MVF Pushing for Five-Year Capital Plan

The Montgomery Village Foundation is looking to take another crucial step tonight in its push to adopt a budget for 2012 that will lay the groundwork for a pair of initiatives unprecedented in the nonprofit’s 45-year history.

Two topics will dominate the discussion at the North Creek Community Center, a meeting between the foundation’s board of directors and its audit committee. One: a proposed “Capital Contribution to Reserves” fee that would be charged on all home sales in the Village. Two: a five-year plan that lays out a dozen projects costing nearly $1 million to add or upgrade community amenities.

The CCR fee would add one-tenth of 1 percent of a home’s selling price ($250 for a $250,000 home) and funnel it to the foundation strictly to be used on capital projects.

The fee is a linchpin to the five-year plan; it is projected to generate upwards of $75,000 per year starting in 2013. Specially appointed community representatives will need to agree to amend the Village’s by-laws.

Foundation leaders believe they have addressed the concerns that kept it from passing last year, specifying that the revenue is only for capital projects and cannot be used for operating expenses or for political activities.

"We’ve refined the language. It’s a very clear structure… The revenue goes into separate accounting and it can’t be used for anything but," said Bob Hydorn, president of the foundation’s board. "I think it will pass. I clearly do. We’ve got a situation where if we want to move forward and improve and put in some of these larger projects, it’s got to be done with such a fee."

If the fee is approved next month, the five-year plan can be implemented without needing to raise resident assessment fees until 2014.

David Humpton, the foundation’s executive vice president, unveiled the plan earlier this year, saying it was necessary to take a big-picture look at the Village’s needs and how to pay for them. Humpton’s plan lays out a funding structure that pulls from various sources: undesignated reserves, the CCR fee, assessment increases and state and local grants.

Starting in 2014, assessment fees will need to increase 50 cents per household per month.

At meetings in April and May and June, the board gave tacit approval of the list of projects and how to fund them:

2011

Draw from undesignated reserves: $575,000

2012

• Theater pond fountain $25,000
• South Valley Park bathroom: $250,000
• Path study: $20,000

Draw from undesignated reserves: $165,000

2013

• Fitness center $300,000
• Path study: $50,000

Draw from undesignated reserves: $267,000

CCR fee will generate: $78,000

2014

• Replace/move Montgomery Village welcome sign: $40,000
• MVF office pavilion: $60,000
• Path study: $50,000

CCR fee will generate: $81,900

2015

• Remodel reception area of MVF office: $100,000
• Path study: $50,000

CCR fee will generate: $85,995

2016

• Path study: $50,000

CCR fee will generate: $90,295

If the audit committee concurs with that vision, the 2012 budget will be published in the Village News on Aug. 19 and be open to 30 days of public comment.

The rest of the budget schedule is as follows:

• Sept. 19: Meeting with the community reps to vote on the CCR fee and on raising the ceiling on resident assessments
• Public comment at Aug. 25 and Sept. 22 board meetings
• Oct. 27 board meeting: Adopt 2012 budget and set assessment rates