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Board seeks to invest in Kentlands social, cultural life

Finding the best use of growing TIC Fund is a top financial priority

From the Treasurer David Hofmann

This month, I would like to focus the Treasurer’s report on the Titleholders’ Initial Contribution fund (TIC Fund) so as to give new and old members of the community a clearer perspective on how these funds have been collected and used over time and how we are trying to better utilize them for the purpose they have been collected.

Our governing documents prescribe a contribution by each Titleholder to the TIC Fund on closing of a sale of a property within the community of “a sum equal to four (4) months of all assessments applicable to such Lot (including General Assessments and Local Assessments, if applicable) in effect at time of taking title. The purpose of such initial contributions shall be for the funding of programs determined to be beneficial to the qualities of the social and cultural life in Kentlands. Such funds may be used for contributions to the Kentlands Foundation, and other similar causes.”

The audited balance of the TIC fund at the end of 2016 stood at $477,659.92, of which $234,213 has been contributed over the past 7 years representing 49% of the current total fund. On average over the past 7 years the fund has received $33,459 annually. The budget for 2017 anticipates a contribution of $35,000. This is an estimate based on past contributions to the fund and the number of real estate transactions anticipated to close this year.

The Board is very aware that this fund has been growing and is committed to developing a more active plan for the management and ongoing usage of these funds to benefit the qualities of the social and cultural life in the Kentlands. We believe these funds are your funds and are collected for the betterment of the community. The Board is actively seeking ways that these funds can be better utilized over time to provide increased opportunities for all our citizens from young to old.

At the moment, these funds are used to support the Kentlands Community Foundations’ operations and we appropriate about $35,000 to $45,000 per year for such support. Funds are also dispersed to: the Kingfish swim team, arts groups, and other one-time investments, such as the purchase of our outdoor movie equipment last year.   In terms of how the larger fund can be put to better use, The Board is currently in the idea generation stage and has asked the Foundation to develop a long-term plan which could make use of some of these funds on a planned longer term basis. Of course we want to ensure these funds are not spent inappropriately and that they remain an ongoing resource to the community.   You can read about three initial projects that the Kentlands Foundation is developing as potential beneficiaries of a part of these funds in Mariann Zylstra’s article.

Of course I couldn’t write a column without giving you an update on where we our operating account stands to date. At the moment our financial situation as of March 31st, 2016 is as follows:

Year To Date Income:           $612,284.80

Year To Date Expenses:       $524,478.24

Net Income Year To Date:    $   87,806.56

While we try to anticipate the seasonality of expenses and spread them appropriately throughout the year, all of the expenses cannot be accurately predicted month to month. The large net income number is due to it being early in the year and the fact that it is difficult to budget effectively for the seasonality of certain expenses. This number is expected to decrease as the year progresses. It is worth noting however that a large proportion of this number represents snow removal services that were not utilized and as such, pending no abnormal spring or early winter snowfall, may result in a substantial savings to the community.

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