Question on 2010 Budget received today (11/23/09)

Since I will not be able to attend the meeting on December 10th, I hope our BOD can ask Peachtree the questions below or maybe giving answer here if it's known:

1. Comparing 2009 & 2010 Budget information I received, why is there a significant drop for estimated balance in the reserve? For the estimated reserve at 1/1/09 was $1,242,916 within 2009 Budget but at 1/1/10 the estimated is $816,431 within 2010 Budget I just received. Did we have any additional cost in this calendar year that is about $420k?

2. On the page called Membership Disclosure Summary, the remaining life range seems quite "wide" for all categories. I don't understand how the total assigned reserves are divided among the categories.

Thank you.

Carolyn at 470 Navaro Way

Carolyn wrote:Since I will not be able to attend the meeting on December 10th, I hope our BOD can ask Peachtree the questions below or maybe giving answer here if it's known:

1. Comparing 2009 & 2010 Budget information I received, why is there a significant drop for estimated balance in the reserve? For the estimated reserve at 1/1/09 was $1,242,916 within 2009 Budget but at 1/1/10 the estimated is $816,431 within 2010 Budget I just received. Did we have any additional cost in this calendar year that is about $420k?

2. On the page called Membership Disclosure Summary, the remaining life range seems quite "wide" for all categories. I don't understand how the total assigned reserves are divided among the categories.

Thank you.

Carolyn at 470 Navaro Way

Hi Carolyn,

We had 2 major expenses this year. First we resurfaced all the decks and then we repainted the entire complex. The life range is very wide. We actually had to pay a company to do a reserve study (we have to do this) and that's the range they use. Some of these things can vary greatly. As far as the assigned reserves, there's a formula they use to fund certain projects sooner than others based on the remaining life. It's a theoretical exercise since the funds are not locked into these components.

Hope that helps.

Take care,
Tom

Hi Tom,

I thought the amount for those two projects were built in when 2009 Budget was done but apparently not.

Thank you for your time to explain and have a good Thanksgiving.

Carolyn at 470 Navaro Way

So far, I have not received the new HOA coupon book for next year. Tom, would you please shed some light on that? Thank you.

Li Li
@Building # 470

nunu wrote:So far, I have not received the new HOA coupon book for next year. Tom, would you please shed some light on that? Thank you.

Li Li
@Building # 470

I haven't received mine either. We should have a board meeting this Thursday and I'll ask for an update.

Since we were able to keep the budget flat for next year, in theory, your HOA fee should be the same. However, anyone reading this...do not trust me. Check your coupon book to make sure. We were having this very discussion last month during the board meeting and Peachtree was telling us that even though the budget would be the same, the individual units might be slightly different fees (might be a few cents difference). It didn't make sense to us and we told them to make sure that everyone ended up paying the same amount but you never know.