Budget Committee Report
November 18, 2000
by Bill Wenstrom, Treasurer

The SFTR Budget Committee, composed of the POA 2001 Board of Directors, last met at 7:30am on November 18, 2000 at Century Small Business Solutions, 109 W. Main Street, Trinidad, Colorado. Consult the 2001 Meeting Schedule, SFTR Website, for the time and place of the next regular Budget Committee meeting.

Budget Matters

Bill Quigley reviewed actual cash basis spending. Through October, 2000, the POA spent $150,175.64 which is about $14,303.96 under the budget for the year.

Bill Wenstrom reviewed projected income and expenses for the year and for 2001. 2000’s highlights are:

• total income for 2000 is expected to be about 9% higher that budgeted because (a) dues income from improved lots will exceed expectations resulting from an under-estimate in the 2000 budget of the total number of improved properties, (b) income from contributions is about 32% higher than expected resulting from a generous donation from the SFTR Woman’s Group to offset the higher than budgeted cost of installing new security cameras and related equipment, and (c) bank interest income received during 2000 will also exceed expectations;
• total expense for 2000 is expected to be about 2% higher than budgeted because (a) the administrative expense of supplies and postage associated with numerous postal mailings to members during the year exceeded the budget and (b) legal fees, largely associated with the covenant review, also exceeded the budget;
• Common Area expenses are slightly under budget for 2000 despite a fairly extensive program of road maintenance and resurfacing;
• the POA Board’s aggressive pursuit of owners in arrears on annual dues payments reduced the outstanding balance owed to the POA for more than 30 days by about one-half to an October, 2000, total of less than $1,000;
• n taking advantage of this year’s unusually light snowfall, road-related work will continue into December. Accordingly, total POA expense should roughly equal total income for 2000 resulting in little or no net income, thereby eliminating any significant Federal/state income tax liability.

For 2001, total income should be somewhat less than 2000 because (a) the 2000 budget included a carry-over of surplus funds from 1999 and (b) the 2001 under-estimate of improved properties is smaller than that of 2000.

POA support of the Website and the willingness of members to receive information by E-mail anticipates a decrease in spending for postal mailings. Similarly, the Board anticipates decreased legal fees during 2001. Road-related spending in 2001 is expected to be at least 96% of that in 2000. Assuming mild spring weather and another low-snow winter, road-related spending in 2001 could exceed that of 2000 as funds may be reallocated during the year.

Other

Attorney Dennis Malone discussed the applicability of recent Colorado legislation to amending SFTR’s covenants. For a briefing on Mr. Malone’s comments, contact either Mr. Jim Davis or Mr. Michael Hughes (phone and E-mail addresses available on the Website), co-chairs of the SFTR Covenants Committee for 2001.