2018-Proposed-CROA-CJC-Budget - Celebration, Florida

Date: To: From: Re:

October 27, 2017 Members of the Celebration Residential Owners Association, Inc. The Board of Directors 2018 Proposed Budget and Annual Assessment Notice

In the fall of each year, the Celebration Residential Owners Association (CROA) Board of Directors prepares a proposed annual budget for the upcoming calendar year. Historically the Celebration Residential Owners Association (CROA) annual assessment has been: 2011 2012 2013

$861.00 $911.40 $911.40

2014 2015 2016

2017

$911.40 $911.40 $911.40

$911.40

The purpose of this notice is to advise you that the 2018 proposed annual assessment and trash service for the Celebration Residential Owners Association has a 2.5% increase for 2018.  Celebration Residential Owners Association (CROA)  Trash Service

$934.32 per lot $296.40

The significant decreases to your annual operating budget include: CROA •

CJC

• • •

Facility maintenance and lifeguard staff billable rate reduction due to a renegotiation of the CCMC management contract. Electricity savings due to the conversion of lighting to LED. Natural gas due to the conversion of a pool heater to geothermal. Staff payroll billable rate reduction due to a renegotiation of the CCMC management contract.

The significant increases to your annual operating budget include: CROA • • • CJC

• •

Landscape management contract was put out to bid and the new contract has an $86,000 increase in fees to maintain the parks, facilities, common areas and Bermuda turf. An increase in community inspector hours to go from part time to full time. Water/Reclaimed increased by $45,000. This is due to an allocation adjustment for a meter thought to be inactive since February 2016. Town hall network due to the replacement of out dated computer hardware and the purchase of a new community web site. Insurance renewal may be as much as a 10% increase in rates.

The proposed 2018 budget and narrative are attached for your further review. The Board of Directors conducted noticed workshops on July 17, and October 6 and will have a final review and vote on this budget at a meeting on November 8, 2017 at 5:30 p.m. at 851 Celebration Avenue. All homeowners are welcome to attend, and questions regarding the budget will be taken during the public comment period at the start of the meeting. For questions or comments on the budget prior to the Board of Director’s Meeting on November 8, please contact Town Hall at (407) 566-1200 or e-mail [email protected].

The Celebration Residential Owners Association, Inc., & The Celebration Joint Committee, Inc., 2018 Proposed Budget Detail Narrative

The following is a narrative description of each line item in the attached proposed budget for the Celebration Residential Owners Association (CROA) and the Celebration Joint Committee (CJC.) Joint Committee expense items represent expenses that are shared between CROA and the Celebration Non Residential Association (CNOA) based on an allocation of ¼ to CNOA and ¾ to CROA. Significant decreases to the operating budget are highlighted in green. Significant increases to the operating budget are highlighted in yellow. CROA INCOME Association Dues Single Family, Townhome and Condominium Base Assessments: All recorded residential lots pay this assessment. The current number of recorded lots is 4,321. Capital Improvement Contributions This is based on the collection of a one-time initial Capital Contribution that is equal to one (1) year Annual Base Assessment at the time of transfer of ownership for each unit. This fee is provided for in the Amendment to the Restatement of the Amended and Restated Declaration of Covenants, Condition and Restrictions for Celebration Residential Owners Association (CROA) approved by the members and recorded on April 2, 2014. Capital Improvement Reserves To provide for funding for the Master Recreation Plan. The recreation fees from apartments and the Initial Capital Contribution at the time of transfer of title is recorded are including in the funding. Any expenditures from this reserve item requires approval from the CROA Board of Directors. Reserve Fund Contributions To provide funding for replacement items. The monthly reserve deposits are budgeted based on the reserve calculation provided from the reserve study. Capital Expenditure To provide for the budgeted 851 Building mortgage payment to be redirected to the Capital Improvement Fund. Trash Service Fees Trash Service Fees for Single Family and Townhomes: Residents are invoiced a trash fee for residential trash removal that offsets the service rate charged by the trash contractor. Proposed fee is $296.40 annually and will be invoiced quarterly. This is a 3% increase to cover any delinquent homeowner accounts. 10.25.17

Maintenance Income Service Area Income: Reimbursement of labor costs for management, maintenance and janitorial services performed in the service areas. This is $17 per door per month for the 543 service area units. This also includes a monthly fee from the Artisan Park service area. Legal Fee Income This is legal fees charged back to homeowner’s accounts that are in collections. Owner/Builder Fines Specific Assessment Income: Based on fines imposed by the Board and upheld by the Covenants Committee as allowed by the Florida Statute for non-compliance with the Use Restrictions in the Amended and Restated Declaration of Covenants, Condition and Restrictions for Celebration Residential Owners Association (CROA) approved by the members and recorded April 2, 2014. Late Charges Late Charges/NSF Fee Income: Based on charges applied to homeowners' delinquent account per the Collection Policy established by the Board of Directors. Aquatics Income Aquatics Income: Income generated from aquatics programs. Bad Debt Bad Debt expense for uncollectable assessments, interest, collection fees and legal fees on owner accounts. Delinquency Interest Delinquency Interest Income: Based on charges to homeowners per the Collections Policy established by the Board of Directors. Interest Income Interest earned from operating accounts throughout the year. Rental Income Reimbursement based on square footage of office space at 851 Celebration Avenue used for management and operation of Celebration Nonresidential Owners Association (CNOA). Miscellaneous Income Income generated from fees for copies, sales of thumb drives containing Association documents and open house listing fees. Recreation Events Income Income generated from lifestyle events. Recreation Income Income generated from recreation programs and room rentals.

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Farmers Market Income Income from Farmers Market. Prior Year Surplus Prior year surplus used to balance the budget. Contingencies Used for emergency funding. Common Area Key Fee Revenue from Resident ID Card and Lanyards. EXPENSES ADMINISTRATIVE AND GENERAL Manager/Admin To provide for association staff costs. This includes the salary, taxes, workers' compensation and benefits including the Service Area Manager and Full Time Administration Support. This also includes the conversion of a Part Time to a Full Time Community inspector for CROA. Audit Expense To provide for an annual audit of the associations' financial records and tax returns to be prepared by an independent CPA Firm, as required by the Florida Statutes. Legal & Professional To provide for legal and professional fees, as needed, for document interpretation, contract review, policy resolution review, enforcement actions, collection efforts and resident based issues. Proposed cost for 2018 also includes the services for a Building Architect and a Landscape Architect to assist in expediting the ARC and Landscape application process. Covenants/Homeowner To provide for landscape services to care for abandoned homes that are maintained by the Association until legal action is complete. Joint Committee Expenses CROA's portion of the shared expenses between CNOA and CROA. CROA pays 75% of the CJC expenses and CNOA pays 25% of the CJC expenses. Misc – Administrative To provide for CROA Annual Meeting supplies, elections for Board members, surveys, committee meetings (ARC, Covenants, Special Events & Recreation), statements, postage, membership fees, corporate registration, bank charges and other supplies/administrative costs specific to CROA OPERATIONAL EXPENSES Gas/Oil/Travel 10.25.17

To provide for the maintenance, gas, taxes and tags for vehicles, NEVs and work related mileage and toll reimbursement for employees. RECREATIONAL EXPENSES Park and Pool Monitor To provide for roving park monitors on duty seven (7) days per week during evenings and weekends. The monitors will also be working until midnight on Fridays and Saturdays. Farmers Market To provide for staff payroll and signage for support to the market. Telephone/Communication To provide for the telephone lines needed for security emergency phone lines at our facilities. Facility Maintenance Staff To provide staffing costs for the Operations Manager and five (5) full time maintenance staff members. Staffing costs include wages, taxes, workers' compensation and benefits. There is a reduction in labor rates with the new CCMC management contract. Recreation Staff To provide staffing costs for the aquatics, youth sports, recreation programs and lifestyle events. Staffing costs include wages, taxes, workers' compensation and benefits. This includes the Parks and Recreation Manager, a Lifestyle Manager, a Parks and Recreation Coordinator, Aquatics Manager and one Facility Support Staff. Pool/Lifeguard Staff To provide for lifeguard staffing costs for the Lakeside pool. Staffing costs include wages, taxes and workers' compensation. This also includes staffing for swim lessons. There is a decrease this year due to a reduction in labor rates with the new CCMC management contract. Personnel Equipment/Admin To provide for expenses for aquatics program including certifications, audits, swimsuits, conferences, classes and memberships, uniforms, supplies and equipment, office phone and cell phones. Net Programs/Events To provide for routine costs necessary to offer lifestyle activities and events for residents. Parks and Recreation Expenses To provide for routine expenses for recreational programming including the community chorus, summer break out camp and kids night out. 2


Aquatics Expenses To provide for routine costs necessary to offer aquatics activities. Landscape Management To provide complete landscape management program for the parks, facilities, common areas, and Bermuda turf including routine maintenance and care as well as fertilization, disease/pest control, and mulch. Also includes maintenance, irrigation repairs and sprinkler upgrades, mulching, sod and plant replacements. The landscape management contract was put out to bid and the new contract has an $86,000 annual increase. This is the first year of a new three year contract with Yellowstone Landscape. Pool Maintenance To provide for daily maintenance, chemicals, supplies, required permits, inspections, maintenance and pool repairs for five (5) Celebration pools (North Village, Lakeside, East Village, Spring Park and Spring Lake). Maintenance – Facility To provide for general maintenance and supplies as needed for all facilities including but not limited to electrical, plumbing, playground equipment, pest control, maintenance of equipment and other supplies related to all active parks. Electricity To provide for electrical service and exterior lighting for all facilities. There is a reduction this year due to savings from conversion of lighting to LED. Water/Reclaimed To provide for irrigation water for active park facilities as well as potable water for the swimming pools and facilities. This has an increase of $45,000 due to an allocation adjustment for a meter thought to be inactive since February 2016. Natural Gas To provide for the operation of the pool heater at Lakeside Park until transition to a geothermal heater is complete. Monitoring Expense To provide for monitoring expenses of all pool facilities and parks including sprinkler monitoring and monitoring of all buildings for fire/safety, electronic access and repairs. Janitorial Supplies To provide for cleaning supplies, equipment, soap, paper towels, trash bags & liners and the buffing and stripping of floors. Supplies/Equipment-Recreation To provide for the supplies for use in activities and for the general enjoyment of residents such as: tables, chairs, linens, 10.25.17

tents, flags, recreational equipment and large tools. DIRECT BILLING CONTRACTS TRASH REMOVAL Trash Removal To provide residential trash removal at a rate of $296.40 per year per home and will be invoiced quarterly. TAXES Income Taxes To provide for income tax per the 2017 tax return. Property Taxes To provide for property taxes on common areas. Expenses include taxes to be paid to the CDD and on the seventeen (17) acre parcel in the Civic Corridor. CELEBRATION JOINT COMMITTEE (CJC) INCOME Allocation from CROA 75% of the total CJC budget is funded from CROA. Allocation from CNOA 25% of the total CJC budget is funded from CNOA. Newsletter Income Income from newspaper advertisement sales. Bad Debt Bad Debt expense for uncollectable advertising fees. Miscellaneous Income Map Sales including real estate advertising for visitors. Reserve Fund Contribution To provide funds for painting and replacement of the Water Tower. EXPENSES ADMINISTRATIVE AND GENERAL Audit Expense To provide for an annual audit of the committee's books and tax returns for 2017 to be prepared by an independent CPA firm. Proposed cost is based on a quote from the prior year's auditor. Legal and Professional To provide for legal fees and needed for document interpretation, contract review and policy resolution review.

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Town Hall Network To provide for contract services to manage Town Hall Network/Celebration Front Porch. This includes repairs and upgrades, hardware, support, high-speed internet and CeleService. This also includes web site hosting, Proactive hardware and virus support, MS & MacAfee corporate license for Microsoft, Mail Chimp for weekly Friday Flash or other mass e-mails, Smart City for fiber to town hall, Vimeo for hosting videos, Comcast Lakeside internet for camera and key card access. There is an additional increase this year for the development of a new community web site. Management Fees Monthly management fees to CCMC for administrative, general operating, accounting and risk/claims management services. Supplies – Administrative To provide for perishable supplies such as paper, pens, paperclips, CDs, and toner. This includes stationery, envelopes, business cards and general administrative costs Misc Administrative Bank fees, employment posters, Community Association Institute membership, employment ads, Celebration News Inventory, Uniforms, credit card fees. Staff Payroll To provide for the salary, taxes, workers compensation and benefits for the Executive Director, Community Manager, 15 hours Customer Solutions Manager, Office Manager, and Accounts Receivables/Payables Administrative Support employees and three rotating receptionists for Town Hall. The receptionist takes all cash, check and credit card payments for assessments, retail, facility booking, program registration, key cards, and weekend real estate open house. There is a decrease this year due to a reduction in labor rates with the new CCMC management contract. Supplies/Equipment To provide for cost of association on-site office equipment leases for computers, new computers, copier, printer, postage and fax machine. Also includes monies for additional furniture, equipment and software as needed with growth. Member Communications & Programming Expenses related to the production of the Celebration News. Includes salaries and benefits for the Communications Manager, Part of Customer Solutions Manager, Sales Rep and Art Director, printing, postage costs, delivery and storage of the papers. Other expenses include staff payroll, some programming and filming of the Board meetings and recreational programs and expenses for the operation and maintenance of the Community website.

including office VOIP phones, cell phones, required landlines for emergencies and after hour’s answering service. Misc On Site Expenses To provide for other on-site expenses as needed including storage rental, warehouse club membership, water, coffee (hospitality), holiday decorations and recycling. OPERATIONAL Common Area Repair Provides for repairs or maintenance for the Water Tower at Water Tower Place. ARC/Covenants Staff To provide for staff payroll for Covenants, ARC & Administration for CROA/CNOA and CJC. This includes the salary, taxes, workers' compensation and benefits. Electric - Water Tower To provide electricity to the Water Tower at Water Tower Place. Grounds Maintenance – Water Tower To provide for landscape maintenance and plant replacements, as needed, for the .852 CJC owned acre of land with the Celebration water tower. Special Events To support events such as Founders Day, Posh Pooch and Food Truck Fridays. Security Service To provide security when needed. INSURANCE Insurance Deductible To cover any insurance deductibles. Prop/GL/Insurance To cover any the costs of general liability, property, auto, workers’ compensation, umbrella and boiler and machinery insurance. Property Taxes Property taxes for the parcel of land at the Water Tower. D&O Insurance To provide professional liability protection for the officers and directors of CJC, CROA and CNOA.

Telephone/Communication To provide for the cost of the association's administrative office and staff member telephone and communication needs 10.25.17

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CELEBRATION RESIDENTIAL OWNERS ASSOCIATION Budget Year 2018 OPERATING BUDGET COMPARISON TO PRIOR YEAR GL ACCT # 0401 0410 04100001 0402 68318701 0417 0413 0428 0435 0439 0441 0462 0423 0449 0450 0457 0459 0461 04590001 04596620 0494 6871 0452

10.25.17

INCOME ASSOCIATION DUES WORKING CAPITAL WORKING CAPITAL RESERV RESERVE FUND CONTRIB CAPITAL IMPROVEMNT TRASH SERVICE FEES RECREATION FEE - APT MAINTENANCE INCOME LEGAL FEE INCOME OWNER/BUILDER FINES LATE CHARGES AQUATICS INCOME BAD DEBT DELINQUENCY INTEREST INTEREST INCOME - OP RENTAL INCOME MISCELLANEOUS INCOME RECREATION EVENT INC RECREATION INCOME FARMERS MARKET REVENUE PRIOR YEAR SURPLUS CONTINGENCIES COMMON AREA KEY FEE TOTAL INCOME

2018 BUDGET $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

4,037,197 280,296 (684,335) (597,804) (310,200) 786,048 404,039 120,564 42,996 30,996 24,000 (24,996) 35,004 3,300 24,024 4,500 31,125 153,479 40,200 30,000 (38,208) 18,000 4,410,225

2017 BUDGET $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

3,938,160 330,837 (653,490) (591,000) (310,200) 755,850 322,650 116,280 62,004 30,447 23,500 (10,020) 39,996 3,504 24,024 4,500 110,370 84,000 40,200 58,380 (38,208) 16,980 4,358,764

CHANGE $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

99,037 (50,541) (30,845) (6,804) 30,198 81,389 4,284 (19,008) 549 500 (14,976) (4,992) (204) (79,245) 69,479 (28,380) 1,020 51,461

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CELEBRATION RESIDENTIAL OWNERS ASSOCIATION Budget Year 2018 OPERATING BUDGET COMPARISON TO PRIOR YEAR 2018 BUDGET

65020001 6501 6505 6512 6515 6525

6581

10.25.17

2017 BUDGET

CHANGE

EXPENSES ADMINISTRATIVE & GENERAL MANAGER/ADMIN AUDIT EXPENSE LEGAL & PROF COVENANTS/ HOMEOWNER JOINT COMMITTEE EXP MISC - ADMINISTRATIV TOTAL ADMINISTRATION

$ $ $ $ $ $ $

157,833 10,900 106,716 1,500 1,003,236 43,744 1,323,929

$ $ $ $ $ $ $

126,499 10,900 116,208 1,500 1,001,004 52,740 1,308,851

$ $ $ $ $ $ $

31,334 (9,492) 2,232 (8,996) 15,078

OPERATIONAL EXPENSES GAS/OIL/TRAVEL TOTAL OPERATIONAL EXPENSES

$ $

6,780 6,780

$ $

9,675 9,675

$ $

(2,895) (2,895)

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CELEBRATION RESIDENTIAL OWNERS ASSOCIATION Budget Year 2018 OPERATING BUDGET COMPARISON TO PRIOR YEAR 2018 BUDGET

2017 BUDGET

CHANGE

6617 6620 6579 6649 6701 6705 6715 6717 6727 6716 6653 6673 6661 6665 6669 6671 6718 6720 6721

RECREATIONAL EXPENSES PARK AND POOL MONITOR FARMERS MARKET TELEPHONE/COMMUNICAT FACILITY MAINTENANCE STAFF RECREATION STAFF POOL/LIFEGUARD STAFF PERSONNEL EQUIP/ADMN NET PROGRAMS/EVENTS PARKS & REC EVENTS AQUATICS EXPENSE LANDSCAPE MGMT POOL MAINTENANCE MAINTENANCE-FACILITY ELECTRICITY WATER/RECL/SPR/MONIT NATURAL GAS MONITORING EXPENSE JANITORAL SUPPLIES SUPPLIES/EQUIP-REC TOTAL RECREATIONAL EXPENSES

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

44,040 27,900 4,788 315,525 260,454 57,864 19,560 121,125 62,115 6,036 754,032 115,980 158,724 104,100 173,634 5,772 7,944 12,900 51,888 2,304,381

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

50,004 36,996 4,788 367,773 239,275 70,884 27,276 172,091 6,048 668,016 116,052 158,304 137,880 128,856 16,360 7,860 9,636 52,716 2,270,815

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

(5,964) (9,096) (52,248) 21,179 (13,020) (7,716) (50,966) 62,115 (2,966) 86,016 (72) 420 (33,780) 44,778 (10,588) 84 3,264 (828) 122,400

6613

DIRECT BILLING CONTRACTS TRASH REMOVAL $ TOTAL DIRECT BILLING CONTRACTS $

756,775 756,775

$ $

750,665 750,665

$ $

925 925

6806 6805

TAXES INCOME TAXES RE PROPERTY TAXES TOTAL TAXES

$ $ $

996 17,364 18,360

$ $ $

1,400 17,360 18,760

$ $ $

(404) 4 (400)

TOTAL EXPENSE

$

4,410,225

$

4,358,766

NET INCOME/(LOSS)

$

-

$

-

10.25.17

$ 135,108 $

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CELEBRATION JOINT COMMITTEE Budget Year 2018 OPERATING BUDGET COMPARISON TO PRIOR YEAR 2018 BUDGET

GL ACCT #

INCOME

04040610 04040620 0455 0423 0459 0402

ALLOCATION FROM CROA ALLOCATION FROM CNOA NEWSLETTER INCOME BAD DEBT MISCELLANEOUS INCOME RESERVE FUND CONTRIB TOTAL INCOME

$ $ $ $ $ $ $

1,003,236 334,416 350,004 10,000 (5,004) 1,692,652

EXPENSES ADMINISTRATIVE & GENERAL AUDIT EXPENSE LEGAL & PROF TOWN HALL NETWORK MANAGEMENT FEES SUPPLIES - ADMINISTR MISC - ADMINISTRATIV STAFF PAYROLL SUPPLIES/EQUIPMENT MEMBER COMM & PROG TELEPHONE/COMMUNICAT MISC ON-SITE EXP TOTAL ADMINISTRATION

$ $ $ $ $ $ $ $ $ $ $ $

3,000 504 58,216 93,600 7,092 5,652 583,110 20,400 445,800 24,912 14,172 1,256,458

6501 6505 6509 6513 6521 6525 6551 6571 6575 6579 6583

10.25.17

2017 BUDGET

$

$ $ $ $ $ $ $ $ $ $ $ $

$1,001,001 $333,667 $350,004 $0 $10,008 (8,004) $1,686,676

3,000 505 37,356 93,600 6,350 6,636 627,053 20,405 458,040 24,924 14,580 1,292,449

CHANGE $ $ $ $ $ $ $

2,235 749 (8) 3,000 5,976

$ $ (1) $ 20,860 $ $ 742 $ (984) $ (43,943) $ (5) $ (12,240) $ (12) $ (408) $ (35,991)

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CELEBRATION JOINT COMMITTEE Budget Year 2018 6601 6608 66160001 66160002 6622 6617

OPERATIONAL EXPENSES COMMON AREA REPAIR ARC/COVENANTS STAFF ELEC - WATER TOWER GROUNS MTC - WATER T SPECIAL EVENTS SECURITY SERVICE TOTAL OPERATIONAL EXPENSES

$ $ $ $ $ $ $

1,200 235,379 625 22,392 20,004 5,004 284,604

$ $ $ $ $ $ $

996 215,352 715 15,408 20,004 5,004 257,479

$ $ $ $ $ $ $

204 20,027 (90) 6,984 27,125

PROP/CGL/FIDEL INSUR INSURANCE DEDUCTIBLE RE PROPERTY TAXES D&O INSURANCE TOTAL INSURANCE

$ $ $ $ $

125,376 2,500 2,126 21,588 151,590

$ $ $ $ $

111,852 2,412 19,984 134,248

$ $ $ $ $

13,524 2,500 (286) 1,604 17,342

TOTAL EXPENSE

$

1,692,652

$

1,684,176

$

8,476

INSURANCE 6801 680101 6805 6813

10.25.17

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