October 15, 2019 —A Bright New Year –And a Bright New Budget
High occupancy continues to enhance the
money picture at Kendal, as Felicia Bush,
Kendal’s Finance Manager, pointed out in her
December 16 presentation on the 2016 budget.
Monthly fees for Independent Living residents
have risen only 2.75 per cent for the coming
year, the lowest increase in Kalex history.
Resident input is an important part of the
budget preparation, Felicia emphasized. Residents
are asked to submit written requests for
both operating expenses and capital improvements,
and these requests are reviewed and
prioritized by Residents Council.
The Finance Committee of the Board of Directors reviews the
requested items and the budgets developed by
the staff’s department managers, then recommends
a budget to the Board. (The Finance
Committee currently includes four residents
among its ten members. These are Norm
Jones, Hardin Marion, Bill Russell, and John
South. Norm and Bill are members of the Kalex
Board of Directors as well as of the Finance
Committee.) The resulting budget is then sent
to the Kendal Corporation for review, and, in
good time, Felicia presents it to the residents.
A special feature of the presentation is
Felicia’s easy-to-read 21-page handout, filled
with lists and charts. Among the immediately visible things the
2016 budget will cover is some sprucing up:
power washing of buildings, window washing,
painting of corridors and other public areas.
(Time brings grime.)
Landscaping will continue
as a high priority. Our menus will retain their
appeal despite the rising cost of food — in
particular, of seafood, meat, and produce.
Less visible but important provisions in the
2016 budget are items related to our staff:
wage increases, some staff additions (including
the expansion of hours in some part-time jobs), an increase in health insurance premiums, and
staff education. Other increasing costs include
our bill for water, obtained from the city of Lexington,
and licensing fees and maintenance for
our Information Technology software.
The 2016 budget shows a total revenue of
$15,140,041. (Last year’s budget gave a figure
of $14,829,337. The fact that Kendal has seen
thirteen move-ins during 2015 has a definite
bearing here.) Almost all of our revenue comes
from residents, as shown by Felicia’s colorful
pie chart. Of the 2016 budgeted operating
revenue, 48.7 per cent comes from residential
feels and 46.5 per cent comes from Health
Center fees. Also shown, as slivers of the pie,
are “Investment Income” at 2.7 per cent, and
“Other Income,” at 2.2 per cent. Kendal has
funds invested with a number of firms, including
Vanguard, Wilmington Trust, and Lexington’s
Cornerstone Bank. The “Other Income”
category includes such things as dining and
catering charges and payments for guest lodging
at Sunnyside House.
The list of 2016 budgeted expenses shows a
total of $15,085,035. On a page headed,
“Where Does All the Money Go,” Felicia’s pie
chart shows 52.1 per cent for staff wages and
benefits. Other categories, in slices of diminishing
width, are marked for interest payments on
the bonds which made possible our recent construction
(Phase II, especially); general and administrative;
health services; dining services; utilities; our fee to Kendal Corporation (3.8 per
cent, or $489,359); maintenance/housekeeping/
laundry; and real estate taxes of $211,500.
— Jo McMurtry (Resident)
Originally published in the Kendal at Lexington Residents’ January 2016 Newsletter