|
GVR
2010 Annual Budget
Green
Valley Recreation (GVR) currently operates thirteen
facilities and one Member Services Center. Each
facility offers a variety of activities, programs,
and classes. It is always Green Valley Recreation’s
intention to maintain facilities and recreational
programs at an optimal level, provide capital maintenance,
repairs and replacements as needed, improve existing
facilities, and deposit to and preserve GVR reserves.
This
year, the budget process began in May and ended
in September. GVR Staff prepared a draft Capital
Budget, that included several large repair and maintenance
projects, replacement of fitness equipment, some
HVAC (air conditioning) replacements and other capital
additions at various centers. GVR Staff also prepared
a draft Operating Budget. The consolidated 2010
Annual Budget was presented to the Planning and
Fiscal Affairs Committee (PFAC) for discussion on
July 29. The budget process included a review of
each income and expense budget item. This included
justification and explanation of any differences
from last year’s budget, actual performance against
the proposed budget and actual revenue and expense
amounts for 2009. After five PFAC meetings, the
final draft of the 2010 Budget was presented to
the Board of Directors on September 9th for their
review. The budget was then voted on and approved
at the Board of Director’s Meeting on September
22nd.
On
the Income Side, the 2010 budget is $6,883,469.
This is $247,293 (3.5%) lower than the 2009 Revenue
Budget. In 2009, the Board of Directors approved
the release of a restricted cash amount of $200,000
for the operations of the new Canoa Ranch facility.
In 2010, the operating costs for Canoa Ranch will
come out of revenue received in 2010. This is the
main reason why revenue decreased by 3.5%. Additionally,
interest income projections decreased $114,000,
due to the substantial drop in interest rates associated
with investments in Certificates of Deposit and
Money Market accounts. You would see that the Member
Dues revenue line actually increased by $60,000
even though Member Dues for 2010 will remain at
$403. This is because new members, who paid pro-rated
dues in 2009, will now pay their full dues in 2010,
and new members in 2010 will pay pro-rated dues.
The Guest Card Fee revenue increased by $25,000
as the membership took advantage of this convenient
and popular program in 2009. The Initial and New
Member Capital Fees were increased by $22 (1%) from
$2,202 to $2,224.
Wages and Benefits increased $82,309 (2.5%) from
the 2009 Budget. They represent 48% of the Expenditure
Budget. A Cost of Living Allowance (COLA) was not
included for staff; however, a Performance Pay plan
for staff was included in Wages.
Utility
expenses are 13.5% of the Expenditure Budget. These
expenses decreased $53,208 (5.4%) from last year.
This decrease is attributed to a $75,120 reduction
in Natural Gas Expense with the budget for 2010
adjusted to come in line with the current and projected
expense for 2009.
Operating
Supplies increased by $75,869 (28.5%) which places
the budget in a more consistent manner with actual
costs incurred in 2009. This account includes all
office and operating supplies for each department,
along with general maintenance, pool, landscaping
and custodial supplies for all GVR facilities.
A
separate budget line has been added to the budget
for $270,000 representing tennis court replacement.
This amount is shown as a Restricted Cash Account
for Tennis Court Replacement. There was considerable
discussion surrounding the replacement of the four
(4) tennis courts at Desert Hills. Although the
amount above has been approved, there will be ongoing
discussions regarding the actual resurface material
and planned timing of eventual repairs. Use of these
restricted funds will require Board approval.
The
budget for Initial Fees is $75,616, which includes
$48,444 for new home sales in Desert Creek. In 2007,
the Board of Directors decided that all initial
fees collected from Desert Creek will be placed
in the Addition Reserve to replace a previous withdrawal
to complete Las Campanas Phase III. The amount of
$48,444 is shown on the Contribution to Addition
Reserve line.
No
funds were added to the Replacement Reserve in 2010.
The Board will continue in future years making decisions
regarding major repair and maintenance projects
and other capital additions. This account currently
has close to two million dollars.
The
focus for subsequent years continues to be the repair
and maintenance of aging facilities, energy conservation
and safety issues. The resale market within GVR
appears to be improving and bringing in new members
as evidenced by the current 2009 results. The ongoing
challenge will be to balance facility needs and
services with GVR membership desires.
Have
any questions? Give me a call or send me an email.
Mgarneau00@cox.net
or 495-5076.
Marge
Garneau
GVR Treasurer
Chairperson of the Planning and Fiscal Affairs Committee
|