The preliminary 2009 budget for the Rancho Murieta Association projects an increase of 2.5 percent, which would take monthly dues for members from $137 to $140.47. Since the increase was 3.9 percent in 2008 and 10 percent in 2007, “we’re heading in the right direction,” General Manager David Stiffler said Wednesday.

In June, the Community Services District board of directors approved rate increases for water, sewer, security, drainage and garbage collection that increased the average residential bill 18.8 percent, taking it from $114.44 to $135.96.

The RMA Finance Committee discussed the preliminary budget for about an hour Wednesday. Stiffler said the public presentation will be made at a budget workshop. The board will decide on the date for the workshop at its meeting next week.

In past years, preliminary budgets have carried sizable increases that were whittled down during the process, but now the emphasis is on presenting a bare-bones budget at the outset. At last year's budget workshop, the projected dues increase was bumped up after board members objected to including revenue projections for new cable services. In 2006, funding was added to the recreation budget in the last minutes of the 2007 budget workshop.   

Cost increases in the 2009 budget include gasoline, which the association buys in bulk for its vehicles. Its price has increased 46 percent since 2006, Stiffler said.

Committee member Donna McLeod noted “retirement is almost doubled since 2006.” Financial Manager Colleen Hagyard replied, “The union contract increased the retirement benefits considerably.”

Committee member Frank Pumilia pointed out an expenditure of $14,000 to maintain property in foreclosure this year and $24,000 that's budgeted for next year. “We’re going to try to collect it, but my guess is we’re only going to get about 25 percent of it,” Hagyard said.

Stiffler said maintenance is being performed at 21 foreclosed homes on the North and South.

Committee member John Weatherford called a projection for 200 customers for new digital cable TV services “impossible.” “I think we can do it,” said Stiffler, adding that the long-delayed launch of the services is about to happen and “we have our advertising pieces ready to go.”

The Communications Committee met last week with the marketing representative for the project to finalize a promotional piece with the new channel line-up. The brochure will be mailed to RMA members.

Justin Jordan, contractor for the project and a former committee member, said then that new channels were being added as they became available. “I am doing what I like to call the as-I-get-it launch,” he told the committee. “We should have most of it completed within the next seven days. … We’re technically launched now.”

In brief

• The Finance Committee voted to recommend spending up to $23,000 for a Ford Escape to replace General Manager David Stiffler’s Ford Explorer. The purchase is subject to the board’s approval. The general manager’s compensation includes the use of a vehicle, and the high-mileage Explorer has been used by the last three managers. Stiffler described the Escape as a fuel-efficient “mini-Explorer,” and said it would save $1,500 in fuel costs annually. The current vehicle will be passed to the Compliance Department, replacing its 1997 Explorer, which will be traded in.
• Maintenance Manager Rod Hart asked to replace two trucks with four all-terrain vehicles. The ATVs are fuel-efficient and provide more flexibility for deploying workers, he said. The committee recommended approving up to $31,500 for four ATVs and trailers that will be outfitted to carry tools.
• This year’s reserve study update shows the association’s reserves are 82.2 percent funded, Financial Manager Colleen Hagyard said. The 30-year study is required by law.
• Escrow closings increased in June and July, and “I think I got eight just in the first week of August that closed,” Hagyard said. “It’s really starting to pick up.”
• Hagyard said financially troubled South developer Reynen & Bardis is current in dues payments for the 32 units it owns. “Right now every indication is they’ll be able to sell those relatively quickly,” she said.