River Ridge Budget Committee

[Lora]

In September there was a post requesting volunteers of property owners to establish a Budget Committee with Gail Baucom taking the lead. Four or five property owners volunteered to serve on this committee. It was my understanding that we would meet in either November or December to go over the Boards Proposed budget. Those of us that volunteered to serve on the budget committee were never notified of a date or time to go over the proposed budget. Did this committee fall through and why? Was there actually a budget committee made up of property owners (not board members)?

[Mooseman]

This reaffirms the fact the BOD or anyone else has prepared an actual budget to justify their “Annual Dues/Assessments” increase.

It also suggests no real cost analysis of “The Wish List Plan.”

[AnneSingleton]

How can we do a budget yet when we don't know how much the annual assessments are going to be? A lot of work goes into preparing this information, after March 19th the budget committee will meet and prepare the budget, either at 850.00 or 250.00. Have a great day!

[Mooseman]

While we appreciate you being honest, it is of little comfort that our BOD doesn't know what the basic operating costs would be..
With a description of contingency considerations including costs.
Planning and Study infrastructure initial costs.
Etc.

These costs are set in stone, correct?
The question is whether we're in the hole or how much we have left over.

Certainly you've written a budget for the $1,200.00 figure, otherwise how did you arrive at that number?

[AnneSingleton]

Basic operating cost for 2022 will be 850.00, that covers the extra salaries and inflation cost just for that year, with still no funding left over to do anything else. As we already explained our cost are going up every year for the next five years, and we MUST start preparing for the future. The BOD can't give an estimate of the actual cost of the infrastructure because we do not have the funds currently to have plans drawn up, which we are figuring will be at least 150,000.00.
If the dues go to 250.00 we will scale back to the bare essentials of operating, the obvious things like the pool, Kountry Kitchen, and Clubhouse will be closed. I'm sure a lot more things will be removed but I personally am not sure what it will be, that will up to the budget committee to determine.
Property owners themselves came up with 1125.00 average for dues, the BOD just rounded that number up and that is where the 1200.00 came from.
Hope this answers your questions!

[C collins]

As part of being well managed it would make sense to have a budget using our current $250 dues. This would show property owners exactly what we would be able to support. Then if the annual assessment increase passes the budget could be expanded.

[Mooseman]

'As part of being well managed it would make sense to have a budget using our current $250 dues.'

at the $850.00 & $1,200.00 amounts as well.
Written, detailed, and explained.

I would like minutes kept and provided, of the Budget Committee meetings.
How long have they been meeting?
What are those dates?

"This would show property owners exactly what we would be able to support."

[Mooseman]

Crickets

[Patshelly1]

So with the threats that of pool, country kitchen and snack shop closing if we go to $250, where does that leave the golf course…open? I bought here for the amenities listed above and it is a shame that’s there is so much angst and mistrust that people are not wanting to pay more than $250 a year to be here. I want a nice place to spend time with my kids and grandkids. I would gladly pay the amount requested if People could just be reassured where the funds are going. I see a lot of what we are NOT going to get and not so much of what we could for the $850. I mention the golf course specifically because that seemed to be what upset people with making that a 1st priority in the Vision.

[AnneSingleton]

Since people are always saying "where does my money go" or "they need to quit wasting money" probably has never picked up a budget to educate themselves about our community's finances. Let me try to explain it the best way I can.  Salaries, health insurance, workman's comp, FICA & SUTA, 401 K match, and uniforms cost RR 529,000 a year just for the administration and maintenance employees alone.  This figure will be going up every year for the next five years.  (This does NOT include wages at the Golf Course, they pay their own and it does not come out of our dues).  Now add on 70,000 for common property electricity, 72,000 for our general liability insurance, 24,000 for accounting,  and 76,000 for administration expenses (software, phone, postage, reading elec meters, cc machine etc...).  Maintenance cost are 300,000 to include running the water/sewer plant, equipment & upkeep, grounds maintenance, building maintenance, bathhouses etc...  To run the different committees like the pool, security, beautification, entertainment is another 25,000.  It takes a lot of money to run River Ridge.
To answer your question the golf course would most likely stay open, they are self sufficient in everything except building maintenance, which they will no longer have.  The golf course was first in the Vison but not to benefit the golf course, it was a lunch counter/store to benefit the community and was put in year one to generate income back to RR.   But, regardless of a a store or not the pro shop building just like every other building in RR is in poor condition and needs revitalization.
The BOD originally requested dues of 1,200 to cover the growing expenses over the next few years and prepare for infrastructure costs if the grants do not come through.  So many po's said "give us time to prepare for that kind of increase" so the BOD did exactly what they asked for and backed it up a year.  This talk of "they tried to sneak 1,200 in on us" is crazy, the BOD was upfront from the beginning about the 1,200.  
RR has never voted for a dues increase (last increase was from the developer) so it ties the BOD's hands on what to do.  Yes we could have just said 850 this year but then what?  Go through this battle all over again next year and every year after to try and raise them again, it will NOT happen.  Then next year we will be short again because of salary increases and no funds being put towards any of the major projects.  
The BOD is really trying to do what is best for RR, we have 4 members that are either a current or former business owner and have knowledge of what to do but it's difficult when we are constantly being held back from the community we are trying to protect.   We have repeatedly said in BOD meetings and in the letter sent out that RR needs more money to operate to repair this half a century of neglect.
Does the BOD want to see 250, no!  But, we can't do this battle again next year, not to mention it cost 1000's every time!

[DeanandDiane]

When I say I think that most people in RR would have been ok with the 850.00 then that is what this vote should have been for and nothing more. It would have allowed for more transparency and we would not have been put in a position the The Bod has put us in this year. So, with all due respect.... A budget should have been done along time ago. You can always hope for the best but prepare for the worst. There was no hope in that last ballot. It was an all or nothing for the 1200.00 no matter the cost to the Property Owners of RR. There is a lot of fat that can be trimmed from the budget. 401k's for a company this small is unheard of. That is one. Health Insurance can be purchased through the marketplace individually at a much cheaper rate. We do not need to plant flowers every year. Bring your own lunch to those meetings. I brought donuts to the vote count. None of us at home operate our households on not having a budget and this Association should be no different.

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