Budget Box: Annual Budget Process
Each year, The Landings Association’s staff review more than 1,250 assets listed in the Association’s Capital Asset Management Plan (CAMP). The CAMP contains an extensive and diverse set of capital assets with an estimated replacement value of roughly $50M (not including storm drains), maintained and replaced through the Capital Reserve Fund. The Capital Reserve Fund is restricted in use, only for major capital repairs and replacements such as roads, community paths, bridges, lagoon structures, buildings (including gatehouses), and two Marinas. Large equipment such as street sweepers, vacuum jetter trucks, and backhoes are also funded through the Capital Reserve Fund.
There are two major parts to updating the CAMP during the annual budget process -- the physical analysis and the financial analysis. The physical analysis includes the asset inventory, condition assessment, and useful life updates; while the financial analysis involves the review of the replacement cost of each asset, along with ensuring the Capital Reserve Fund maintains an adequate funding level. The Landings Association also consults with a Reserve Specialist to provide updated useful life projections based on experience with similar communities, historical records, and vendor evaluation.
A list of capital assets scheduled for replacement in 2021 through 2026 can be found online starting on page 269 of the 2021 Budget Book (www.landings.org/resources > Governing Documents).
This article was originally published by The Landings Association on their website. Visit landings.org to read the original article. https://landings.org/news/2021/07/30/budget-box-annual-budget-process