2022 Budget Highlights

By Karl Stephens - karls@landings.org
General Manager/COO

At the regular monthly meeting of The Landings Association on December 21, 2021, the Board of Directors adopted the 2022 Operating and Capital Reserve Budgets. You can review the approved Budget by visiting www.landings.org > Governing Documents > Budget Book-2022 or click here.

There are 315 pages in the 2022 Budget Book, which may seem a little overwhelming to the casual reader. However, our goal is to provide a comprehensive explanation of all components, processes, and requirements of the budget process, as well as thorough explanations of programs and service levels, and their associated revenue and expenditures. If there is something you would like included in the Budget Book not already included, please email me for consideration. Following are some highlights from the 2022 Budget Book.

The total 2022 operating budget is a 4% increase compared to the 2021 budget and a 3% increase compared to the projected 2021 year-end expenditures (see page 4 of the Budget Book), reflecting reduced expenditures during 2021.

 

 

 

 

 

All changes from the 2021 Budget to the 2022 Budget are shown starting on page 9.

The 2022 proposed Budget reflects a projected Capital Reserves Fund starting balance

of $8,618,770. Total projected Assessment, Interest, and Employee Retention Tax

Credit revenues is $4,429,871, along with capital expenditures of $4,852,051 (Page 5). All capital expenditures for 2022 are listed on pages 287-288 of the 2022 Budget Book.

The allocations per lot for the Operations and Capital Reserves Fund for the 2021 Budget ($2,070), 2021 Year-End ($2,070), and the 2022 Budget ($2,170) are reflected on page 5. The 2021 Operating revenues and expenditures were better than budget. Therefore, the 2021 Year-End allocation for Operations was reduced and reallocated to the Capital Reserves Fund.

The Cash Flow Projections on pages 54-56 in the 2022 Budget Book reflect an increase in each year of Annual Dues through 2023, based on the successful 2020 Annual Dues vote. The ending cash for the Operating Fund has been managed down to a $1.5 million level (the Board-approved minimum). The minimum level of the Capital Reserves Fund under the Threshold Funding Plan as adopted by Board of Directors is 30% of the current cost of replacement/maintenance of the Capital Asset Management Plan (CAMP) over a specified term. The cash flow for the Capital Reserves Fund shows that the balance will reach the 30% threshold in 2021. While it shows a slight dip in 2022 due to a combination of the rising costs of materials and labor and a larger scope of work to be completed, the balance is projected to reach 30% again in the target year of 2023 and reflects an ending cash balance of $9,346,366 that year. To determine adequate funding levels for the Capital Reserves Fund, an updated Reserve Study was completed in November 2021. The Reserves Subcommittee held extensive reviews of the updated inventory of The Landings Association’s assets. This inventory review included a description of each asset, its useful life, remaining useful life, and updated estimated replacement cost. The updated Reserve Study can also be found at www.landings.org > Governing Documents or click here.