There have been some questions about the July Newsletter. This is what the Executive Summary from the Reserve Study says:
"Based on this starting point, Your anticipated future expenses, and your historical Reserve contribution rate, we are forced to recommend a (multi-year) Special Assessment of $205,000 in 2006 and a Special Assessment of $225,000 in 2007.
"Additionally, our recommendation is to increase your monthly Reserve contributions [now at $2778 per month] to $4,830 [per month]. with annual inflation offsetting increases thereafter [every year, this figure would also increase, to keep pace with inflation]".
This is the first sentences from the letter to the homeowners about the Reserve Study dated September 7, 2006, that was included in the July Newsletter:
"As you may know, the yearly budget is composed of two parts. The first part is the “Operating Account”, in which funds are placed to address monthly billings, utilities, etc., as well as maintenance issues such as lights, landscaping, etc. The second part is the “Replacement Reserves” Account."
So the $2,778 is what we were putting away over in our Reserve Account each month, saving it up, for things like a roof, etc., after we paid off all our monthly bills, like garbage, sewer and water, insurance, etc., out of our Operating Account. The writers of the Reserve Study were saying that's not enough money to be setting aside and saving up each month, and recommended that it be increased by 75%.
