7968-R2_LSLA_2022_SummerNewsletter_Web

LSLA Treasurer’s Report - Jim McBride

LSLA Annual Budget - Jim McBride

A summary financial report showing 2021 results compared to budget is attached. It also shows the proposed budget for 2022. We ended the 2021 year in excellent financial shape due to incredibly strong support from our members and friends, prudent fiscal management from our board, and impressive market growth for our investment accounts. Our 2022 budget includes two special lines related to a major upgrade of the dam estimated to cost $76,000. The dam upgrade will be funded from our Reserve Investments, but we will pass the expense and offsetting income through the operating budget for complete transparency. The net impact on the budget is $0. Here are a few other highlights: • Total 2021 income was $194,395 which was above budget by $36,395. Donations under our membership appeal were much higher than expected, and we had wonderfully strong support for our year-end request for endowment gifts. We had increased grants from the Maine DEP, as well as a new MCF grant to provide more coverage for increased boating activity during the pandemic. We did not need to transfer interest/growth from our reserves and endowment investments to fund operations. • Our budget for 2022 shows total income of $273,200 with the large increase attributed to the $76,000 dam upgrade. Excluding the dam upgrade, the revenue goes up by $2,800. It reflects 10-12% decreases in donations and endowment giving to be more conservative, but higher grant revenue from Windham, Gray, DEP, and new grants for the milfoil and water quality programs. This assumes $0 in funds taken from the Endowment. • Total 2021 expenses were $140,012 which were below budget by $17,988. We were over budget in merchandise expense, but we had lower costs than expected in all other program areas. • Our budget for 2022 shows total expenses of $273,200 with the largest increase attributed to the $76,000 dam upgrade. It also reflects increased milfoil program costs including a new survey, as well as higher costs for lower narrows, water quality testing, and the safety patrol program. • Total Income Less Expense: We ended 2021 with strong positive cash flow and a net surplus of $54,382. Our 2022 budget shows a balanced budget with no deficit or surplus. As noted before, we will use up to $76,000 from the interest/growth generated by our Reserves. But we will not tap into funds from our Endowment. • Net Worth – at year-end 2021 we had total assets of $508,901, almost $124,000 higher than last year. This was due to the operating surplus and growth in invested funds for the endowment and reserves managed by the Maine Community Foundation. • We are incredibly grateful for the strong support from our members and friends who make donations, give to the endowment, join the raffle, and purchase merchandise that helps us keep Little Sebago a safe and healthy lake for all to enjoy! We are also very appreciative of the important grant support provided by the towns of Gray and Windham, the State of Maine DEP, and the Maine Community Foundation.

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