After a great deal of discussion, debate, and thought the board has come to the conclusion that the monthly association dues need to increase. This will be the first time in five years that we will be raising the dues, but our ability to do more with less has been stretched further and further and the time has come to raise them. We all agreed that to maintain our financial strength, keep the property maintained at a high level and provide adequate insurance, raising the fees is something we need to do at this time.
Expenses over the last five years have increased and become more frequent, our insurance costs have increased almost 30%. Our engineer review recommend that our repair and maintenance savings should increase, and as the property gets older more repairs are required to keep our mechanicals serviced. Finally low interest rates have kept our savings from accumulating any type of significant returns, slowing our ability to add additional funds.
Over the last four years we have accomplished a great deal in the community making our dollars go a long way some of the accomplishments are as follows;
· Painted all paintable surfaces in the community
· Painted pool bathrooms
· Pressure washed homes
· Replaced exterior lights
· New pool filters
· New pool heater
· New pond pumps
· Sealed drive ways and streets
· Added trees and shrubs
· Removed unwanted trees
· New pool furniture
Wanting to keep the community in ideal condition we have quite a few near term plans they include;
· Seal drive ways and streets
· Paint pool bathroom floors
· Paint pool deck
· Resurface pool
· Refurbish decks
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A quick note on the decks the decks in their current state are in need of resealing, the cost of resealing at this time is very expensive, in addition there are quite a few decks that are in need of refurbishment, that is a costly endeavor also. We are taking many items into consideration regarding these decks and want to make the best choice for the community, as a result we are being deliberate in our decision making process. Please bear with us as we go through this decision making process. These efforts require significant financial sums and with increased costs are difficult to complete without additional funds.
After hurricane Sandy the insurance for our community increased by $10,000 in 2013, in 2014 our deductibles were raised, we expect this trend to continue in the coming years.
In 2011 our savings goal for future maintenance and reserves was $15,000 and $45,000, respectively, a total of $60,000 per year, we set stretch goal of $20,000 and $60,000, a total of $80,000. The additional money set aside was for future financial prudence and repairs for things like decks which weren’t originally accounted for in the savings estimate. In 2013, our engineering firm, Falcon, stated that we should be saving $80,000 a year. Our stretch goal became an obligation and further reduced current funds for the community.
Over the years, unexpected maintenance costs have risen, this year a pool filter and pool heater were replaced, last year the pond pumps were replaced, we expect these types of repairs to continues as the community ages. This will also eat into current funds for the community.
Finally, in 2012 and 2013 we had no snow and the funds allocated for snow removal were used for other purposes (pool furniture and exterior lights), the snow this year and expected snow in the future will reduce another source of funding for future expenses.
As a result we are increasing the dues from $260 per month to $290 per month starting with the January 2015 payment. The $30 a month will total $30,600 a year in additional funds, these funds will enable the community to absorb the increases in savings, insurance and enable funds to repair and maintain the community. We are not happy to do this, but this measure is required at this time.
If you have any comments or questions please contact Ed Fortunato the Island Gate treasurer edwardfortuanto@gmail.com in addition, we wanted to share this with the community before our meeting on the 19th so we could discuss it at the meeting.
As always thank you for your cooperation and understanding
