President’s Report – December 2019

Monthly Breakout of 2020 Assessment

As the new year begins, 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 an $8 per unit per month reduction because of a forecasted Operating Fund surplus in 2019. By this I mean, the 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. The Replacement Fund is credited with $47 per homeowner unit. This fund accumulates financial resources for future replacements or major repairs of common area real and personal property components that the Association owns. The balance of the monthly assessment, or $226 per homeowner unit, is forecast to pay estimated monthly operating 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 we anticipate earning 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% rise. This is very reasonable considering cost increases like the 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.

Kim Fuller
President