Post by Admin on Apr 28, 2016 14:26:05 GMT -7
GLA Assessment Payment Rate Plummets to 67%
The 2016 budget is short by $25,063.55
Road services may be curtailed
The 2016 budget is short by $25,063.55
Road services may be curtailed
According to the latest GLA Financial Statements, the Assessment collection rate continues to plummet downwards. The April 26th, 2016 P & L Cash Basis statement shows that $28,142.50 was collected in 2016 land assessments from January 1st to April 26th, 2016. Collected dwelling assessments totaled $20,976.45 for the same period. Golden Age Village paid $2,572.50 for the same period. The total amount of money received by the GLA for all three is $51,691.45.
The Cash Basis P & L shows what amount of money was received by the GLA. The Accrual Basis P & L for the same time period depicts what assessment amounts were invoiced. Billed land assessments for January 1st to April 26th, 2016 total $41,475.00. Dwelling assessments for the same time period total $30,135.00. Golden Age Village totals $5,145.00. The total invoiced amount is $76,755.00
The difference between what landowners paid, $51,691.45 and what they were billed, $76,755.00 is $25,063.55.
$76,755.00 divided by $51,691.45 = 1.48
1 divided by 1.48 = .67
.67 times 100 = 67
Therefore, $51,691.45 is approximately 67% of $76,755.00
At the end of 2015 85% of the landowners had paid their 2015 assessments. Therefore the 2016 budget was based on 85% of the landowners paying their 2016 assessments in full. At the end of April the assessment payment rate has dropped to 67%. Put another way, one in three landowners has not paid their assessments for 2016.
The budget is no longer balanced; it is in the red and currently short $25,063.55. State law requires that the GLA must have a balanced budget. For 2016 the GLA has three choices; cut the budget which will most likely shrink road services, take money from the savings account or work overtime to bring the assessment collection rate back up to 85%.
What course of action do you suggest? What do you think the GLA Board will end up doing?
Are you willing to live with deteriorating roads and a 67% assessment collection rate?
Leave your comments and thoughts below.
The Cash Basis P & L shows what amount of money was received by the GLA. The Accrual Basis P & L for the same time period depicts what assessment amounts were invoiced. Billed land assessments for January 1st to April 26th, 2016 total $41,475.00. Dwelling assessments for the same time period total $30,135.00. Golden Age Village totals $5,145.00. The total invoiced amount is $76,755.00
The difference between what landowners paid, $51,691.45 and what they were billed, $76,755.00 is $25,063.55.
$76,755.00 divided by $51,691.45 = 1.48
1 divided by 1.48 = .67
.67 times 100 = 67
Therefore, $51,691.45 is approximately 67% of $76,755.00
At the end of 2015 85% of the landowners had paid their 2015 assessments. Therefore the 2016 budget was based on 85% of the landowners paying their 2016 assessments in full. At the end of April the assessment payment rate has dropped to 67%. Put another way, one in three landowners has not paid their assessments for 2016.
The budget is no longer balanced; it is in the red and currently short $25,063.55. State law requires that the GLA must have a balanced budget. For 2016 the GLA has three choices; cut the budget which will most likely shrink road services, take money from the savings account or work overtime to bring the assessment collection rate back up to 85%.
What course of action do you suggest? What do you think the GLA Board will end up doing?
Are you willing to live with deteriorating roads and a 67% assessment collection rate?
Leave your comments and thoughts below.