A FIVE POINT ASSESSMENT COST REDUCTION PLAN

This 5-Point Plan reduces your Annual Assessment by $960 in FY2016 (next year)

1)    Decouple The Golf Course/Center:

SELL the Golf Course/Center "Facilities" (RETAIN the land ownership) for One Dollar to the Golf members and their allies. ECA defines required standards of Course and Center performance.

COST REDUCTION = $580,000/Yr. of Capital and Operating expenses ($400 per year per ECA member). 

FACTOID:  For FY2015 the Board approved Financial Plan contains authorization to spend $529K on Golf Course Capital plus over $200K to operate the Center; A total SPEND of $729K this Fiscal Year or $500 per ECA Owner plus the additional $300 Capital increase that ECA Sewer owners must pay.

2)    Mandatory reduction in ECA General and Administrative cost and staff by $450,000/Yr. ($310 per year per ECA owner) 

COST REDUCTION = $450,000/Yr. ($310 per year per ECA member)

FACTOID: FY2015 Financial Plan = $1,223,831. The FY2013 ACTUAL
G&A expense was $763,275, A $460,556 expense increase (60%) in 2 Two years! For further info see: http://eastmanblog.blogspot.com/2014/06/eastman-g-costs-increase-by-55-in-fy.html   

3)    Mandatory appropriation of all Membership Buy-In fees greater than $200,000 per year to the Eastman Sewer Division of the VDE Capital Funds. In FY 2014 this would be $147,000.

COST REDUCTION to Sewer Users = $147,000 for FY2014 ($285 per Sewer Owner

4)    NO NEW ECA DEBT/NO ECA SPECIAL ASSESSMENTS for a three year minimum ($250 per year per owner)

COST REDUCTION per ECA owner =$250 per year per owner.

5)    Make THE PLEDGE mandatory for all Eastman governance members. (See http://eastmanblog.blogspot.com/2014/08/take-pledge.html)

Total ECA Owner Annual Assessment Reduction--

ALL ECA OWNERS

$400+$310+$250= $960

Total ECA Owner and SEWER property owner reduction--

$400+$310+$250 +$285 = $1245

No financial or ECA employee support of Center or Golf Course as of end of FY2015.

Submitted by Robert Logan who is the CEO of a consulting practice since 1993 which provides expertise on improved business, financial and operational performance as well as leadership.