RA Board Approves New Budgeting Plan

With three-pool approach, Reston Association Board of Directors can get funds organized for repair and replacement and new capital projects.

TheBoard of Directors approved on Thursday a new method of budgeting funds to pay for improvements on existing facilities and organize capital for new projects.

Under the previous plan, assessment revenue and investment income are placed into the operating fund. Meanwhile, only investment income funds the reserve and replacement (R & R) pool.

The new plan was p A set amount would be moved to the R & R Fund annually based on a 10-year forecast; the R & R fund would also have a set minimum balance, and the board would vote on discretionary allocation to the new projects fund.

Sigle projects the annual amount put into the R & R fund should be $2.1 million a year, but also says the number can change each two-year budget cycle based on the association's anticipated needs and existing capital assets.

RA's budget for 2012-13 is $14,374,012. Of that money, $1,137,934 is set to go into the operating fund and $1,666,650 will go into the capital improvement fund. About $269,000 from assessments and interest income will go towards R & R.

"During the 2012-13 cycle, several directors said they had the desire to see a longer-term view," said Sigle at a meeting earlier in July. "This way asks, 'How does two years fit into a longer time frame?'  It also better ties together and explains operating expenses separate from capital funding or repair and replacement."

Sigle said the new plan "emphasizes repair and replacement funding in the biannual budget process, utilizes R & R funding for capital project expenses and carries forward from one year to the next so we are not bleeding into the operating fund."

The board will also form a Special Committee on New Capital Projects List to make recommendations on new capital projects.

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Bill Bouie July 28, 2012 at 12:10 PM
Congratulations!!! This is a very sound approach and something that is long overdue. Thanks to the board and its leadership for making this happen.
Michael Sanio July 28, 2012 at 12:46 PM
Appreciate the leadership from Andy Sigle and John Higgins on the Board, these are the policy issues we must focus on. Michael Sanio - RA At Large Director
John Farrell July 29, 2012 at 05:34 AM
Thanks for your reporting, Karen. If we had to rely on the rebroadcast of the RA Board on Channel 28, no RA member would ever know what's going on. The sound is nearly non-existent. This issue has been brought to the Board's attention during every rebroadcast for more than a year to absolutely no effect. We also now get to watch the Board in near silence through either a yellow haze or last night, a green mist. Then there's the swell idea that the Board does most of its business in executive session. So even Karen doesn't get to tell us what these folks are doing with our assessment money. Clearly, this Board is happy to conduct its deliberations in nearly total secrecy. As for the substance of the change, as John Higgins has said, its just so much rearranging lines on a budget format that really changes nothing. And for this they wasted how much time? An hour of Board meeting time plus staff time. Meanwhile, Dogwood pool is still closed.


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