FINANCIALS: ANNUAL BUDGET AND OWNER DUES

Members and their designated representatives can request a complete copy of the current operating budget and financial statements by contacting the Association's management company.

PSPOA Annual Budget for 01-Jul-2008 to 30-Jun-2009

Owner Dues

Owner dues are calculated for each lot in the following manner:

1. Calculate the dues factor by dividing the total annual budget figure by the total building and lot square footage for all of Prospector Square. For the current budget, this number is $225,106 / 1,178,950 square feet = $0.190938 per square foot.
2. For each lot, add the lot square footage to the building square footage (if any) to get the total square footage.
3. Multiply this number by the dues factor to get the annual dues owed for that lot.
4. Divide this number by four to get the quarterly dues owed for that lot.

PSPOA Budget Notes for the Fiscal Year 01-Jul-2008 to 30-Jun-2009

1. This is a “no dues increase” budget. The Board decided not to increase dues for the coming year, in spite of a year in which “snow removal” costs were $133,158 which is the largest amount that the Association has paid for snow removal in any one year. As you recall, there was a 10% increase in dues last year which was the first increase since 1998. The dues factor remains at $0.190938.
   
   
2. This report was prepared as of June 10, 2008. Estimates were made for some June expenses and receipts. As a result, the figures may change for the actual year end financial statements but the changes, if any, will not be significant. This budget report does not include the “trash compactor experiment” for some trash removal. The use of the trash compactor is paid for by the five participating members. The Association did facilitate the purchase buy obtaining a small unsecured line of credit to fund the purchase. The payment on the line of credit is made by the participating members. The actual financial statement for the year ended June 30, 2008 will report “compactor income & compactor expense” as equal amounts. The new asset and liability to fund the trash compactor purchase will also be reflected on the Association financial statements. This experiment with trash compacting is not being paid for by the Association.
   
   
3. SNOW REMOVAL WINTER OF 2007 to 2008
   Many people said that this past winter was the most snowfall for over 20 years. The expense of clearing that snowfall was certainly the most our Association has ever experienced. Here are the financial details:
   
   

   ITEM	2007-2008 BUDGET	2007-2008 ACTUAL
   Parking Lots	$33,000	$33,000
   Perimeter Sidewalks	$8,000	$8,000
   Parking Lot Salt	$0	$9,800
   Snow Hauling and Dump Fees	$15,000	$67,585
   Other	$5,000	$14,773
   TOTAL	$61,000	$133,158

   The over budget amount of $72,158 was funded by using our reserves and postponing the first phase of our sewer improvement plan. It should also be noted that our contractor, Kimball Maintenance, plowed beyond the contract number of “pushes” at no additional charge to the Association, when our snow season continued into April. Through the approval of this budget, the Board is recommending a three year snow removal contract with this same company.
   

4. RESERVES: It has been a long standing policy of the Board to maintain a “general reserve” of approximately $100,000 or about 50% of what has been our “average” operating budget over the last several years. This amount is reviewed annually and compared to our annual budget to determine if the amount is still reasonable and sufficient in light of current conditions and future expectations. Based on budgeted dues and budgeted expenses, the projected year end cash reserve will be approximately $100,000 which is in line with the “general reserve” policy of the Board.
   
   
5. SIGNIFICANT CHANGES:
   
   
• Snow Removal: Last year the Association discussed the idea of removing the snow removal portion of the PMA contract in order to be more responsive to winter conditions and exercise more control over snow removal related discretionary items. The proposed budget includes a separate snow removal contract with Kimball Maintenance who was our subcontractor this year. The annual contract amount of $54,600 is for a three year term. The contract covers all parking lots, perimeter sidewalks, common area “flat” surfaces and all aspects of snow melt. This should be a savings to our members who previously cleared the snow from their building entry and sidewalks, even if these areas were on common property. This will not include a building entry with stairs or raised landings. Snow hauling is a separate item and is budgeted at $15,000 which reflects a more normal snow year.
  
  
• PMA Management & Accounting Contract: The budget amount of $48,000 represents a proposed contract for one year with a 6% increase over the previous year. Snow removal as discussed above has been removed from the contract. Summer landscape maintenance remains included in this amount through a subcontractor.
  
  
• Parking Rules & Regulations and Enforcement: This line item represents the second full year of parking enforcement under a contract with Diamond Parking. The goal of the enforcement program continues to be directed toward the effective and efficient use of our existing parking and the parking needs of our members and customers. The goal is not to generate revenue. The program includes:
  
  
  • Signage as appropriate
  • Lot specific “time and use” restrictions based on member and customer surveys
  • Over night parking permit system
  • Random monitoring of all lots for time and other violations as well as some security issues
    
    
6. A major project this summer will be the complete replacement of Parking Lot C. This lot has deteriorated beyond normal maintenance. The project has actually been delayed for at least two years as the Board was working with the owner of the last remaining vacant lot in various development plans that involved significant changes to the existing ingress and egress of the lot. This work can no longer be delayed. Other projects will include necessary patching, crack sealing and striping of all other lots.
   
   
7. The sewer improvement plan has been postponed. The Association will work with SBWRD on a continuing basis to maintain the existing lines with proper service, flushings and periodic inspections.
   
   
8. Delinquent members continue to remain very low at approximately less than 1% of our total budget.
   
   
9. Our accounting, management and landscape maintenance work continues to be under contract with PMA. Any question regarding your dues invoice, landscape, parking lots, parking issues or any other matter pertaining to the Square should be directed to PMA at (435) 645-7888.