 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.