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FY09 Budget Highlights
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to access the FY09 Budget Highlights pages.
A Letter
From the Treasurer
By Jack Weeks,
Treasurer, Board of Trustees
The Board of Trustees will consider for approval at its August 20 meeting
the Franklin Farm Foundation’s Operating, Capital Reserve, and Capital
Acquisition Budgets and Assessments for Fiscal Year (FY) 2009, as recommended
by the Financial Advisory Committee and myself, as your treasurer.
Total FY09 quarterly assessments increase $8.25 (4.62%) to $186.75 for
Single-Family Neighborhoods. Increases for the Townhome Neighborhoods
are as follows: Tranquility has an increase of $7.50 (3.61%) to $215.50;
Foxlease, an increase of $9.50 (5.23%) to $191.25; Rosemere, an increase
of $2.00 (1.00%) to $202.50; and Stone Heather, an increase of $5.25 (2.85%)
to $189.25. Certain residents of Tranquility Lane will see a decrease
to $186.75 (–10.22%) reflecting a reallocation of paving costs between
private lanes and the public streets in their neighborhood.
The increases are modest, something that we on the Financial Advisory
Committee are very happy communicating to you. We had had some negative
comments when we first announced possible assessment increases in the
Almanac, particularly considering that some of our neighbors who are on
fixed incomes or renting their homes may not see any direct benefit as
we work to maintain property values in our community. We had expected
double-digit percentage increases and are relieved that did not turn out
to be the case.
Operating expenses for FY09 are budgeted at $1.664 million, an increase
of 1% from last year. Recent rises in fuel costs have had a direct impact
on the trash-collection costs, our largest line item of expense. Fortunately,
we were able to re-bid the contract and, thanks to a very competitive
process, will award a new contract that holds the line on trash costs
and generally limits future annual increases to no more than 5.5%. Our
executive director, Jerry Schmitt, was directly responsible for seeking
out new vendors and negotiating the new contract. So a big thank-you goes
out to you, Jerry!
This year’s assessments were also impacted by the mortgage crisis. We
had to write off some assessments and collection costs from home foreclosures
in our community. In addition, we were severely impacted by last year’s
drought and storms, resulting in severe damage to trees in our common
areas and along the pathways, as well as a significant decrease in interest
income from investments.
Our budget process is a bottom-up process, where input is received from
the various volunteer committees. None of those committees have advocated
a reduction in services. In fact, the overall consensus has been that
we must protect property values by making sure that we retain the amenities
of the community. Certainly, if you look throughout the community, we
do not have the overall problem of many unsold homes that many HOAs have
experienced. Franklin Farm remains one of the most desirable neighborhoods
in the area.
Nevertheless, we continue to explore ways of controlling costs. We have
allowed office positions to go unfilled during the less busy winter months.
Where possible, we have directed the landscape company to use personnel
assigned to mowing to other tasks, such as trimming, when mowing due to
the drought was not required. One neighbor suggested that we just call
them up and stop the unnecessary mowing; however, contracts with landscaping
companies do not provide the luxury of on-demand services.
We have redone our capital reserve study. Costs of paving, painting, and
repairs have all increased substantially from estimates just a couple
of years ago. Some may be beyond our control. One example, which we are
currently trying to understand and resolve, are new standards in Fairfax
County that require any bridge replacements along our paths to be permitted
and reconstructed in such a way as to support the width and weight of
light trucks. Unbelievable, but true. At this point, our planning has
been adjusted for these realities. And with a number of long-term contracts
in hand, we hope to keep future increases in line with the general rise
in inflation.
Your Foundation staff, Financial Advisory Committee, and Board of Trustees
work hard to assure that we receive quality services from the various
service providers, while employing a rigorous competitive bidding process
for all major contracts. The result continues to be one of the lowest
assessment rates in the area. We believe that the Franklin Farm “assessment
dollar” continues to be well-spent and adds value to your homes and lives.
All of us involved with the budget process appreciate your continued support
for our staff and our various volunteer committees and initiatives, all
of which enhance immensely the quality of life we enjoy and appreciate.
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