Telegraph Landing Treasurer’s Report 01/19/05

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Finance Index

Preliminary 2004 Operational Spending vs. Budget

Values in K$

Jan – Dec

Budget

Variance

Net Operating Revenue

1,465.4

1440.3

25.1

 

 

 

 

Expenses

 

 

 

Administration

181.8

198.7

16.9

Repair and Maintenance

303.1

333.5

30.4

Equipment Maintenance

93.2

60.3

(32.9)

Grounds Repairs and Maintenance

65.8

76.9

11.1

Security

210.1

218.1

8.0

Utilities

598.8

627.0

28.2

Total Expenses

1,455.9

1516.5

60.6

Net Income

9.5

(76.3)

85.8

 Bob, Syed, Ram, Mort, Barry and Adele met with Mike Helsing on December 16 to ask questions about the ‘Draft’ of the Telegraph Landing 2005 Reserve Study. The final Reserve Study, which will address the questions asked, is due in February 2005.  The Treasury Committee expects to make recommendations based on the 2005 Reserve Study to the Board by April 2005.

 The 2005 Pro-forma Operating Budget, dated November 1, 2004, was provided in November to all homeowners.  Monthly assessments were increased effective January 1, to pay for the expected increases in utility expenses.  The Board will look at efforts to reduce discretionary expenses and the results of the 2005 Reserve Study before deciding if further increases in homeowners’ dues may be necessary.

 Based on the ‘preliminary’ year-end report, TL spending was $60.6K less than budget and net income, at $9.5K, was $85.8K better than budget.

‘Preliminary’ Statement of Reserve Funds (Values in K$)

Reserve Balance – 12/31/03

2,048

Flow of Funds into Reserves in 2004

753

Flow of Funds out of Reserves in 2004 (Capital Expenditures)

412

Reserve Balance – 12/31/04

2,388

 $750K flowed into reserves in 2004 -  $450K from the special assessment, $275K from the operating account, and $28K from earned interest.  $412K was paid out of reserves in 2004.  The significant expenses included the residual expenses for the remodeling of the complex - $119K, F&M engineering  $78K, townhouse roof repairs  $123K, hi rise window repairs  $40K, and security equipment  $17K. 

 B. Shiller