Retained Earnings – During the Annual Budget meeting, a query arose regarding the “Retained Earnings” line item of $6,385,215 on the 2025 balance sheet. In the context of a non-profit organization, this figure can be misconstrued as available cash, which is not the case. Retained earnings in a For-profit corporation represents profits that are either distributed as dividends or reinvested in the business.
For the Association, retained earnings reflect accrued assets used to balance Assets with Equity and Liabilities in the Balance Sheet format. Although structured as a C Corporation, we operate as a non-profit entity, reinvesting all revenue into the association’s assets rather than distributing dividends. Our practice is to allocate nearly 100% of annual revenue toward operational needs, or retain cash to support expenditures at the beginning of the following fiscal year before new revenues are received. Many non-profit organizations utilize a Statement of Financial Position as opposed to a Balance Sheet, which we are considering adopting. The fundamental accounting equation remains: Assets – Liabilities = Net Assets.
Low-Water Crossing – well despite the almost 2” rain we finally received, ICON has been able to successfully install the new culvert and our permanent dredge pipe road crossing. The roadbed was ready for a temporary asphalt layer that was laid down just before Thanksgiving. The last step is to install the guard railing fixtures as soon as weather permits. This means we can open the bridge yet this year. We are very fortunate to have a partner like Colby Vifquain, owner of ICON, who puts in the extra mile to give us quality and timely results. Not too mention his wealth of expertise we tap often for ideas on improving infrastructure and saving money on projects. The last article I’ll write is when we officially open the bridge.
Resurface of Gate 3 to 4 Road – this project will be held off until the spring weather brings proper temperatures back. The asphalt plants will not run when too cold as you can’t lay down until the day trends up to above 50 degrees with ample hours of temperature for the asphalt to remain hot for the period of delivery and paving operations.
V66 Update – thanks to Jan Rase, S Block, and our renter Tiffany Kelsey for advising on resale preparations. The operations crew has started property clean-up, removing trees, shrubs, fencing, and decking. We have a list of tasks to tackle and are considering volunteer sessions to reduce costs and increase value for the Association. One such task will be to replace the deck with a couple of modifications. If you are a decking expert and want to help let me know. Monthly updates will follow.
Storage Lot – we have a great asset with the storage lot enabling members to store their trailers, campers, and other towable items. Unfortunately, this is one of our biggest problem areas to manage. Please help us with getting your 2025 forever stickers placed on your property, ensuring your Lot/BlK numbers are also applied. Last, but just as important take time a couple times of year to clear around your trailer or move it so our crews next mowing can keep the lot in great shape.
Courtesy Reminders – 2026 invoices will be mailed out first of January and are due by March 1, 2026.
If you have questions or topics, you would like discussed regarding the Association, please feel free to drop me a note at President@lakelotawana.net.
Sincerely,
Jeff Clemow
President