Finance Committee Minutes, September 15, 2009
The Finance Committee of the Falls Run Homeowners’ Association met this afternoon in the Center.
Personnel in Attendance: John Frisch and Casey Naatjes. Bill Barnes, Tom Whalen, Jack Mounts, Don Horen, Ann Jones, and Debbie Sutton also attended.
Discussion of Budget Line for Insurance Deductibles:
The AMS representative had suggested that we consider setting up a budget line for this contingent expense. She further suggested that any unexpended amounts at the end of each fiscal year should be placed in a reserve fund for that purpose. The proposal was discussed at some length by all present. We determined that we would not make a recommendation to the Board to set up such a budget line, nor would we encourage a special reserve for this purpose.
Operating Budget for 2010
The committee reviewed the Base Case for 2010. The Base Case includes a recommended Expense Budget of $1,740,511 for 2010 – a 3.7% increase over 2009 budget levels. The basis for this review was an independent review provided by Don H. Several budget lines were modified as each difference was discussed. Here are some notable developments
The payroll numbers reflect Board desires at this point.
The Property and Grounds Committee Request included $20,000 for a common area upgrade and a $25,000 increase in the Master Plan. The committee discussed, but did not change its position on this matter.
This version of the working budget includes the date (091509) in the title. It will be updated with August Financial information as soon as it becomes available. At that point, it will be distributed to the Board for follow on budget formulation steps.
Reserve fund Budget for 2010
We continued discussions on the Reserve Budget. Don Horan suggested an improved budget format. It was decided to use his format in preparation for the next committee meeting.
Adjournment: 4:30 pm.
Casey Naatjes, Chair