BUDGET BREAKDOWN 2009 2010
Social Educative $6 $0
2009: This is part of the salary paid to the government. These are payroll taxes for Elio Morales. He worked in Barqueta Nice. He no longer works for Barqueta Nice. He only earned $173 last year. He has been replaced by Juan Sanchez.
2010: His salary and the applicable government payroll taxes and fringes have been included under maintenance green areas.
Professional Risk $9 $0
2009: This is part of the salary paid to the government. These are payroll taxes for Elio Morales. He worked in Barqueta Nice. He no longer works for Barqueta Nice. He only earned $173 last year. He has been replaced by Juan Sanchez.
2010: Juan Sanchez’s salary and the applicable government payroll taxes and fringes have been included under maintenance green areas.
Currier $61 $500
2009: Expenses for sending documents to Panama City or David and bringing supplies from David by bus.
2010: Postage, sending parcels, sending bank deposits, transportation for purchaseing of items, sending social security workers payroll. .
Publication Expense $66 $180
2009: Advertising people for hire. Expenses for communicating with the owners by Constant Contact.
2010: Expenses for communicating with the owners by Constant Contact at $15 per month.
Social Security $137 $0
2009: 12% of labor expenses for Elio Morales and outstanding social security that was due for previous year.
2010: This will be included under Maintenance Green Areas
Legal Fees $160 $5,000
2009: Notary fees for the actas for the creation of the association-notary public and public registry fees (this does not include any attorney fees).
2010: To make the association costs $2,000 and we need to have some funds for collections, which will be around $3,000 for collections.
Salaries $173 $0
2009: Employees of Barqueta Nice: Elio Morales
2010: This will be included under Maintenance Green Areas.
Paper Cost $320 $0
2009: Those office supplies used in the accounting office that pertain to the business and activities of Barqueta Nice.
2010: This will be included under Office Expense.
Cleaning Supplies $343 $0
2009: Those supplies used to clean the office. Toilet paper, paper towels, soap, disinfectant, window cleaner, broom, mop, sponges, trash bags, light bulbs, etc.
2010: This has been included under Guardhouse Cleaning
Guardhouse Cleaning $383 $300
2009: Cleaning done in the guardhouse office, guard area and guardhouse bathroom.
2010: Cleaning supplies with which the guards will clean their toilet, area outside, and windows. We will shut down the office inside, so there will not be a charge for cleaning labor. .
Rent $394 $0
2009: Rental of tractor for watering the palms in the summer.
2010: This has been moved to Maintenance Green Areas.
Tools, Equipment and Supplies $492 $200
2009: Those tools and supplies necessary for maintaining the green areas.
2010: Those tools and supplies necessary for maintaining the green areas. The purchase of small tools (machetes, sharpeners, rakes, weed eater leader)
Technical Support $646 $0
2009: To keep the software, e-commerce site and credit card machine functioning
2010: This is included in Office Expense.
General Repairs $700 $250
2009: Repairs or substitutions used for the watering in the green areas and maintaining the well where for the irrigation water.
2010: Repairs or substitutions used for the watering in the green areas and maintaining the well where for the irrigation water.
Internet $822 $822
2009: Internet at the guardhouse and in the accounting office.
2010: Internet at the accounting office will be charged at $68.50 per month.
Administration* $866 $0
2009: That is one month of administration fees when there was no property manager full time, but rather part time people taking care of this.
2010: Not applicable under this item in the future budget
*This is the same as administrative professional fee.
Pest Control $915 $126
2009: Insecticide (bug fumigation) application in the green areas and around the guardhouse. Weed killer for the areas around the rocks and sidewalks and fertilizer for the green areas on the sides of the road and at the guardhouse.
2010: We are suspending bug fumigation around the guardhouse, but for July and August the charge has been $63 per month. Weed killer has been included under maintenance green areas.
Office Expense $1,504 $3,600
2009: Cost of the forms, such as invoices and receipts that have to be preprinted by law. Hosting the server, maintenance of the computers, printers, battery back ups, accounting software and program, and webpage for posting bills and making online payments.
2010: Cost of the forms, such as invoices and receipts that have to be preprinted by law. Hosting the server, maintenance of the computers, printers, battery back ups, accounting software and program, and webpage for posting bills and making online payments. Paper, office supplies, and technical support.
Telephone $1,597 $945
2009: Telephone at the gate and telephone in the accounting office. This is used for collecting and purchasing and for administration. PH Brisas paid for Brittany’s cell phone and Royal Sands paid for the land line. Consumption was $60/month when she was in the office. Telephone charges calls to David and Panama City as long distance charges.
2010: Phone service in the administration office. $26.25 per month is the fixed expense, plus $52.50 per month in long distance calls.
Trash and Waste Collection $2,598 $4,140
2009: $10/month for 21 houses, but they were picking up on more than 21 houses and only charging for the pick up of 21 houses.
2010: The trash company is now charging for the correct amount of houses, which is 30 in Barqueta Nice at $10 per month for 12 months and 9 houses at $10 per month for 6 months. These are the houses currently under construction that will be completed at some time this year..
Accounting Fees $4,800 $4,800
2009: This is the service of accounting which is accounting for the income, expenses, quotations for purchase, bank reconciliation, and tax return filing for $400 per month.
2010: This is the service of accounting which is accounting for the income, expenses, quotations for purchase, bank reconciliation, and tax return filing for $400 per month.
Guardhouse Electricity $6,117 $6,117
2009: Consumption of electric at the guardhouse including lighting in and at the guardhouse, gate operation, irrigation well pump, irrigation system at the guardhouse hill, as well as computer, air conditioning, and lights in the office..
2010: This is calculated based on the same consumption as the previous year.
Administrative Professional Fees $13,578 $14,400
2009: Corresponds to the money paid to those people who were the managers in the past year. Under this item are payments to Raul, Brittany, Yamir and Rosangela. If we add the administrative fee of $866, then we arrive at $14,444 for the past year. We are basing the new budget off of this number at $1,200 per month for the property manager.
2010: $1,200/month for the property manager and those people that assist her, use of the car, and gas.
Maintenance Green Areas $17,685 $16,379
2009: Green areas charges were for Agricola Jarquin, Global Dynamics, Edwin Sanchez, and the labor of Elio Morales and Juan Sanchez. They maintained the green areas, planted the palm trees, and cut the grass on the sides and the empty lots.
2010: Juan Sanchez labor, maintaining the green areas cut and the cutting the empty lots. For cutting the grass on the empty lots, it costs $80 per lot per year. There are 128 lots which will be cut, coming to a total of $10,240 for the cutting of the grass on the lots. Empty lots are paying the same as lots on which there are houses, but they are not receiving trash pick up which totals $120 per house per year. This is a difference of $40 per year that those lots on which there is a house are receiving above those empty lots. This is a benefit for building and investing in the property.
Additionally, the labor for Juan Sanchez is $4,159, which includes his salary and the government payroll taxes which apply to it. We own a weed eater and they use this with the machetes and backpack sprayer to take care of the green areas. Fertilizer and/or weed killer will cost about $400. The cost for watering the palms (rental of the tractor) costs $400 per year.
To cut the grass along the side of the road costs $30/hour for 2 hours, or rather $60 per cutting with a bushhog. This is done approximately 33 times /year or an average of 2 or 3 times per month.
This has gone down in price because we brought it out of contract and in house.
Security Guards $37,195 $32,819.04
2009: Amount that was published for the past year was off (higher than it should have been) because there was a double payment in one month, so one of those months corresponded to the month from the first half of the year and that is reflected in the new budget and in the corrected expenses for last year.
2010: The contract is for $43,758.60. 75% of this is applicable to Barqueta Nice and 25% to the Villas for the period of twelve months from July 2009 through June 2010. This includes 1 motorized guard and 1 guard at the gate. The motorized guard spends almost half the time on one the other side of the gate and a little more than half of the time inside of the gate on each turn. On his breaks he often spends time at the gate. This benefit has not been charged to Barqueta Nice. The other half of the contract is for the guard at the gate. None of this is applicable to the Villas since there is no guard or gate there.
We have had a question about why there should be 6 guards and if they were to make $400/month, then why the contract is for so much. There are 6 guards because there are 2 guards on 24 hours per day 7 days per week. Each turn is 8 hours, thus there are 3 turns in a day. This totals 6 guards per day. If the guards were to make $400 per month then the breakdown would be the following:
365 days
52 Sundays
11 holidays
302 working days
x15.39 per day per worker
4,647.78 (x 6 =27,886.68)
23.09 x 52= 1,200.68 x 3= 3,602.04 sundays
38.48 x 11 = 423.28 x 3= 1,269.84 holidays
27,886.68
3,602.04
+ 1,269.84
32,758.56
Decimo (13th month charged by law) 2,729.88
Vacation 2,978.05
Payroll Taxes
12% 4,615.98
1.5% 536.05
1.92% 738.56
2.10% 750.47
Grand Total $45,107.55
This would be more than the contract amount. Thus, each guard makes less than $400/month. This does not include for terminating anyone which we require severance pay, nor does it account for insurance, cell phones, permits, firearms, equipment, uniforms, motorcycle, or public relations with the police department. In summary, this would not only be more expensive, but the liability of having a security company is not one which we would want to take on in house.
We have quoted with other security companies and the prices are the same or higher for the same service. This security company has a connection with the police and may be able to get the police here faster if necessary. They pay for their own cell phone for the motorized guard currently and have been amenable to changes we may request or issues that have arisen. While changing security companies is a possibility, the overall cost will not be reduced based on the other quotes that we have received.
A suggestion has been made to have guards on horses. We have not encountered a security company to do this. However, this would be significantly more expensive not only for the care of the horses, but moreover, to have someone capable of riding and caring for the horses would be difficult to find and expensive.
What would be feasible is to cut the motorized guard during the day. We can get the change in the contract quoted should this be desired. Moreover, to further cut costs, we are taking the phone out of the guardhouse. The motorized guard may be reached by his cell phone.
Another suggestion has been made to add a camera at the gate. Adding a camera with a recording system would cost approximately $500 plus the cost of the internet per month at $59.95. This is not contemplated in this budget.
2010 TOTAL EXPENSES $90,678.04
Management Profit $9,596 $9,067.80
2009: This is the profit of the management company. It is 10% of the total expenses. There is no item here that is padded. So there is transparency of what the company makes. It is on a cost plus basis. Those expenses in the budget are exactly what is incurred without profit built in.
2010: This is the profit of the management company. It is 10% of the total expenses. There is no item here that is padded. So there is transparency of what the company makes. It is on a cost plus basis. Those expenses in the budget are exactly what is incurred without profit built in.
2010 SUBTOTAL $104,733.13
Tax Payable $5,283 $ 4,987.29
2009: 5% ITBMS tax that has to be paid on the due. When there is an association formed, this will not have to be paid, but right now we have to pay it even though we are not receiving the quotas.
2010: 5% ITBMS tax that has to be paid on the due. When there is an association formed, this will not have to be paid, but right now we have to pay it even though we are not receiving the quotas.
2009 TOTAL $106,444
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2010 TOTAL $104,733.13
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Loan Interest $?
Depending on the payment of themaintanance that are overdue, Barqueta Nice will have to start paying interest on the funds provided by the developer to run the expenses or curtail the services.
Road Repairs
The developer repaired the road on the way to the beach and inside of Barqueta Nice. The contractor only charged a token fee because it was the material that was used here for the tennis courts. Out of pocket, the developer spent $6,000 in the public road and we are only going to charge $300 for the road repairs in Barqueta Nice.
For the immediate future, we are not budgeting anything because we are not collecting sufficiently to make such road repairs. At a minimum the budget should be $500/year. Since this is not included, there will not be any more repairs until we collect more past due homeowner dues.
