Issue link: https://imageup.uberflip.com/i/995219
24 FOUR SEASONS BREEZE | JULY 2018 Reallocation of HOA Fees Over the past year the Finance Committee has observed a rise in our operating expenses. The monitoring and analysis of this trend appears to be associated with higher costs for labor, materials, supplies, fuel and utilities. At this point in our community development, the HOA has assumed accountability for repairs and maintenance of the vast majority of common area structures and grounds. Since over 200 homes remain to be built, corresponding HOA fees from these homes are not realized to the Association. Additionally, the HOA will be assuming responsibility for maintenance and upkeep of the Conservancy area and the currently unbudgeted costs associated with this property. As part of our fiscal management duties, the Finance Committee not only monitors HOA budgeted expenses but also unfunded proposals requested by our Committees. Proposals are reviewed and unless they reflect a safety issue or needed repair, non-priority proposals have been placed on hold for future consideration and funding. Therefore it is the Finance Committee's conclusion that the Association operating budget is inadequate to meet our current monthly expense requirements. In May the Finance Committee recommended to the BOD that the monthly HOA fee be reallocated to provide additional funding to the operating budget. What does this mean to us as homeowners? Each month our HOA fee is apportioned to the operating budget and capital reserve fund. At this time our capital reserve is funded at 129 percent, more than sufficient to meet our needs. By reallocating some of the capital reserve money to the operating budget we can provide funding to meet our operational expenses with minimal impact on our capital reserve. More importantly we will not need to increase HOA fees. The recommendation made to the BOD would reduce the capital reserve to 122 percent funding. On May 17, BOD approved the Finance Committee recommendation. This reallocation will be reevaluated at the end of 2018. Looking ahead, the Finance Committee will be preparing to provide input into the 2019 HOA budget. We will be working with the other committees to address their proposed funding needs. As a reminder, the Finance Committee meets the last Tuesday of the month at 1 pm in the RCN Conference Room. All are welcome to attend. ~ Claudia Rozzi Finance Committee