LeisureTowne Association, Inc.

Welcome to theBudget Presentation for

the Fiscal Year

April 1, 2014to

March 31, 2015

Revenue Budget Estimated Budget

2014 2014 2015

Monthly Assessment $1,596,540 $1,596,540 $1,596,540

P/Y Operating Surplus $150,000 $150,000 $127,899

Recreation Committee $38,530 $43,144 $40,000

Reserve Contribution $216,480 $216,480 $270,600

Other Revenue $109,600 $133,866 $112,600

Total Revenue $2,111,150 $2,140,030 $2,147,639

Revenue

• Recreation Committee - Recreation Committee Income is offset by Recreation Committee Expenses $40,000

• Miscellaneous – Interest income, late fees, legal fee collected, fines, private parties, etc.

$52,600

• Resale fees which are contributed to the Reserves $60,000

Expense The Budget consist of two types of

expenses, these are:

• Salaries, Payroll taxes and benefits.

• Other expense- including professional fees, security, administrative, office, building's, grounds, pools, activities, etc

Expense

First we will start with Salaries and Benefits

Salaries and BenefitsBudget 2014 Estimated 2014 Budget 2015

Employee Salaries

363,948 335,289 369,452

Employee OT 3,000 3,000 3,000

Total Salaries 366,948 338,289 372,452

Payroll Taxes and Benefits

122,160 115,936 121,100

Total Salaries and Benefits

489,108 454,225 493,552

**Note: Salaries do not include management.

You will see this information under Professional Fees.**

Salaries Continued• Salaries include a increase of 1.5%.

• Benefits include all taxes and health, dental and worker comp insurance

• The employees are required to contribute to their health insurance plan with a 18-23% contribution of the premium. This is an increase from 10% in previous years

Staff photo’s

Expense

Next we will review all other operating expenses of the Association

Utilities Expense

Budget Estimated Budget 2014 2014 2015

$144,450 $117,620 $129,500

• Water, Sewer, Electric, Heat, Cable, Telephone (including cell), Trash removal for all Association buildings and common grounds

• 2015 budget is based upon current usage and includes adding service at Village Green

Security Expense

Budget Estimated Budget 2014 2014 2015

$275,842 $275,822 $293,671

• Contracted entrance monitoring service for two entrances (Route 70 and Retreat Road), twenty-four hours a day, seven days a week

• Budget includes Security car expense and remote monitoring of alarm systems

Welcometo

LeisureTowne

Insurance Expense Budget Estimated Budget 2014 2014 2015

$89,000 $89,000 $88,500

•Property, General Liability Insurance, Commercial Auto Insurance, Boiler & Machinery•Directors & Officers Liability, Umbrella •The budget for insurance has been reduced because of the sale of bus 7, and includes coverage for Old Forge Lake

(This does not include employee coverage.)

Professional Fees Engineering-Legal-Audit

Budget Estimated Budget 2014 2014 2015 $95,025 $83,002 $90,200

• Engineering fees for all major projects• Legal fee to provide legal opinion on day-to-day

operations, collections and additional legal services, as needed

• Preparation of the annual audit and filing of the Federal Tax return by an independent Auditing firm

Professional Fee’s Management

Budget Estimated Budget

2014 2014 2015

$183,860 $183,860 $178,291

• The Management contract expires February 28, 2015

Administrative Expense Budget Estimated Budget

2014 2014 2015

$68,600 $64,101 $67,800

•Educational training for Board and Staff •Membership dues in trade organizations•Coin copier expense for the Halls•Coupon printing•Payroll processing by a service provider•Allowance for Direct Deposit•Potential bad debit •Other miscellaneous expenses

Contingency and Transition Budget Estimated Budget

2014 2014 2015

$125,000 $114,687 $115,000

• Contingency is allowance for unexpected and unbudgeted expenses, expense from this account requires Board approval

• The current year to date the Board has approved expenses for bulkhead installation and unbudgeted truck repairs of $5000

• Additional expenses expected are Village Green remodel • Transition related expenses include Old Forge Dam

• 2015 budget for Contingency $75,000• 2015 budget for Transition $40,000

Old Forge Dam

Office Expense

Budget Estimated Budget

2014 2014 2015

$51,200 $50,378 $46,700

• Stationery supplies, printing; postage, computer and copier expenses, and repairs to office equipment. Includes website hosting, LT Alert, document offsite storage

Grounds, Equipment & Maintenance

Budget Estimated Budget 2014 2014 2015 $95,000 $83,002 $95,500

• Contracted landscape services for open space, bed & flower maintenance, tree removal. Our staff mows all Halls, the Association Office, TOUCH, Village Green Park, the entrances to the Community

• Snow removal supplies• Irrigation• Purchase and repairs for equipment • Waterways management

Old Forge Lake

Activities Expense Budget Estimated Budget 2014 2014 2015 $14,800 $15,308 $18,500

• Repairs to billiard tables, maintenance agreements for audio/visual and fitness center equipment

• Supplies for recreational activities, library, table tennis, billiard rooms, and shuffleboard

• Bus rental for Recreation Trips, Christmas Day Dinner and Pool Party

Upgrade of Shuffleboard Courts

Community Property Buildings Maintenance

Budget Estimated Budget 2014 2014 2015 $61,485 $64,680 $67,100

• Pest control contracts, fire safety inspections, repairs, cleaning supplies, paper products for all community buildings. Maintenance agreements and repairs to the heating, air conditioning, and hot water systems.

• Lumber, paint, fencing, benches, gates, signs and repairs to outdoor structures

• Repairs to shuffleboard and horseshoe courts, fencing, general community maintenance as needed

Swimming Pools Budget Estimated Budget 2014 2014 2015 $51,020 $48,736 $52,475

• The Pool management contract for both swimming pools

• Contract includes 6 extras days in September and open every Friday till 8, weather permitting for both pools

• Pool expenses include deck repair for Settlers and other repairs as necessary

Vehicle Expense

Budget Estimated Budget 2014 2014

2015 $45,750 $42,554 $34,250

• Fuel, repairs, maintenance and tires for bus and four trucks, 4 x 4 Kubota along with truck payment

• This account does not include insurance for the vehicles

Estimated Income Tax

Budget Estimated Budget 2014 2014 2015 $1,000 $00.00 $1,000

Estimated Federal Income Tax on miscellaneous income such as:

• Replacement badges, rental for elections, Hall rental

• Recreation events, coin operated copiers at the halls, interest earned on all Association bank accounts

Reserve Contributions

This account consist of two types of funding:

• Membership transfer fees which occur when a home is re-sold. This fee is $250 - $500 for every home

• The Reserve assessment will be $10 per month. This is based upon the current reserve study

Reserve Contributions Budget Estimated Budget

2014 2014 2015

$281,480 $295,722 $335,600

• The budget includes $60,000 in transfer fees and $5,000 in interest income

• The Reserve Study was updated to include all lakes, pipes, buildings and waterways that have never been reserved for in the past

• Based upon the updated Reserve Study over the next few years the contribution towards reserves will increase significantly

Reserve Projects Completed• Lining of pipe under Huntington Drive at Cedar

Lake• Inspection and repair of Cedar Lake Dam• Replacement A/C units at Settlers Hall & Office• Bulkhead replacement at Dorchester Drive• Laurel Hall Pool deck replacement• TOUCH roof replacement• Replacement of Laurel Hall refrigerator & ice machine• Paving sealcoat at Pineview Park and

Settlers/Friendship Halls

Cedar Lake Pipe

Lining Project

Laurel Hall Pool Deck Replacement

TOUCH ROOF

Dorchester Drive Bulkhead

Before After

Laurel Hall New Refrigerator and

Ice Machine

Reserve Projects for 2015

• Pool - resurfacing Settlers if necessary, furniture at both pools • Village Green - bathroom access and renovation & putting green• Video and clean out of underground piping• Remodel of Friendship Hall bathroom• Upgrade or repair of Laurel Hall folding door• Parking lot and common ground sidewalk repairs• Waterway - valves, trash racks, bulkheads • Replacement of 4 x 4 - current equipment does not meet carbon monoxide standard• Old Forge Dam replacement

CAI Gold Star Presentation

May 2013

Village Green

Village Green Renovation Design

Other Items to be Completed This Year

• Study of building security with cameras and card swipe systems

• Refurbish Village Green building • Purchase of additional power tools• Repair of Settlers pool deck• Repair & upgrade shuffleboard and

horseshoe courts• Build a dam and settle with RealMark!

Monthly Assessment

Effective April 1, 2014

The monthly assessment $69.00

Operating Fee $59.00 Capital Projects Fee $10.00

Operating Fee Revenue $1,596,540.00Reserves Fee Revenue $ 270,600.00

Discounts:$1.00 month Direct Debit$12.00 year if dues are paid in full by April 8, 2014

Why the increase?

• The operating budget has not increased • The reserve contribution has increased by

$54,120 • The Board is anticipating expenses for the

transition of properties from RealMark and rebuilding of Old Forge Dam. Until the dam is rebuilt LeisureTowne has many unknown expenses. Once this is complete, the Association will be in a better position to maintain the expenses and budget.

Questions and answers

At this time we

will take your questions

one at a time.

(Three minute limit please!)

Approval of Budget

After all questions have been answered the Board of Trustees will make a motion to approve

the budget per Article III, Section 12 of the Amended By-laws

MotionI make a Motion to approve the 2014-2015 Annual Budget for Fiscal Year April 1, 2014 - March 31, 2015.

The budget includes $127,899 of prior year income.

•Monthly Assessment effective 4/1/14 $ 69.00

The fee includes:•Operating Fee $ 59.00•Reserve Fee $ 10.00

•Pay by direct debit payment is $ 68.00 month•Pay for entire year by April 8, 2014 payment is $816.00 ($12.00 savings)

Thank you for attending!

Presented by the

Board of Trustees

LeisureTowne Association

February 25, 2014