Glenbrooke News

This is the second of three posts reviewing Glenbrooke finances. The first post reviewed income, this one looks at expenses, and a future post will contain my take on the way our association is operated, as reflected in our financial records.

The pie chart above shows approximate Glenbrooke Association 2009 costs per household for full year owners. By far the largest component was for lodge staff.

Landscaping was the next largest expense, with three distinct components: the contract cost for your lot, the contract cost for common areas, and the unbudgeted expense for landscaping repairs and maintenance not under contract. Expenses in the last category were arbitrarily assigned in the same ratio as contract expenses. I note that in the 2010 budget, there is an additional contingency budget.

Our current contract with Procinda calls for weekly maintenance which includes mowing, edging, fertilizing, aerating, pruning and staking trees, grooming annuals, removing debris, and controlling weeds by hand and using chemical control. Specifically excluded from the contract is control of insects and disease.

Next largest is the "Net Lodge Expense" category, which included all expenses listed in the Budget Comparison Report's "Rec Center" category less pool expenses, offset by income generated specifically by the Lodge's activity, fitness and rental revenues.

Costs for the Riverside Management Company's contract were next largest. Their contract calls for twice monthly inspections, handling service requests, attending four board meetings per year and taking minutes, assisting with the newsletter, maintaining records, handling payments, and advising on changes in law. Services outside this list are available at additional cost, and the Riverside Management bill goes up as additional villages are available for sale.

"Other Administrative Costs" include liability insurance, equipment rental, audit costs, fees for the association web site and a variety of other miscellaneous items.

"Pool Expenses" include contract services with the Pool Doctor for maintenance, cost of chemicals for the pool, spa and fountain, repairs and estimated heating cost. Included in the service is creating a log of pool conditions which is available for staff review.

Funding our reserves was listed last, as this is intended to cover anticipated large future expenses, and may be more or less than actually needed.

The above information was derived from the 2009 auditor's report, the full year general ledger listing, and a review of selected contracts.  As always, comments and corrections from those with a better understanding are welcome.