Minutes

FRCA Special Board Meeting – 2009 Budget

 

Date:  8 October 2008

 

Time:  10:00 AM

 

Members Present:  Toni Brown, Don Webb, Harriet Schrader, Don Horan, Jack Mounts, Jake Bernard, Chuck Strub.

 

Members Absent:  None

 

I:  The meeting was called to order at 10:00am by Toni Brown. 

 

II:  The meeting was turned over to the FRCA Treasurer, Don Horan, who started with a review of open items from the 29 September Special Budget meeting:

 

            a:  Main Gate/ Community Center Surveillance System:  The Board discussed the pros and cons of the proposed system and decided to defer action on purchase of a surveillance system until more information is available regarding system configuration and capability.

            b:  Replacement of chairs in Community Center:  The Board noted that the Mason & Mason study did not call for chair replacement until 2014.  After discussion, the Board decided to defer consideration of this item until a later date.

            c:  Property Manager’s Salary:  The Board is not able to determine the cost of this item until a new Property Manager is hired. 

            d:  Use of Social Budget by Activity Director:  The Board noted that no resolution of this subject had been reached on 29 September due to the absence of one member. 

                        1/  Jack Mounts made a motion, seconded by Toni Brown, to reconsider the issue.  After discussion of the history of this subject, the Board voted to reconsider the issue 6-0 with Jake Bernard abstaining.

                        2/  Harriet Schrader made a motion, seconded by Toni Brown, that the Activity Director be authorized to spend allocated funds as seen fit for social activities including using funds to reduce social events costs to residents by supplementing event fees provided the total expenditures do not exceed the amount authorized for the Social budget.   After discussion, the Board voted to approve the motion 5-1, Don Webb opposed, Jake Bernard abstaining.

 

III:  The Board then reviewed the Board of Director’s 2009 Operating Budget – Draft 1.  All line numbers indicated refer to that document.  All items not indicated below were accepted by the Board as presented.

 

            a:  Line 60 - Wrought Iron Railing Maintenance:  After a long discussion the Board left the allocation of $25,000 as is and deferred a decision regarding repair or replacement of the 7,500 feet of existing railing. 

            b:  Line 85 – Trash/Recycling Contract:  Harriet Schrader indicated a desire to determine if savings could be realized by cutting trash pickup to once per week year-round.  The Board decided that the new Property Manager should review the trash contract with the vendor.

            c:  Line 137 – Indoor Pool Repairs/Maintenance:  A question was raised regarding the cost of painting of the pool deck.

            d:  Line 146 – Legal:  The increase to $25,000 was questioned but retained by the Board.

            e:  Line 155 – Taxes – Federal:  After discussion of the reason for the increase from 2008, the Board changed this item from $18,200 to $17,200.

            f:  Line 173 – Net Excess [Deficit]:  After a detailed discussion of the Reserve Fund requirements and planned contributions, the Board noted that the indicated, planned deficit of $174,924 reflects no change to the monthly assessment of $140.

 

IV:  Review of Excess Funding Uses:  The Board held an extensive discussion regarding how to utilize the projected $180,000 of 2008 excess operating funds.  Significant items of discussion were:

 

            a:  Review of possible options for use of this money:  These ranged from a zero allocation to additional Replacement Reserve funds to total use for increased Replacement Reserve funds.

            b:  Projected costs in out-years:  The Finance Committee budget projections for 2010-2014 project a 2014 deficit of $350,000 at a steady $150/month assessment.

            c:  Limitations on assessments:  The Board may not raise assessments more than 10% in any year. 

 

V:  Don Horan made a motion, seconded by Chuck Strub, to direct the Treasurer to prepare final 2009 Operating Budget and 2009 Replacement Reserve Budget based upon line 24 of the Examples worksheet and a $12.00 per month increase in the monthly assessments to a total of $152.00 per month.  The motion was approved 6-1, Don Webb opposed.

 

VI:  The Board adjourned at 12:43pm.

 

 

 

THOMAS J. WHALEN

Recorder