Building The Landings Association’s Budget

Courtesy of TLA's Board Operations & Financial Planning Task Force

Every year, The Landings Association's Board approves a budget for the coming year. The 2026 process started in July with the Department directors developing their work plans for the upcoming year.  These plans reflect the goals and objectives of the Strategic Plan, Board financial guidance, and the departments’ missions. The plans include the programs and services to be delivered, staffing requirements, projects and initiatives, and projected outcomes. The initial step in this phase is a focus on three objectives for the upcoming year, including minimizing expenses, negotiating best pricing for goods and services, and identifying additional non-Assessment Revenues to supplement Assessment revenue. 

Concurrently, the Finance Department estimates the revenues for the coming year. Assessment income is straightforward – 4,420 lots x the annual Assessment. Non-Assessment income (e.g., fees, Marina operations, and Sunset Pavillion rentals) is based on historical data modified by current trends. For 2026, we anticipate a total revenue of $18,057,092; $11,465,480 revenue will come from the annual Assessment and $6,591,612 from non-Assessment sources. Of this total revenue, 26% is allocated to the Reserve Fund to maintain/replace our capital assets without having to impose a Special Assessment. (More on the Reserve Fund next week.) The remainder of the revenue income is allocated to our Operating Budget.

The Board provides financial guidance to the General Manager who oversees the Budget development process. For 2026, the Board directed the following:

• Operating Net Revenue before Depreciation must Break Even: 
  •   Gross Operating Income $13,357,812 – 0perating Expenses ($13,353,677) = $4,135
• Maintain Operating cash- Annual average cash balance of $1.5 million
• Maintain the Capital Reserve at the 30% target in accord with the Board Policy and not falling below the $10 million capital reserve cash balance.
• Maximize Non-Assessment Revenue potential
• Implement organization-wide strategic plan initiatives
• Attain Marina Cost Neutrality by 2031

It's important to mention that we aim to budget within our projected revenue. We do not spend money we do not have. To manage our finances responsibly, we prioritize essential expenses first and then address less critical items as remaining funds allow. The budget includes additional requested resident services to the extent that our resources make possible. 

Over the next 10 weeks, please look for more information. We’ll be sharing details on the key cost drivers in our budget and their impact on our future 2027-2029 financial plan—the plan upon which our next Assessment will be based.