The SFTR Budget Committee met at 8:00am on September 15, 2001 at Century Small Business, 109 W. Main Street, Trinidad. Present were Jim Davis, Michael Hughes, Carol Rawle, Harriet Vaugeois, Bill Wenstrom, Bill Bumstead, and Mike Shelton. Absent were Paul Minor and Rick Johnson. The committee next meets on November 17 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 98% of total budgeted
income and incurred about 71% of total budgeted expense through August 31.
Thus, spending is on track for the year. Total income for the year is now
projected to be about as budgeted and total expense is
now projected to be about 10% below budget because of savings
realized in administrative costs as well as certain other expense categories.
The “Actual vs Budget - Cash Basis” financial report available for review on the website shows a surplus of $9,279.98 through the end of August. The Committee recommends to the Board that this surplus be immediately reallocated in full to road resurfacing expense.
Committees
Committee spending is within budget with the
exception of the Communications Committee and the General Appearance
Subcommittee of the Common Area Committee. The communication overrun was
discussed in the minutes of the last budget meeting.
The budget for improving the appearance of the entryway and installing new signs was simply underestimated. Material in excess of the original budget was needed to complete the project. Partially off-setting the cost was a generous cash donation from a part-time ranch resident. Additionally, other ranch residents provided material for which they refused reimbursement. The Budget Committee, representing the Board and all the other owners, thanks all who contributed time and material to this project.
Amended Tax Return
As previously reported, amending income
tax returns for previous years was expected to realize a refund plus interest.
Money received totals about $5,300. Bill Quigley explained
that the IRS has been slow to issue the remainder because of
widespread administrative problems. The rest of the money, however, is expected before the
end of the year.
Colorado Trust
Payments from the Colorado Conservancy Trust
(funded from state-wide gambling revenue) totaling $239.16 have been received. An
additional payment of about $80 is expected before the end
of the year.
2002 Budget
The Committee adopted the
proposed 2002 budget which was revised subsequent to discussion at the August
Board meeting. The budget anticipates increasing dues by an amount equal to the
increase in the Consumer Price Index (+/- 3%) as permitted by the POA by-laws.
Additionally, a further increase in total income is expected due to properties
being upgraded from “unimproved” to “improved” status.
In addition to an expected decrease in administrative costs during 2002, funds allocated for snow removal, weed control, building, equipment, signs, culvert installation, and utilities were reduced from the 2001 budget levels based on experience. Expected savings on these items are redirected to the road resurfacing and maintenance category. The resurfacing allocation, for example, is increased by 17% compared to 2001.
The budget proposal will be published on the website and mailed to all other owners lacking internet access as part of the package sent in advance of the Annual Members’ Meeting in October. It will then be finalized (a) after the Federal government announces the actual CPI multiplier for the year and (b) upon completing our in-progress census of improvements qualifying for a dues increase later this fall.
The proposed 2002 budget will be formally adopted by the Board at its first meeting next year.
As usual, if you have any comments on this or other reports, please call or e-mail me, or any other Board member.