The 2019 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 has separated the Operating Budget from the Reserve Funded projects. 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 minimum wage increase for 2019. This planning model has been working well and results in a higher level of precision in this year’s labor planning and budgeting process.
The budget focus has been on maintaining the high standards of Community appearance as the facilities mature and require more attention. Aging infrastructure, aging golf and fitness equipment, increased water cost, electric utility rate increase, street maintenance cost, maturing landscaping cost and addition of the new nine holes of golf were among the many upward budget pressures for 2019. New and resale home closings finished strong again in 2018. As a result, forecasts were increased accordingly.
With the new nine holes of golf along with increased water cost, the Golf annual membership fees have been increased $1.50 per round for 2019. The golf fees also included the $2 per round contribution to the golf Reserve (previously GIF) for 2019. The 2019 Golf budget is expected to yield a slight surplus after deduction of the contribution to golf Reserve.
The Food & Beverage Department is continually implementing operational improvements to match homeowners’ needs. The 2019 budget has a slightly lower F&B amenity dues cost of $12.34/home/month. The F&B rewards program will continue for 2019. This program provides the homeowners with a $10 reward credit 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 Criterium Reserve Study recommendations have been incorporated into the Long Range Plan and will be the basis for Reserve funded project expenditures in the 2019 budget year. For 2018, a projected $2.3M of the Reserve funds will have been utilized to fund asset replacements that were identified in the Long Range Plan. This will leave the Reserve account balance net of the projected 2018 withdrawals at $8.4M at the end of 2018.
Two homeowner meetings were held in early November to review the community financials and budget requirements for 2019. A detailed budget presentation provided residents with insight into the efforts by the General Manager, Finance Operations, Dept. 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 2019 the budget presentation provided the detailed financials for the Operating Fund Budget and a summary of the planned project expenditures to be funded from the Reserve.
The Board approved the 2019 budget at the November 21, 2018 Homeowners Associations Board Meeting. This approved budget resulted in a $124 increase in annual HOA dues bringing the 2018 HOA dues assessment to $2,572 per household/year. Of this total $1832 will be used to fund the day to day operating expenses while $740 will be the contribution to the Reserve account for asset replacements.
The accompanying pie chart and data table depict the specific 2019 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 2019 PebbleCreek HOA Budget has been posted on the PebbleCreek HOA website at www.pebblecreekhoa,org. A copy of the 2019 homeowner budget presentation and accompanying budget information article and pie chart have also been posted on the PebbleCreek HOA website.