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FY2008-2009 Operating Budget Performance
Year–to–date financials through the end of March 2009 are summarized below. Our budget for the year included a profit/contingency of $50,886; however, we are forecasting that all contingency will be absorbed, resulting in a break–even year with no profit. Lower than budgeted water revenues, coupled with higher than budgeted legal fees for the Fee Simple Settlement, power utility expense, cost of water from the Town of La Conner, and payroll expense all played a role in using up the budgeted contingency. Higher than budgeted interest income, late charges/NSF fees, and cross–company billing income also worked to mitigate the expenses.
This year’s budget also included the Supplemental Rent assessment of $811,320, which will be forwarded to Shelter Bay Company at the end of June 2009, for use as payment of the rent under the Master Leases.
This year has been a trying year for many members due to the stressed economical climate and housing market decline. As a result, the Community’s accounts receivables are a bit higher than normal, but still within a manageable cash flow. Also, as of this date, there are a dozen foreclosures in some stage of proceedings. We are watching those accounts closely, and have fully recovered all amounts due in two recent sales of bank-owned properties.
FY 2008-2009 Operating Budget Summary (through March 31, 2009)
| |
Jul 08-Mar 09 Actuals |
Jul 08-Mar 09 Budget |
Variance |
Annual Budget
July 2008 – June 2009 |
| INCOME |
1,572,400 |
1,563,700 |
Over |
8,700 |
2,061,899 |
| Operating Expense |
526,300 |
455,300 |
Over |
71,000 |
596,595 |
| Payroll Expense |
467,100 |
436,800 |
Over |
30,300 |
602,951 |
| TOTAL EXPENSE |
993,400 |
892,100 |
Over |
101,300 |
1,199,546 |
| NET PROFIT/(LOSS) |
579,000 |
671,600 |
Under |
92,600 |
862,353 |
| Less Supplemental
Rent to SBayCo |
608,300 |
608,300 |
|
— |
811,467 |
| ADJ. NET PROFIT/(LOSS) |
(29,300) |
63,300 |
Under |
92,600 |
50,886 |
Special Back Rent Assessment
Payments of the special assessment for Back Rent, levied in May of 2008, have been steadily rolling in. This revenue is to be forwarded to the Shelter Bay Company in order to make payment of the Back Rent due under the arbitration award for adjustment of rent under the master leases, going back to July 2003. The total principal amount due to the Tribe was $6,234,158, to be paid over five years, with payment in full no later than June 30, 2013. To date, only $980,000 in principal remains due to the Tribe; payments by members are well ahead of the five-year schedule.
FY 2008-2009 Capital Improvement Projects Budget Performance
Good progress has been made on capital improvement projects, with water and drainage projects authorized and underway. In addition, the new utility billing software purchase was authorized and is in the process of database conversion, with implementation planned for the end of June 2009. A more detailed status of the various capital projects is included in the Manager’s report.
FY 2004-2005 through FY 2008-2009 Capital Budget Summary (through March 31, 2009)
| Fund |
FY 04-05 to FY 08-09 Budgeted |
Less Reserves |
Plus Re-Allocation |
Total Funds Available |
Actual Spent |
Funds Encumbered |
Balance On Hand |
| Sewer |
235,400 |
50,000 |
-3,211 |
182,189 |
118,905 |
0 |
63,284 |
| Water |
120,000 |
35,000 |
-4,165 |
80,835 |
49,176 |
25,195 |
6,465 |
| Roads |
446,800 |
0 |
5,250 |
452,050 |
335,618 |
0 |
116,433 |
| Equipment |
41,300 |
0 |
478 |
41,778 |
38,278 |
0 |
3,500 |
| Ditches/Drains |
208,000 |
0 |
11,974 |
219,974 |
57,586 |
4,770 |
157,617 |
| Admin/Comm’ty |
142,271 |
0 |
975 |
143,246 |
89,000 |
3,590 |
50,656 |
| Recreation |
44,500 |
0 |
3,894 |
48,394 |
36,057 |
0 |
12,337 |
| Golf Course |
56,760 |
0 |
-111 |
56,649 |
45,750 |
0 |
10,899 |
| Greenbelts |
80,000 |
0 |
0 |
80,000 |
79,047 |
0 |
953 |
| Contingency |
52,241 |
0 |
-5,472 |
46,769 |
16,555 |
0 |
30,214 |
| 2004-08 Totals |
1,527,272 |
85,000 |
9,612 |
1,351,884 |
865,972 |
33,555 |
452,358 |
Audit of Financial Records
Williams & Nulle, PLLC was engaged to perform a full audit of the Shelter Bay Community, Inc. (and Shelter Bay Company) financial records for the fiscal year ending June 30, 2008. We are pleased to advise that this firm was again able to provide a clean opinion of our financial statements for the fourth year in a row, as a result of accurate record keeping and tight internal controls for financial management and accounting practices.
Cash Management
Three Certificates of Deposit were maintained at a variety of financial banking institutions, in order to spread the funds to mitigate financial risk of keeping all of our funds in one bank, and to maximize earned interest on the cash assets. In addition, a brokerage account was opened at Citi-SmithBarney in which other funds were placed in insured certificates of deposit with varying maturity dates to accommodate specific cash flow needs of the community.
Respectfully Submitted,
Jan O’Leary, Board Treasurer |
