It is hard to believe, but it is soon time for the 2016 budget process to begin at the Tellico Village Property Owners Association.

The 2016 budget and 2017-21 five-year plan will kick off with a review of budget guidelines at the Aug. 4 board workshop, scheduled for 10 a.m. at the POA office conference room. As always, board workshops are open to all Tellico Village property owners, and those of you interested in the budget process are invited to attend.

The theme for the 2015 budget has been “repair, replace and renovate,” and we now are seeing the results of these efforts and capital projects around the Village.


From the bunker renovations at Toqua Golf Course to the cart path resurfacing at The Links at Kahite, the locker room renovation at Chota Recreation Center, the new bridal room and carpeting at the Yacht Club and the restroom renovation at Tanasi Golf Course, we have repaired and upgraded many of our facilities that were showing their age.

I expect that there will be a continuation of these types of projects into 2016 and beyond, though much of it will likely be equipment replacements that will not be quite as noticeable.

To get a glimpse at the future of our capital plans, we begin with the 2016-20 five-year plan from the last budget cycle. That five-year plan rolls forward by one year and is updated with more recent information about the need for and the timing of individual projects. That then becomes the starting point for development of the 2016 budget and the 2017-21 five-year plan.

So how do projects actually make it into our capital plans? Well, it all starts with the individual department heads who are responsible for the various areas of our operations. They assess the needs of their operations, examine their current capital equipment and the need for replacements of aging equipment and consider the needs for additions or renovations of their facilities.

Throughout the process, they consider the inputs from their respective advisory committees to identify their most critical and desirable capital needs. These proposals go through a series of reviews by TVPOA management, the POA Finance Advisory Committee and, ultimately, the TVPOA board of directors.

The key reviews occur in October, beginning with the Oct. 6 board workshop and continuing through the Oct. 12-15 Finance Advisory Committee reviews of individual departmental budgets. Final reviews of the budget are scheduled for an Oct. 30 meeting of the Finance Advisory Committee and a Nov. 3 review of the final draft by the board. Formal approval of the budget takes place Nov. 18 at the regularly scheduled board meeting.

If you want to watch the budget take shape, or have input into the process, I recommend that you attend the upcoming meetings of the various advisory committees and then attend the budget reviews of the Finance Advisory Committee. The full budget schedule is now posted to the TVPOA website in the finance section and will be communicated through our regular channels such as the Tell-E-Gram and meeting announcements.

Recent promotions

Two announcements of promotions were made recently in the TVPOA accounting department. Jessica Johnson, an employee of seven years, has been promoted from staff accountant to senior accountant. Taylor Hensley, who has been with us just over one year, has been promoted from junior accountant to staff accountant.

Both of these employees have demonstrated performance at the levels commensurate with their new titles, and this recognition is well deserved. When you see them, please take a moment to congratulate them and thank them for all of the hard work that they perform every day on behalf of the property owners of Tellico Village.

Monthly financials

At its May meeting, the POA board approved $8,138 capital for the purchase and installation of four HydroPort jet ski lifts, $8,520 for a replacement of a three-ton water source heat pump for the Yacht Club and $85,928 for a fleet of 15 lightly used utility vehicles to be used as personnel carriers at our three golf courses.  

At this point in the year, we have approved about 79 percent of the 2015 capital plan and are about $95,000 over budget. Year-to-date net income reflects a favorable variance to budget of about $71,000, though some deferred maintenance projects may offset this in the coming months.

Parker Owen is financial director with the Tellico Village Property Owners Association.

By the numbers

Following are figures Tellico Village Property Owners Association has budgeted through June, including the year-to-date differences and projections (net cash flow excludes working capital):

Budget item  Budgeted YTD variance Projection 
Net income  $62,393  $70,944 $133,337 
Depreciation$1,378,656  $14,099 $1,392,755 
Capital expenditures$-1,258,700  $-94,910 $-1,353,610 
Net cash flow$182,349  $-9,867 $172,482 

For your information

Following are important dates for consideration of the Tellico Village Property Owners Association 2016 budget and five-year plan:

  • Aug. 4 — 10 a.m., POA office; finance director reviews budget guidelines at board workshop and seeks input on the budget process.
  • Aug. 5 — POA managers receive budget guidelines from finance director.
  • Aug. 10–14 — Managers receive budget model worksheets from finance director.
  • Sept. 10 — Finance director meets with individual department heads to    discuss budget development in accordance with guidelines and respond to questions.
  • Oct. 5 — Target date for first draft of consolidated budget and internal reviews with managers.
  • Oct. 6 — 10 a.m., POA office; board workshop review and discussion of direction to management.
  • Oct. 12 — 10 a.m.-2 p.m., POA office; Finance Advisory Committee review of departmental budgets.
  • Oct. 13 — 10 a.m.-2 p.m., POA office; FAC reviews departmental budgets.
  • Oct. 14 — 10 a.m.-2 p.m., POA office; FAC reviews departmental budgets.
  • Oct. 15 — 10 a.m.-noon, POA office; FAC reviews departmental budgets, if needed.
  • Oct. 30 — 10 a.m.-noon, POA office; FAC final review of 2015 budget.
  • Nov. 3 — 10 a.m.-noon, Yacht Club; board workshop for review of final draft budget.
  • Nov. 11 — 10 a.m.-noon, Yacht Club; second review of final draft budget, if needed.
  • Nov. 18 — 1:30 p.m., Yacht Club; approval of budget and regular monthly board meeting.
  • Dec. 1 — Mailing of assessment coupon books to property owners.
  • Jan. 20 — 1:30 p.m., Yacht Club; review of budget at regular monthly board meeting.
  • Jan. 29 — Distribution of printed copies of the budget and five-year plan.