WELLINGTON COMMUNITY ASSOCIATION

APROVED OPERATING BUDGET

January 1, 2020 - December 31, 2020
Adopted Projected Approved
2019 2019 2020
Single Family Assessments $62.17 $62.17
Condo Assessments $62.17 $62.17
Townhomes w/out Lights $102.70 $102.70
Townhomes with Lights $104.53 $104.53
INCOME
General Assessments $ 620,705 $ 620,705 $ 620,682
Townhouse Assessments $ 303,170 $ 303,170 $ 303,159
TH Street Light Assessments $ 400,141 $ 400,141 $ 400,125
Late Fee Income 19,000 15,263 15,000
Bad Debts (1,000) 9,360 0
Covenants Charges 7,000 4,448 3,600
Clubhouse Rental Income 5,000 11,314 6,000
Interest Income Reserves 5,000 12,850 5,000
Guest Pass Income 250 639 0
Social Events/Activities Income 0 250 0
Swim Team Income 650 650 0
Recreation Fees - Non Resident 50,000 83,346 55,000
Legal Fee Reimbursements 20,000 13,660 12,000
Activities/ Miscellaneous Income 1,200 1,769 1,000
TOTAL INCOME $ 1,431,117 $ 1,477,566 $ 1,421,567
EXPENSES
GENERAL & ADMINISTRATIVE
Audit $ 6,000 $ 9,000 $ 9,000
Copying 4,500 7,298 6,500
Postage 10,000 8,257 8,500
Dues and Subscriptions 500 134 134
Bank Charges 50 0 50
Federal Taxes (Income Taxes) 3,000 150 150
State Taxes (Income Taxes) 0 150 150
Insurance Loss Deductible 0 0 0
Insurance 33,750 31,610 32,421
Legal Fees - General 20,000 36,993 14,400
Management Fee 87,000 71,250 61,800
Payroll/ On Site Staff 170,000 150,182 169,725
Payroll Taxes/Benefits 0 11,803 12,000
Miscellaneous Administrative 0 0 1,800
Office Supplies 10,000 7,679 5,000
Legal Fees - Collections 30,000 15,852 20,000
Bad Debt Write-Off 0 0 1,500
Reserve Study 0 0 5,000
Web Page 0 2,500 3,500
Total General & Administrative $ 374,800 $ 352,856 $ 351,629
POOL
Pool Management Contract $ 89,760 $ 93,090 $ 113,800
Pool Furniture 0 0 11,000
Pool Repairs and Maintenace 20,000 34,310 33,350
Pool Supplies 15,000 7,254 8,000
Pool Security 15,000 2,531 4,000
Water - Pool 0 0 8,377
Total Pool $ 139,760 $ 137,185 $ 178,527

CLUBHOUSE
Electricity - Clubhouse $ - $ - $ 16,459
Telephone 8,700 9,835 9,000
Clubhouse Utilities 30,000 31,810 0
Clubhouse Repair and Maintenance 10,000 1,057 1,000
Clubhouse Cleaning 4,500 3,500 3,600
Water & Sewer - Clubhouse 4,768.21
Total Clubhouse $ 53,200 $ 46,203 $ 34,827

UTILITIES
Electricity - Signage $ - $ - $ 2,000.00
Water - Irrigation Systems 4,000.00 2,504.73 2,600.00
Total Utilities $ 4,000.00 $ 2,504.73 $ 4,600.00

GENERAL MAINTENANCE
Grounds Improvements $ 53,000 $ 38,574 $ 35,000
Tree Work (Tree and Stump Removal, Plan 30,000 23,022 25,000
Irrigation Repairs 0 0 2,400
Pond Repairs 0 0 5,000
Elevator Repairs 0 0 500
Fence/Wall Repairs 0 0 1,500
Fire Prevention/Safety 0 0 0
Tot Lot Maintenance/Repair 20,000 5,000 10,000
General Building Materials 0 0 2,500
Special Trash Pickup 0 0 600
HVAC Repairs 0 0 1,500
Drainage/Erosion Repairs 0 0 3,000
Plumbing Repairs 0 0 550
Social Events/Activities 25,000 23,070 25,000
General Repair and Maintenance 26,000 18,230 6,000
Total General Maintenance $ 154,000 $ 107,896 $ 118,550

CONTRACT SERVICES
Grounds Maintenance Contract $ 145,000 $ 138,580 $ 167,979
Pond Maintenance Contract 7,000 4,718 4,859
Alarm Monitoring/Security Contract 0 0 600
Inspection Fees 0 0 24,000
Exterminating/Pest Control 0 0 990
Trash Removal Contract 2,200 2,402 1,770
Snow Removal 10,000 46,931 34,350
Total Contract Services $ 164,200 $ 192,631 $ 234,548
 TOWNHOUSE MAINT. AND SERVICES
Townhome Street Lights $ 6,000 $ 6,259 $ 5,968
Townhouse Landscaping $ 70,000 $ 67,001 $ 79,049
Townhouse Snow and Sand Removal $ 60,000 $ 41,931 $ 50,232
Total Townhome Services 136,000 115,192 135,249

TOTAL OPERATING EXPENSES $ 1,025,960 $ 954,468 $ 1,057,931

RESERVE EXPENDITURES
2020 Reserve Projects- CA $ - $ 13,000 $ 43,929
Butternut Asphalt - TH $ - $ - $ 129,014
Capital Improvement Projects $ - $ - $ 10,000
Total Reserve Expenditures $ - $ - 182,943

RESERVES CONTRIBUTIONS
Yearly Reserve Contribution $ 248,000 $ 200,780 $ 200,000
Townhouse Reserves $ 145,000 $ 144,996 $ 141,636
Operating Reserves $ 9,957 $ 11,941 $ 12,000
Capital Improvement Projects Reserve 0 0 $ 10,000
Transfer from Reserves $ 2,200 $ (13,000) $ (182,943)
Sub-total $ 402,957 $ 344,717 $ 180,693

TOTAL EXPENSES $ 1,428,917 $ 1,299,185 $ 1,421,567

SURPLUS / (DEFICIT) $ (2,199.52) $ 178,381 $ -

 The above graph demonstrates the rate of increase in Consumer Price Index (the Orange line) when compared with the
rate of increase in monthly Association Dues (Blue line). Association Dues have not increased since 2016, which is not in
line with local or national Consumer Price Index (CPI). Though Association Dues are not being increased for 2020, they
may be increased in 2021 to keep up with CPI increases which are built into the Association’s contracts and cause
continual increases in postage, mailing, supply, and construction/building material costs.
 Reserves for Capital Components
Per § 55.1-1826 of the Virginia POA Act

January 2020 – Expected “accumulated cash reserves set aside to repair, replace, or
restore capital components” – $1,280,576.37
Amount of “expected contribution to the reserve fund” total for 2020 – $353,636.00
Procedures used for estimation and accumulation of cash reserves, reported pursuant to
section 55.1-1826(3) of the Virginia POA Act:

The reserve accumulation is calculated and managed according to recommended funding based on the
Association’s reserve study, which uses two generally accepted methods, the Cash Flow Method, and the
Component Method. Both calculations are based upon the same financial data, including the costs of the
replacements of Wellington Community Association’s Common Elements, and the Wellington Common
Reserves reported to be on deposit at the start of the Study. The Cash Flow Method and Component Method
calculations and Replacement Reserve funding recommendations in 2016, the Study Year, are discussed below:

Cash Flow Method - Minimum Recommended Funding of the Wellington Common Reserve in the Study Year
($8.45 per unit per month). The Cash Flow Method calculates the minimum annual funding of Replacement
Reserves that will fund Projected Annual Replacements from a common pool of Replacement Reserves and
prevents Replacement Reserves from dropping below the Minimum Recommended Balance. Annual deposits to
Replacements Reserves remain the same between peaks in cumulative expenditures called Peak Years.

Component Method - Recommended Funding of the Wellington Common Reserve

in the Study Year ($20.99 per unit per month). The Component Method is a time
tested and very conservative mathematical model developed by HUD in the early
1980's. The Component Method treats each component in the Replacement
Reserve Inventory as a separate account and deposits are made annually to each of
these individual accounts. A fence with a life of ten years and a value of $1,000, will
require a deposit of $100 per year to Replacement Reserves.

These procedures and definitions are taken from the Association’s R+STUDY September 2015 study, Wm.
Bruce Bennett, Sr. Reserve Analyst, pages 5-6 (2016).

The current Wellington Community Association reserve study recommends $1,137,299.00

in reserves, and the Association currently has $1,254,325.37 in cash for replacement
reserves, meeting its obligations.