Budget Box: 2025 Budget Highlights

At the regular monthly meeting of The Landings Association on December 17, 2024, the Board of Directors adopted the 2025 Operating and Capital Reserve Budgets. You can review the approved Budget by visiting www.landings.org/resources > Governing Documents > 2025 Budget Book, or click here.

There are 296 pages in the 2025 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.

The total 2025 operating budget expenses are a 9% increase compared to the 2024 budget and a 7% increase compared to the projected 2024 year-end expenditures (see page 3 of the Budget Book), reflecting increased expenditures during 2025.

All changes from the 2024 Operating Fund Budget to the 2025 Operating Fund Budget are shown starting on page 8 of the Budget Book.

The 2025 Budget reflects a projected Capital Reserves Fund starting balance of $11,317,401. Total projected Assessment and interest revenues are $4,494,300 along with capital expenditures of $5,825,418 (Page 5). All capital expenditures for 2025 are listed on page 272 of the 2025 Budget Book.

The allocations per lot for the Operations and Capital Reserves Fund for the 2024 Budget ($2,445), 2024 Year-End Estimate ($2,445), and the 2025 Budget ($2,518) are reflected on page 5 of the Budget Book.

The Cash Flow Projections on pages 52-54 in the 2025 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 (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 2024 and reach 33%. Also, in 2025 the ending cash and investment balance of $9,986,283 is projected to reach 30%. To determine adequate funding levels for the Capital Reserves Fund, an updated Reserve Study was completed in October 2024. 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 costs. The updated Reserve Study can be found at www.landings.org/Resources > Governing Documents > Reserve Study or click here.