The RA Board voted May 26 to move $430,000 from its operating fund to cover cost overruns on the project. RA bought the property, then known as the Tetra Building, for $2.6 million in July 2015. The purchase was approved by a member referendum.
Several factors, including previous tenant Tetra Partners opting not to rent back for 2016 and renovation costs that were much more than expected, led to the deficit, RA officials said last month.
RA hopes to finish renovations promptly and begin programming at the 3,000-square-foot building on the shores of Lake Newport. RA expects to bring in more than $100,000 annually from event rentals and after-school care.
In addition to voting in May to transfer the money, the board also voted to start a review of Lake House 2016 Budgeting.
According to a proposal by Michael Sanio, Board Governance Chair, the association will convene a Lake House Budget Task Force that will consist of several RA Board of Directors members; a rep from RA’s Fiscal Committee; and an external community member.
The Board Operations Committee meeting is at 6 p.m. Tuesday at RA Headquarters, 12001 Sunrise Valley Dr. There will be a public hearing portion, where members can offer their opinion on the Lake House budgeting review process.
The Lake House Task Force would be expected to provide its final report to the RA Board on Sept. 28. RA documents said the task force will:
- Review budgets and referendum information prepared and distributed by the RA, as well as the process utilized to prepare those documents.
- Review the steps taken for the acquisition and remodel of the Lake House to ensure that the correct financial, accounting and project management/controls were followed.
- Recommend revised RA processes to ensure future construction projects and operating budgets are accurate and conform to best practice industry standards.