I thought I would once again explain our forecasted monthly expenses. These amounts are based on the 2018 budget. As you know, our monthly assessment per homeowner unit is $259. Of this amount, $47 is credited to the Replacement Fund – this is the savings account used to pay for future items that need to be replaced, repaired, or renovated. The balance of the monthly assessment, or $212 per homeowner unit, is forecasted to pay estimated monthly operating expenses as follows:
- $48 for Facilities Maintenance
- $39 for General/Administration
- $29 for Golf
- $26 for Property Protection
- $23 for Landscaping
- $15 for Recreation/Lifestyle
- $10 for Utilities
- $12 for Fitness
- $7 for Food/Beverage
- $1 for Capital Improvements
- $2 for Common Area Improvements
- $3 for Contingency Fund
- $6 for Depreciation
You may notice that the expenses I listed total $221 per homeowner unit per month. The difference ($221 vs. $212) is derived from other income that is anticipated to be earned during the year.
In funding the list above, we are paying for the amenities and lifestyle we enjoy. Not one of the items listed above makes a profit, and that is why we pay the monthly assessments. All of these items are subsidized by our monthly assesments.
So, I have been asked many times during the past year, why doesn’t the restaurant make money? Why are we paying a subsidy for the restaurant? The answer is the same as for all the other items listed. We are paying a subsidy on all these items because they are conveniences that are supported by our monthly assessments. We don’t expect the swimming pools to make money, yet we pay to have them available. We don’t expect the fitness facilities to make money, yet we pay to have them available. We pay a subsidy on the Lifestyle programs so that we have them available. When we pay for the subsidy of the restaurant, it is no different than the subsidy of all the other amenities. We are paying a small cost for the availability of the restaurant, we are not paying to use the restaurant. So, don’t think the restaurant will ever break even, it won’t, just like all the other items, they too don’t break even. They are all part of a whole picture that contributes to the life experience of enjoying living here at Shadow Hills. So, as you look at the list, you can see that the restaurant is actually one of the lowest cost amenities we have. That does not of course mean that your Board will not constantly evaluate our amenity subsidies, and consider options, and try to do better for the benefit of all homeowners, as that is part of our responsibility.