9/12/2024 First draft of 2025 budget meeting summary

(Added to website 9/14/24)

Summary Provided by RFRS Club Member

Food and Beverage (Alan)

• Revenue Strategies:
  • Focusing on upselling and cross-selling to increase net revenue.
  • Successful marketing shift from golf to F&B. (not sure how this was measured?)
  • Loyalty program proving effective.
• Operational Efficiency:
  • Analyzing operational hours for optimal efficiency.
  • No increases planned for food, liquor, or labor costs in 2025.
• Expense Increases:
  • Increases in linens and banquet supplies.
  • Upgrading presentation for banquets to attract the wedding market.
  • Increased budget for bands and performances to enhance and increase number of  community events.
• Preserve Restaurant Programming:
  • Expanding events to boost usage and net income.
  • Entertainment is key to attracting attendees, with a focus on maximizing a limited evening window.
• Monthly Service:
  • Serving approximately 2,000 people per month.
• Link Revenue:
  • Adjustments needed for overseeding periods on the golf course.
  • Link revenue systems require reevaluation.  Losing money 

Golf (Mike Karpe)

• Revenue Analysis:
  • Separating revenue by 9-hole rounds for better decision-making.
  • Deferred annuals and canyon revenue purchased in  2024 to 2025, with October as the key selling month for annuals.  
• Expense Allocation:
  • 2025 expenses will be allocated based on actual $'s spent/course
• Revenue Predictions:
  • Anticipate slightly lower rounds compared to previous years but expect higher total revenue due to increased pricing.  Overall golf usage in Tucson slightly lower.  
• Operational Changes:
  • Emphasizing Troon’s culture in programming, service, and accountability.
  • Water costs up by 9% in 2024 despite turf reduction and a wet winter.
  • 9% wage increase projected for 2025.
• Financial Outlook:
  • MV expected to show a profit for the first time, with a projected annual subsidy of $479,000 (lowest since 2018).??? Need to verify

IT

• Contract Costs:
  • Legacy Northstar contract up by $13,000 to $352,000 for 2025.
  • Negotiating to reduce on-site technician visits from 4X to 2X per month.
• Big Expenses:
  • $110,000 expense for CenturyLink data and voice services.
  • No hardwiring between MV, DV, Preserve, and Golf locations.
• Performance Bonus:
  • A $3,000 performance bonus is under review for potential removal.
• Hardware Investments:
  • $90,000 allocated for new hardware, not expected to reduce operating expenses.

HR (Kayleen)

• Department Overview:
  • One-person department managing 189 employees.
• Expense Reductions:
  • Reduced expenses by $19,000 from 2024 to 2025 due to changes in online hiring programs.
• Payroll Management:
  • Utilizing Paylocity with a fixed rate per head.
• Hiring Challenges:
  • Difficulty hiring full-time staff due to the prevalence of part-time positions and location issues.

Administration (Charli)

• Department Overview:
  • 5 full-time employees with a 4% salary increase for 2025.
• Expenses:
  • Significant printing costs.
  • Postage increased due to election ballots, with $9 per registered mail for 60 overdue POA residents.

Marketing

• Department Overview:
  • Small team of 2, not directly revenue-generating.
• Budget Allocation:
  • Major marketing expenses are directed toward golf and MV revenue items.
• Evaluation:
  • Need to assess how marketing impacts revenue and whether it covers its costs.
• Future Goals:
  • Increase rental for event space at DV theatre.
  • Enhancing use of AI and videos to engage residents.

Facilities (Bill)

• Budget Increase:
  • Total budget increase of 5% over 2024, with 4% allocated to salaries.
• Cost Management:
  • Focus on repairs over replacements to extend equipment life.
  • Increased cleaning service costs.
• Future Savings:
  • Solar panel ownership by May will reduce related expenses.
• Professional Appearance:
  • Proposal for uniform shirts/jackets to enhance team professionalism.

CAM (Michael)

• Cost Increases:
  • Chemicals and fertilizers up by 10-20% for 2025.
  • Planned introduction of fertilization for plants. Never been done. 
• Preserve Changes:
  • Replacing removed desert spoons with other plants.
  •  using outside contractors; for removal of 20-30 trees and trimming of larger trees.  No licensed arborist on staff. 
• Equipment Costs:
  • Increased budget for new equipment and rentals.
  • $30,000 allocated for walking path repairs within the road budget.
• Staffing:
  • 24 CAM employees (unclear if this includes 3 new hires requested for 2025).
• Additional Expenses:
  • $5,000 for seminars and conferences.
  • $21,000 for erosion control, including soil stabilizer and addressing erosion issues in Unit 24.
• Roadways:
  • No budget allocated for roadways, crucial for first and last impressions of the community.
• 2025 Focus:
  • Emphasis on level 4 services.

Patrol (Dale)

• Budget Increase:
  • 1.3% increase for 2025.
• Salary Adjustments:
  • Increase starting pay to $16/hr and raise existing pay by $1/hr, totaling a 5.3% increase.
  • total Increase includes filling an unfilled budgeted sergeant position.
• Turnover Issues:
  • High labor turnover (about 50%); salary increase aimed at retention.
• Security System:
  • 35-year-old security alarm system needs replacement.
  • Requesting $4,500 to replace the system, with a 10-year useful life.
  • wants $'s to add solar lighting to major street signs for readability.