Capital Improvement Project

What is CapEx?

Capital expenditures (CapEx) are funds used by the Rec to purchase, upgrade and maintain physical assets. This includes the Rec property, buildings, technology, and equipment. CapEx is often used to undertake new projects (investments) by the Rec. This type of outlay is done primarily to add some future benefit to the Rec and its members. 

Simply, CapEx is any type of expense that the Rec will capitalize and show on our balance sheet as an investment. Capitalizing an asset requires the Rec to spread the cost of the expenditure over the useful life of the asset.

Conversely, operating expenses (OpEx) are shorter-term expenses required to meet the ongoing operational costs of running the Rec (like repairs). Unlike capital expenditures, operating expenses will be fully deducted from the Rec's taxes in the same year in which the expenses occur.

The purpose of this form is for members to suggest CapEx projects to the Rec. This form should not be used to report or propose repairs (please email those directly to members@diamondarec.com). 

The Board will periodically review all CapEx proposals submitted and invite members to present their ideas when appropriate.

Please note, per the Rec's By-Laws Section V.5.a, written notice shall be sent to the members of the Association whenever a proposed expenditure in excess of $10,000 is being considered by the Board of Directors. This notification shall be mailed 30 days prior to any formal commitment by the Board of Directors on behalf of the Association.

Thank you for proposing this project to the Rec. The Board's goal is to build and manage the facilities to our members wants and needs.

Upon submitting this form below, the Board will consider your proposal. Board members will vote on all proposals to determine which ones merit further evalution and contact you about potential next steps, if any.

For those proposals selected to move forward, the Board will likely ask the member(s) who drafted the proposal to present in more detail to the Board at a scheduled meeting. Regardless, upon further consideration the Board will have a final vote on all proposed capital expenditures. The Board may vote to not continue considering the proposed project, to ask for more information, to table the project to a future date, to approve the project, or to take the project directly to the membership for consideration (especially projects that exceed the $10,000 threshold).

Typically CapEx decisions are made in the Fall (August - October) so that they can be 1) shared with members during the annual meeting, and 2) considered in the next year's budget or future CapEx plans.