About the Budget
End of year report for 2019:
- Last year, we underspent the budget sending a substantial surplus into 2020. This is fortunate because we will likely need this surplus in 2020 to upgrade our system and maintain reliable water service to our growing number of members.
- Expenses were lower than planned for labor, professional fees, direct operations costs and overhead.
- Some things that were expected did not happen, and some plans were delayed.
- But it’s all a good news story: we saved a lot of money.
For the New Year 2020:Here are some facts you need to know about the Profit and Loss statement (also known as the Budget) which you’ll find if you scroll on down. Line item numbers are found on the far left; now read across to the bold faced numbers in the last two columns on the right marked 2020.
Line 1, Annual Fees: For 2020 we will see income at or near $60,000 for the first time as our community of members continues to grow. We now have 188 connections/residences.
Line 7, Checks on Hold: Our Mexican bank, BBVA Bancomer, rejected 26 of 57 checks submitted for deposit. These 26 checks are worth $8,415 and were rejected for errors such as misspelling or leaving out part of our long name: COM DE AGUAS DE VECINOS DEL FRACC PLAYA LA MISION. We now have to reach out to those customers and demand repayment. Next year, we will accept annual fee payment by PayPal or cash only! No more checks.
Line 18, Improvement Generator: Last year, during and just after the October fires, we had no water because CFE electricity was unavailable when power lines and transformers were damaged by the fire. The Board of Directors is concerned about this lack of water service during critical times of need. It also recognizes the needs of our maturing community with some members requiring 24/7 live-in assistance, where a continuous supply of water is especially vital. Consequently, your Board has unanimously approved installation of a three-phase generator powered by propane at the well which will start automatically upon loss of CFE power. We will also upgrade our security system to prevent theft. The surplus of money carried forward from 2019 will pay for this improvement without the need to increase fees. We repeat, there will be no increase in fees for 2021.
Line 19, Refurbish Well Pump: Our main 5 horse power electric well pump has been performing erratically. We’ve called in the expert who dug the well and has performed maintenance on it these many years, but even he has not been able to diagnose this inconsistent behavior. As a planning precaution, we are setting aside $5,000 to cover the possibility that the pump needs to be “pulled” and replaced.
Line 48, Net Income: The plan for 2020’s net income shows a minus -$8,330. This means that we could need to dip into reserves if every element of the expense plan materializes which is unlikely. There are ample reserves to cover even this worst case condition without any increase in fees. The Board recommends you vote “yes” for the 2020 budget.
Balance Sheet Information is also provided if you scroll down further. We present it here because it is required by our Constitution and By-Laws. There is a comparison of the last two complete years, 2018 and 2019. Then there is our current position as 31 March 2020, the end of the first quarter. Balance sheets tell you about the health of the company, and your water company is very healthy. Thank you!
