7357-R2_LSLA_2020_WinterNewsletter

LSLA Q3 Financial Update - Jim McBride, Treasurer

Despite the profoundly serious global impact, financial concerns, and uncertainty regarding the Coronavirus pandemic, it has been another good year on the lake with strong support from our membership. Overall, Little Sebago Lake Association continues to be in good financial health. Here is a brief update based on the first three quarters of the year: • Year-to-date 2020 total income was $103,660, slightly behind last year by $5,260 or 5% due to the timing of expected grant revenue. Grant payments from State of Maine DEP and Town of Gray have not been received yet so we are $17,000 behind last year. Donations and endowments are actually higher than last year by $13,600, and much better than expected given the virus uncertainty. • Year-to-date total expenses were $104,505, lower than last year by $619 or 0.5%. Boat maintenance, equip purchases, and merch purchases are lower than last year. But the sandy narrows dredging, and payroll are higher this year. We are mostly on track compared to budget. • Year-to-date income was slightly less than expenses and we show a negative cash flow or deficit of $845. This is really a timing issue and will be resolved once we receive the anticipated grants of $17,000. • Net Worth at end of Q3 shows total assets of $328,701 including $17,550 in our operating account. Compared to year-end 2019, our assets are up by $8,701. Endowment and Reserves with Maine Community Foundation In 2015, the LSLA Board of Directors decided to partner with the prestigious Maine Community Foundation to manage both the Endowment Fund and the Reserve Fund for the association. The Maine Community Foundation is a statewide public foundation whose core purpose is to work with donors and other partners to improve the quality of life for all Maine people. The Maine Community Foundation (MCF) invests our funds, along with the other assets in their Primary Investment Portfolio, with a goal to preserve and enhance the real value through prudent institutional investment strategies. Despite the stock market correction earlier this year resulting from the pandemic, at the end of the third quarter, MaineCF’s primary pool had rebounded in value to its pre-pandemic level. At the end of September our Endowment totaled $59,933 and our Reserve Fund totaled $251,218. So far this year, we have received additional gifts for the Endowment totaling almost $10,000. Please consider a generous donation to the Little Sebago Lake Association Endowment Fund as part of your year-end charitable giving.

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