POATRI TREASURER’S REPORT - for 12 months ending Dec 31, 2009 POATRI began the year with an operating cash balance of $ 24,998 which included $11,622 of 2009 assessments collected in December of 2008. The Capital Reserve Fund had a balance of $103,024 and the Contingency Fund had a balance of $24,019. This resulted in a Total Cash Balance of $ 152,041 on January 1, 2009. Operating Cash on January 31, 2009 $ 24,998 Revenue Summary for the twelve month period: Current and Prior Year Assessments collections of $ 479,338 Property Auctions & Tax Sales Proceeds $ 51,632 Heavy Equipment income $ 1,600 Miscellaneous cash collected $ 2,046 Resort Income (Water & Retail Sales) $ 7,182 Prior Year Accounts Receivable Collected $ 6,979 Total Cash Collected $ 548,777 Expense Summary for the twelve month period: Operating Expenses $ 367,625 Non Operating Expenditures $ 173,728 Total Expenditures $ 541,353 Operating Cash balance as of December 31 $ 32,422 During the twelve month period interest and deposits of $7,068 were deposited into the Capital Reserve Fund bringing the ending balance to $110,092. The Contingency Fund received interest and deposits of $ 88,307 resulting in a closing balance of $ 112,328. This results in a Total Cash Balance of $ 254,841 as of December 31, 2009 (an increase of $102,800). Budget Variance Summary: Current and Past Due Assessment Collections for 2009 were down about 14 percent from previous years. We collected 81 percent of budgeted collections in 2009 compared to 95 percent during the years 2006-2008. This decrease in collections resulted in a shortfall in assessment collections of about $102,000. This was offset by an aggressive collections and foreclosure program during the first six months of the year which resulted in $26,600 more income from property auctions and tax sales than had been budgeted. Additional income of $12,000 came from miscellaneous sources such as water sales, retail sales, an income tax refund and a workmen’s compensation refund. Total expenses, excluding lawsuit expenses, for the administrative side were about $50,900 below budget while total expenses for the resort side were about $3,600 more than had been budgeted. Expenses for legal and professional services, excluding lawsuit expenses, were about $56,600 below budget for the year. When we include the Braun lawsuit expenses of $25,080, the variance for this line item is still $32,700 below what had been budgeted. However, this was a result of timing as the case did not go to trial in 2009. The money that would have been spent in trying this case will most likely be needed in 2010 for the three lawsuits. POATRI ended the year in a favorable cash position with $32,420 of operational cash available at the end of the year which includes $921 of 2010 assessments collected in December. POATRI did not need to transfer money from the Contingency Fund to support operations during 2009. Remember that POATRI Financial Statements are available on the web site or they can be requested from the office. ==================================================================================
Budget and Finance Committee Report – Fourth Quarter 2009 The BFC analyzed assessment collections monthly and compared them to budgeted collections for the years 2006-2008 with the results reflecting that collections were about 14 percent below the historical average for the year. Eighty one percent of budgeted collections for current year and past due assessments were collected during 2009 while over the past three years collections have averaged slightly over 95 percent. This reduction in collections resulted in a cash shortfall for the year of about $102,000. The Treasurer’s report that you heard earlier addressed the reduction in income and how it was offset by an aggressive collections and foreclosure program, property auctions, tax sales, additional income from miscellaneous sources such as water sales, retail sales, an income tax refund and a workmen’s compensation refund. Total expenses, excluding lawsuit expenses, for the administrative side were about $50,900 below budget while total expenses for the resort side were about $3,600 more than had been budgeted. Expenses for legal and professional services, excluding lawsuit expenses, were about $56,600 below budget for the year. When we include the Braun lawsuit expenses of $25,080, which is not covered by insurance, the variance for this line item is still $32,700 below what had been budgeted. This was a result of timing as the case did not go to trial in 2009. POATRI ended 2009 with actual income and expenses being nearly equal which resulted in a balanced budget. The BFC provided the Board of Directors with a 2010 Budget which is balanced based on an assessment level of $155.70 and 2400 paying property accounts. The budget assumes that the Lodge/Resort will remain closed and that it will not sell during 2010. The budget includes money for a full time road crew and it is assumed that the three lawsuits now before the courts will go to trial in 2010. A risk associated with the 2010 Budget is the number of paying property accounts which is down to about 2,400 from a three year historical average of 3,300. The cost of road maintenance is another risk as heavy rains could drive up road maintenance expenses. The 2010 Budget contains $98,000 for legal services but the expenses associated with taking the three cases to trial can only be estimated and is a risk. The three cases are the Braun, Suber and Mead cases which are not covered by insurance. There is also the risk of new lawsuits. ================================================================================== POATRI TREASURER’S REPORT - for nine months ending Sep 30, 2009 POATRI began the year with an operating cash balance of $ 24,998 which included $11,622 of 2009 assessments collected in December of 2008. The Capital Reserve Fund had a balance of $103,024 and the Contingency Fund had a balance of 24,019. This resulted in a Total Cash Balance of $ 152,041 on January 1, 2009.
Reven Revenue Summary for the nine month period:
Current and Prior Year Assessments collections of $ 457,216
Property Auctions & Tax Sales Proceeds $ 51,632
Heavy Equipment income $ 1,600
Miscellaneous cash collected $ 6,182
Prior Year Account Receivable Collected $ 6,979
Total Cash Collected $523,609
Expen Expense Summary for the nine month period:
Operating Expenses $ 277,488
Non Operating Expenditures $ 148,179
Total Expenditures $ 425,667
Operating Cash balance as of September 30 $ 97,943
During the nine month period interest and deposits of $ 6,231 were deposited into the Capital Reserve Fund bringing the balance to $109,255. The Contingency Fund received interest and deposits of $ 87,441 resulting in a closing balance of $ 111,462. This results in a Total Cash Balance of $318,660 as of September 30.
Bud Budget Variance Summary:
Assessment Collections for the nine month period were about 77.5 percent of budgeted collections for the year. For this same time period in years 2006-2008 we collected about 88 percent of budgeted annual assessments. This 10.5 percent decrease in collections is significant as we are looking at a shortfall in assessment collections of about $87,000 which was offset some by property auctions and tax sales bringing in $33,000 more income than had been budgeted. Expenses were below budget by about $34,000 during the nine month period with most being in the area of legal services. The Budget and Finance Committee recently provided the Board of Directors with an updated 2009 budget projection for the year which reflects a cash shortfall of about $60,000 of which about $40,000 is in the area of legal services which may not be spent this year as none of the cases before the court have been set for trial in 2009. Assuming no unexpected expenses happen during the remainder of the year POATRI may end the year in a favorable cash position.
Remember that all POATRI Financial Statements are available on the web site and that those without computers can request a copy from the office.
Budget and Finance Committee Report - Third Quarter 2009
The BFC continued analyzing assessment collections monthly and compared them to collections for the years 2005-2008 with the results reflecting that assessment collections are about 10.5 percent below the historical average collected through September. Seventy seven and one half percent of current year assessments were collected by the end of the third quarter of 2009 while during the past three years collections have averaged slightly over 88 percent by the end of the third quarter. This gives us a projected assessment collection cash shortfall for the year of about $87,000.
The BFC provided the Board of Directors with an updated 2009 Budget with actual revenue and expense dollars through September and projections for the remainder of the year. Due to expenses being cut and the timing of court cases now before the court overall expenses have been cut by about $34,000. Operational cash available at the end of September amounted to $97,943 which may be enough to meet normal operational needs for the remainder of the year. However, we need to recognize that the 2009 Budget included money budgeted for lawsuits going to trial. Should we encounter the additional lawsuit expenses that were projected in the 2009 Budget we could deplete the Operating Accounts and we would need to transfer money from the Contingency Fund. We currently have three lawsuits that are in various stages of moving through the court system. Any or all of these could end up going to trial either later this year or during 2010. If the money budgeted for legal services in 2009 is not spent this year it will most likely be needed next year.
The annual CPI increase was calculated to be 0.242% which will increase assessments by 38 cents bringing the 2010 assessment to $155.70. A preliminary budget has been prepared using this assessment level but there are still has a lot of unknowns involved. One big uncertainty is the number of paying property owners. Historically about 3300 property owners have paid their annual assessments but that number may drop well below 3000 this year. The amount of money required for legal services during 2010 remains uncertain at this time. The future of the Lodge/Resort and the associated expenses are unknown at this time. Decisions are still open regarding how road maintenance will continue. Each of these unknowns will affect the final budget.
COMMENTS FROM THE TREASURER 2nd Qtr 2009 This has been a trying year for POATRI. The resort remains closed due to financial constraints and we are in the process of changing management. While the nation is going through some difficult financial times, so is POATRI. We are currently operating on a budget which allows for emergency road repairs and minimal road maintenance. No capital improvements are being achieved and limited building maintenance is taking place. The office is open three days a week for property owner services. This is due in part to fewer property owners paying their annual assessments and in part due to rising expenses. Estimates as of June 30 indicate that about $70,000 in 2009 annual assessments will not be collected this year. All property owners have on obligation to pay their share. Any property owner that does not pay an annual assessment is placing an additional financial burden on those who do pay their fair share. As of June 30, POATRI had an operating cash balance of about $163,900, along with a balance of $106,700 in the Capital Reserve Fund and $80,800 in the Contingency Fund. Estimated expenses for the remainder of the year may require that about one half of the Contingency Fund be transferred to operations to maintain a positive cash balance. For complete financial information regarding POATRI please visit our website at www.poatri.org or request a copy of the Second Quarter Financials from the POATRI office. At the April Quarterly Meeting, the Board of Directors approved a resolution to begin the process of selling or leasing the lodge/resort facilities. POATRI simply could not reopen and operate these facilities which were losing money year after year. POATRI’s only source of income is the annual maintenance fee. As property owners have voted down the last two attempts to increase the maintenance fee, the Board made the difficult decision to begin the process of selling or leasing the facilities to someone that might be able to operate the facilities. This would allow POATRI to rid itself of a drain on cash and would allow more emphasis to be placed on road maintenance and property owner services. Your vote in the upcoming election(s) and your presence at the Annual Members Meeting in January, 2010 is very important. While the lodge/resort has been great for POATRI and a gathering place for the community, it may be better served in the future under new ownership as POATRI can no longer afford to maintain and operate it. ================================================================================== POATRI TREASURER’S REPORT - for six months ending June 30, 2009 POATRI began the year with an operating cash balance of $ 24,998 which included $11,622 of 2009 assessments collected in December of 2008. The Capital Reserve Fund had a balance of $103,024 and the Contingency Fund had a balance of 24,019. This resulted in a Total Cash Balance of $ 152,041 on January 1, 2009. Revenue Summary for the period: Current and Prior Year Assessments collections of $ 399,752 Property Auctions & Tax Sales Proceeds $ 27,256 Heavy Equipment income $ 1,200 Miscellaneous cash collected $ 4,227 Prior Year Account Receivable Collected $ 6,979 Total Cash Collected $439,414 Expe Expenses Summary for the period: Operating Expenses $ 187,583 Non Operating Expenditures $ 87,964 Total Expenditures $ 275,547
Operating Cash balance as of June 30 $ 163,867
During the six month period $ 3,683 was deposited into the Capital Reserve Fund bringing the balance to $106,706. The Contingency Fund received deposits of $ 56,783 resulting in a closing balance of $ 80,804. This results in a Total Cash Balance of $351,377 as of June 30.
Budget Variance Summary Assessment Collections for the 6 months were about 70 percent of budgeted collections for the year. For this same time period in years 2006-2008 we collected about 76 percent of budgeted annual assessments. This 6 percent decrease in collections for the first six months is significant and if assessment collections do not improve during the remaining six months we are looking at a shortfall in collections of about $67,000. To offset this deficit we must continue to cut expenditures and control costs where ever possible. The General Manager is aware of this and has already cut expenses by about $20,000 during the first six months. The Budget and Finance Committee provided the Board of Directors with an updated 2009 budget which reflects a cash shortfall of about $40,000 which will have to be borrowed from the contingency fund to end the year with a positive operating cash position. This assumes that no new or unexpected expenses are introduced. Remember that all POATRI Financial Statements are available on the web site and that those without computers can request a copy from the office. __________________________________________________________________________________ Budget and Finance Committee Report - Second Quarter 2009
The BFC continued analyzing assessment collections monthly and compared them to collections for the years 2005-2008 with the results reflecting that assessment collections are about 6 percent below the historical average collected through June. Seventy percent of current year assessments were collected by the end of the second quarter of the year while for the past three years collections have averaged 76 percent by the end of June. At the end of the first quarter assessment collections were down about 10 percent, so a collection shortfall of 6 percent represents an improvement which can be attributed to the General Manager mailing out a second billing along with demand letters being sent to many slow payers.
The BFC provided the Board of Directors with an update of the 2009 Budget with actual revenue and expense dollars for the first six months and estimates for the remainder of the year. The budget update shows that if everything remains as we project that we will be required to borrow about $40,000 from the contingency fund to end the year with a positive operational cash flow. Currently there is about $80,000 dollars in the contingency fund. We need to recognize that unexpected lawsuit expenses or costs related to selling or leasing the resort may cause these numbers to change.
A 2010 preliminary budget has been provided to the Board for their review. This preliminary budget still has a lot of unknowns involved with it. One big unknown is the number of paying property owners. Historically about 3300 property owners have paid their annual assessments but that number may drop below 3000 for this year and could go lower if assessment collections do not improve significantly during the remainder of the year. Another unknown at this time is the costs associated with the sale or lease of the resort. ============================================================================================
POATRI Treasurer’s Report - For the Period Jan 1, 2009 Thru March 31, 2009
by Merrill Jordan, 2009 POATRI Treasurer
POATRI began the year with an operating cash balance of $ 24,998 which included $11,622 of 2009 assessments collected in December of 2008. The Capital Reserve Fund had a balance of $103,024 and the Contingency Fund had a balance of $24,019. This resulted in a Total Cash Balance of $152,041 on January 1, 2009.
Revenue Summary for the first quarter:
Current and Prior Year Assessments collections of $ 258,768
Property Auctions Proceeds of $ 3,370
Heavy Equipment income $ 800
Miscellaneous cash collected $ 2,007
Prior Year Account Receivable Collected $ 6,979
Total Cash Collected $ 271,924
Expenses Summary for the first quarter:
Operating Expenses $ 87,998
Non Operating Expenditures $ 46,583
Total Expenditures $ 134,581
Operating Cash balance as of March 31 $ 162,340
During the first quarter, $1,959 was deposited into the Capital Reserve Fund bringing the balance to $104,983. The Contingency Fund received deposits of $ 9,788 resulting in a closing balance of $33,807. This results in a Total Cash Balance of $301,130 as of March 31.
Budget Variance Summary:
First Quarter 2009 Assessment Collections were about 47 percent of budgeted collections for the year. For this same time period in years 2006-2008 we collected about 57 percent of budgeted annual assessments. This 10 percent decrease in collections is alarming and if the downtrend continues through out the remainder of the year we could be looking at a cash deficit of over $100,000. To offset this deficit we must begin immediately to cut expenditures where ever possible. The General Manager is aware of this and is already cutting expenses with all expense categories at or below budget except for utilities and office administration expenses. Utilities may have been under estimated for a closed resort in preparing the 2009 Budget. Office administration expenses increased in January as a result of paying for the printing of the December billing of assessments.
Remember that all POATRI Financial Statements are available on the web site and that those without computers can request a copy from the office.
Budget and Finance Committee Report - First Quarter 2009
by Merrill Jordan, POATRI Treasurer
The Budget and Finance Committee (BFC) volunteered to assist the Reopening Task Force with doing the financial analysis for the reopening of the bath house or any of the facilities that could be reopened without financial assistance from POATRI. This project was put on hold.
The BFC began analyzing assessment collections beginning with January collections and comparing them to collections for 2005-2008. This analysis continued through out the first quarter and the results reflect that there is a down trend in the number of property owners that are paying there annual assessments. Historically, about 57 of current year assessments are collected in the first quarter of the year. This year only 47 percent of current year assessments were collected for the same time period. If this down trend continues for the year we can expect a budget shortfall of over $100,000. Historically about 3300 property owners have paid their annual assessments but that number may drop to around 2700 if the downtrend continues for the remainder of the year. The BFC made a recommendation to the Board of Directors and the General Manager that actions begin immediately to cut expenses.
To assist the Board with decisions that must be made regarding whether to reopen and operate the resort, or to sell or lease it; the BFC took on the task of completing a Five Year Financial Plan for the Resort. The assumption was made that the resort would be returned to what property owners had come to expect when it was fully open in past years. No additional amenities were added. The plan listed those capital items that would be required prior to startup along with additional capital improvement items to be completed during the 5 year period. The plan compiled historical information relating to occupancy rates, income and expenses along with projected inflation factors and room rates. Capital reserve and contingency funds were included. The results of the analysis were compiled into one report that describes the revenues that would be required for each of the 5 years and the resulting individual property owner assessment. The Cover Letter presenting the report to the Board and the Executive Financial Summary can be found in the back of the room. The bottom line of the Executive Financial Summary shows what the individual property owner assessment would be for each of the five years. Keep in mind that this is addition to any assessment for road maintenance and administration.
TREASURER’S REPORT - For the Period January 1 thru December 31,2008
Don Backer, Treasurer 1/ Revenue Summary for 2008 – based on Cash Collections
For all of POATRI operations, including the assessment side and the Resort, we took in $918,000. In round numbers the major revenue components included:
· Assessment collections for 2008 and prior years of $491,000. Our budget for assessment collections was $516,000, so we had a $25,000 shortfall.
· NRC collections of almost $45,000, which were deposited into the Capital Reserve and Contingency Fund accounts.
· BVC collections of $157,000. The level needed to reach cash flow breakeven for 2008 was approximately $212,000.
· Property auction proceeds and Tax Sales were almost $39,000.
· And, the resort contributed $170,000 in revenue before it was closed in September.
2/ Expense Summary for 2008
· For the year Resort expenses totaled $237,000 against the budget of $349,000. Expense control throughout the year and closing the Resort for the last quarter contributed to keeping expenses less than budget by $112,000.
· On the Assessment side, Operations expenses and debt service were $548,000 against a budget of $556,000.
3/ Overall Performance for 2008
· During 2008 we again had to borrow from our Contingency Fund, in the amount of $76,000, to cover short term cash requirements and balance our budget. In previous years we repaid our short term cash loan during the following year, but for 2008 the Board and Management had wanted to pay off this year’s loan by December, so that we could achieve a balanced budget and eliminate the practice of short term borrowing.
· We were not able to pay off the $76,000 short term loan due to the shortfall in Assessment and BVC collections. The amount of the shortfall in collections is the amount needed to pay off the loan and achieve a balanced budget for the year.
· The consequence of the collections shortfall is that the loan is carried forward into 2009. Our plan is to pay off the Contingency Fund loan of $76,000 with collections of past due assessments and the BVC charge. However, our ability to accomplish this is dependent on the amount of these collections. Our ability to achieve a balanced budget every year is dependent on assessment collections and when we do not collect the amount that we planned on, this results in a budget shortfall.
4/ Financial Reports
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