There will be no assessment increase for 2008 and annual dues will remain at $870, the NTRCA board voted in their October meeting.
The board had considered raising assessments by a nominal amount to cover outstanding debt from 2007, but they plan to use $57,000 in the contingency line item to cover this debt. Although this leaves the NTRCA budget without any emergency funds for 2008, the board expects to re-establish a contingency fund when they sell a strip of land along to LID 7 for their levee elevation project, said Community Manager Dwayne Lowry.
Some residents at the October meeting expressed concerns that the $5.82 million budget is too tight and that the NTRCA could slip into debt, as they did in 2006, when they experienced what ended up being a $219,000 shortfall.
Unexpected increases in electricity costs and insurance premiums were partially to blame for the 2006 deficit, but Lowry said he believes estimates from vendors have been more accurately forecasted for 2008.
Program participation and a significant forecasting error are effecting the Club’s, 2007 year-end financials although, staff members are working to avoid these problems in 2008.
For 2007, the Club will be about $50,000 over budget in Adult Recreation expenses and about $91,000 behind in projected income.
“Moving forward, we need to consider cutting programs,” commented one resident at the October meeting.
Gymnastics was one area that did not generate income as projected because the coaching staff and several participants left the program this Spring, said the Club director. Plus, a $60,000 mathematical, forecasting error showed Gymnastics to be superficially low in income for 2007, she said. Gymnastics is forecasted to end the year with a $95,000 loss. But with the increase in fees next year and continued re-building of the program, Gymnastics is projected to bring in about $100,000, expend $85,000, and net $15,000 in 2008, said Lowry.
The Early Learning Program at the Club, the Club’s biggest money-maker, will also increase fees for 2008 after generating about $30,000 less than what was projected. This was due to the loss of several enrolled students and to an unexpectedly late start in the school year for 2007, said Lowry. The ELP is budgeted to bring in $230,000, spend $167,000, and net $63,000 in 2008.
Youth Recreation, which consists of Volleyball, Basketball, and Soccer, generated about $9,000 more than what was projected in 2007 due to higher participation and the 2008 budget reflects that expectation.
Adult Recreation, which consists of Adult Softball and Adult Soccer, is forecasted for a $18,000 loss in 2007 because of increased referee fees and because of a line-item change to the budget which moves field lighting costs from the general fund to the Club.
Babysitting operated at a $7,000 loss in 2007 because participation dropped when higher fees were implemented, said Lowry. Budgeted income for Babysitting has been lowered to $16,300 for 2008 which is in line with 2007, year-end projections.
Some residents complained that the Club should cut Babysitting and any such program that are “subsidized” by other, profitable programs or by resident assessments. “Babysitting is strictly a service. It has been never been budgeted to make an income,” said Club Director Robin McGuire.
“There’s always been a debate on whether the Club should be partially subsidized or remain revenue neutral,” said NTRCA President Bart Hatfield. “Different people have different opinions...some people believe the Club offers a valuable service and helps with Resale. Others say they don’t use the Club and don’t want to pay for it,” he said. “We’ve tried to strike a balance.”
The only other budget item discussed by residents in the October meeting was a $76,000 increase in Patrol Services which is to cover a 10% salary increase for officers, required by Fort Bend County. The pay increase actually starts in October,
2007, leaving Patrol Services with a $17,500 shortfall for that year and a $30,000 increase for 2008.
Residents asked if there was documentation supporting any reduction in criminal activity within New Territory since the NTRCA hired a fourth deputy last year. Hatfield responded that there were no records of such. A Safety Committee had been charged with the task of compiling records but they did not meet in 2007, he said.
Correction from October, 2007 issue: Annual Assessments were not raised from $750 to $870 in 2006. They were raised from $800.
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