Once again as the first light breaks across the horizon, and a neighbor greets me with a “good morning,” I smile and reflect on the gift of this paradise. It is a pleasure meeting, talking, and working with so many of you. Feel free to contact me anytime with your questions or concerns.
One question that has come up quite often is: how is our monthly assessment spent? I thought I would take a moment and explain our forecasted monthly expenses. These amounts are based on the 2017 budget. As you know, our monthly assessment per homeowner unit is $255. Of this amount, $45 is credited to the Replacement Fund – this is the savings account we use to pay for future items that need to be replaced, repaired, or renovated. The balance of the monthly assessment, or $210 per homeowner unit, is forecasted to pay these estimated monthly operating expenses:
- $47 for Facilities Maintenance
- $44 for General/Administration
- $28 for Golf
- $27 for Property Protection
- $19 for Landscaping
- $13 for Recreation/Lifestyle
- $12 for Utilities
- $10 for Fitness
- $7 for Food/Beverage
- $6 for Capital Improvements
- $5 Common Area Improvements
- $5 for Contingency Fund
You may notice that the expenses I listed total $223 per homeowner unit per month. The difference ($223 vs. $210) is paid from other income that we anticipate earning 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 assessments.
So, I am asked, why doesn’t the restaurant make money? Why are we paying a subsidy for it? The answer is the same as for all the other items. We are paying a subsidy because all these items 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 for the Lifestyle programs so that we have them available.
When we pay to subsidize the restaurant, it is no different than the subsidy for 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.
And because of all the terrific things I get to do, I will reflect on this beautiful day, the good morning greeting, all of the kind people who make me smile, and say to myself, “It doesn’t get any better than this.”
Kim Fuller
President