The 2018 budget development was led by the General Manager working with Finance Operations to incorporate the budget inputs from all the department directors. The fundamental budget development process had been changed to focus on the Operating Budget separate from the Reserve Funded projects. Reserve funded projects will be funded directly from the Reserve account rather than having funds transferred from the Reserve account to the Operating account. Staff continued to use the zero based planning model for labor expenses to review changes from prior year’s budget which included the impacts of the new minimum wage for 2018. This planning model allowed HOA Staff to provide a higher level of precision in this year’s labor planning and budgeting process.
Maintaining the high standards of Community appearance as the facilities mature presented many financial challenges. Aging infrastructure, aging golf and fitness equipment, increased water cost, approved electric utility rate increase, street maintenance cost, maturing landscaping cost and addition of new facilities such as the Oasis pool were among the many upward budget pressures for 2018. New and resale home closings finished strong in 2017. As a result forecasts were increased accordingly. The HOA assessment delinquencies have been kept at 0.3% overall utilizing the HOA Delinquency Administrative Procedure with continued proactive collection processes.
The annual Golf membership fees have been unchanged for 2018. The golf fees do reflect an increase in the contribution to the GIF from $1.50 to $2 per round for 2018. This fee will be set aside in a separate account to fund the future golf infrastructure requirements. The 2018 Golf budget is expected to yield a slight surplus after deduction of the contribution to GIF
The Food & Beverage Department is continually implementing operational improvements to match homeowners’ needs. The 2017 budget has a slightly higher F&B amenity dues cost of $12.58/home/month. The F&B rewards program will continue for 2018. This program provides the homeowners with a $10 Reward card for every $250 expenditure in the restaurants. The restaurants have continued to provide a greater and consistent level of service to enhance your dining experience and to retain your continued support.
The Board approved a HOA Reserve Study to be conducted by Criterium Engineers in 2016 to validate the planned asset replacement in the Long Range Plan. In early 2017 the Reserve Study results had been presented to the homeowners. The Reserve Study recommendations have been incorporated into the Long Range Plan and will be the basis for Reserve funded project expenditures in the 2018 budget year. In 2017 a projected $2.1M of the Reserve funds will have been utilized to fund asset replacements that were identified in the Long Range Plan. That will leave the Reserve account balance net of the projected 2017 withdrawals at $7.0M at the end of 2017.
Two Homeowner Meetings were held in early November to review the community financials and budget requirements for 2018. A detailed budget presentation provided residents with insight into the efforts by the General Manager, Finance Operations, Department Directors, the Board and staff to efficiently manage the community cost. The meetings provided homeowners the opportunity to better understand the financial requirements and challenges that face our community. For 2018 the Budget presentation reflected the Operating Fund Budget only. The Operating Fund Budget identified day to day operating requirements funded with the HOA dues collected in 2018. The Reserve funded projects have been identified in the Long Range Plan and expenditures will be tracked and funded as they occur.
The Board approved the 2018 budget at the November 15, 2017 Homeowners Associations Board Meeting, This approved budget resulted in a $138 increase in annual HOA dues bringing the 2018 HOA dues assessment to $2,448 per household/year. Of this total $1815 will be used to fund the day to day operating expenses while $633 will be the contribution to the Reserve account.
The accompanying pie chart and data table depict the specific 2018 budget requirements for each function in the community and break out that portion of your HOA dues needed to support each function. A complete detailed copy of the 2018 PebbleCreek HOA Budget is available to view at the Resident & Guest Services at the Eagle’s Nest Clubhouse front desk and has also has been posted on the PebbleCreek HOA website at www.pebblecreekhoa,org. A copy of the 2018 homeowner budget presentation and accompanying budget information article have also been posted on the PebbleCreek HOA website.