Finances and Frontier
Given all that has happened, I would like to update you on the financial impact the pandemic has had on our operations along with what is happening with the Frontier plan.
Bruce Marley needed to resign from the Board. We will miss his presence and appreciate his many contributions. We are fortunate that Bruce will continue as a member of the Finance Advisory Committee. We are also fortunate that Carey Thompson was willing to step up and take Bruce’s place. There is no one more qualified to take over as Treasurer, and our sincerest thanks go out to Carey for her help during this time. Our situation just got a whole lot easier and more positive because of her efforts.
Because so many of you have asked about our finances and the possibility of a special assessment, I thought I should let Carey explain the current financial situation:
Yes, it’s true, I’m back as your HOA Board Treasurer. Why did I agree to return to the board? Following a 30-year career in state government, I have never abandoned my commitment to public service. Since my Board term expired three years ago, I’ve been an active member of the Finance Advisory Committee; so I’m up to speed on our current financial position.
The good news: there is no need for a special assessment. Our current annual forecast of operating results projects an unfavorable variance of just $25,000 compared to the 2020 annual budget.
Our revenue shortfalls have been offset by significantly reducing our expenses. Over the past several months, the Board, Troon, and DRM have done an excellent job in managing expenses during this pandemic crisis. Operating revenue is forecast to be down by $959,000, while expenses are forecast to be reduced by $934,000 -- thus a $25,000 increase in the operating deficit to $356,000. The 2020 budget was based upon a $331,000 operating deficit reflecting an $8 per unit per month credit in 2020 for the operating fund surplus from 2019.
The Board, along with the assistance of the Finance Advisory Committee, will continue to closely monitor our results of operations and financial position. We pledge to maintain our community’s excellent operations as well as our strong financial position.
I have been asked quite often about the Frontier Communications contract because Frontier has filed for bankruptcy. This was not unexpected. Frontier filed for Chapter 11 bankruptcy but said its service to customers will not be affected by the financial restructuring.
We have met with the reps from Frontier, and for them it is business as usual.
We will be finishing our contract negotiations and, if the terms are acceptable, will sign a five-year contract as presented to the residents.
We are hopeful we can finalize the agreement with Frontier and begin installation by late August or early September. It will take about three to four months to complete the install.
To recap, here are the basic provisions of the Frontier plan:
- It is a five-year, fiber optic, internet-only plan.
- It is $12 per month.
- All residents will have to participate and pay the $12 per month. There are no opt-out provisions for any resident even if they do not use the Frontier internet service.
- The internet speed is 500 upload and 500 download. This is the fastest speed available.
- The contract includes a wireless router, and there is no install fee to the resident.
- TV plans are available if residents want to purchase those plans directly from Frontier.
- A phone line is available for purchase directly from Frontier.
- Residents may purchase any TV plan from any provider. It is not required that you purchase TV plans from Frontier.
I want to thank Bill Wethe, Chair of the Finance Advisory Committee, for following the Frontier bankruptcy process to be sure the HOA is proceeding in a responsible way.
In these most unusual times, we will slowly return to normal while practicing safe behavior to protect our neighbors from this most devastating virus. If we can stay the course and apply all guidelines that have been given to us by County and State agencies, we will hopefully avoid anyone contracting this virus. Please help all of us stay safe by being responsible about your behavior during all activities. Masks and social distancing are the keys to our health and safety.
This is still a most beautiful place, and I can’t think of anywhere I would rather be. Clearly, it doesn’t get any better than this.
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