Lake Linganore
Association Inc.
April 11, 2005
6 p.m.
6718 Coldstream Drive
New Market, MD 21774
AGENDA
FY’2006 Budget
The meeting was called to order at 6:10 p.m.
Board members present: Brandon Frazier, Andrew Twillman, Bill DiLoreta, Lisa Rogers, Alan Dinkelacker, Grant Sheehan.
LLA staff present: GM Edwards, CRM Gurley.
LLA treasurer Brandon Frazier said that in the draft before the board the income estimate was based on the new state property assessments and that expenditures in the budget draft were based on all new contracts.
Mr. Frazier said that the major change in the current draft from the previous draft was in the reserve account. He said at the end of fiscal year 2005 that there was a cash surplus of $89,000. That amount was due largely to collection of delinquent dues. He said that amount was deposited in the common area reserves and applied toward the engineering work for the lake siltation project. Mr. Frazier explained that after considering all the required expenditures for FY’06 a projected surplus of $32,000 was determined and put toward the non-CDA road reserve fund, noting that the amount of $6500 would be deposited in that account at scheduled times throughout the year.
Mr. Frazier also said that a new line item was added for amenities fund expenditures, noting that $30,000 was to be used for engineering the Woodridge park project and that $26,000 was included to cover one-half the cost of the playground equipment, with the expectation that the village committee will apply for and receive a grant. He said that $60,000 was added to the common area reserves for the siltation project engineering and that the association could draw on a letter of credit in order to begin the project or it could draw the funds directly from the common area reserve account. He also said that the maintenance facility project was removed from the budget at this time because the LLA had an agreement with Land Stewards to use the current facility site for three more years. In addition the small dredging machine was not included in the budget and would not be included until engineering work was done to determine if the project could be done.
Mr. Frazier said that if any of the directors were concerned about dipping into the reserve fund for these projects, he wanted them to know that the LLA Finance Committee agreed that it was appropriate to handle the funds in this manner. He added that the committee endorses the board’s actions along this line.
Director Rogers asked if the Finance Committee had a “plan B” for financing some of these projects, such as the farm pond. Her understanding was that the association would not have to budget for those but would create a special assessment to pay for it or apply for a loan. Director Dinkelacker asked what the costs were for the farm pond project and for the Lake Anita Louise (LAL) retaining wall. GM Edwards said the costs were $240,000 and $40,000, respectively. He said that some changes in the design could save some money. Director Sheehan asked whether the Finance Committee had decided that special assessments would not be well received by the community. Director Frazier said that was not the opinion of the committee. He said that some of the major projects would be done with funding from a special assessment but that the mandated projects would have to be dealt with now.
Director Frazier said that $489,000 was deposited into the reserve account in this budget and that the planned expenditures would leave approximately $113,000 in that deposit. Director Dinkelacker asked how much was already in the reserve account, to which Mr. Frazier said there was $715,109 (approx.). Mr. Dinkelacker said that he interpreted the situation to be that the LLA had sufficient reserves and could also meet the cost of doing the farm pond and the LAL wall. Director Sheehan agreed and said that when a special assessment is implemented it should be for something much more palpable than the pond project and a retaining wall. He also suggested that when the siltation project is ready that the LLA should look at taking on a long-term loan. He said he wanted to protect the community from too many special assessments and protect the LLA from delving into too many loans. He said the LLA needed to face up to these mandated obligations and get them done.
Director DiLoreta asked why the association did not know it’s borrowing power and said that management needed to sit down with the LLA lender and make that determination. GM Edwards agreed and said that he would like to use the borrowing power of the LLA to build a maintenance facility. Director Dinkelacker asked director DiLoreta to work with the GM on getting this determination made. Director DiLoreta also suggested that management and the board get in writing an agreement from Land Stewards regarding use of the Isles of Balmoral for the siltation spoil site. He suggested the LLA request use of the site instead of a deed for the land. GM Edwards said the LLA has to own the land for the silt spoil site or else the permitting would not be granted.
Director Frazier asked whether the trails needed the full $30,000 requested in the budget draft. Trailblazer Committee co-chairpersons Katrinka Westendorf and Cathie Reed said YES.
John Snow said that with the completion of the dam rehab project that all of the new electronic equipment should be covered in the reserve repair account. Director Sheehan suggested that the LLA contact whichever governmental agency was appropriate to inquire about homeland security funds to protect the electronic equipment and the flow- by valve. He said the history of vandalism warranted a serious attempt to get funding to protect the dam and related equipment. The board directed staff to write a letter to the city of Frederick to find out whether it plans to maintain any of the related electronic equipment recently installed on the dam.
It was decided that the costs for some of the mandated engineering and related projects would not be pulled out into separate budget line items in order to protect the integrity of future contract bidding on those projects.
MOTION: Director DiLoreta made a motion to approve the budget draft as presented, including $30,000 for the trail budget. Director Twillman seconded the motion.
VOTE: five of the directors voted in favor of the motion; none of the directors voted against the motion.
Director Rogers made a motion to adjourn the meeting. Director DiLoreta seconded the motion. The meeting adjourned at 7:10 p.m.