Finance Committee Report
1. We don’t have March financial results yet. Based on February results, our models forecast a small operating profit for the fiscal year, compared to a budgeted profit of $108,000. The COVID-19 contingency in this year’s budget is likely to be sufficient to prevent an operating loss the year. 2. The Finance Committee has approved and recommended to the Board a proposed budget for the next fiscal year, along with an increase in monthly HOA assessment to $419. This budget reflects the last of California’s mandated increases in minimum wage. This is exactly where we expected to be 3 years ago, when the Board deferred the cost of the first minimum wage increase. 3. We’ve received and reviewed an updated Reserve Study, which finds that we’re 65% funded. We finished last year at 68%. This study includes updates from the cost of the Roads project, so we expected a decrease in funded percentage. However several other categories of cost also increased significantly, so we’ve asked for a meeting with the Reserve consultant to learn what replacement costs they’ve re-estimated and why. As a result of the increase, the consultants have also increased their recommended future contributions to Reserves from 3% increases each year to 4% increases each year.
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