ACM Nov 27, 2022

Topics:  reserve analysis and budget

Date/time: Sunday, November 27, 2022, 3:00-4:45 p.m.

Location: c.h. sitting room and online

Attendees: Mike (fac), Joe, Linda, Vicky, Alex, Mary, Laura, Lynda, Kay, Cheryl, Coleen, Amy, Eliza, Victor, Jorge, Lauren, Scott, Kerry. 12/11 Myste says she was also present.

Note Taker: Kay

Budget/Reserve Study

Presentation by Coleen and Cheryl on budget and reserve account.  Showed

• projected reserve need vs. projected amount at current rate of deposits, and
• multiple budget scenarios with various percent increases. 

The projected need is considerably greater than projected deposits.

Most of the increase proposed for 2023 is to increase the amount going into the reserve.

Q.  What is the maximum that Management can spent before getting community approval? (The reverse of the large spend process, which is how much a committee can spend before it needs Management approval.)   Not addressed.

A 3% increase in fees leaves a $7K deficit on what we should be putting into the reserve.  A 16% increase would allow us to increase the reserve deposit, including putting playgrounds in the reserve, plus fund all the committee budget requests.  .

Q. How do reserves in other condos and other cohousing communities compare?  Hard to find good comparables.  Most regular condos don't have as much common area and are splitting it among a greater number of units. Lots of variables in common area, number of units, etc. among cohousing communities.

Q.  Would using a management service save money?  Not addressed.

Q. Why such a big jump this year?  A.  Management is responding to the new reserve analysis and the recommendations of the analyst.  Last year was 3%; the previous two years we had zero increase.  Most of the budget is nondiscretionary; we have limited control over costs.

Q. Why did the transformer come out of the reserve?  Should be from operating budget.

We have a cash budget and we have a labor budget.  If residents don't put in labor, more cash is needed from them.  A factor in how much other cohousing communities need to spend is how active residents are on community work.

It might help people better understand how much is going into the reserve if they saw the budget for expenditures from the reserve.

The document sent out includes a table showing what each scenario would mean for fees for each unit.

Reserve balance is $100,033 and will increase ~$3K Dec 1.

Check with Ben if he can send out the draft for the reserve analysis. Ben will send it out tonight.

Trees. 

Q.  If tree work is put in the reserve, how does the community get input on how much is spent and on what?  Concerned about transparency and having community input on the process.

Q. Does the increase in the reserve include the amount we would have put in the operating budget for treework?

Q.  What do the state guidelines on capital reserves say about funding treework out of the reserve?  The reserve analyst suggested that the size of the amount may mean it should be budgeted through the reserve.  Putting tree work in the reserve removes it from the budget process and the vagaries of annual funding.

Playground. Scenarios with and without adding the playground structure to the reserve.

Lauren would like the community to discuss whether we want a playground near the common house.

Do we really need a playground bigger than a household would have?

Lynda's family has offered to help with labor of replacing c.h. playground.

Common house hasn't been a focus during covid.  Will regain its importance as things normalize, making c.h. playground more important.

Watch KSL etc. for play structures being sold/given away.  Jorge and his son and daughter-in-law got one, given away free, for cost of renting a trailer and labor of dis- and reassembling.   Passed up a bigger one for $300.

Laura will talk to Renae and schedule a playground meeting that everyone interested can attend.

Committee Reports

Celebrations.  Will have a meeting Thursday 7:00 at Lynda's.  Refreshments.  Discuss New Year's party and implementing some of the suggestions from the large sheets everyone wrote on.

Management.  Working on getting a new fridge.  Vinnie will be installing a new (donated) washer and dryer. We know of a couple of units that have an issue with water leaking in the furnace room; are there others also?  Plumbers and roofers have told Lynda it isn't a roof or plumbing issue.  Ben will be leaving Management at the new year.

Tree.  Had three contractors give bids on stump grinding.  About $2,000.  Won't be any action until spring time. 

Safety.  Submitted a request for $7,500; don't see it in the budget proposal.  There appears to be some opposition to cameras.  The consultant didn't give a breakdown of exactly what would be done for the $5,000 he suggested be spent on fire mitigation.

Would like committee meeting schedules more clearly communicated.  For instance, post notices of upcoming meetings on the front door or in the mail room.

Events

First Saturday Dec 6 p.m.  Servas dinner. Hosted by Vicky and Laura.

Jan 8 Gratitude gathering for Naomi Franklin.  Invitation will be going out in the next few days.  11:00 a.m., brunch to follow. Beth, Vicky, and Lauren are arranging it.  Anniversary of her death.

Dec 31 New Year's party.

Emailed 12/11/2022.