Budget Box: 2024 Budget Highlights

At the regular monthly meeting of The Landings Association on December 19, 2023, the Board of Directors adopted the 2024 Operating and Capital Reserve Budgets. You can review the approved Budget by clicking Budget Book-2024.

There are 293 pages in the 2024 Budget Book, which may seem a little overwhelming to the casual reader. However, our goal is to provide a comprehensive explanation of all components, processes, and requirements of the budget process, as well as thorough explanations of programs and service levels, and their associated revenue and expenditures. If there is something you would like included in the Budget Book not already included, please email me for consideration.

 The total 2024 operating budget is a 7% increase compared to the 2023 budget and a 10% increase compared to the projected 2023 year-end expenditures (see page 3 of the Budget Book), reflecting increased expenditures during 2023.

All changes from the 2023 Budget to the 2024 Budget are shown starting on page 8.

The 2024 Budget reflects a projected Capital Reserves Fund starting balance of $10,247,438. Total projected Assessment and Interest revenues are $5,027,160, along with capital expenditures of $4,925,672 (Page 5). All capital expenditures for 2024 are listed on pages 266-267 of the 2024 Budget Book.

The allocations per lot for the Operations and Capital Reserves Fund for the 2023 Budget ($2,270), 2023 Year-End ($2,270), and the 2024 Budget ($2,445) are reflected on page 5. The 2023 Operating revenues and expenditures were better than budget. Therefore, the 2023 Year-End allocation for Operations was reduced and reallocated to the Capital Reserves Fund that is restricted for repairs and replacements.

The Cash Flow Projections on pages 52-54 in the 2024 Budget Book reflect an increase in each year of Annual Dues through 2026, based on the successful 2023 Annual Dues vote. The ending cash for the Operating Fund has been managed down to an annual average of $1.5 million level (the Board-approved minimum). The minimum level of the Capital Reserves Fund under the Threshold Funding Plan as adopted by the Board of Directors is 30% of the current cost of replacement/maintenance of the Capital Asset Management Plan (CAMP) over a specified term. The cash flow for the Capital Reserves Fund shows that the balance will surpass the 30% threshold in 2023 and reach 33%. Also, in 2024 the cash balance is still projected to reach 30% again. The ending cash balance for Cash and Investments in 2024 is $10,348,926. To determine adequate funding levels for the Capital Reserves Fund, an updated Reserve Study was completed in October 2023. The Reserves Subcommittee held an extensive review of the updated inventory of The Landings Association’s assets. This inventory review included a description of each asset, its useful life, remaining useful life, and updated estimated replacement cost. The updated Reserve Study can be found here.