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FOUR SEASONS BREEZE | SEPTEMBER 2023 5 Message From The Board The end of summer and beginning of fall is the most wonderful time of the year for the Board of Directors and the Finance Committee, as this is when we begin looking at the budget for next year. I say that in jest, but we do begin the budget process during this time period. Each year we look at the previous year's budget, and with much thought and deliberation, we look at the current year's budget and forecast where we believe we need to be next year. This is based, as I indicated in last month's article, on the Consumer Price Index (CPI) for Riverside County as well as the inflation numbers. Although the inflation numbers were down to 3 percent, we did face at least 9 percent in the 2023 budget. Last year (2023) we also had a perfect storm of increases with our gas, electric and especially water, which increased exponentially. Additionally, we had normal cost of living raises in our FirstService Residential contract as well as others. As I write this, we have solicited Requests for Proposal (RFP) for our Landscape contract, with all proposals due back no later than Aug. 18. Our landscape contract for "mowing and blowing" and general landscape is about $1.1 million per year. In addition, we also have tree trimming and tree removal lines in our budget. There is also a $94,000 line item for landscape extras. This is for the Landscape Committee to replace plants and trees that die. There are several factors that go into a budget. The money in the budget is funded solely by each homeowner's HOA dues (the Board of Directors and Finance Committee members are homeowners, too). With that in mind, we do look to save money anywhere we can. First, we look at our Reserves funding. As of June, we were funded at 91 percent. The Board of Directors would like the reserves funded at 100 percent, but with inflation numbers it did drop this year in January to 89 percent. Since this is a 30-year plan, it will fluctuate throughout the year. Actuaries look at projected numbers and interest rates, and calculate where we should be. Next, we look at forecasted projects our committees submit, as well as capital spending, and calculate the cost to determine if it is something we really do need. Each item requested is costed out and ultimately passed or rejected in an open Board meeting. To break down our budget simply, our operating budget is about $5.6 million this year, of which half is our landscape and management contracts. The rest of the budget is utilities, smaller contracts, and daily operating expenses. As the budget progresses, I will keep you updated through this article, and any budget reached will be voted on in the November open Board of Directors session. The full budget will be mailed by the end of the year to each household. The Board of Directors meeting is held the second Thursday of the month at 1 pm in the Ballroom. It is a good way to stay up-to-date on how our money is spent. Per civil code, we are unable to engage in conversation in this setting; if you would like to meet with Board members in an environment where dialog is allowed, our monthly Meet with the Board takes place the third Wednesday of each month in the Ballroom at 2 pm. If you have any questions or concerns, please contact me at kathycravenbod@yahoo.com or at (714) 722-1301. Don't forget to read the Daily Report/Activities Blast or the Breeze for all the activities, and get out and enjoy yourself! By Kathy Craven, Board Vice-President

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