The Lakes at University Center
2011 HOA State Affairs End of Year Report (January 21, 2012)
-
Overview
HOA Financial Status
2012 Proposed Regular Assessment Payment Schedule
2011 Reserve Projects Review
2012 Proposed Reserve Project Initiatives
Overview
*Please be sure to make an effort to read the report completely as there are approved proposals for changes in
regular assessment payment amounts.
*All financial information included in this report has been provided by the association management.
The following sections discuss the end of year 2011 HOA state affairs. Unfortunately, due late arrival of financial reports
and financial data, the board was not able to complete a comprehensive review of the HOA 2011 business and reserve
proposals for 2012. However, the board did pass the HOA budget for 2012, which includes 2 options for the payment
schedule that is described below. The business that remains incomplete will be discussed during the next HOA board
meeting.
2010 HOA Financial status
- 2011 Income Summary
The 2011 regular assessment budget was set for $151,200 (90 units x 1680/year). The Lakes exceeded expectations for
2011 regular assessment collection by 15% (increase of 3% from 2010) resulting in an increase of $26,520.00 received
for 2011 regular assessment collection. In 2011, the regular assessment payment rate increased by 1.4% from 2010
generating a 96.4% (100 units /104 units) regular assessment payment rate. The payment rate was composed of 24
units who participated in the full payment plan of $1,680.00/year, while 76.33 units elected to pay the $450/quarterly
payment plan. The remaining income includes past collections for special assessments, regular assessments, fines, and
interest and gate remotes. The following table illustrates the 2011 Income breakout:
2011 Income Breakout
2011 Total General Assessment Calculation Breakout
Collections – Past Special Assessments
Collections – Past Regular Assessments, fines, and
interest
Bank Interest
Gate Remote – Income collected to offset expense for
bulk purchase of gate remotes.
2011 Total Income
$40,320 = 24 units x $1680 ($140/mo full payment plan)
$137,400 = 76.33 units x $1800 ($450/qtr payment plan)
$177,720.00
$2,483.7
$7,367.99
$88.46
$6,712.02
$197,972.19
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- Review of Expenses
The 2011 total expense was $152,242.75. This included $21,150 for new video, gate access and lighting systems, and
$5,375.14 for landscaping (new plant planting, front gate side walk construction, and removal of rock and grass
planting). The total expense quarterly average outlay was $38,060.69\quarter. The following table summarizes the
quarterly total expense and operating expense:
2011 Check Ledger Summary
Expense
Administration
Management
Maintenance
Annual Report
Insurance
Security
Utilities
Other
2011 Total Expense
Reserve Project – Access\Video\
Lighting systems upgrades
Reserve Project – Landscaping
2011 Total Operating Expense
Quarter 1
$311.97
$5,400.00
$9,170.00
$0.00
$1,772.45
$10,988.00
$3,457.25
$525.00
Quarter 2
$230.83
$5,400.00
$23,079.59
$0.00
$2,622.70
$20,079.46
$2,276.91
$205.54
Quarter 3
$366.57
$5,400.00
$18,646.43
$61.25
$1,747.53
$3,246.94
$2,351.24
$1,759.75
Quarter 4
$205.65
$5,400.00
$16,670.88
$0.00
$1,739.23
$-170.16
$4,944.29
$834.45
$34,744.67
$53,895.03 $33,579.71 $30,023.34
Total
$1,115.02
$21,600.00
$67,566.90
$61.25
$7,881.91
$34,144.24
$13,029.69
$3,324.74
$152,242.75
$7,051.00
$2,946.00
$2,200.00
$498.00
$655.00
$3,175.14
$21,150.00
$5,375.14
$27,693.67
$40,949.03
$33,081.71
$29,368.34
$125,717.61
From the chart, the 2011 net realized operating expense was $125,717.61, which was $4,722.25 below the projected
2011 expense budget of $130.439.25. The operating expense average was $31,429.40/quarter. This is a $2,743.78
(9.6%) increase in quarterly operating expense in comparison to 2010. The overall total increase for the 2011 was
$10,975.09. The following table provides overall expense increase / decrease comparison view of 2010 to 2011
operating expenditures.
2010 to 2011 Operating Expenditures Comparison
Expense
Administration
Management
Maintenance
Annual Report
Insurance
Security
Fumigation
Utilities
Other (Legal)
$(-1,018.42)
$887.04
$5,217.47
$(-482.00)
$(-14.30)
$11,227.91
$399.00
$(-905.31)
$(-4,390.30)
Total Additional Expenses $10,975.09
The above table indicates that there was savings of $6,810.33 incurred during the 2011 operating year in Administration,
Annual Report, Insurance, utilities, and other expense items. The table also lists expense increases of $17,785.42 for
management, maintenance, security, and fumigation expense items. The majority of these expense increases are
related to maintenance and security expenses. The following tables below provide a breakout for both maintenance
and security expenses. The overall increase in expenses for the 2012 was $10,975.
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Maintenance Expense Breakout
Lawn
Drains
Pool Panel
Lights
Valve
Electric Switch
Filter Grids
Increase cost for chemicals and Service
$1,170.00
$1,400.00
$585.00
$661.45
$223.23
$5.00
$590.00
$636.79
Total 2012 Maintenance Expense Increase $5271.47
Security Expense Breakout
Fence Repair
Phone
Lighting Repairs
Lighting Replacements
Remove damage gate track
Gate Remotes
$1,275.00
$337.53
$101.25
$115.05
$2,475.00
$6,924.08
Total 2012 Security Expense Increase $11,227.91
* Note: Gate remote expense represents initial outlay for bulk purchase of remotes. The current collection for
remotes is $6,712.02, which produces a realized net expense of $6,924.08 - $6,712.02 = $212.06
The following table provides an expense breakout per unit. The calculation is based on 100 units, operating expense of
$125,717.61, reserve allocation of $42,129.44, and reserve projects expense (Gate access, video and lighting system,
and landscaping) of $26,525.26.
Expenditure Breakout per Unit
2011 Operating Expense Allocation
2011 Reserve Allocation
2011 Reserve Project Expense Allocation
Total Expenditure per Unit
$104.75\unit\mo
$35.11\unit\mo
$22.10\unit\mo
$314.29\unit\quarter
$105.32\unit\quarter
$66.31\unit\quarter
$1257.18\unit\year
$421.29\unit\year
$265.25\unit\year
$161.96
$485.88
$1,943.52
- Status of Reserve Fund
As of December 31, 2011, the current holding for The Lakes HOA is $257,850.42. This amount distributed across to fund
the operating account of $35,000.00 and emergency fund of $15,000.00 for total of $50,000.00. The remaining portion
is allocated to The Lakes HOA reserve in amount of $207,850.42, which is a net increase of $42,129.44 from 2010. The
Lakes reserve is currently funded at 69% of projected total HOA liabilities of $300,500.00 (this figure is composed of
estimates provided by vendors). Please note the monies from the reserve are scheduled to be used for the upcoming
pool maintenance project (this will be discussed in the 2012 Reserve Project Initiative section). The following table
displays the current HOA account holdings:
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2011 End of Year Account Holdings
Operating Account
Emergency Account
Reserve Account
$35,000.00
$15,000.00
$207,850.42
Total Balance
$257,850.42
2012 Proposed Regular Assessment Payment Schedule
The following 2 options have been approved for the payment of regular assessments for 2012:
- Option #1: Regular quarterly payments of $450.00.
- Option #2: One time payoff of $1560.00 (averages as $130.00\month)
*Option #2 Eligibility Requirements:
1. Owner has to be in good standing with the HOA and their account.
2. Owner has to make complete payment of $1110.00 (assumes the $450.00 payment has been completed for 2012
quarter 1) by March 15, 2012.
2011 Reserve Projects Review
In 2011, the HOA implemented the following reserve projects:
Gate Access, and Surveillance systems
Gate Access Systems
Surveillance Systems
Front Entrance Lighting Update
$8,347.00
$5,920.00
$6,883.00
Total $21150.00 (Approved budget $22,000.00)
Landscaping Initiative
Additional Shrubbery added to fence line
$3,406.00
Concrete side walk added to front entrance, removal of
$1,969.14
gravel from beds and replaced with sod in front of units.
Total $5,375.14 (Approved budget $5,000.00)
The landscaping initiative was over budget by $375.14. This overage was collect from the general maintenance fund
included in the approved 2011 budget.
2012 Proposed Reserve Project Initiatives
- Pool Renovation
Due to the lack of meeting time during the annual meeting, this project is still under review by the board. Property
management has provided an estimate of $32,000.00, which includes replacing pool motors, tile repair, and pool remarsiting for both pools.
At this point, there has been no determination if a special assessment will be assessed. The variables involved regarding
the decision of a special assessment includes 2012 collection rate, end of year balance for 2012 HOA reserve, and
unforeseen expense throughout the 2012. If an assessment is issued, it will be limited to 20% of the project cost
(approximately $71.00 / unit). Presently, if the Lakes HOA hits it financial marks for next year, it is promising that an
assessment will not be issued.
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- Landscaping\Maintenance Projects
Due to the lack of meeting time during the annual meeting, this item will be reviewed during the next meeting.
Planting of Additional Shrubbery: Under Review
Removal of Gravel and Planting of sod: Under Review
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