I’ve been on the Property Owners Association Board of Directors for nine years and look forward to having additional time for other things, but I will certainly miss all of the involvement in helping guide this great association.
However, I wanted to pass along some thoughts from my perspective on this year’s budget process.
There has been some financial misinformation spread throughout Tellico Village recently as a direct result of people not understanding or drawing the wrong or premature conclusions about budget discussions. These wrong conclusions do nothing but spread unnecessary concern and hand-wringing over the financial future of our POA.
At the last board meeting, Finance Director Parker Owen attempted to set the record straight. I can only hope that Villagers will take a good, long look at the information and draw the same conclusion I have after serving for several years on the board: we are in good financial condition and our budget process is working!
Owen gave us a first look at the draft budget for 2017 on Oct. 4 at our board workshop. The next week was highlighted by departmental reviews to see what projects were being requested for what years of the budget and five-year plan. The long-range amenity plan was also reviewed and populated into the five-year plan.
At one of these meetings, lots of information was shared and some was taken way out of context and spread throughout the community.
In his initial presentation, Owen showed that due to a long list of competing maintenance and repair projects (primarily road rejuvenation and paving), by using past practices of funding, the repair and maintenance reserve would be exhausted by 2019. The key to this data point was: If we do not take some action, this would be the case.
Due to some excellent advice from the board and finance committee members, important input from department managers and members and hard work by Owen and his staff, he has already solved that issue and many more.
The bottom line? The 2017 budget and five-year plan is coming together quite nicely.
The 2017 budget and five-year plan will be balanced, affordable and contain less debt than we have right now, while maintaining our reserve cash level at approximately $3 million.
Nothing is approved at this point, but there is every expectation that we will have a fully approved budget at the November board meeting.
Some may ask from where does my confidence come? Well, I can tell you it comes from looking at and understanding our financial performance over the last five years. Over that time, we have budgeted for positive net income and every year we have beat the budget for positive net income.
Our reserves have stayed in the $3 million range, which is very healthy for a community our size. During those years, we have also managed to build a couple of new amenities, purchased a new building and our debt levels are the lowest in 10 years. That gives me confidence.
I hope the majority of our community sees what I see. We are a thriving, forward-moving community because of good financial practices and leadership. I hope you will join me in looking at all the good we have here and enjoy living in this beautiful place.
Thank you for allowing me to serve on your POA board for the last nine years. I am honored, and I enjoyed it.
