2019 Adopted Budgets (posted 11/14/2018)
2019 Budget Overview:
The HRCA budget development process is approximately six months long, beginning in mid-June and ending in mid-November. The process includes internal staff preparation, direction from the CEO and Board of Directors, weekly meetings with the Finance Committee from August to October and input from the Delegates at four budget presentations throughout the preparation process. During the budget process, each HRCA department presents their proposed budget to the Finance Committee and is responsible for explaining variances to budget throughout the year. Following each department’s presentation, the respective draft budget(s) and presentation(s) are added to the HRCA budget website for public review. The Finance Committee, which is comprised of finance professionals with varying backgrounds, recommended the 2019 budget to the Board of Directors in October 2018. The proposed budget was presented to the Delegates in October 2018, with a one-month comment period prior to the Delegates approval of the proposed budget on November 13, 2018. The Board of Directors adopted the 2019 budget at the November 13, 2018 meeting.
The 2019 HRCA budget includes a $4 per quarter, or $16 per year, increase in assessments. This increase includes a $3.75 per quarter ($15/year) increase to the Recreation Fund assessment and a $0.25 per quarter ($1/year) increase for the Administrative Fund assessment. The increase to the Recreation Fund assessment will be utilized for ensure appropriate transfers to the Recreation Reserve Fund, offset increases in employee costs due and recreation facility operating costs. The increase to the Administrative Fund assessment will be utilized to offset increases in employee costs and general / liability / property insurance costs. The increase in employee costs is primarily attributable to the 2019 mandated phase III minimum wage increase (which increases the hourly minimum wage from $10.20 per hour in 2018 to $11.10 per hour in 2019), an increase in medical insurance premiums, an increase in employee drug testing cost, and the addition of two new part-time positions to support our administrative functions and community relations department. Transfers to the Recreation Reserve Fund are based on our 30-year forward looking reserve study, which provides a repair and replacement plan for all of the Association’s existing assets. The Association aims to fund all of these projects with cash, while maintaining account balances in accordance with our fund management policy.