Thursday's budget meeting

Our purpose was of course to go over next year's budget. We have been looking at ways to cut any fat while missing the bone. Are there disagreements on what expenses are necessary and what would just be nice? Of course, that is every year. I am conservative possibly to a fault and I am not the only one on the board that feels that way. Others feel we should loosen the purse strings. My feeling is just because we have the reserves that doesn't mean we spend the monies just because they are there. If something has reached the end of it's useful life then we should replace it but not before. If we replace early it only makes the next replacement happen sooner.
I think I have touched on this before but it is timely again. Reserves can not be spent simply to buy something new. Our replacement reserves are exactly what the name implies. Those finds are to replace items that have deteriorated. When we buy something new rather than replacing something it has to come from operating capital. That is the fund that is the tightest. If we replace a squad car for instance the cash is in the reserves for that expense. If we decide we need another one it must be purchased from operating then depreciated in the reserve account so when it's useful life is over the cash is in the replacement reserves to cover it. It is very easy to say "Hey, we have three million in the reserve account so let's put in an enclosed marina!" Nope, not unless you want your dues to go up a couple hundred or so. We do not borrow, we live within our means and that is the right way to operate in my opinion.

Theresa, your G.M.

O.K., enough of that. What will happen to your dues this coming fiscal year? I have no idea until the operating budget is compared to projected funding and we are not at that point. We will try to hold every expense we can but as with your home expenses, they keep going up. Our electric rate as an example is going up 60% and we use a lot of electricity. When the comparison is made we will again look to see what areas can be tighter yet and go from there. Wish I could tell you more, but that is where we are now. Theresa is working diligently on that process and we should have comparisons soon.
Ken