Each year the Board of Directors is faced with the task of reviewing and approving the upcoming year’s budget. Careful consideration must be given to evaluate all operating costs, as well as the legal requirements imposed by the Civil Code.
The Board of Directors also live in the community and feel the same financial weight as all the members of the community. As Board members they have to put their personal objectives aside and make decisions in the best interest of the entire community, both short and long term. This duty is not only moral, but also legally required. As fiduciaries they must make decisions that a prudent person in their position would make. When considering the budget, the decisions of your current Board of Directors have future implications. The Board of Directors has a duty to take actions that will maintain the financial health and marketability of your community.
The 2024 budget does not include any inflated cost. All areas where decreased cost could be realized were made. In addition, to the operating cost, the Association also has a reserve allocation that is recommended by a Reserve Analyst. Your assessments can be increased by 20% without a vote of the membership. The Board of Directors has determined that an increase of 5% is necessary to keep up with current costs and follow the reserve allocation recommended.
We would like to keep the dues low and not implement special assessments. Unfortunately, there are few options which include;
We have included some helpful blogs from Action Property Management’s Uncommon Area to help provide some insight into the very difficult decisions your Board of Directors face.
BIGGEST BUDGETING MISTAKES IN 2022-23 | EP. 25
https://www.actionlife.com/biggest-budgeting-mistakes-in-2022-23-ep-25/ Considerations for HOA budgets for 2023 are different than any other time in recent memory. Inflation, labor shortages, increasing utility costs, contracts… all are significant factors to a different degree than ever before. HOAs that don’t properly take these factors into consideration in their budgets can find themselves in financial trouble. Action CEO Matthew Holbrook discusses this with Regional Manager Ryan Darby.
The pool patio cover will be replaced with an aluminum lifetime warranty cover in a color that is closest to the existing color.
The pool decking will be replaced prior to the patio cover replacement. When a schedule is available it will be published via email to those we have an email address on file for.
The Board approved additional proposals for City planning and permits to get the wall on Surf Cove, along Pelican and the Pool area replacemed. The one along Alicia is being evaluated for the best and most cost effective repair since the cost received for rebuilding the wall have exceed $1.5 Million. The Association only has $2 Million in reserves.
The Board approved the Annual Termite Treatment to be completed by Accurate Termite. Notification will be provided on dates via email and mail.
The Board was recently advised that all tree removals require City approval prior to commencement. This will now be an added process that will delay removals as well as added cost for processing fees.
The Board discussed parking enforcement. They will be implementing the use of parking decals to identify resident vehicles. All residents will be required to register the vehicle by 12/31/23. The Board completed a guest parking evaluation and has outlined how they intend to modify the guest parking. This report will be published on the Resident Portal for reference and sent via email to those we have an emai address for. There will be a special rule meeting via Zoom on November 15, 2023 at 5:00 p.m. to review the parking rules.