Kiawah Island Digest April 2016 | Page 2

2 April 2016 Town Approves New Municipal Center, Accepts KICA Offer to Purchase Existing Building Story Highlights Town approves new municipal center for $9.25 million Site work anticipated to begin by April 2016 At its March meeting, the Kiawah Island Town Council gave final approval to construct a new Municipal Center on property it purchased last fall on Betsy Kerrison Parkway. Construction of the new center was approved for $9.25 million, while Thomas Construction Group was chosen as the general contractor with a bid of $7.3 million. Council member John Labriola, who is also chair of the Municipal Center Committee, stated, “This decision represents a major milestone for the town to construct a new Town Hall on the Betsy Kerrison site and become the ‘Gateway’ to Kiawah.” Town accepts KICA offer of $1.575 million to purchase current building. The town built the existing facility in 1996 and the association has leased and occupied half of the building for its administrative operations since early 1997. The town intends to use the proceeds from this sale exclusively toward the construction of the new Municipal Center. KICA does not plan a member assessment to pay for the property, which can be paid for with existing reserves, a mortgage or a combination of the two. In a joint statement, Mayor Charlie Lipuma and (then) KICA Board Chair Dave Schoenholz hailed the agreement as a “winwin” for the community. Both KICA and the town had the property independently appraised and the two groups then worked together with both appraisers to reconcile differences in various assumptions and to agree to a fair price. It is anticipated that site work on the new center will begin by April. For more information and updates on the project, visit kiawahisland.org. KICA and the town will continue to be neighbors at the Beachwalker Drive facility until completion of the new Municipal Center, planned for mid-2017. Also at the March meeting, Town Council voted unanimously to accept an offer by KICA to purchase the existing Town Hall site for $1.575 million. Specific details, such as a closing date, have not yet been determined. Both the town and KICA look forward to providing updates to the community, as they are available. KICA Finances Strong, Stable for 2015-16 Story Highlights 2015 ended with a minor $57,722 negative variance compared to budget 2016 budget is break-even with a modest surplus of $260 Thanks to sound financial planning and oversight by KICA staff and committee members, the association is in strong financial position as it moves through 2016. That was the message from (then) KICA Board Treasurer Bruce Stemerman at the Annual Meeting held in March. Though the historic rain/flooding events last October led to an unexpected increase in expenses in 2015, an increase of nearly 12% in Contributions to Reserves (CTRs – 0.5 % fee on real estate transactions on Kiawah) boosted revenues. The end result was a very balanced and well-planned financial year in 2015, with just a minor ($57,722) negative variance compared to the 2015 budget. “Better planning has led to better spending,” said Stemerman. “KICA has an incredible team of staff finding better, more efficient ways to manage the island.” The 2016 budget anticipates an increase of both revenues and expenses, leading to a break-even budget with a modest surplus of $260. For a full look at the Treasurer’s Report, the 2016 budget, and other in-depth financial statements, visit kica.us/finances.