By Larry Williams
The POA finished the 2013 fiscal year effectively on target with our year end projections.
Revenue of $2,488,194 for the year was $8,664 more than had been budgeted. Our expenses came in under budget by $9,630 at $ 2,406,977.
That yielded a net income of $81,217 ($18,217 greater than the $62,923 we had projected).
All $81,217 of that net income was used to additionally reduce POA debt. That reduction keeps us a bit ahead of our five year plan for a $1,000,000 debt reduction by 2017.
With the major budget cuts that were implemented midway through 2012, repeated in 2013, and now continued for 2014, POA management has done a remarkable job of reducing the company’s debt.
The fact remains, however, that at the end of 2013 our debt level stood at just over $2 million.
Service for the interest alone on that amount is $95,000.
That said, looking at our table and graph you can see that we are trending in the right direction, having come from approximately $2.9 million debt just over two years ago.
Our budget for 2014 forecasts income of $2,479,000 and expenses of $2,226,000.
Barring unforeseen expenses, this could result in an increased net income in 2014, which will again be used to reduce our debt level.
The downside of focusing so strongly toward reducing our debt is that it leaves very little in funds allocated for needed capital improvements.
While a majority of our annual revenue is used for day-to-day operating costs such as labor, utilities, maintenance, insurance, etc., the board of directors and management have budgeted $50,000 for contingencies in 2014.
Capital expenditures and improvements will be prioritized and looked at on an as needed basis to ensure the best usage of our limited funds.
Through these efforts and the labors of our board committees, individual members, and member groups we will continue to find innovative ways to make 2014 another great year for Lake Tansi Village.