By Susan Thompson | Lake Panorama Times
John Rutledge
John Rutledge is in his 20th year as LPA general manager. In this month’s Q&A, he shares information on LPA budgets.
Q. Let’s start with an overview of the budget for Lake Panorama.
A. Yes, certainly. I’m often asked how the budget for Lake Panorama works. It’s a fair question, but the answer is complicated. To be precise, there are three budgets that come to mind when we talk about Lake Panorama: the LPA budget, the Lake Panorama Rural Improvement Zone (RIZ) budget, and the LPN, LLC (Lake Panorama National) budget. These three budgets work together to benefit Lake Panorama, but they are quite different in nature.
Q. We’re ready for more details.
A. First, let’s look at the budget for our wholly owned subsidiary, LPN, LLC. LPN represents the portion of the association business that is operated in a for-profit status. LPN includes the Lake Panorama National Golf Course, the Panorama West Golf Course and the conference center.
In addition to in-house operations, LPN maintains relationships with townhome and guesthouse owners for lodging, and with The Captain’s Pick for food, beverage and events. Of the three Lake Panorama budgets, LPN, LLC is the smallest operation with a budget of about $2 million annually in expenses. LPN is managed by a board of managers that employs Royce Shaffer as director of operations. The board of managers is appointed by the LPA Board of Directors.
Next is LPA, which is the property owners’ 501(c)(4) association. LPA manages roads, drinking water, the dam, security, administrative services and provides erosion control services to Lake Panorama RIZ. LPA is the largest of the three budgets with annual expenditures of about $5.6 million. The LPA Board of Directors oversees the association and employs me as general manager to handle day-to-day operations. The seven-member LPA board is elected by association members.
Finally, there is the RIZ budget. The RIZ budget differs substantially from the other two because it is a local government entity that receives property tax dollars. RIZ is managed by a board of trustees who are elected by residents of the zone. Unlike LPA, individuals who want to serve on the board of trustees or vote in the RIZ election must be lake residents. The expenditures for RIZ are more variable than the LPA and LPN budgets, because these are project-based and depend on timing of seven-figure land purchases and projects.
Let’s look at RIZ from a revenue standpoint. In this respect, RIZ falls between LPA and LPN. The bulk of RIZ revenues come from tax increment financing, or TIF, dollars, which are projected to be $3.9 million in fiscal year 2026-2027. Those dollars represent a portion of the property taxes paid by Lake Panorama property owners, which are returned to RIZ for very specific uses related to water quality and erosion control on our lake and in our watershed.
RIZ does not have any employees. Instead, it hires LPA to perform dredging, water quality and administrative services on an annual basis.
Q. Are there other budgets related to Lake Panorama beyond these three?
A. Yes. In addition to the “big three,” several smaller budgets exist.
The South Panorama Sanitary District (SPSD) is another local government entity, elected by residents of that district. SPSD has levy authority and is specifically in place to manage the sanitary district that serves the southwest portion of Lake Panorama.
The district was formed because a large segment of the Lake Panorama subdivision did not have acceptable perc tests. SPSD collects sewage and pumps it to the city of Panora, where it is treated. SPSD and the city of Panora have an ongoing contract for treatment services.
SPSD is not officially affiliated with LPA, however, we do provide assistance with budgeting and billing.
On top of all that, there are currently seven independent condo associations that exist within the broader LPA association. LPA does not have any official role in the management of these condo associations. However, we do strive to maintain a good working relationship with all seven. Each also manages its own annual budget.
Q. Don’t you find all of this confusing?
A. I would describe it more as a learning curve than confusion. Once members navigate the initial learning curve, they understand the full picture.
At times, LPA has received calls from members who want to discuss the overall cost of living. LPA can discuss this up to a point, but it is difficult to piece together all the components that contribute to an individual member’s overall cost of property ownership.
When you add services members may purchase from the marina and barge companies, it can be a lot to understand in a member’s first year. Just because an entity uses the name “Panorama” doesn’t mean it is officially part of LPA.
Q. Is there a way to simplify all these budgets?
A. Although complicated, the structure serves members well.
Regarding the “big three,” this structure allows LPA to segregate for-profit and not-for-profit operations. If LPA and LPN, LLC were not segregated, we believe it would put LPA’s 501(c)(4) nonprofit status in jeopardy, which would be very costly.
Separating RIZ is essential because the funding mechanism established in the Iowa Code is fundamentally different from the other two. In short, we cannot mix restricted property tax dollars with unrestricted membership dues.
The benefit of RIZ is so valuable that the complexity exponentially outweighs any challenges we encounter explaining it to others.
Q. Final thoughts?
A. This spring, I began my 20th year with Lake Panorama. Earlier in my career, a good friend and mentor of mine asked me if I believed we should run our operation like a business or like government.
It was a great question designed to make me evaluate my mindset in how I approach my role as general manager. After some thought, I told him, “Honestly, it’s a bit of both.” I’m 20 years in, and my answer remains the same. n