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If building the rock wall sounds expensive for our neighborhood theme.... How about just replacing damage wood boards and painting the wood fence instead? As of now, the wood fences (not gates) facing the street are all different color... Most of them are weathered, while the rest painted, and few are stained. Having them the same color will increase the appeal of the neighborhood and also would be a much cheaper alternative than building the rock wall... Any thoughts?
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I also think the improvement ideas would enhance the appearance of tthe Springs. However, short of an always-unpopular special assessment that would be in addition to the annual HOA assessment/dues, I don't believe we have or will have the funds available for such proposed projects. A combination of increased HOA costs (grounds maintenance, irrigation system maintenance, utility costs, landscaping, etc.) and the downturn of the U.S. economy that has seen interest rates on bank deposits reduce significantly have decreased the amount of discretionary funds the HOA may have for such beautification projects. For example, in 2007 the HOA's Reserve Funds garnered about $3,000 in interest income, while in 2008 the reducing interest rates will provide us only $1,800 in interest. As you may know, the Springs has a formal Reserve Study, complied and updated periodically by the Springs CPA firm. The Reserve Study not only forecasts which HOA-owned common property may need replacing due to age/deterioration, but also when and the estimated cost for each replacement. For example, the Study forecasts that about $3,200 in replacement costs should be realized in 2010 for such items as the park's BBQ grills and the entry gate keypad. The Study also identifies the recommended amount of Reserve funds the Springs should have available to accommodate the common area equipment and facility replacements as they occur. The Study, last updated in 2006, indicates that our HOA should have $62,330 in Reserve Funds at the end of 2008. We currently have about $64,630 in those funds, with another $110 estimated to be gained from interest in December 2008. So, we should have about $64,740 in Reserve Funds on January 1, 2009. Unfortunately, as the HOA budget data that was included in the December 2008 HOA Assessment statement reflects, HOA expenditures in 2008 will likely be at or above the amount budgeted - through October 31, 2008, the HOA had spent almost $40,000 of the $44,813 projected 2008 income, but we still have the November and December 2008 expenses to add on to the $40,000. Those expenses include our electric, water, and sewer bills, the grounds maintenance contract, and any other recurring or 1-time repair bills incurred during November and December. As the budget data also shows, the HOA hasn't had the funds to add to our Reserve Funds in 2008 - being already a bit above the Reserve Study's recommended amount for Reserve Funds in 2008 (about $2,000 more than the Study recommends), the inability to add to the Reserve Fund this year isn't critical. However, the Reserve Study indicates that the HOA should add about $7,300 to the Reserve Fund in 2009. As the 2009 approved budget shows, assuming there are no major repairs or early common area equipment replacements needed in 2009, the HOA is forecasting only $6,857 available in 2009 to add to the Reserve Fund, resulting in the HOA falling below the recommended Reserve Fund level. As such, any additional expenditures, such as the ones suggested with these beautification projects, are simply not affordable, unless items in the 2009 approved budget are reduced to provide the needed funds or additional income is realized. Hope the above is understandable. The bottom line, IMHO as a previous Springs HOA treasurer, is that the HOA's finances allow us to maintain our common areas, with some low-cost 1-time improvements made as funds become available (e.g., the recent landscape improvements, the programmed 2009 repair of park equipment, etc.), but do not provide us the luxury of having funds readily available for special projects such as those suggested here. Again, unless the HOA annual fees are raised, or a special assessment is collected for such projects, those projects will likely need to each be considered as individual initiatives, competing in the priority list for other mandatory and discretionary expenses that also have to be satisfied by the Association's income. |
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Well that's a bummer... Thanks for the info. Hopefully, this topic can be discussed in our next neighborhood meeting. Thanks again. |
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If budget money is limited how about just painting the weathered fences (facing the street)...??? Paint is cheap and our budget money should cover it. We can discuss the other items (rockwall, light post, & fountain) possibly in our next HOA meeting. |
