Island Towers Dunedin FL: Subject: RE:2013 Budget

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Subject: RE:2013 Budget

The Schedule for the 2013 Budget is as follows:1.?????? Sep 19, 12, Tuesday. The Treasurer and Chairman of the Finance Committee send all changes to the Property Manager so the draft Budget can be revised.2.?????? Sep 21, 12, Friday. Property Manger transmits revised 2013 Budget to the Treasurer, the Board and the Finance Chairman. 3.?????? Sep 25, 12, Tuesday. The Chairman of the Finance Committee submits the revised 2013 Budget to the Board. The Board vote to have the membership vote to partially fund the reserves and to send the Membership a copy of the draft 2013 Budget 4.?????? Oct 5, 12, Friday. Condominium Associates mails the? vote to partially fund the reserves and a copy of the revised 2013 Budget to the Membership.5.?????? Oct 25, 12, Tuesday. There is a special meeting of the membership on partial funding of the reserves, followed by a Board vote to approve the 2013 Budget. 1.?????? THIS IS THE FIRST DRAFT OF THE 2013 BUDGET. The first draft is produced by the Property Manager, in accordance with a specific formula: every line item of the ?2013 Budget is based on the prior year to date actual expenses extrapolated for the entire year of 2012, plus any expected increases in price, plus any anticipated onetime cost, plus any preventive maintenance not previously incurred in 2012. 2.?????? The first draft IS NOT the Property Managers budget. The Property Manager inputs the amounts in accordance with very strict guide lines established by a prior President, Treasurer and Chairman of the Finance Committee about seven years ago. It has been maintained ever since. REMEMBER it is the FIRST DRAFT. It will be low and wind up getting increased as we go through and fine tune the numbers. Last year?one or more?Directors looked at the 2012 First Draft Budget, which was low, and started telling members about all the savings the in the budget and how the maintenance fee was going down. As a result many members were disappointed and angry when they found out said Director (s)?didn?t know what he/she/they were talking about. TRY NOT TO WIND UP LOOKING FOOLISH by talking about the first draft, if you just have to tell people, wait until you get the REVISED 2013 BUDGET and talk about that one.3.?????? Unproven savings. We DO NOT change the budget base on unproven potential saving. We wait until the saving can be substantiated during?a test year. Example, For the 2012 Budget, there was an anticipated potential saving of around $13,000, by cutting back the Property Manager?s time on site from two mornings to one morning. HOWEVER, we weren?t sure that it would be enough time on site. Consequently, we went ahead with the change but didn?t reflect the savings in the 2012 Budget (in case we had to switch back). It has since been proven that one day per week does work for us. This saving can now be reflected in the 2013 Budget. ?4.?????? The big numbers. The big numbers are: insurance, property manager savings, bad debt and utilities. These lines will have the biggest impact.5.?????? Budgeting for our annual operational insurance expenses. The formula for insurance is significantly different. In the 2013 Budget we are budgeting for our anticipated 2014 insurance needs. The formula is as follows: the anticipated 2013 insurance expenses, plus the maximum allowed by law increase (anticipated to be 20%). Because we pay our insurance bills in the late 4^th quarter through the 1^st quarter, we have to budget and collect the anticipated insurance expenses one year in advance. ?The reserve insurance serves a different function. It is used to pay for any catastrophic deductibles and or any unanticipated increases in insurance rates. (NOTE: It is anticipated that Insurance rates will go 20% rather than 15%, an additional $5-10,000. Also, we will no longer get a flood insurance rebate, $3,000 plus, because the legislature has outlaw the rebate.).6.?????? The Finance Committee. ?Is tasked with reviewing and making recommendations to the board. The Board provides guidance to the committee and approves or disapproves their recommendation.7.?????? The Board of Directors. Reviews the budget independently of the committee and submits any question they have to the committee. The Directors are also cc?d in on all communications on the budget review process and can ask questions as they see fit.Good luck to everyone, and let?s stay on shceduleFrom: Liz Fox [mailto:lfox@condominiumassociates.com]
Sent: Friday, August 24, 2012 3:32 PM
To: dkahnau
Cc: 102E-J. Cannon, Director ; 102W-Bob Beck, ITC Secretary; 402E-Kelley; 403W-L Bradlow; 602W-R. Klamo; 701E-Metelski, ITC Treasurer; 801W-Edmund Novy, ITCA Board Director; 804W-Muny
Subject: RE:2013 BudgetTo all:
I have attached the work sheets for the 2013 budget.? Please look at the work sheet tabs to see my calculations.Elizabeth Fox, LCAMCondominium Associates, Inc.
3001 Executive Drive, Suite 260
Clearwater, FL? 33762
Office: 727-573-9300
Fax:? 727-573-8549

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Source: http://islandtowersdunedin.blogspot.com/2012/08/subject-re2013-budget.html

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