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2019

Version 0.1

LMCC

1/1/2019

LMCC Annual Operating Plan &Associated Budget

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CONTENTS

1 Overview ................................................................................................................................................... 3

2 Our Customer/Resident Value Proposition ............................................................................................... 3

3 Assumptions Underlying the 2019 Operating Plan & Budget ................................................................... 4

4 Initiatives Proposed for Execution in 2019................................................................................................ 5

4.1 Brief descriptions of the 2019 capex Initiatives ............................................................................... 5

5 Performance Targets for 2019 .................................................................................................................. 6

6 Financial Proposals .................................................................................................................................... 6

6.1 Budgeted Income statement for 2019 ............................................................................................. 6

6.2 Analysis of the 2019 Expense Proposals ........................................................................................... 7

7 2019 Cashflow Forecast .......................................................................................................................... 11

7.1 Cash Position assuming no Increase in Maintenance Fees ............................................................ 11

7.2 Our Performance on Receivables ................................................................................................... 11

8 The Revenue Budget ............................................................................................................................... 12

9 Appendices .............................................................................................................................................. 14

9.1 Appendix I - 2019 Revenue Budget ................................................................................................ 15

9.2 Appendix I - 2019 Revenue Expenditure Budget ............................................................................ 16

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1 OVERVIEW

The 2019 LMCC Operating Plan continue to be driven by the overall Goal and the Strategic Objectives

outlined in the LMCC 2015 – 2018 Strategy Map as outlined below in fig 1

2 OUR CUSTOMER/RESIDENT VALUE PROPOSITION

From the various surveys that have been conducted over the years, there is a clear understanding that

LMCC’s customers, you the Homeowners and Residents want LMCC Administration to:

1. Provide a safe environment;

2. Providing a clean environment;

3. Providing an environment that is aesthetically pleasing; and

4. Ensure a consistent water supply

Figure 1 - LMCC Strategy Map 2015 - 2018

Staff with the right Competencies & Skills

Clarified Roles & Responsibilities

Effective Management of Employee Performance

LMCC STRATEGY MAP 2015 - 2018

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apac

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Resident Focus

Ensure Covenants not Breached

Our

Val

ue

Pro

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tion

Effective Governance by the LMCC Board

Improved Provision of Management Information

Continuous Evaluation of

LMCC�s Performance

Improved On-time Collection of

Maintenance Fees

The Availability of Adequate Financial

Resources

Improved Property Management

Processes

Effective Management of Service Provider

Performance

Our Mission is to: To create and maintain a model community for its members that is safe, efficiently and effectively managed, aesthetically

pleasing and family friendly, by providing high-quality services and engaging all residents and home owners

Provide a Safe Environment Ensure Consistent Water Supply

Provide a Aesthetically Pleasing Environment

Our Values:

Effective Complaints Management

Effective Community

Engagement

Communication with 100% of the

Community

Effective Governance By the LMCC Board

Consistent Garbage Collection

Effective Control of Stray Animals

Provide a Clean Environment

RESIDENT & OWNER SATISTACTION

Operational Efficiency

Well Maintained Common Areas

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To deliver on our Customer Value Proposition, During 2019, it is proposed that the overall success measure

will be to achieve a Resident & Owner Satisfaction rating of at least 90%. To achieve this goal, LMCC will

continue to focus on the themes of being Resident Focused, and Operational Efficiency an ensuring.

The LMCC Board and Management propose that the Strategic Themes outlined above will be achieved

through a focus on the strategic objectives outlined in the Strategy Map shown in Figure 1 above.

To achieve these objectives, there must be a focus on the Organisational Capacity of the organisation. We

must ensure that the small administrative team is maintained at full strength throughout 2019 and

temporary assistance will be given on a needs basis so that full attention can be given to fully executing all

the accounting and administrative tasks of the organisation. In addition, effective Governance of LMCC’s

operations will be required from the volunteer Board of Directors and sub-committees who must continue

to provide support, advice and mentoring of the LMCC Staff.

3 ASSUMPTIONS UNDERLYING THE 2019 OPERATING PLAN & BUDGET

In developing the 2019 Operating Plan and budget we once again assumed no improvement in the Jamaica

economy during 2018 and that exchange rates will continue to slide. We have had no crystal ball to inform

us what average J$/US$ exchange rates will be in 2019 and have assumed that the current J$/US$ exchange

rate will prevail throughout 2019. We have based our 2019 inflation assumptions on the average rate

experienced since 2011.

Budget Assumptions 2019 Budget

Interest on J$ investments 6.45%

Interest on US$ investments 1.35%

Inflation Rate (Based on Central Bank data) 5.00%

J$: US$ Exchange Rate 135:1

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4 INITIATIVES PROPOSED FOR EXECUTION IN 2019

The following Capital Expenditure (CAPEX) “Initiatives” are proposed for 2019

Initiative Description Estimated Cost Initiative Owner

Renovate the fountain at the front of the property 189,469 Property Manager

Purchase dog traps 285,499 Property Manager

Upgrade Peachtree to the 2019 version 115,155 Property Manager

Total 2019 Initiatives 590,123

4.1 BRIEF DESCRIPTIONS OF THE 2019 CAPEX INITIATIVES

RENOVATION OF FOUNTAIN

The fountain has been out of commission for over 7 months in 2018 and as a result, the LMMC Board has

made a provision to purchase 2 pumps in order for it to be operational.

PURCHASE DOG TRAPS

Residents have reported an increased number of stray dogs on the property and in order for JSPCA to

remove the dogs we must catch them first; as such we will be purchasing 4 dog traps to strategically place

them in common areas to increase the probability of catching these stray animals.

UPGRADE PEACHTREE TO THE 2019 VERSION

This is necessary as we try to improve our administrative and financial system; we currently have the 2015

version which needs to be upgraded after 2017-2018 financials are audited.

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5 PERFORMANCE TARGETS FOR 2019

LMCC’s Performance Indicators and related targets for 2017 are shown below:

Performance Indicators 2017 Actual 2018 Actual 2019 Target

Resident/Owner Satisfaction Index 85% 90%

Receivables Index (days) 32 36 36

Payables within terms only

Current Current

# Days of Expenses held in cash

45 45

6 FINANCIAL PROPOSALS

A summary forecast 2019 Operational Expenses and the funding of those expenses is shown below in Fig x,

while the detailed Expense and Revenue Forecasts for 2019 are shown in Appendices I and II.

6.1 BUDGETED INCOME STATEMENT FOR 2019

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2017 Actual 2018 Budget 2018 Actual2019 Budget with

Increase

2019 Budget - No

Increase

Ordinary Income - Maintenance 34,767,500 34,716,000 34,716,000 41,028,000 34,716,000

Ordinary Income - AMF 263,500 263,000 263,500 526,000 526,000

Other Income 4,118,108 5,047,926 5,089,836 3,611,350 3,611,350

TOTAL REVENUE 39,149,108 40,026,926 40,069,336 45,165,350 38,853,350

LESS OPERATIONAL COSTS

Salary & Salary Related Expenses (5,862,609) (5,908,000) (6,676,599) (8,258,880) (8,258,880)

Property Upkeep and Main. (22,936,992) (23,108,736) (24,404,129) (27,141,265) (27,141,265)

Utilities (4,577,918) (4,520,000) (5,039,936) (4,870,000) (4,870,000)

Office Expenses (416,609) (350,000) (395,747) (442,647) (442,647)

Communications Costs (875,005) (615,000) (925,648) (923,452) (923,452)

General Administration (321,927) (210,000) (271,012) (534,000) (534,000)

Bank & Agency Fees (551,494) (200,000) (821,220) (821,220) (821,220)

Accounting & Audit Fees (202,250) (374,400) (349,500) (171,750) (171,750)

Legal / Corporate Cost (1,113,292) (796,000) (841,486) (610,000) (610,000)

Registration Fees (77,000) (75,000) (225,000) (388,614) (388,614)

Special Events (413,001) - (885,580) (250,000) (250,000)

Total Operational Expenses (37,348,097) (36,157,136) (40,835,857) (44,411,827) (44,411,827)

OPERATIONAL SURPLUS/ (DEFICIT) 1,801,011 3,869,790 (766,521) 753,523 (5,558,477)

Depreciation Expense (1,472,417) (1,063,000) (1,200,000) (1,500,000) (1,500,000)

Bad Debts Expense (199,646) (119,981) - - -

Misc Gains/Losses/Prior Years Items 4,500 84,300 - -

Overall Surplus/(Deficit) 133,448 2,686,809 (1,882,221) (746,477) (7,058,477)

6.2 ANALYSIS OF THE 2019 EXPENSE PROPOSALS

Focusing on the Critical Few – The “Top 12”

On average, the top 12 expense areas in the LMCC cost structure account for 98% of the total operating

expenses on an annual basis, while the top 4 expenses (Security, Grounds Maintenance & Upkeep, Salaries

and Wages and Utilities) account for 81% of total expenses. Error! Reference source not found. below,

provides a graphical view from 2016 to 2019 of the relative size of each expense category in relation the

other categories and shows the upward trend in expenses when they are expressed in “Money of the Day”1.

In money of the day, there is a forecast increase in 2019 expenses over 2016 expenses of 26 %

1 “Real Terms” dollars are dollars adjusted for inflation using a particular year as the bench mark year (2014

for this AOP, while “Money of the Day” dollars are not adjusted for inflation.

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Figure 2 2019 Top 12 Expense Categories in 2019$

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2016Actual

2017Actual

2018Actual

2019Budget

Other

General Administration

Office Expenses

Legal & Professional Fees

Garbage Collection

Pool & Fountain Maintenance

Bank & Agency Fees

Communications Costs

Other Property Upkeep and Main.

Utilities

Salary & Salary Related Expenses

Grounds Mntnce & Upkeep

Security

However to reinforce the point made earlier relating to the impact of inflation on LMCC’s Purchasing Power,

using the average annual inflation rate of 6%, in Error! Reference source not found. overleaf, shows that

when the Top 12 expense categories are expressed in “Real Terms 2014 dollars, the real terms increase is

19%. Error! Reference source not found. also overleaf shows the difference in the rates of expense

increase on inflation-adjusted (real terms) versus non-inflation adjusted (money of the day) bases.

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Figure 3 Trend in Top 12 Expenses Expressed in 2014 $

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2016Actual

2017Actual

2018Actual

2019Budget

Other

General Administration

Office Expenses

Legal & Professional Fees

Garbage Collection

Pool & Fountain Maintenance

Bank & Agency Fees

Communications Costs

Other Property Upkeep and Main.

Utilities

Salary & Salary Related Expenses

Grounds Mntnce & Upkeep

Security

Figure 4 The Trend in Real Terms vs. MOD Expenses

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2016 Actual 2017 Actual 2018 Actual 2019 Budget

LMCC Top 12 Expense Trend 2016 - 2019Real Terms 2014 $ vs Money of the Day

Money Of the Day

Real Terms 2014 Dollars

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Expenditure Highlights

The “Real Terms” increase in LMCC’s 2019 Expense Proposals reflects realities that our community now

faces and will continue to face as follows:

Wear & Tear on the Plant

It is the same with respect to your own home or your car. As the property gets older, it is now been

occupied for 15 years, various aspects of the physical plant deteriorate due to wear and tear and we will

have to spend more dollars to maintain LMCC assets in an operational state where accepted levels of

service can be provided to the community. The usual suspects come to mind, walkways, the fountain, the

pool, the entrance gate, the road ways, the clubhouse, the perimeter fencing etc)

Grounds Maintenance & Landscaping

LMCC is the victim of its own success. Contrary to the dire predictions of the environmentalists, LMCC has

not been the scar on the skyline of Kingston that was predicted. We have beautified our surrounding and

take great pride in the flora and fauna that we enjoy. However the reality more successful we are the more

money we must spend to maintain what we have done, to the point where it was obvious the standards

were slipping and would slip further if our service provider was not allowed to engage an additional

resource, provide minimal coverage on Saturdays an reflect the increased minimum wage the charges to

LMCC.

For those who are still waiting for the “beautification” to impact all areas of LMCC in an equitable manner,

the administration even that to impose a moratorium on the development of new “park’ areas and focus on

maintaining what we presently have because any new areas could not be maintained at the desired

standard.

Security

Security is the unique selling proposition for Long Mountain. It is the reason why we can enjoy the place

where we live and why everyone wants to visit us up here. On the basis that the previous service provider

was not adequately meeting LMCC’s requirement, there was a reset and the service contract was put out to

tender. A detailed best practice procurement process was followed using the Procurement Policy

Guidelines and procedures developed for LMCC. The reality is that to get the desired service we had to pay

more. Just to let you know that ensuring the delivery of service at the contracted service levels is an on-

going process and the Administration expects to be provided with a security service that meets the services

standards contracted for.

Office Administration Expenses

The reality of having the 2016 LMCC accounts presented at an AGM in February 2019, reflects the reality

that if the organisations staffing is not at the right levels and we do not have staff with the desired

competencies and skills, who we can attract and retain, the administrative mess that existed up to 2016

would never be resolved. There is no “fat” in the LMCC organisation and the other sad reality is that while

salary increases had been promised to staff in the three years leading up to 2018, they were never actually

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paid until 2018. The combination of meeting our commitments to staff and the assumption that we will

maintain the current head counts translate into the Salary and Salary-related expenses proposed for 2019

7 2019 CASHFLOW FORECAST

7.1 CASH POSITION ASSUMING NO INCREASE IN MAINTENANCE FEES

In managing the financing of LMCC’s operation a philosophy has been followed of ensuring that financial

prudence is practised and that there are funds set aside for replacement of capital assets and to deal with

any unforeseen repairs and maintenance that might be required within the community. The alternative to

this approach is to live in a world where a “cess” would have to be levied on the community if any

unforeseen expenditures are required. During 2016-2018 the community had to dip into the safety net to

the tune of approximately $ 1 million dollars, leaving us with approximately $ 7.9 million in the fund at the

beginning of 2019.

A 2019 cash flow forecast was generated (see Error! Reference source not found. below), assuming no

increase in the LMCC maintenance fees and this indicated that with forecast expenditures and no

deterioration in LMCC’s receivables position, the emergency fund would be further reduced by $6.4 million

leaving use with a mere $1.6 million at the end of 2019

Figure 5 - 2019 Cash Flow Forecast - No Increase

7.2 OUR PERFORMANCE ON RECEIVABLES

LMCC’s management of receivables has an impact on cash flow availability and at the end of 2018, the total

debt outstanding as a result of unpaid maintenance dues was $3.2 million. This does not include

prepayments by residents amounting to approximately $1.47 million.

Error! Reference source not found. below shows that 3% of LMCC homeowners or 17 individuals owed 60%

of the overdue amounts and that 29 individuals or 6% of the homeowner populations owe 76% of the

overdue debt

Cash Budget No Increase

Jan Feb March April May June July August September Oct November December Total

Revenue: 3,494,000 2,968,000 2,975,166 4,275,948 3,642,101 2,975,166 2,968,000 2,968,000 2,975,166 2,968,000 3,675,806 2,968,000 38,853,353

Change in Working Capital

Cash Expenses (3,616,577) (3,666,577) (4,165,191) (3,773,115) (3,586,577) (3,646,577) (3,586,577) (3,586,577) (3,636,577) (3,586,577) (3,776,577) (3,986,577) (44,614,077)

Capital Expenditure (474,968) - - - - - - - - (115,155) - - (590,123)

Net Cash Flow (597,545) (698,577) (1,190,025) 502,834 55,523 (671,411) (618,577) (618,577) (661,411) (733,732) (100,771) (1,018,577) (6,350,847)

Opening Fund Balance Balance 7,950,000 7,352,455 6,653,878 5,463,852 5,966,686 6,022,209 5,350,798 4,732,221 4,113,644 3,452,233 2,718,501 2,617,730

Availble Cash Flow 7,352,455 6,653,878 5,463,852 5,966,686 6,022,209 5,350,798 4,732,221 4,113,644 3,452,233 2,718,501 2,617,730 1,599,153 1,599,153

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The LMCC has made significant strides in reducing outstanding receivables, and we should bear in mind that

at any point in time not all of the debt is overdue and that in fact at the end of 2018 $1.6 million of the total

outstanding receivables was current.

This can be seen through the lens of LMCC’s Receivables Index which stood at 46 days excluding

prepayments and 36 days including prepayments. The reality is that since we consider receivables in the “0

– 30” days category as current, LMMC’s receivables cannot go below the total of “current receivables”.

Figure 6 - A Pareto Analysis of LMCC Debtors as at December 2019

8 THE REVENUE BUDGET

To fund the forecast 2019 Expenditure Proposals while maintaining the ‘emergency fund” at the December

2018 level, the 2019 Revenue Budget shown in Error! Reference source not found., proposes a

$1,000/month increase in maintenance fees and a $500/year increase in the annual membership fee.

The resulting cash flow forecast with the proposed increases is shown below in Error! Reference source not

found.. This Forecast shows that even though there is a small cash deficit with the proposed increase the

emergency fund remains at year end 2018 levels

Resident 0-30 31-60 61-90 Over 90 days Amount Due

1 5,500.00 5,500.00 240,250.00 251,250.00

2 16,781.18 5,500.00 177,156.22 199,437.40

3 5,500.00 5,500.00 157,321.75 168,321.75

4 5,500.00 5,500.00 133,000.00 144,000.00

5 5,500.00 5,500.00 119,500.00 130,500.00

6 5,500.00 5,500.00 107,186.94 118,186.94

7 5,500.00 5,500.00 105,900.00 116,900.00

8 5,500.00 5,500.00 104,500.00 115,500.00

9 5,500.00 5,500.00 93,266.00 104,266.00

10 5,500.00 5,500.00 84,000.00 95,000.00

11 5,500.00 5,500.00 74,755.00 85,755.00

12 5,500.00 5,500.00 72,500.00 83,500.00

13 5,500.00 5,500.00 68,250.00 79,250.00

14 5,500.00 5,500.00 65,000.00 76,000.00

15 5,500.00 5,500.00 56,000.00 67,000.00

16 5,500.00 5,500.00 51,000.00 62,000.00

17 5,500.00 5,500.00 50,627.75 61,627.75 1958494.84 60% 1718 5,500.00 13,781.50 30,284.74 49,566.24

19 5,500.00 5,500.00 38,500.00 49,500.00

20 5,500.00 5,500.00 38,050.00 49,050.00

21 5,500.00 5,500.00 37,250.00 48,250.00

22 5,500.00 5,500.00 37,000.00 48,000.00

23 5,500.00 5,500.00 33,500.00 44,500.00

24 5,500.00 5,500.00 33,250.00 44,250.00

25 5,500.00 5,500.00 27,000.00 38,000.00

26 5,500.00 5,500.00 22,847.71 33,847.71

27 5,500.00 5,500.00 22,000.00 33,000.00

28 5,500.00 5,500.00 21,348.00 32,348.00

29 5,500.00 5,500.00 19,500.00 30,500.00 2459306.79 76% 29

Total Overdue Debt excluding Bazaar 3,238,176.25

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Figure 7 - 2019 Cash Flow Forecast with Increase

Cash Budget With Increase

Jan Feb March April May June July August September Oct November December Total

Revenue: 4,020,000 3,494,000 3,501,166 4,801,948 4,168,101 3,501,166 3,494,000 3,494,000 3,501,166 3,494,000 4,201,806 3,494,000 45,165,353

Change in Working Capital

Cash Expenses (3,616,577) (3,666,577) (4,165,191) (3,773,115) (3,586,577) (3,646,577) (3,586,577) (3,586,577) (3,636,577) (3,586,577) (3,776,577) (3,986,577) (44,614,077)

Capital Expenditure (474,968) - - - - - - - - (115,155) - - (590,123)

Net Cash Flow (71,545) (172,577) (664,025) 1,028,834 581,523 (145,411) (92,577) (92,577) (135,411) (207,732) 425,229 (492,577) (38,847)

Opening Reserve Balance 7,950,000 7,878,455 7,705,878 7,041,852 8,070,686 8,652,209 8,506,798 8,414,221 8,321,644 8,186,233 7,978,501 8,403,730

Available Cash Flow 7,878,455 7,705,878 7,041,852 8,070,686 8,652,209 8,506,798 8,414,221 8,321,644 8,186,233 7,978,501 8,403,730 7,911,153 7,911,153

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9 APPENDICES

Appendix I - Revenue Budget

Appendix II - Revenue Expenditure Budget

LMCC 2019 Budgets

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9.1 APPENDIX I - 2019 REVENUE BUDGET

DRAFT REVENUE B U D G E T

2019

(000's)

2019 Estimates Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ordinary Income

Maintenance Fees 41028000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000

Annual Membership 526000 526,000 0 0 0 0 0 0 0 0 0

Total Ordinary Income 41,554,000 3,945,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000 3,419,000

Other Income

Other Income - Access Card 21,500 7,166 7,166 7,166

Other Income - Club House Rental 300,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000

Donations from Residents

Other Income - Interest 0 0 0 0 0 0 0 0 0 0 0 0

Other Income - Rental Commissary 600,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

Other Income - Lease towers - Digicel (US$5288.93in Nov; US$5,553.38 in May 2019)1,381,907 674,101 707,806

Special Events 500000.00.

Other Income - Lease towers - LIME (US$10262.00)1,307,943 1,307,948

Total Other Income 3,611,350 75,000 75,000 82,166 1,382,948 749,101 82,166 75,000 75,000 82,166 75,000 782,806 75,000

LMCC 2019 Budgets

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9.2 APPENDIX I - 2019 REVENUE EXPENDITURE BUDGET

Long Mountain Country Club

Ltd

Operational Expenses Budget 2018 (Costs

) Actual 2017 Actual 2018 Estimated 2019

Total Total Jan Feb March April May June July August September October November December

Salary & Salary Related Expenses

Payroll Expenses 4,197,383 4,814,252 6,140,000 511,667 511,667 511,667 511,667 511,667 511,667 511,667 511,667 511,667 511,667 511,667 511,667

Wages Expense 833,220 1,059,790 1,112,780 92,732 92,732 92,732 92,732 92,732 92,732 92,732 92,732 92,732 92,732 92,732 92,732

Uniform 42,166 0 30,000 30,000

Employer Statutory Contributions 613,607 537,737 706,100 58,842 58,842 58,842 58,842 58,842 58,842 58,842 58,842 58,842 58,842 58,842 58,842

Bonus 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Staff Training 0 0 30,000 30,000

Travelling 176,233 264,820 240,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

Total Staff Costs 5,862,609 6,676,599 8,258,880 713,240 713,240 683,240 683,240 683,240 683,240 683,240 683,240 683,240 683,240 683,240 683,240

Property Upkeep and Maintenance

Property Taxes for Common Areas 1,000 8,600 10,000 10,000

Property Maintenance - Equipment etc. 803 33,756

Property Landscaping 6,276,000 6,666,000 8,064,000 672,000 672,000 672,000 672,000 672,000 672,000 672,000 672,000 672,000 672,000 672,000 672,000

Building Maintenance 381,441 119,200 412,500 34,375 34,375 34,375 34,375 34,375 34,375 34,375 34,375 34,375 34,375 34,375 34,375

Cleaning Perimeter fence 185,000 190,000 380,000 190,000 190,000

Drain Cleaning 0 57,000 50,000 50,000

Property Insurance 337,934 299,420 352,428 29,369 29,369 29,369 29,369 29,369 29,369 29,369 29,369 29,369 29,369 29,369 29,369

Grounds Upkeep and maintenance 369,314 126,650 145,648 12,137 12,137 12,137 12,137 12,137 12,137 12,137 12,137 12,137 12,137 12,137 12,137

Pool & Fountain Maintenance 593,538 802,956 843,103 70,259 70,259 70,259 70,259 70,259 70,259 70,259 70,259 70,259 70,259 70,259 70,259

Property Security 13,717,365 15,136,414 15,940,838 1,328,403 1,328,403 1,328,403 1,328,403 1,328,403 1,328,403 1,328,403 1,328,403 1,328,403 1,328,403 1,328,403 1,328,403

Maint of firefighting Equipment 67,725 75,250 86,538 86,538

Resident Access Cards 185,808 125,235

Maintenance of signs on property 11,550 49,885 100,000 50,000 50,000

Maintenance Supplies 306,701 282,976 325,423 27,119 27,119 27,119 27,119 27,119 27,119 27,119 27,119 27,119 27,119 27,119 27,119

Repairs & Maintenance LMCC Ltd 502,813 430,787 430,787 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899 35,899

Repairs & Maintenance Strata 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Property Upkeep and Maintenance 22,936,992 24,404,129 27,141,265 2,209,561 2,259,561 2,399,561 2,296,098 2,209,561 2,269,561 2,209,561 2,209,561 2,259,561 2,209,561 2,399,561 2,209,561

Utilities

General Property Electricity Exps 1,100,114 1,166,161 1,300,000 108,333 108,333 108,333 108,333 108,333 108,333 108,333 108,333 108,333 108,333 108,333 108,333

Electricity for entrance Gate 103,892 216,452 250,000 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833

Water 2,833,912 2,967,323 2,600,000 216,667 216,667 216,667 216,667 216,667 216,667 216,667 216,667 216,667 216,667 216,667 216,667

Garbage Collections 540,000 690,000 720,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000

Total Utilities 4,577,918 5,039,936 4,870,000 405,833 405,833 405,833 405,833 405,833 405,833 405,833 405,833 405,833 405,833 405,833 405,833

LMCC 2019 Budgets

Page 17 of 17

Long Mountain Country Club

Ltd

Operational Expenses Budget 2018 (Costs

) Actual 2017 Actual 2018 Estimated 2019

Total Total Jan Feb March April May June July August September October November December

Office Expenses 0

Printing & Stationery 268,869 326,330 342,647 28,554 28,554 28,554 28,554 28,554 28,554 28,554 28,554 28,554 28,554 28,554 28,554

Repairs - Admin Equipment 125,331 69,417 100,000 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333

Office Supplies 9,968

Misc Admin Expenses 1,691

Office Expense 10,750 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Office Expenses 416,609 395,747 442,647 36,887 36,887 36,887 36,887 36,887 36,887 36,887 36,887 36,887 36,887 36,887 36,887

Communications:

Telephone Expenses 565,224 313,990 313,991 26,166 26,166 26,166 26,166 26,166 26,166 26,166 26,166 26,166 26,166 26,166 26,166

Communication and text 116,155 183,252 200,000 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667

Internet Expenses 4,176 247,106 259,461 21,622 21,622 21,622 21,622 21,622 21,622 21,622 21,622 21,622 21,622 21,622 21,622

Admin - courier charges 189,450 181,300 150,000 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500

Total Communications 875,005 925,648 923,452 76,954 76,954 76,954 76,954 76,954 76,954 76,954 76,954 76,954 76,954 76,954 76,954

General Administration

Meeting Expenses Incl Board 155,015 248,446 384,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000

Annual General Meetings 166,912 22,566 150,000 150,000

Total General Administration 321,927 271,012 534,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 182,000

Bank & Agency Fees 0

Bank & Service Charges 488,704 545,220 545,220 45,435 45,435 45,435 45,435 45,435 45,435 45,435 45,435 45,435 45,435 45,435 45,435

Payment Agency Fees 62,790 276,000 276,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000

Total Bank & Agency Fees 551,494 821,220 821,220 68,435 68,435 68,435 68,435 68,435 68,435 68,435 68,435 68,435 68,435 68,435 68,435

Accounting and Audit Fees 0

Accounting Fees 202,250 0

Audit Fees 349,500 374,000 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167

Total Accounting & Audit Fees 202,250 349,500 374,000 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167 31,167

Legal/Corporate Costs

Legal and Professional Fees 25,000 0 100,000 100,000

Other Professional Fees 1,088,292 841,486 510,000 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500

Total Legal/Corporate Costs 1,113,292 841,486 610,000 42,500 42,500 42,500 142,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500

Registration Fees

Penalties and Fines 75,000 173,614 173,614

Licenses Expense 77,000 0 60,000 60,000

Admin Registration Cost & Fees 0 0 5,000 5,000

Declaration of Assets 150,000 150,000 150,000

Total Registration Fees 77,000 225,000 388,614 0 0 388,614 0 0 0 0 0 0 0 0 0

Special Events

Christmas Concert 0 0 0 0 0 0 0 0 0 0 0 0 0

Advertising Expense 14,586

Admin Special Events 413,001 870,994 250,000 0 0 0 0 0 0 0 0 0 0 250,000

Total Special Events 413,001 885,580 250,000 0 0 0 0 0 0 0 0 0 0 0 250,000

TOTAL OPERATIONAL EXPENSES 37,348,097 40,835,857 44,614,077 3,616,577 3,666,577 4,165,191 3,773,115 3,586,577 3,646,577 3,586,577 3,586,577 3,636,577 3,586,577 3,776,577 3,986,577