Fairlington Arbor Draft Budget Presentation Arbor Budget Presentation 2011.pdf · Presentation Fiscal Year 2011 Nov 2010 – Oct 2011 . Your Neighbors on the ... –17 roofs are rated

Fairlington Arbor Draft Budget

Presentation

Fiscal Year 2011

Nov 2010 – Oct 2011

Your Neighbors on the

Finance Committee

Rachael Robinson – Treasurer

Les Bergen

Bill Jenkins

James Moser*

Deborah Santiago

*Former Arbor resident and Treasurer

Presentation Outline

• Process

• Major Factors

• Operating Budget

• Reserve Budget

• Assessments and Income

• Questions

Process

• Operating Fund – The operating fund provides for the maintenance, operation,

and normal repair of the common and limited common elements

• Replacement Fund (Reserve Account) – The replacement fund provides for the major repair and

replacement of the common and limited common elements • Per our condo documents, we must maintain 25% of the current annual

assessments in this account

• A Five Year Plan – Provides greater confidence in long term stability of

replacement fund

• Comprehensive Reserve Study – Provides backing for Five Year Plan

• Past, Present, and Future – Operating expenses have risen an average of 3.6% per year

over the past 10 years. Assessment increases may be

higher in order to contribute to reserves and cover reserve

items, like roof replacement.

– Careful management has kept expenses in check

– Water Usage • Arlington County water rates started rising dramatically in 2005, but appear

to be moderating

• Water now represents over 25% of our operating expenses

• Conservation is critical – Do not water the grass

– Water shrubs and trees in the early morning or late evening when it is cooler

– Run the dishwasher and washing machine only with full loads

– Turn off the faucet when brushing teeth

– Take showers instead of baths

– Monitor for leaky pipes and running toilets and take corrective action as necessary

Major Factors

Major Factors

• Sewer Laterals (replacement fund item) – Contract to renew our sewer lines commits us to $100,000/yr

until 2014 (work will complete prior to 2014)

– Essential project - our sewer lines are fragile • They are made of terracotta and were installed in 1943

• Investment Returns (replacement fund item) – Interest rates on bonds, money markets and CDs have

come down

– We have drawn down our reserves as our roof replacement

and sewer lining work has continued • Less money on which to earn interest

Major Factors

• Roofs (replacement fund item) – The Arbor has 58 buildings all built in 1943

• They were built with a mixture of 50, 75, and 100 year rated slate roofs

– Planned replacement of 50 year rated roofs began in 1997 • 23 done, 7 to go

• Replaced with 75+ year rated slate

– 17 roofs are rated for 75 years and reach design life in 2018 • Reserve Study indicates a possible life span in excess of 150 years!

– Our roofs are in excellent shape and are monitored closely • Reserve Study indicates that more thorough repairs when problems arise will

extend service life

• Reserve Study indicates that chimney, gutter, and trim repairs should be undertaken on units undergoing roof replacement

Operating Budget Administration and Payroll

• Postage: Increase allows for $500/budget and election mailings; $200 for incidental mailings

• Management Fees: 3% increase for CFM

• Prop and Liability Insurance: allows for small cost increase

• Telephone expenses: budget line increased to include hard line at the pool

• Health Insurance: provides coverage of health insurance premiums (CFM is seeking new provider, estimates 10% increase)

• Maintenance Salaries: incorporates pay raises for staff and provides an overtime budget

FY 2009 Actual FY 2010 Budget FY 2010 Current Est. FY 2011 Proposed

Administrative

Postage $939 $500 $1,150 $1,200

Printing and Copying $0 $100 $274 $0

Misc. Administrative $12,752 $5,500 $10,400 $12,000

Audit $3,755 $4,000 $3,675 $4,000

Legal Expenses $1,489 $4,500 $2,300 $4,500

Management Fees $48,954 $48,960 $48,960 $50,429

Prop and Liability Insurance $62,141 $63,276 $62,427 $63,500

Insurance Deductable $6,777 $0 $15,000 $0

Uncollectable Charges $154 $0 $0 $0

Condo Fees $2,139 $2,266 $2,266 $2,381

Telephone Expenses $2,074 $2,400 $3,200 $3,000

Community Outreach $2,984 $3,200 $2,200 $2,200

TOTAL ADMINISTRATIVE $144,158 $134,702 $151,852 $143,210

Payroll

Payroll Taxes $9,056 $10,561 $10,400 $10,900

Health Insurance $21,751 $22,600 $22,417 $24,600

Employee Benefits $0 $1,034 $0 $0

Workers Comp. Insurance $4,224 $5,280 $4,300 $6,900

Maintenance Salaries $118,413 $132,008 $132,000 $138,000

TOTAL PAYROLL EXPENSES $153,444 $171,483 $169,118 $180,400

Operating Budget Utilities and Maintenance

• Water/Sewer: allows for a 3% rate increase by Arlington County and assumes the community continues to carefully monitor water usage

• Exterior Painting & Décor: will return from a four year to a three year painting cycle; plan to paint Courts 1, 2, 7, 10, 12 in FY11; beginning in FY12 will paint 4 courts per year

• Repair/Maintenance Roof: decreased due to substantial savings offered by new contractor


Utilities

Electricity $9,317 $12,900 $9,000 $10,000

Water/Sewer $173,695 $200,000 $184,000 $190,000

TOTAL UTILITIES $183,012 $212,900 $193,000 $200,000

Repairs & Maintenance

Electrical Supplies $1,107 $600 $500 $600

Sewer Maintenance $2,378 $1,000 $9,000 $3,000

(Ext.) Painting & Décor $63,708 $54,000 $54,000 $80,640

Interior Maintenance $100 $1,600 $1,000 $1,600

Misc. Operations Maintenance $7,892 $10,000 $10,000 $10,000

Gutter Porch & Dormer $10,140 $10,000 $10,000 $10,000

Rep/Maint-Concrete $1,572 $3,500 $6,000 $3,500

Rep/Maint Roof $2,515 $15,000 $10,000 $10,000

Rep/Maint Vehicle $1,825 $4,000 $4,000 $4,000

Rep/Maint Tennis Court $3,137 $1,000 $1,000 $1,000

Rep/Maint Fence $899 $500 $500 $500

TOTAL REPAIR & MAINT. $95,273 $101,200 $106,000 $124,840

Operating Budget Pool, Landscaping, Services & Taxes

• Pool Management: continue with our new pool contractor at same cost as in FY10

• Repair/Maintenance Pool: covers for both pools will help protect the new whitecoat

• Pool Telephone: line zeroed out – the new hard line is billed alongside the office phone/internet/fax

• Landscaping Contract: extends into 2011 with minimal increase to cover cost of aeration

• Trash Removal: contracts extends into 2011 with no increase

• Snow Removal: budgeted at five year average, not including FY10 with its record snowfall


Pool Expenses

Pool Management $32,455 $33,908 $32,455 $32,455

Rep/Maint Pool $3,164 $4,000 $8,000 $17,000

Pool Furniture $193 $500 $0 $500

Pool Telephone $1,040 $720 $87 $0

TOTAL POOL EXPENSES $36,852 $39,128 $40,542 $49,955

Landscaping

Landscaping Other $8,764 $6,000 $5,000 $6,000

Tree Trimming $4,025 $7,000 $8,000 $7,000

Landscaping Contract $63,528 $67,000 $64,800 $67,500

TOTAL LANDSCAPING $76,317 $80,000 $77,800 $80,500

Maintenance Service Agreements

Snow Removal $7,501 $8,000 $42,641 $8,000

Trash Removal $67,443 $68,678 $68,230 $68,230

TOTAL SERVICE AGREEMENTS $74,944 $76,678 $110,871 $76,230

Taxes & License

Personal Property Taxes $560 $500 $500 $500

Income Taxes $0 $1,440 $1,260 $1,275

TOTAL TAXES AND LICENSES $560 $1,940 $1,760 $1,775

Reserve Budget 2010 Update

Reduced contributions to reserves

due to higher than budgeted operating

expenses, including:

• Insurance Claims – Sewer Collapse

– Winter Blizzard

– August windstorm

• Snow Removal

• Storm Sewer Repairs

• Concrete Work

Note, however, that lower

than budgeted reserve

expenses (roof) will result in a higher

than budgeted ending balance.

Reserve Budget 2010 Update

• Interest rates continue to be low

• Higher than budgeted operating expenses will result in the actual transfer to reserves to be less than the budgeted contribution

• New roof in Court 12 is complete and well under budget

• Sewer Lateral work is in process – fixed cost

FY 2010 FY 2010

Budget Projection

Beginning Balance 586,376 586,376

Income

Interest Earned 9,600 8,400

Annual Contribution 150,843 125,703

Total Income 160,443 134,103

Capital Expenditures

Sewer Laterals (100,000) (100,000)

Roof (140,000) (84,300)

Total Expenditures (240,000) (184,300)

Ending Balance 506,819 536,179

Reserve Budget Five Year Plan

• Continues basic plan established in 2010 Budget 5- Year Plan

• Accelerate replacement of concrete asbestos roofs

• Revised roof cost based on new bids

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Budget Forecast Forecast Forecast Forecast Forecast

Assessment Change 6% 5% 5% 4% 4% 4%

Beginning Balance 586,376 536,179 457,287 440,858 416,261 401,749

Income

Interest Earned 8,400 8,500 8,893 8,486 8,099 9,240

Annual Contribution 125,703 160,408 170,427 182,757 199,323 216,831

Total Income 134,103 168,908 179,319 191,243 207,422 226,071

Capital Expenditures

Roofs (84,300) (132,800) (95,749) (90,840) (93,565) (96,372)

Sewer Laterals (100,000) (100,000) (100,000) (100,000) (83,350)

Asphalt/Paving (22,510)

Vehicle - (25,000)

Tot Lot - - - - (22,510) -

Signage - (15,000) - - - -

General Operating

Total Expenditures (184,300) (247,800) (195,749) (215,840) (221,935) (96,372)

Ending Balance 536,179 457,287 440,858 416,261 401,749 531,448

Assessments and Income

• Proposed 5% assessment increase, ~$11 per unit per month

• Reduced interest income due to lower rates and lower reserves

• Increases contribution to reserves to address sewer lining and accelerate near term roof replacement schedule


Income

Assessments

Residential Assessments $914,519 $968,874 $969,385 $1,017,318

Total Assessments $914,519 $968,874 $969,385 $1,017,318

Other Income

Interest Income $5,097 $9,600 $8,400 $8,500

NSF and Late Charges $1,517 $0 $854 $0

Miscellaneous Income $1,045 $0 $1,241 $0

Bad Debt $0 $0 $0 $0

Total Other Income $7,659 $9,600 $10,495 $8,500

Total Income $922,178 $978,474 $979,880 $1,025,818

TOTAL OPERATING EXPENSES $764,560 $818,031 $850,943 $856,909

INCOME less EXPENSE $157,618 $160,443 $128,937 $168,908

Contribution to Reserve $143,499 $160,443 $134,103 $168,908

From Interest $5,097 $9,600 $8,400 $8,500

From Assessments $138,402 $150,843 $125,703 $160,408

Assessments and Income Five Year Plan

• Covers latest water rates and consumption averages

• Inflation on most items assumed at 3% per year

• Reduced interest income due to lower rates and lower reserves

• Bolsters contribution to reserves to address sewer lining and accelerate near term roof replacement schedule

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Budget Budget Budget Budget Budget

Assessment Change 5% 5% 4% 4% 4%

Residential Assessments 1,017,318 1,068,184 1,110,911 1,155,347 1,201,561

Interest Income 8,500 8,893 8,486 8,099 9,240

Total Income 1,025,818 1,077,076 1,119,397 1,163,446 1,210,801

Total Expenses 856,909 897,757 928,154 956,024 984,730

Contributions to Reserve 168,908 179,319 191,243 207,422 226,071

Questions?

Rachael Robinson – Treasurer

Les Bergen, Bill Jenkins,

James Moser, Deborah Santiago

BACKUP

Assessments Schedule

FY 2010 FY 2011 Change

Arlington 293.89 308.58 14.69

Barcroft End 193.77 203.46 9.69

Barcroft Inside 188.93 198.38 9.45

Braddock End 156.63 164.46 7.83

Braddock Inside 151.79 159.38 7.59

Clarendon End 235.76 247.55 11.79

Clarendon Inside 230.91 242.46 11.55

Dominion 272.90 286.55 13.65

Edgewood End 209.92 220.42 10.50

Edgewood Inside 204.27 214.48 10.21

• Proposed 5% assessment increase

• Average increase of $11 per unit per month

• Effective 1 November, pending budget approval

Neighborhood Comparison

• Data sourced from fairlington.org and fairlingtonvillages.com (community newsletters and minutes), and MRIS listings

• No representation of accuracy is made or implied

Arbor Mews Meadows Glen Commons Green Villages

# of Units 367 277 342 352 229 169 1,703

Monthly HOA Fee - Inside Clarendon

Current / Proposed 242$ 281$ 278$ 327$ 322$ 338$ 309$

Date Implemented 1-Nov-10 1-Aug-10 1-Jan-10 1-Jan-10 1-Jan-10 1-Oct-09 1-Oct-10

Sewer Table

Lateral Liners is currently

working in the Arbor. It is

expected that 8-10 laterals

will be lined in 2010.

Court Address Feet Status

1 3410A-3416B S Utah 136 Repaired 2002

1 3418-3428 S Utah 171 Repaired 1984

1 3430A-3436B S Utah 102 Repaired 2009

2 3440-3450 S Utah 93 Lateral Liner 2009

2 3452A-3456B S Utah 98 Lateral Liner 2008

2 3458-3462B S Utah 157 Lateral Liner 2009

2 3464A - 3468 S Utah 123 Lateral Liner 2009

2 3470A-3474B S Utah 114 Lateral Liner 2009





3 3528-3546 S Utah 151 Original

3 4401-4411 S 36th 114 Lateral Liner 2005

4 3601-3611 S Wakefield 132 Original






4 4520-4522 S 36th 64 Original

5 4415 S 36th 63 Original





5 4501-4505 S 36th 62 Original

6 3501-3515 S Wakefield 134 Repaired 1988

6 3517-3527 S Wakefield 216 Lateral Liner 2006


6 4507-4517 S 36th 54 Repaired 1998



7 3479-3485 S Wakefield 310 All Plumbing 2004

7 3487-3497 S Wakefield 10 All Plumbing 2004






9 4500-4508 S 34th 103 Repaired 1995

9 4510-4528 S 34th 130 Repaired

9 4530-4540 S 34th 68 Original

10 4400-4410 S 34th 70 Original

10 4412-4422 S 34th 124 Repaired 1995

10 4424-4432 S 34th 114 Original

11 3610-3620 S Taylor 50 Lateral Liner 2009

11 3622-3632 S Taylor 50 Lateral Liner 2005


11 4314-4318 S 36th 76 Repaired 2000







12 4454-4460 S 36th 115 Repaired

12 4464-4470 S 36th 60 Original

Fairlington Arbor Sewer Lateral Status

Sewer Map

Completely Lined

Partially Repaired

Completely Repaired

Original Terra Cotta

Court 1

Court 2

Court 3

Court 10

Court 9

Court 8

Court 7

Court 6

Court 5

Court 4

Court 11

Court 12

Roof Table Court Address Original Roof Type Replaced Roof Type Year

1 3410A-3416B S Utah Bangor

1 3418-3428 S Utah Bangor Vermont 2001

1 3430A-3436B S Utah Bangor

2 3440-3450 S Utah Vermont

2 3452A-3456B S Utah Asbestos Cement Vermont 2007

2 3458-3462B S Utah Asbestos Cement

2 3464A-3468 S Utah Asbestos Cement Vermont 2006

2 3470A-3474B S Utah Asbestos Cement Vermont 2005

2 3476-3480 S Utah Buckingham

2 3482-3488B S Utah Vermont

3 3500-3514 S Utah Asbestos Cement Vermont 2003

3 3516-3526 S Utah Bangor Vermont 1998

3 3528-3546 S Utah Asbestos Cement Vermont 2005

3 4401-4411 S 36th Buckingham

4 3601-3611 S Wakefield Vermont


4 4500-4504 S 36th Bangor


4 4512-4514 S 36th Bangor Vermont 1998

4 4516-4518 S 36th Vermont

4 4520-4522 S 36th Vermont

5 4415 S 36th Tile

5 4419-4421 S 36th Vermont

5 4425-4435 S 36th Vermont

5 4437-4439 S 36th Bangor Buckingham 1984

5 4441-4453 S 36th Vermont


6 3501-3515 S Wakefield Buckingham

6 3517-3527 S Wakefield Asbestos Cement

6 3529-3539 S Wakefield Bangor Vermont 2002







8 3417-3423 S Wakefield Asbestos Cement Vermont 2004




9 4500-4508 S 34th Asbestos Cement


9 4530-4540 S 34th Vermont

10 4400-4410 S 34th Vermont

10 4412-4422 S 34th Bangor

10 4424-4432 S 34th Asbestos Cement Vermont 2003

11 3610-3620 S Taylor Bangor Vermont 1997

11 3622-3632 S Taylor Bangor Vermont 2000

11 4300-4310 S 36th Vermont


11 4322-4332 S 36th Vermont


12 4414-4416 S 36th Vermont

12 4418-4428 S 36th Asbestos Cement Spanish Slate 2010





Fairlington Arbor Roof Status

Roof Map

Replaced Vermont - 75 yr

Replaced Buckingham - 100 yr

Replaced Spanish Tile - 100 yr

Original Bangor / Asbestos Cement - 50 yr

Original Vermont - 75 yr

Original Tile - 100 yr

Original Buckingham - 100 yr

Documents

Fairlington Arbor Draft Budget Presentation Arbor Budget Presentation 2011.pdf · Presentation Fiscal Year 2011 Nov 2010 – Oct 2011 . Your Neighbors on the ... –17 roofs are rated