Fort Clark Springs Association Budget Workshop Reveals Ongoing Financial Strain

On Monday, September 8, the Fort Clark Springs Association (FCSA) Board of Directors held its second budget workshop and special meeting, confronting sobering realities about the association’s financial outlook.

Earlier this summer, directors had asked General Manager Charlena Cavender to revise a draft budget that projected a net operating loss of $266,635. At Monday’s meeting, Cavender presented a revised version, narrowing the projected deficit to $100,273, but still falling short of a balanced budget.

Some directors and members expressed alarm that the association has not yet produced a balanced budget, a capital budget, or a clear plan for long-term sustainability. The association’s operating bank balance of roughly $225,000 faces immediate pressures, including $132,000 in property taxes in October and approx. $40,000 in payroll per pay period, along with recurring monthly expenses.

The room fell silent multiple times as the general manager and directors acknowledged the possibility that operating expenses could outpace available funds before new revenue streams could be generated.

Cavender described assumptions behind the budget’s projected revenue increases, but directors pressed for clearer strategies. One example: motel revenues were budgeted higher despite the motel being partly closed due to safety concerns with its upstairs balconies. While hopes are high for renovations to reopen additional rooms, no occupancy rate data for the currently available rooms was provided. The lack of a required capital budget leaves both the scope and timeline of repairs uncertain, casting doubt on revenue projections.

Delinquent assessment collections were also discussed as a revenue opportunity. Cavender floated the idea of paying an employee on commission to pursue delinquent accounts, as directors noted the costs of collections. She also announced a position is open for an executive secretary. 

The most direct path toward revenue increases remains raising member assessments. The board is expected to vote before month-end on both a monthly assessment increase and a special assessment, with approval likely, as the assessment increase is already built into the revised budget.

Directors also stressed the need for significant cost reductions. President Guzman suggested reducing staff hours to 30 per week rather than cutting positions outright. Other cost-saving measures floated included eliminating events, trash pickup services, leasing out the golf course and airport, leveraging property against a surety bond. 

No final decisions were made, but directors emphasized the urgency of avoiding insolvency. The board also discussed adopting stricter financial controls, including requiring two board members to approve expenditures above a certain threshold and adopting a credit card policy to prevent personal or inappropriate spending. Directors Guzman and Wylie warned such measures could slow operations, while Director Mendias argued they are essential to uphold the board’s fiduciary duty during a financial crisis.

Cavender objected, stating she was offended and felt the measures implied accusations of overspending. Mendias responded that oversight is “reasonable and necessary” given the shrinking bank balance, the looming fiscal year, and the absence of both a balanced operating budget and a capital budget.

The board asked Ms. Cavender to revisit the proposed budget for further reductions with a possible special meeting next week to reconsider. Discussions about stricter oversight, revenue generation, and expense reductions are expected to continue as FCSA faces a challenging financial year ahead, and members are expected to see an increase in assessments with the new fiscal year. 

Watch the Sept. 8 Special Budget Workshop Meeting online:

CLICK HERE Read more about the 1st Budget Workshop on Aug. 9

CLICK HERE to read an editorial about the first draft of proposed budget

1st Draft Proposed Budget