By Ken Silveira, Board Treasurer AS THE NEW TREASURER, one of my first duties is to help with the
2022 Budget + Annual Disclosure
implementation of the 2022 Budget and publishing of the Annual Disclosure. The 2022 Budget was developed by a team led by Keiron McCammon including the Finance Committee, Accounting Department, Cove Advisor’s Committee, Water Quality Committee, and Water Company Long-Term Planning Committee. Challenges this year included trying to plan in the fallout of post-pandemic economic problems and the more recent disruption caused by the Caldor Fire and emergency evacuation. After several month’s work, the Budget was approved by the Board in October. The 2022 Annual Budget for the entire Association is $7.56 million. The single-family subdivisions represent $4.22 million or 56% of the budget and the townhome subdivisions represent $3.34 million or 44% of the budget. All members will soon be receiving the Annual Disclosure, which includes important legally required information about the Association including the 2022 budget and new assessments. There are two versions of the Annual Disclosure—one for the single-family subdivisions and one for the townhome subdivisions. Included in both versions of the Annual Disclosure is the 2022 Pro-Forma Budget and Notice of Assessment Increases, which explains the key elements of the budget and assessments. The notice shows the assessment for the common operations shared by all owners (Common, Water Quality, Water Company, and Channels & Lagoons) needed to be increased by 19.9%, raising this assessment to $881 per quarter. The increase for land-locked properties was less, due to a 50% discount on the Water Quality assessment. The primary reasons driving the increase were higher insurance costs, higher Water Quality operating costs, the new TRPA lake access fee (MOU), discontinued VHR fees, adding back an admin position, higher pavilion trash dumpster costs, and higher electricity costs. The increases were partially offset by staff reductions in security and pool operations, and lower legal costs. The townhome version of the Annual Disclosure includes the cost of shared common operations (above) plus the cost of townhome operations and reserves. The assessment for the 12 townhome subdivisions’ operating expenses and reserves increased by an average of 4.5% for a variety of reasons unique to each townhome subdivision. When combined with the cost of shared common operations, the overall assessment for the townhome subdivisions needed to be increased by an average of 9.7%, raising the average townhome assessment to $2,579 per quarter with a range from $2,150 to $3,213 per quarter.
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Keys Breeze
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DECEMBER 2021
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