The OVA board of directors has approved a $5.7 million budget that includes a 4.1% increase in dues.
At a Nov. 10 special meeting, OVA Vice President Tom Kendrick and Treasurer Elke Strunka presented the budget summary and details that reflect a $4 monthly increase in dues to $102 per member.
OVA dues fund operations, asset replacement and capital costs. Operations for 2021 are projected to account for two-thirds of the budget. The Asset Replacement Fund (ARF), which is linked to the reserve study, and the Capital Improvement Fund (CIF) each make up approximately one-sixth of the budget total. CIF has historically been funded by developer fees, but that ended in 2017 with the final new home construction in Oakmont. CIF, which Kendrick said functions like a savings account, pays for new and upgraded facilities, loan service on investments (golf asset purchase), replacement of assets lasting over 30 years, and other soft costs including code, permit and compliance costs.
Kendrick said 2020 operating and asset replacement costs were below projections, related largely to the pandemic and facility closures, and some 2021 initiatives reflect those changes. Surplus from reduced operations will be rolled into the CIF, and some reserve study costs that recur annually are being shifted more appropriately to the 2021 operations budget.
“Our 2020 expenses from the asset replacement fund are significantly below the projections planned last year,” he said. “With shutdowns to facilities came unavoidable delays in asset replacement and maintenance.”
The budget shows a 9.5% increase in personnel to increase staffing in Information Technology (IT) staff and maintenance.
“We are putting a lot of emphasis on IT because with the shutdown OVA is doing many things electronically that we haven’t done before. We want to be appropriately staffed. We have also found opportunities to save money by having our permanent maintenance staff do things like painting rather than hiring contractors, and we want to expand that,” Kendrick said.
The operations budget also shows increased costs in insurance and fire prevention maintenance to mitigate risk and “harden the community,” he said.
OVA’s current assets that make up our reserve study are valued at $11 million, with an average economic life of 10 years and an annual average cost of $1.1 million. Strunka said the reserve fund had included some recurring annual costs for custodial, maintenance and fire prevention work. Shifting those line items to the operations budget from the reserve fund provides more appropriate tracking of expenses.