RA Considering Loan for 2014-15 Budget Cycle

The Reston Association Board of Directors is considering taking out a $2 - $2.5 million loan to help offset expenses and keep member annual assessments from climbing.

Faced with aging facilities and infrastructure, RA has several biennial budget proposals as it readies to vote on one of them later this year.

Under Option 1, assessments would be $646 in 2014 and $647 in 2015 but no extra dollars would be provided for budget initiatives.

Option 2 considers a $2 million loan. Assessments, which were $590 in 2013, would be $615 in 2014 and $635 in 2015, thereby providing $1,045,843 in additional funds for new budget initiatives. 

Option 3 considers a loan of $2.5 million, which would provide $1.5 million in additional funds for new budget initiatives. Assessments would be $615 in 2014 and $635 in 2015.
 
Both loans would include a $5,000 origination fee and 4.5 percent fixed-rate interest. RA would draw on part of it and put the rest in the reserve and replacement fund, according to the documents.

RA President Ken Knueven said in a Patch blog post last month that RA cannot afford to "kick the can" on improvements anymore.

"The Reston Association Board of Directors appreciates the need for cost containment and frugal budgeting practices and has been operating under these guidelines for decades," he said. "Unfortunately, the practice of 'kicking the can down the road' has consequences and our infrastructure is now paying that price. "

To read a more elaborate explanation of the budget proposals from Knueven, click here.

The budget draft proposal points out that RA will have 82 fewer households in 2014 and '15 as a result of the redevelopment at Parc Reston.

The draft also points out some expenditures and revenue opportunities predicted for 2014 and '15. Among them:

* An increase in personnel expenses of $38,000 for a fulltime webmaster.
* A decrease of $20,000 for election expenses due to changing vendors.
* A reduction of $5,000 in ink and toner purchase.
* An increase in revenue from new Parc Reston units of more than $200,000 in 2015.

To see the three budget proposals in more detail, click here.

Some of the requests from RA directors and members for the upcoming budget include:

* $14,383 to replace parking lightbulbs with LED fixtures
* $43,000 in 2015 for an additional community garden at Cedar Ridge
* About $60,000 to add a park ranger position
* $35,000 for staff professional development and tuition reimbursement
* $160,000 for Document Management Solution software

To see the budget requests click here.