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Lakewood Finance and Facilities
David Stackelhouse & Emmett McClintock
From the Chairs of Finance and Facilities Development Committees
On Monday October 17, the Finance (FC) and Facilities Development Committees (FDC) met jointly first, and then with the Lakewood Board to present the 2023 Operating Budget and Lakewood Improvement Program plans approved with both committees. This meeting was the culmination of much hard work by the LPOA staffs and FC and FDC through the summer and fall months. The planning process was complicated this year by the unprecedented level of inflation we are all experiencing. As of September, the Consumer Price Index (CPI) IS UP 8.52% over the prior year. That means that for a typical marked basket of consumer goods a service that we all buy, prices are up an average of 8.52%.
The overall guiding principle of the planning work this year is to protect Lakewood, both present and future. Over the past several years, Lakewood has made many improvements, greatly enhanced our amenities both on the water and off, and in the process, incurred debt which currently has a balance of $2.7 million. The new pools, an expanded and improved boat docks and improved playgrounds are major enhancements for all to enjoy. Starting in 2015, Lakewood began the process of setting aside a certain amount of Reserve money to protect, maintain and if needed, replace our amenities and key other structures. These Reserves help ensure that Lakewood will have a long and enjoyable future.
The current Lakewood debt was written for a five-year period at a very favorable annual interest rate of 3.65%. The Lakewood loan was a typical business loan, with the favorable interest rate, because of the strong history and financial health of Lakewood. The loan is due in May 2025. At that time, the remaining balance will be about $1.7 million. As a part of the planning structure this year, the FC and FDC agreed that prudent management would dictate that some monies be added to the Reserve balance to allow for the pay down of the note when it becomes due. That added financial amount was built into the Operating and Lakewood Improvement budgets. Many Improvement projects are being deferred unless safety or substantial improvements to the Lakewood operations is warranted. Both the Operating and Lakewood Improvement budget for 2023 are tight.
The operating revenue is enhanced by increasing monthly dues by the maximum annual assessment which is 12.78%. or an increase of $20.33 per month. This increase will allow Lakewood to meet the maintenance and operations of Lakewood as expected, and begin the process of setting aside money for the debt pay down in May of 2025.
