By Pat Davis
Director in Residence, Riderwood Board of Directors
The creation of Riderwood’s 2019 budget is well underway. In this edition of the Reporter I’ll describe the work done so far, and in November I’ll conclude my explanation of the budget process which takes place in all of our Erickson-managed communities every year.
Back in June our Resident Advisory Council (RAC) began a total of eight open hearings to gather resident input on matters that will affect the budget for the coming year and beyond. Simultaneously, department managers created their assumptions for the following year and developed tentative operating and capital budgets based on them.
Assumptions are derived from research and experience related to our major expenses, including wages and benefits (over 60% of the budget), food, utilities, taxes, repairs and maintenance, and an operating reserve. Also considered are local market and employment trends, such as a local increase in the minimum wage to $15 per hour by 2021, and the arrival of the new Adventist Hospital which will compete with Riderwood for employees, are relevant to our planning. Corporate partners review the proposed budget to be sure it is consistent with corporate research, our Erickson Living Management (ELM) product model, and Board policy.
On August 31, our Community Relations Committee (representatives of the Riderwood Board) received the RAC’s recommendations. In addition, Administration presented their proposed 2019 assumptions and budget highlights to the CRC for comment.
This month Riderwood will present the budget package, with any changes, to ELM for regional review and the completion of required schedules and exhibits.
To be continued…