The SFTR Budget Committee met at 8:00am on March 17, 2001 in the Sullivan Meeting Room, Trinidad State Junior College. Present were Bill Bumstead, Michael Hughes, Carol Rawle, Bill Wenstrom, Harriet Vaugeois, Rick Johnson, Robert Walton, and Paul Minor. Absent was Jim Davis. The committee next meets on May 19 at Century Small Business, 109 W. Main, Trinidad, at the same time. (Click here to see Meeting Schedule, SFTR Website, for meeting schedule updates.)
Budget Matters
Bill Quigley reviewed cash income and expenses to-date for 2001. The POA has already received about 82% of total budgeted income, including about 83% of budgeted dues. This is substantially ahead of last year for the same period. Projected bank interest on the available funds is, therefore, currently higher than earlier anticipated. The POA also realized slightly more miscellaneous income than expected with the result that total income is projected to be about 3% higher for the year than anticipated.
Administrative expenses are also slightly ahead of the budget largely due to unexpected expense for income tax matters. This resulted from amending previously filed returns to realize a refund in excess of $10,600. Additionally, the POA will pay no income tax in the future.
Bill Quigley also obtained a quote for the POA’s liability insurance which will result in a savings of about $1,200 in premiums for the year.
The Common Area Committee to-date has spent about 54% of budgeted funds, largely in plowing snow and road resurfacing. Michael Hughes, Chair of the Road Committee, reported that the committee resurfaced 5.4 miles of roads at an average cost of $13,428.06 per mile. In addition to resurfacing, the committee plans limited culvert repair and regular maintenance grading this year.
Michael also presented the committee’s proposal for additional resurfacing in 2001 and 2002. Total spending on these projects would far exceed funds budgeted for this year as well as funds likely available next year. Accordingly, both Michael and Bill Bumstead, Chair of the Common Area Committee, strongly stressed the need to consider ways of (a) securing additional funds in the long-term to keep resurfacing ranch roads on an 8-10 cycle, (b) finding some way to reduce the per-mile cost of road resurfacing, or (c) lowering expectations concerning the quality of roads the ranch can afford.
I reported that the POA incurred expenses last year while repairing subsidence over the buried waterline trench that should have been paid by the SFTR Metro District. Accordingly, Metro will reimburse the POA about $1,844. In combination with the reduced insurance premium and tax refund, the reimbursement increased the projected budget surplus from about $1,800 at the beginning of the year to about $15,500 today. Budget surpluses are either assigned to the POA “Emergency Reserve” Fund or reallocated to other budget categories at the discretion of the POA Board. The board will consider this issue at its next regularly scheduled meeting on April 21.
In response to several requests for same, I prepared an overview of POA finances. Copies are available from me (719-846-7457; e-mail: bwenstrom@bacavalley.com) or click here read it on the website in the “Members Only” section.
Other
Subsequent to consideration of the above POA budget matters, the committee held a discussion of the current status of the SFTR Metro District water delivery system based on a summary report in memo form prepared by Michael Hughes. Also participating in the discussion were several property owners.
In addition to the summary memo distributed at the meeting (click here to view), Michael is preparing an extensive two-volume compilation of his notes and observations. Volume I consists of records he maintained while supervising system repairs between September, 2000 and February, 2001. Volume II consists of other notes and observations on the history of the system, a system overview, start-up activities, and other information developed by him and others. Both will soon be available for review during normal office hours at Century Small Business in Trinidad. Please contact Michael or me concerning the availability of this report.