News
Opinion
ENLARGE
INCLINE VILLAGE, Nev. — Each year in late January, IVGID starts to put together its operating and capital budgets for the next fiscal year. So it is now. Budgeting is something that involves nearly every full-time employee, every manager and the board of trustees. It is our intent to make it easy for our parcel owners and residents to tell us their ideas about our operating and capital budgets, and the things that influence them.
During February and March, each board of trustees meeting will be preceded by a workshop on one phase of the budget. These workshop/board meetings are open to the public and it is hoped that interested people will attend and make appropriate comments. The meeting location has been changed from the IVGID administration building to The Chateau, and the starting time is 6 p.m. for all meetings.
The subjects of the workshops will be:
• Feb. 10 — Water and Sewer Rates
• Feb. 24 — Capital Improvement budget
• Mar. 10 — Capital Improvement budget
• Mar. 31 — Operating budget
For a number of reasons, the finances of IVGID are somewhat different from other municipalities and the county. It is not unusual for those other entities to rely on tax sources for 60 percent to 70 percent of their revenue. IVGID derives only 5.1 percent of its revenue from taxes, while 62.3 percent of IVGID's revenue comes from the charges made to use our facilities and services; 13.3 percent of the revenue comes from the Recreation Facility Fee; and 2.3 percent from the Beach Facility Fee. Other sources of income include capital and operating grants at 16.5 percent, and to a smaller degree investment earnings at 0.5 percent. For this fiscal year, total revenues are expected to exceed $38.5 million.
On the expenditure side of the ledger, IVGID is very much like all other municipalities and many businesses. We have wages, benefits, services and supplies, insurance, cost of goods sold, Workers Comp, utilities, debt service, depreciation and capital expenses.
We have an infrastructure of buildings, golf, ski and park areas, pipelines and equipment that must be maintained, repaired and replaced when worn out. Funds must be set aside so they will be available when the infrastructure expenses must be paid.
This fiscal year we have budgeted expenses totaling $40,833,137, which means that we will dip into our reserves for $2,344,024. This was due to a conscious decision by staff and board to not raise utility rates this fiscal year, knowing full well that rates were not sustainable next year.
All of the facilities that IVGID owns and operates in both Utility and Recreation divisions require funding before anyone uses them. We have invested in the water and sewer systems and they must be maintained. The ski lifts must be maintained for safe operation. We have a huge job to maintain the fairways and greens at the golf courses. The Chateau and its kitchens must be ready for the next event. You get the idea. All of these facilities add to the quality of life in Incline and they also enhance the value of real property here. We rely on fees charged for use of these facilities for the funds to operate them. The funds necessary to have these facilities ready for use is where the Recreation Facility Fee and the Beach Facility Fee come into play. These Facility Fees provide the funds to prepare and maintain the infrastructure. On the Utility side of our business, the equivalent of the Facility Fee is built into the water and sewer rate structure.
There are fewer people using some of our facilities, resulting in lower user-fee revenue in both recreation and utilities. On the other hand, we are faced with constantly rising costs, and we need higher revenues just to break even. We have a huge challenge in front of us to cope with these opposing trends.
We are used to a certain level of service from the IVGID recreation and utility segments. We must weigh very carefully whether we can and should continue these levels of service.
The trustees have been developing and adopting policies for current and future use that will ensure sustainability of IVGID's finances. We are in good shape, but we must be certain that we stay that way. There is a huge pool of talent in this community that can help guide our efforts. Once again we invite you to join us at our workshops to share your ideas to keep this a wonderful place to live, work, and recreate.
— Gene Brockman is chairman of the IVGID Board of Trustees.
During February and March, each board of trustees meeting will be preceded by a workshop on one phase of the budget. These workshop/board meetings are open to the public and it is hoped that interested people will attend and make appropriate comments. The meeting location has been changed from the IVGID administration building to The Chateau, and the starting time is 6 p.m. for all meetings.
The subjects of the workshops will be:
• Feb. 10 — Water and Sewer Rates
• Feb. 24 — Capital Improvement budget
• Mar. 10 — Capital Improvement budget
• Mar. 31 — Operating budget
For a number of reasons, the finances of IVGID are somewhat different from other municipalities and the county. It is not unusual for those other entities to rely on tax sources for 60 percent to 70 percent of their revenue. IVGID derives only 5.1 percent of its revenue from taxes, while 62.3 percent of IVGID's revenue comes from the charges made to use our facilities and services; 13.3 percent of the revenue comes from the Recreation Facility Fee; and 2.3 percent from the Beach Facility Fee. Other sources of income include capital and operating grants at 16.5 percent, and to a smaller degree investment earnings at 0.5 percent. For this fiscal year, total revenues are expected to exceed $38.5 million.
On the expenditure side of the ledger, IVGID is very much like all other municipalities and many businesses. We have wages, benefits, services and supplies, insurance, cost of goods sold, Workers Comp, utilities, debt service, depreciation and capital expenses.
We have an infrastructure of buildings, golf, ski and park areas, pipelines and equipment that must be maintained, repaired and replaced when worn out. Funds must be set aside so they will be available when the infrastructure expenses must be paid.
This fiscal year we have budgeted expenses totaling $40,833,137, which means that we will dip into our reserves for $2,344,024. This was due to a conscious decision by staff and board to not raise utility rates this fiscal year, knowing full well that rates were not sustainable next year.
All of the facilities that IVGID owns and operates in both Utility and Recreation divisions require funding before anyone uses them. We have invested in the water and sewer systems and they must be maintained. The ski lifts must be maintained for safe operation. We have a huge job to maintain the fairways and greens at the golf courses. The Chateau and its kitchens must be ready for the next event. You get the idea. All of these facilities add to the quality of life in Incline and they also enhance the value of real property here. We rely on fees charged for use of these facilities for the funds to operate them. The funds necessary to have these facilities ready for use is where the Recreation Facility Fee and the Beach Facility Fee come into play. These Facility Fees provide the funds to prepare and maintain the infrastructure. On the Utility side of our business, the equivalent of the Facility Fee is built into the water and sewer rate structure.
There are fewer people using some of our facilities, resulting in lower user-fee revenue in both recreation and utilities. On the other hand, we are faced with constantly rising costs, and we need higher revenues just to break even. We have a huge challenge in front of us to cope with these opposing trends.
We are used to a certain level of service from the IVGID recreation and utility segments. We must weigh very carefully whether we can and should continue these levels of service.
The trustees have been developing and adopting policies for current and future use that will ensure sustainability of IVGID's finances. We are in good shape, but we must be certain that we stay that way. There is a huge pool of talent in this community that can help guide our efforts. Once again we invite you to join us at our workshops to share your ideas to keep this a wonderful place to live, work, and recreate.
— Gene Brockman is chairman of the IVGID Board of Trustees.
