Issue link: https://imageup.uberflip.com/i/1479256
October is the month we expect (and hope for) a change to more comfortable weather. It is a time to begin planning for the holidays in November and December. It is also the month we finalize the budget for 2023. The October, 2018, Board Message stated: "Our HOA income is quite static because our primary source of revenue is monthly dues. However, expenses are not at all static and are subject to increases beyond our control." In preparing the 2023 budget, we have a process that included the following: 1. An Ad Hoc Committee was formed to prepare and make recommendations for the 2023 budget. One task of this group was to work with key committee, including Finance, Landscape, Facilities, and Access Control. 2. Past year budgets were reviewed to identify any trends and how they compared to actual expenses. 3. Reserves were analyzed to determine if we are adequately funded and if any change is required. 4. Current budget items were examined, and the committees determined what they needed vs. what they wanted. 5. Vendors' contracts were reviewed to estimate current and future costs. 6. Budget items were analyzed to look for ways to reduce costs or delay expenditures. This process began in March and here are the conclusions/ recommendations: 1. We will have a budget deficit this year. At the end of July, it was about $90,000. Our operating budget is about $2 million dollars. With costs estimated to rise at least 2 to 3 percent each year, this presents a significant impact. 2. We have been able to build a strong reserve fund of over $4 million dollars which keeps us almost fully funded for the replacement or repair of our association property. We need to maintain this going forward or run the risk of a special assessment. With our current reserve contribution, we will have enough funds to maintain our streets, including expected R&R (Remove & Replace) work forecasted in the next several years. 3. Capital expenditures may be required/needed in the future. Currently, there is no money budgeted for this. Previous capital expenditures included our storage building and our barbecue area. 4. We continue to delay expenditures when feasible, such as replacing carpeting in the Ballroom. We thank our committees for helping to minimize expenses over the years. Examples are the following: changing vendors to save money without sacrificing quality of work, thinning our trees instead of more expensive trimming, requiring multiple bids on projects/purchases, and utilizing solar to reduce energy costs. We are approving a budget for 2023 but are also looking ahead to provide for the next several years. We live here, in part, because we have a beautiful community with great amenities. It is important to be proactive. For example, acting before problems occur, including financial needs. Our goal is to provide a sound financial foundation for Four Seasons. On Oct. 28 at our monthly Board meeting, we will approve the budget for 2023 and answer questions. "Sometimes the hardest thing and the right thing are the same." (Anonymous) Message from the Board of Directors 2 | Four Seasons Hemet Herald | OCTOBER 2022 | Sincerely, and on behalf of your Board of Directors, Barbra Balser, Cliff Post, Tony Criscenti, Roxy Snider, Fred Kydd, and Mary Reyna Jim Crase President