Budget Committee Report
May 19, 2001
by Bill Wenstrom, Treasurer

The SFTR Budget Committee met at 8:00am on May 19, 2001 at Century Small Business, 109 W. Main Street, Trinidad. Present were Jim Davis, Michael Hughes, Carol Rawle, Bill Wenstrom, and Harriet Vaugeois. Absent were Bill Bumstead, Rick Johnson, Robert Walton, and Paul Minor. The committee next meets on July 21 at the same time and place. (Click here to see the Calendar of Events Page on the web site for meeting schedule updates.)

Cash
Bill Quigley reviewed cash income and expenses to-date for 2001. The POA has received about 95% of total budgeted income, including about 96% of budgeted dues. This is about the same as last year for the same period. Projected bank interest on these funds is currently a little higher than earlier anticipated but will decrease slightly when the SFTR Metro District elects to claim all or some of the funds to be loaned by the POA (see "Promissory Note" below). The POA also realized slightly more miscellaneous income than expected. Total income for the year is now projected to be about 1% higher than budgeted.

General expenses for 2001 are behind projected spending largely because projects planned by various committees are only now being implemented. This includes the recent effort at the entryway to repaint the guard shack and add revised signage. Also included is Weed Control and Fence Repair, now being initiated. Road-related expenses are slightly ahead of projected spending to-date because of the aggressive effort early in the year to resurface. Now the Road Committee plans maintenance grading, already budgeted, for the end of May or in early June as weather permits. Total expense for the year is now projected to be about 2% below the budget.

The Committee recommends to the Board that the bill for renewing SFTR’s website domain name for 10 years ($189) and the bill for space on the new server ($532.95 for a year beginning, April, 2001) be expensed in 2001 rather than being apportioned into future years.

Amended Tax Return
As reported last month, amending previously filed income tax returns was expected to realize a refund plus interest in excess of $10,600. That money is now being received and totals about $1,400 in refunded payments plus interest to-date.

Metro District Reimbursement
I earlier reported that the POA incurred expenses last year while repairing water line subsidence that should have been paid directly by the Metro District. Accordingly, Metro reimbursed the POA $1,000 to-date. In addition, it is expected that Metro’s prime contractor, OPEC Corporation, will soon begin another round of repair of the trench sinks not completely fixed last fall and of others that appeared due to the spring thaw, and recent snow- and rainfall.

Colorado Trust
A small initial payment, due the POA from the Colorado Conservancy Trust (funded from state-wide gambling revenue) has been received by Metro and will be transferred to the POA shortly.

Metro Promissory Note
The proposed promissory note documenting the POA’s decision to loan the Metro District $12,000 is now being finalized as a Line of Credit with interest added back into the principle. It will be signed by Metro Board members in the near future before the transfer of any funds from POA to Metro.

Projected Budget Surplus
In combination with reduced expenses, the tax refund, Metro reimbursement, and some carry-forward of funds not spent last year, the projected budget surplus increased from about $200 at the beginning of the year to something in excess of $20,000 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 June 16.