7102-R4_LSLA_2020_SummerNewsletter_Web

Little Sebago Lake Assoc. ~ Treasurer’s Report by Jim McBride

A summary financial report showing 2019 results compared to budget is attached. It also shows the proposed budget for 2020. We ended the 2019 year in very strong financial shape. Here are a few highlights: • Total 2019 income was $137,297 which was above budget by $14,917. Donations under our membership appeal continued higher than expected, and we had very strong support for our year-end request for endowment gifts. We did not need to transfer interest & dividend income from our reserves and endowment investments. • Our budget for 2020 shows total income of $137,900 reflecting lower expectations for donations, endowment giving, and fundraising raffle. Those reductions are offset by an increase in grant revenue as Windham doubled its grant for milfoil and dam repair support. Nonetheless, we expect to use $10,000 from interest and growth in our reserves and endowment investments to help offset operating expenses. • Total 2019 expenses were $129,025 which were above budget by $8,125. We were significantly over budget in boat maintenance and in repairs to the dam. But we had lower costs than expected in equipment purchases for a new dock, and in payroll, and watershed protection mini grants. • Our budget for 2020 shows total expenses of $137,900 reflecting more repairs to the dam, $10,000 for a new milfoil survey in the middle lake, $9,000 for excavator dredging in the lower narrows, and $2,500 for a new water quality testing program • Total Income Less Expense: We ended 2019 with positive cash flow and a net surplus of $8,272. Our 2020 budget shows a balanced budget with no deficit or surplus. As noted before, we budgeted to use $10,000 from the growth and interest generated by our reserve and endowment investments. We will not tap into the principle amounts in either account. Under Maine Community Foundation guidelines, we are eligible to withdraw over $32,000 from those accounts to help offset our operating costs, but we will use less than 1/3 of that allowance. And if other operating expenses come in lower than anticipated we may not need to withdraw the full $10,000. • Net Worth – At year-end 2019 we had total assets of $320,000, just over $41,400 higher than last year. This was due to the operating surplus and growth in invested funds for the endowment and reserves. • Special note: I am writing this report for the spring newsletter on March 31 st , right in the midst of the confusing and very serious impacts from the Coronavirus pandemic. The LSLAboard is aware that our financial results and our investments may be significantly impacted by these events. The board intends to monitor our performance more closely than ever and make operating adjustments as needed to be prudent stewards of Little Sebago Lake and our association’s resources.

16