President
Good afternoon residents,
With the new year it seems only appropriate to explain once again our forecasted monthly expenses. These amounts are based on the Board approved 2020 budget. Your total monthly assessment per homeowner unit is $273, which reflects a $8 per unit per month reduction because of the forecasted Operating Fund surplus in 2019. By this I mean, total monthly assessment for 2020 would be $281 per unit had there not been a forecasted surplus for 2019.
Let us now look at the composition of the $273 monthly assessment. $47 per homeowner unit is credited to the Replacement Fund. This fund accumulates financial resources for future replacements or major repairs of common area real and personal property components owned by the Association. The balance of the monthly assessment, or $226 per homeowner unit, is forecasted to pay estimated monthly Operating Fund expenses as follows:
- $56 for Facilities Maintenance
- $37 for General/Administration
- $30 for Golf
- $30 for Property Protection
- $30 for Landscaping
- $16 for Recreation/Lifestyle
- $11 for Utilities
- $12 for Fitness
- $8 for Food/Beverage
- $0 for Capital Improvements
- $0 for Common Area Improvements
- $5 for Contingency Fund
- $11 for Depreciation
You may notice that the budgeted Operating Fund expenses I listed total $246 per homeowner unit per month. The difference in Operating Fund expenses and Operating Fund assessments ($246 vs. $226) is funded from Operating Fund other income that is anticipated to be earned during the year ($12 per unit per month) together with utilization of a portion of the forecasted Operating Fund surplus from 2019 ($8 per unit per month).
The net increase in assessments from $265 in 2019 to $273 in 2020 represents a 3.02% increase which is very reasonable considering cost increases like minimum wage which has gone up 8.3% beginning in 2020.
Below is a summary of the computation of the monthly assessments for 2020 and 2019.
| Detail of monthly assessment per unit: | 2020 | 2019 |
| Operating Fund, balanced budget | $ 234.00 | $ 228.25 |
| Operating Fund, credit for prior year surplus | (8.00) | (5.00) |
| Operating Fund, net assessment | 226.00 | 223.25 |
| Replacement Fund | 47.00 | 41.75 |
| Total monthly assessment billed to unit owners | $ 273.00 | $ 265.00 |
Thank you,
Kim Fuller
President