FINANCIAL OVERVIEW

Year	2015	2016	2017	2018	2019	2020	2021
Capital Reserves Bal. Self Insurance Bal. ------------ Total Year End Balances	$99K $17K ------------ $116K	$113K $17K ----------- $130K	$34K $17K ---------- $51K	$45K $17K ---------- $62K	$64K $16K ---------- $80K	$87K $16K ---------- $103K	$100K $17K ----------- $117K

		Includes land sale to TxDOT $25K
	*2016	Includes collection of past due assessments in excess of $11K
	*2017	Capital expenditures include roadway ($50K), package center & doors ($16K), garage foundation & walls ($12K), and community fence ($2K)
	*2018	Capital expenditures include roadway ($6K). Note: additional $5K in dispute with contractor.
	*2019	Emergency reserves reserve tapped to repair water main leak
	*2020	Capital reserve invested in mutual fund earning $13,500

Year	2014	2015	2016	2017	2018	2019	2020
Cash balance at year end after paying bills Unpaid bills ------------ Total	$5K K ----------- $5K	$33K -$28K ------------ $5K	$5K K ----------- $5K	$9K K ---------- $9K	$2K K--$4K ---------- -$2K	$24K K- -$36K ---------- -$12K	$0K K- -$24K ---------- -$24K

A reserve study was completed and approved by the board in 2010 and approved by a vote of owners in January 2011 (96% to 4%). The study concluded that the Association had a dangerously underfunded reserve. The 2010 annual reserve rate was a startup rate of $5,000 year.

The Association had a windfall contribution in 2011 of $25,000 for the sale of land to TxDOT.

A revised report was approved in 2019 (84% to 16%) that set an annual rate of $12,000 in 2018, increasing at 6% each year.

2010 Study

2018 Study

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Annual Budget - 2021 (Draft)

Landscaping		Landscape services are provided by Steven's Landscaping (lawn mowing, hedge trimming), Chemlawn (fertilization, weed control), Maya Tree Service (tree trimming from ground to crown), Waterboy (maintenance of the irrigation system) and the City of Irving (water). This also includes the community flower beds. Landscaping services do not include replacement shrubs, grass, flowers, bed edging, pest control or tree removal on individual homes. Services are not provided to fenced in yards.
Painting & Maintenance		Services are provided by Elite Painting and include painting and repair of siding and trim (up to a cap level of $850) and replacement of light bulbs and electric eyes associated with the front yard pole lamps (volunteers). These services do not include painting or siding repairs between paint cycles.
Reserves		Capital Reserves Mandatory annual reserve provided/required in the CC&R (bylaws) that is collected at a rate approved in 2018 and modified in 2018 based on reserve studies. Include the often very expensive repairs to roads, walls, garage roofing/doors/ infrastructure, sewer and water lines, and storm drains. These are expenses can run between $8,000 - $75,000. Spending of the capital repairs requires a vote of approval by the owners before funds are released from the repair reserve savings. In 2017, the Association purchased $55,000 in services from Pavecon (concrete road repairs) and Delta (traffic spikes). These services do not include "real time" or "on-demand" repairs except for emergency conditions like water main or sewer breaks. Emergency Reserves Mandatory self insurance fund reserve provided/required in the CC&R (bylaws) that must be maintained at a level of $17,000..
Insurance		The community insures the common grounds including streets, walls, the 2023 garage, and all pipelines. All items are insured by either a commercial insurance policy with Philadelphia Insurance Companies, who specialize in HOAs, and by a $17,000 cash reserve held to cover items that can not be insured (e.g., water mains).
Taxes		Property and income tax.
Administration		Association accountant collects assessments, pay bills, and maintain records. Problems with Guardian developed since a change in personnel in 2019. After 1 year, problems have not resolved and the Association will need to hire a new accountant in 2021. Expenses are expected to double as Guardian contract was well below market rates.
Professional		Julie Blend, Esq,, attorney/collections, Timothy and DeVolt, auditors, and the credit card vendor fee, and online-services.
Non-reoccuring expenses		Uncollected Assessments A one time charge to cover the cash shortfall dating back to 2019 which is causing the Escalation to run out of money each year.

Budget Detail:

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