2010 Operating & Reserve Budgets

Update from the Treasurer - Nov 21

The Board is delighted to announce that the regular assessment for 2010 will remain at the same level as 2009 – no dues increase.  Clubhouse rental will also remain at $90. The 2010 budget continues to focus on reducing and controlling our operating costs, while also adequately funding our reserves. 

Over the last five years, the Board has undertaken many important maintenance and refurbishment projects, including fascia refurbishment; streets, pathway and signage refurbishment; lighting renovations; irrigation system upgrades; main pool refurbishment and upgrade to ADA compliance; and satellite pool removals.  There are still a number of major projects in the queue, such as painting, refurbishing the clubhouses and remaining satellite pools, renovating the perimeter fencing, and the big unknown – replacing the roofs.  Major projects such as these are funded from the reserves.  The Board’s goal for the future is to prioritize the major projects by balancing factors such as the cost of the project, urgency, impacts of delay, capacity of the Board to oversee more than one project at a time, etc. 

Beachwalk has been negatively impacted by the economy.  Unfortunately, there is no economic stimulus/bailout for HOAs.  The delinquency rate is much higher than usual, and it will probably get worse before it gets better.  Expect to see write-offs for bad debt in our next audit.  While this sounds terribly gloomy, our circumstances are better than many.  Keystone’s head of collections has assured us we are doing everything we can and that there are many HOAs in California that are much worse off than us.  Let’s all hope things get better in 2010.

Cost Reduction Survey - Dec 5

New Davis - Sterling Reserve Law - June 12

Discussion is beginning on Budgets for next year, annual budget and reserves.  A new law effective January 1, 2009, requires associations to provide a schedule for regular and special assessments including size and duration needed to sufficiently fund the reserves.  The specific Davis-Sterling law is:

Reserve Funding Plans. (Passed in 2007, Civil Code §1365(b)).Beginning January 1, 2009, associations must distribute a reserve funding plan (“RFP”) to all members along with the association's annual operating budget. The RFP must (i) describe how the association will pay for repairs and replacements of reserve items, and (ii) provide a schedule of special assessments, including size and duration of the special assessment, and increased regular assessments needed to sufficiently fund the RFP.

The question for the community is how do we do this? Budgets are finalized in August.