Notice of Dues Increase - effective January 1, 2019
Dear Homeowner
The Davenport Rim Board of Directors recently met to discuss the 2019 budget. After examining the 2018 actual expenses and budget amounts, the Board has approved an increase the monthly dues from $325 to $365, beginning January 1, 2019.
The Board is always reluctant to raise dues. Thus, we carefully examined the previous year’s year-to-date budget and compared those expenditures with last year’s projected budget, the first time in several years that a diligent analysis was done by a qualified CPA (i.e., our Treasurer). This is not to downplay the efforts of previous Boards, but it does take a lot of time to analyze and compare such data. We are grateful to Rich Matza, our Treasurer, for taking the time to determine whether any dues changes (or no changes) would be needed.
Thus, here are the reasons for the increase:
First: As previously announced, the Board decided this past year that the Irrigation controller was no longer able to be repaired and needed to be replaced. This was an expensive item and rather than have another special assessment, a loan was initiated to pay for this item over a 5-year period. The monthly payment for the loan equates to an amount of $15 per month per unit.
Second: An additional $25 increase is necessary because of the following factors:
The budget analysis mentioned above revealed that there were several areas in which the budget needed to be increased based upon a comparison with the actual 2018 amounts (for example, postage, sprinkler system service and repairs).
There have been increases in the landscape and management contracts for 2019.
With this dues increase, our neighborhood will more easily maintain a healthy level of reserves in the budget, a requirement of all stable neighborhood HOAs.
The Board has recognized the outstanding job that the homeowners have made regarding the landscaping of their homes. Related to this, the Board has identified additional work that needs to be performed in some of the common areas that have been neglected and need to be brought up to the new landscaping requirements.
Finally, as with any individual or business, the Board is aware that prices are constantly increasing and as such has built in a small increase for inflation.
The history of dues increases in our neighborhood shows modest increases, with no increases during many years. Furthermore, the Board has looked at HOA fees in areas surrounding our neighborhood, and even with the dues increase we are still among the lowest of our neighbors. And - most of the surrounding HOAs do not have water included in their dues.
The Board appreciates our owners’ understanding of the budget process, the desire to maintain sufficient reserves for emergencies, and the need to increase dues when necessary. Hopefully, our diligence at this time will prevent dues increases in the future.
You should see the increase reflected in your January 1, 2019 dues statement.
Sincerely,
Your Board of Directors