President’s Update – July 26, 2023

As we reach the midpoint of 2023, we are pleased to share some positive financial news about our Landings Association. As of June 30, 2023, we are operating slightly ahead of budget, with a better-than-expected year-to-date gross margin (revenue over expenses). Despite the challenges posed by inflation, we have been working diligently to minimize its impact on our expenses.

Inflation has indeed affected our costs, with construction projects and concrete prices surpassing our budgeted estimates for the year. Nevertheless, our dedicated TLA staff and Board of Directors have risen to the occasion, employing various strategies to mitigate the effects of rising expenses.

Here are some notable examples of our efforts to control costs and enhance financial stability for The Landings:

1. Our careful approach to investing reserve and operating funds has resulted in approximately $225,000, year-to-date, in interest earnings from fully insured certificates of deposits and U.S. Government-backed Treasury Bonds.
2. To offset the increased contractor costs for the Landing Harbor Marina pier re-decking project, we opted to handle much of the work in-house. This decision has led to significant savings. We also identified construction materials that will contribute to lower long-term maintenance costs for the pier and a more attractive design.
3. A careful assessment of our needs at Sunset Pavilion allowed us to reduce our budgeted expenses by replacing only the audio equipment, while utilizing the existing video equipment, which still has several years of useful life remaining.
4. To optimize expenses, we have chosen to have our staff handle center island cutbacks, reducing the need to hire external contractors.
5. Recognizing the significant costs and time delays associated with renting excavators, we made the decision to purchase a mini excavator tailored specifically to our needs. This investment has streamlined our repair work and improved efficiency.
6. The installation of a Bubbler Curtain at Landings Harbor Marina has not only reduced silt entering the harbor basin but also led to cost savings on necessary modifications to the harbor entry. We anticipate further savings in annual dredging costs going forward.

In addition to tracking monthly revenue and expenses, our Finance Department and Committee proactively forecast future financial trends on a quarterly basis to avoid surprises and address any challenges that may arise.

We are thrilled to share that our financial performance remains solid, allowing us to allocate more funds to our Capital Reserves Fund, which is vital for maintaining our community’s capital assets. As previously discussed during the community Annual Dues vote, our goal is to have a Capital Reserves Fund that covers between 30% to 70% of the cost to replace community assets. We are on track to end the year with approximately 33% Reserves funding, representing an almost 4% improvement compared to the start of 2023.

To uphold our tradition of excellent financial performance, we already have set in motion our  2024 budgeting process. This initiative commenced earlier this year with the hiring of Caden Thomas, our dedicated Budget Analyst, who will be working closely under the guidance of Jessica Henderson, our Finance Director.

Annual budgeting involves much work, including reviewing the status of our capital items and updating our Capital Asset Management Program (CAMP); assessing our Strategic Plan for potential additions next year; and checking operating budget needs on a department-by-department basis for the 2024 budget and the 2025-2029 Long Range Financial Plan. Part of the budgetary review includes appointing Budget Liaisons who are members of the Finance Committee, appointed by our Treasurer, Rosemary Mackey, to meet with departments to discuss budget requests. At the conclusion of the department budget process, each Budget Liaison will present the budget information to the Finance Committee. The final budget is reviewed and approved by the Finance Committee and then reviewed and approved by the Board in November and December.

As many of you may already know, the Association’s Rules and Regulations currently are being updated. The Governance Committee and TLA staff have diligently worked on these revisions. Our priority has been to ensure the safety of our residents, including our children and grandchildren, who enjoy all that our community has to offer.

In light of the increasing prevalence of powered vehicles in our nation and community, it has become even more critical to maintain safe pathways and roadways. It is apparent that our community has seen a significant increase in the number of children. We are pleased to observe that the majority of these young residents are respectful and abide by the Rules. However, there have been instances where some youngsters are either unaware of our Rules or consider them as mere suggestions.

As parents and guardians, we encourage each of you who have children or grandchildren to take some time to review the vehicle, roadway, and path safety regulations with them. It is essential that they fully understand where they can and cannot operate their equipment and the significance of being attentive to ensure their safety and the safety of those around them.

By educating our young ones about the Rules and Regulations, we can foster a secure environment for all members of our community. Let’s work together to create a harmonious and safe place for everyone to cherish and enjoy.

Thank you for your continued support and participation in shaping our community’s future.