CFO REPORT
FACILITIES PLANNING COMMITTEE
Board Announces HOA Increase of $11 a Month At its March 18, 2019 meeting, the Board of Directors approved an Operating Budget of $5.2 million dollars for the fiscal year 2019-2020, an increase of 4.92% over the previous year. The increase is driven by three principal factors. First, increases in the California minimum wage have begun to impact our direct labor costs, as well as suppliers such as Vintage Landscaping. The wage increased to $12 effective January 1, 2019, and will increase annually to $13, then $14, then $15. This is an increase of 25%, in just three years. A second factor is the surprise discovery that we have been getting a large part of our natural gas for free due to malfunctioning gas meters. This impact alone is about $4 per owner each month. In addition, income from the resort fee paid by renters has declined for the simple reason that many lots have been sold and our new owners choose to be here and enjoy their lot rather that rent it out. All told, the new budget would trigger an HOA fee increase of $21 per lot per month. However, our Finance Committee under the leadership of G AIL P OLLOCK , has recommended, and the Board has accepted, a 3-year plan to smoothly increase the HOA fee beginning with an $11 increase effective July 1,2019, followed by a projected increase of $12 effective in July 2020, and a projected increase of $13 effective in July 2021. We will monitor our financials carefully and keep our members informed of any adjustments that may be needed to the 11-12-13 plan. Similar to previous years, the Board also approved expenditures from our reserve funds and capital funds of 1.16 million for necessary repairs and replacement of facilities and equipment, as well as new capital expenses. Your Board and management are focused on maintaining the financial strength of the resort. C HARLIE L EAHY , CFO
As the new FPC chair, I am honored to serve along with A LICE H EUPLE , vice-chair, and K ATHY M C C UNE , secretary. We are fortunate to have C AROLYN C ANDLER , S HERYL N ELSON , D EBBIE S MITH , D AN O’M ELIA and J OHN M AYSMITH on the committee as well. We are committed to continue the enhancement of our resort that has been the tradition of this committee. As a committee, we would like to thank A VA F ELT and M ARSHA N ELSON , who have contributed countless hours working to improve our facilities. Without their vision and perseverance, much of what we enjoy today would not exist. If there was an ORPS’ Hall of Fame , they certainly would have their names enshrined. Thank you Ava and Marsha. We are forever indebted to you for your meaningful contributions. Projects that have been submitted for funding this year are the completion of the Kitchen Chef Line in El Saguaro, a meeting place for our Tennis players at La Palma (this project has been wisely postponed until it can be incorporated into the La Palma deck remodel), and furniture for the Pergola area. We anticipate the kitchen will receive new ovens, a new hood system, and a new ventilation system, which will make the kitchen more useable for groups and organizations. The furniture for the ES Pergola is being researched and hopefully should be available next season for everyone to use and enjoy as they gather at the Pergola. To date, we have not received funding from the Board of Directors, but it is our belief these items will find their place within our coming Budget. Additional items under consideration and planning for ES are a new outdoor barbeque kitchen, increased lighting and landscaping, and a water feature that will add to the ambience of the entire pool area. These items we believe will pretty much complete the updates envisioned for the ES pool area. Next year our focus will be on a comprehensive update of the La Palma pool area, including deck surface, shade structures, possible art features, a water feature, and, the long-awaited Tennis players’ gathering area. We anticipate a busy year of planning in order to make this project a reality for us all to enjoy. We are an open committee and appreciate any and all suggestions toward making ORPS a truly outstanding resort. Owners are welcome at any of our meetings; just check the calendar for our next meeting, and join us! D OUGLAS F OLSOM , Chair
Finance Committee Thank you to the committee for their effort and enthusiasm this winter - H OWARD B ERMAN , B ILL D IETRICH , D OUG F OLSOM , D OUG G ERMAN & D AVE M UELLER .
Thank you also to all the staff of the resort for their patience with questions and willingness to help the committee understand the resort and its business
to a greater degree G AIL P OLLOCK , Chair
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