01/11/2024
Draft LMOA Budget Projects Operating and Overall 2025 Surpluses
The draft LMOA budget for 2025 projects a $200,000 improvement from the expected near-breakeven 2024 budget, and from deficits in 2023 and 2024, according to LMOA slides prepared for the budget workshop next Thursday. It also projects a $500,000 overall surplus for the year.
Key factors in the improvement, in addition to the expected 3% dues increase and the $150 increase approved by residents, are a projected small golf surplus “for the first time ever,” and the cap on food & beverage losses due to the new contract for the Bunker Bistro.
The $150 per household dues increase will provide an additional $730,000 annually for reserves, to a total of $1.86 Million for 2025, the slides say. Of the reserves increase, it assumes $100 of the dues increase will go to general reserves, $25 to roads reserves, and $25 to lake health reserves.
The budget is based on several 2025 budget goals:
Increasing the starting pay of police officers and filling the open police officer position, plus hiring a part-time police offer for the Lake.
Using the maintenance department to reduce reserve costs.
Upgrading the marina manager position to become the Marina & Lake Manager in order to provide more staff focus on Lake health, at a cost of about an additional $30,000 per year,
Reinstating the ECC field officer position fulltime.
Hiring a half-time communications officer “to continue to enhance overall member information.”
Assumptions for the 2025 budget include inflation of 3.2% for the year, that the $150 dues increase will be allocated to Reserves and the 3% dues increase will be allocated to operations, that most amenities fees will increase by about 3% but pool revenue will decrease by about $46,000 due to giving pool passes to each household in 2025.
It also assumes interest rates will decrease, golf contract rates will increase 3% and public golf revenue will grow 7% due to dynamic pricing and increased marketing, that LMOA will fill three more fulltime positions for operations, a 10% employee health insurance increase, a continued subsidy of $100,000 for F&B, a liability insurance increase of 8%, and a 7% increase in payments to Allied Security.
Significant budget changes in spending include overtime going down to $20,800 from $117,911, the 3% salary increase, health insurance costs increasing to $275,943 from $216,578, spending on equipment leases dropping to $25,488 from $58,383 but vehicle repairs and maintenance going up to $46,592 from $19,354; transportation growing to $118,548 from $77,467, and total operating spending growing to $6,552,630 from $5,927,653.
Total budgeted revenue is $10,155,259, including operational revenue growing $196,708 to $6.7 million, higher interest rates generating $100,000, vs. the projected $39,529 this year, and the 3% dues growing dues revenue to $4,168,126 from $4,017,939.
The budget projects property transfer fee income will grow to about $207,000 as home sales pick up, in addition to the current PTF balance of $769,662. Though no decisions on PTF use have been made, the slides mention two large potential uses -- $110,000 for additional boat slips, which would be recovered through 15 years of rental fees, and possibly $500,000 for physical access and gate security measures, including cameras for common areas with monitoring and improved parking for events.
The Thursday budget hearing and work session is to begin at 6 p.m. at the Bistro, with the possibility of continuing at the same time Friday. Public comment will be allowed. The final budget is expected to be adopted at the Nov. 21 board meeting.
By Mike Feazel