2018 Financial Review & 2019 Monthly Assessment

Published: October 30, 2018

The 2018 budget anticipated 105 new home closings in 2018. There were only 30 closings. This created a budget shortfall, which resulted in the Declarant having to pay for several large expenses. The declarant paid for leak repairs to the amenity center, stone repairs to 20 homes and common walls, and the painting of 17 homes. The total paid by the Declarant to support the HOA cash shortfall was $53,000.As our community ages and requires more and more funds to operate, it is important for the HOA to become cash self-sufficient and have enough funds in the Reserve and Operating accounts to meet current and unexpected expenses. To that end, here is what is being done:

• In early 2018, the HOA Board approved a $1000 CAP fee to be paid at closing, by the buyer, for all new and existing home sales. That money will go to the Reserve Fund. At the end of 2018, it is anticipated that the Reserve Fund will have approximately $88,000.

• The Board renegotiated the landscape contract for 2019, resulting in a savings of $10,000.

• The HOA Board signed the insurance contract for 11/1/18 to 10/30/19. The good news is that our insurance rates decreased by 20%, and we were able to reduce our wind hail deductible from 5% to 2%, and to decrease our wind hail buy down deductible from $100,000 to $50,000. Our 2019 insurance costs for existing homes will be $198,725 plus finance charges.

• The 2019, budget includes 43 new home sales. The CAP fee from those sales will increase our reserves by $43,000.

The HOA Board of Directors approved an increase in the homeowner’s monthly assessments by 10%, starting January 1, 2019. This increases the monthly assessment for the Manor homes from $280.80 to $308, and the monthly assessment for the Vista homes from $230.30 to $253. If you pay your monthly assessment via a bank draft or automatic bill pay, please use the correct amount starting on 1/1/19. If you use the coupon book payment process, your new coupon book will be mailed to you.

The HOA Board of Directors approved the 2019, budget. If expenses don’t exceed our budget, we will have an operating cash surplus that will help the solvency of our HOA. The 2019 budget will be posted on the HOA web site.

The annual HOA Homeowner’s meeting will be held on January 15, 2019, at the Prestonwood Baptist Church. Please mark your calendars. Further information will be provided via US mail in early December.