On Tuesday, November 1, 2022, at 7:30 PM the Board of Directors will determine the 2023 Assessment for Memorial Northwest. Last month the Board of Directors reviewed the 2023 proposed budget to best serve our community. Everyone in our community should be aware of the current economic conditions facing our nation and the world. The mid-term elections are happening now so get out and vote.
For our community, we see an increase in costs of wages, insurance, and services due to inflation and other uncontrollable circumstances. Based on the proposed 2023 budget, an increase of 10% does not provide any increased funding towards reserves for future asset replacement.
The Board has taken extraordinary steps this past summer to dramatically change directions to better aligned quality services for our community. We now have another property management company (FirstService Residential) dedicated and aligned to our community needs. The strategy is simple, provide easy access and accountable service within our subdivision.
We have a new Property Manager and Lifestyle Coordinator that offices at our Community Center and are dedicated to our needs. Please feel free to stop by and say hello.
I hope to see you at our Board meeting on Tuesday.
10% is the max. Stay within your budget. Just like the rest of us have to.
Exactly! Stay within the 10% cap. Reduce wages or services if necessary.
This seems intuitively obvious when you manage your own budget. As a family we decide what are the priority budget things we may do with out. Perhaps less eating out or change in hobbies, recreational activities or some other thing to do without.
As a community, what services are you willing to do whithout as this decision impacts your neighbor and their neighbor and so on.
Where can we access the actual budget for this year compared to last.
We received a club house increase in 2016 which raised the fees 84.3%. Then increase for 2017 was 10%, 2018 was 6.4%, 2019 was 14.5%, 2021 was 10% and now this just under 10%.
History of assessments:
2016 ($470) 2017 ($517) 2018 ($550) 2019 ($630) 2020 ($630) 2021 ($693) 2022 ($693) 2023 ($760)
To get a good picture of the budget, attend the February Membership meeting each year. This meeting provides the best guidance on the upcoming financial plan for the year.
The 84.3% for 2016 is not accurate. The increases today incorporate reserve funding.
Reserve funding is to replace our common areas to keep them usable. One of the major items missing in the above History is from 2006 to 2013, our dues were $400 without any icreases. Families with kids back then had to endure facilities that were falling apart or do without.
What we resolve today as a community is not to repeat the selfish past and pay for what we use. Everyone should have a great place to live.
As I read the history of the increases, I see that all of them, except one, are very close to the 10% limit. Inflation has been running low throughout the 2016 to 2020 time frame, at 2-3%. I do not believe any of the residents were receiving 7-10% raises each of those 4 years in which the increases were levied.
Additionally, one of the recent years, my assessment statement indicated the increase was to cover the cost of homeowners who were not paying their dues. I am curious as to how much of the assessment is collected because some homeowners are not paying their dues. Why should I and all others pay their dues?
I understand the covenant I have with my neighbors, and I knew and accepted the annual assessments when I bought my home in 2004. I do not feel 10% per annum is justifiable simply because there is a 10% cap.
Every October the Board develops a budget and decides the Assessment amount for the next year, usually at the November meeting. Attending these two meeting or review the meeting minutes may help understand the expenses of the Association.
If we do the math from 2019 forward, the increase on average has been 5.1%. The amount of the assessment is based on the expenses to serve the community.
All individuals who do not pay their assessments, we file a lawsuit to foreclose on the property to recover the unpaid assessments on your behalf. Roughly 4% (80 of 1,956) of the owners fall into the delinquent category. We all fund the legal cost upfront then may be reimbursed when the court disburses the funds from the equity from the sale of the property. The mortgage company gets paid first and HOA second.