2016 Budget - Letter to Homeowners
c/o CCR Management, Inc.
427 Exton Commons Exton, Pa 19341
Phone 610-363-1322 - Fax 610-363-2310
October 15, 2015
Re: 2016 Budget & Monthly HOA Assessment
We are presenting the 2016 Budget earlier than usual this year to provide ample advance notice that the monthly HOA assessment credit period ends in December, and payments begin for 2016 and are due January 1st, 2016.
CCR Management will resume the deduction of monthly assessments from homeowner bank accounts beginning with the January 1, 2016 payment. CCR will mail coupon payment books to homeowners who pay by coupon. Homeowners whose payments are self - directed to be withdrawn from their bank or financial institution are asked to notify their bank to resume their monthly deduction beginning with the January 1, 2016 payment.
Your Board of Directors encourages you to make your monthly payments by automatic debit through CCR Management. You can depend on these funds being deposited in a timely manner. If your Association’s assessment change, CCR will make the change for you. If you are interested in taking advantage of the ACH method of payment, an ACH Form is enclosed and should be completed and returned to CCR Management with a voided check. ACH payments can be started any time during the year.
We are pleased to announce that Assessments in 2016 will be $225 per month, a $20 per month decrease (8%) from $245 paid in 2015. Revenues from assessments and interest earned in 2016 are projected at $126,450 with expenses of $134,450, leaving a deficit of $8,000. Expenses in 2016 will remain flat from the 2015 levels.
Having carefully evaluated the cash flow needs for the year ahead, we reduced assessments at the same time funded the $8,000 revenue shortfall using surplus funds in the operating account, and will continue in the future until any remaining declared surplus funds are exhausted. Usage of surplus funds is permissible in the Declaration and by the PA Planned Community Act.
Financial management of the Association has been and continues to be balanced, disciplined, and prudent following a Financial and Investment Plan approved by the Board in July 2015 and posted on the website that we encourage homeowners to review. We concluded with proper financial management; the Association can attend to the operational, reserves, and maintenance of the community at $225 per month for the next 3-4 years barring unforeseen circumstances.
Landscaping improvements along with tree maintenance for pruning, trimming, limb and stump removal, as well as controlling vine & vegetation growth, lawn seeding and aeration projects will be attended to again in 2016. After 2016 these expenses should begin to level off and reduce to appropriate levels for landscaping, tree maintenance and lawn improvements.
Comparable work was completed in 2015 however each year after 2016, a continued level of landscaping and tree care must be budgeted to maintain an ongoing respectable curb appeal image of the community. In 2015 and 2016, $40,000 will have been spent for tree and lawn care services not included in the annual landscaping contract with Outside Unlimited.
Monthly assessments were reduced this year by $25 a month, or $300 per year. In June driveways were seal coated, front doors and garage door trim were painted at a cost of $320 per home and a 5 month assessment credit was approved crediting each homeowner $1,225. In total $1,845 was returned to each homeowner in 2015 in the form of services or credit. In 2016 homeowners will save another $240 in reduced assessments using surplus funds. Thus a grand-total of $2,085 will have been returned to homeowners as a result of the financial restructure to the Reserve Fund relating to the Eighth Amendment.
A review will be presented at the 2016 Annual Meeting of the financial accomplishments for this year. We would like homeowners to know that our Association will end the year 2015 in a very sound financial position. Additionally we restructured the Balance Sheet increasing the Association’s equity position with a cash infusion of $25,000 at the same time eliminated the debt of $30,000 to Toll Brothers that collectively positioned the Association to offer reasonable assessments to homeowners in the future as outlined in this budget letter.
At the Annual Meeting in March the Executive Board presented a very ambitious agenda of community goals for 2015 as follows:
Amend the 8th Amendment, return to homeowner’s responsibility to maintain, repair and replace Limited Control and Limited Common Facilities.
Homeowner approval for a new amendment with a Special Meeting Vote by June 30th.
Passage of the new amendment could return an additional $1000 to homeowners.
Homeowners receive an assessment credit of $1000 during the 4th quarter.
Request for bids to seal coat driveways, paint front door, and garage door trim in 2015.
Attend to street trees for pruning and maintenance, and removal of dead trees.
Implement a plan for vegetation cutback.
Implement a turf improvement program beginning within high visibility areas.
Update community Rules and Regulations with distribution to the community.
Resolution of the $30,000 builder loan to Toll Brothers.
File documentation with CAI for a Gold Star Community Award by December 2015.
This year was no ordinary year and we would like homeowners to know that each goal outlined at the 2015 Annual Meeting will be achieved by year end, as we await a decision from Community Associates Institute (CAI) if our community has been designated for CAI’s Gold Star Community Award. In September the updated Rules and Regulations document was completed with legal review and will be mailed to homeowners shortly.
Looking ahead to 2016 our 3 year contract with CCR Management will end December 2016, and a new Board will need to renegotiate a new management contract with CCR or retain another management firm. We note a new Board because the Executive Board as currently organized will end in March at the 2016 Annual Meeting. As a reminder we still need to fill a Director vacancy, and one other director seat is up for election.
On behalf of Jane Wismer, we thank you for your support this past year, a year that was challenging and rewarding. We extend our best wishes for a Happy Holiday Season and a prosperous and healthy 2016.
Lou Franzini, President Paul Schroeder, Treasurer