Assessment Increase – $3 per month, for Year 2023
Approved by the Board of Directors, in the Open Board Meeting, September and October 2022
2023 Draft Budget:
- Paula Owens moved, Patricia Bambridge seconded to raise the assessment amount from the current $27 per month to $30 per month, starting January 2023, in an effort to keep up with current inflation and price increases on goods and services that MPRHOA utilizes. Motion carried 4-0.
- The Board will evaluate the new budget assessment amount in April 2023, to determine whether another increase for the July 2023 assessment would be necessary to keep up with inflation.
The 2023 Assessment amount is $360 per year, due semi-annually, starting: January 01, 2023, at $180, and July 1, 2023, at $180, totaling $360.
This increase is allowed due to past Boards incorporating maximum annual assessment increases, as permitted in the CC&R’s of the association, thus allowing for an increase of more than 5% in a given year, if needed, and can be found under:
ARTICLE VII, COVENANTS FOR ASSESSMENTS AND CREATION OF LIEN Section 1. Creation of Lien and Personal Obligation of Assessments and Maintenance Charges, Section 4. Maximum Annual Assessment.
The Maximum Annual Assessment:
The maximum annual assessment, and remember this is the maximum annual assessment, differs from the annual assessment. What this allows for though, as addressed in the documents of the association, is for a board to have the ability to raise the annual assessment a maximum 5% each year, for multiply years without actually raising the annual assessment. Then, if a situation calls for it, the assessment can be raised more than the allowable 5% per year, without having to go out and get membership approval. This was incorporated in years 2010-2014. Just click on the below “link” which show assessments and calendar years. In other words, the maximum assessment is there for, where a board of directors can initiate these resources, because they have already been pre-approved. Many HOA’s who did not budget properly, and do not exercise a maximum annual assessment, may be more at risk for special assessments which is something we want to avoid at all costs.
Let’s talk Assessments.
Year 2022 has been a real challenge financially for our HOA and other businesses. Inflation is over 10%, restaurants, landscaping companies, retail outlets, all have had price increases, not to mention a hard time finding and or even keeping staff. For us, the price of pool chemicals, seed for our common areas, fuel for landscape equipment, irrigation PVC piping (that is passed down to us by landscaping companies and manufacturers), trucking cost to get our granite and erosion rock delivered, and other normal supplies for our day to day operations, all have substantially increased in the last year. We have tried to budget appropriately and conservatively to meet these new increases that we’ve been handed. For instance, we backed off on the number of pools monitors that we have for the season, reduced areas in the community that we used to overseed, saving on water costs and seed prices, we are looking into adding a salt water system to our pools to reduce chlorine usage, which by the way has gone up 20%, not to mention paper products, and essentials like mutt mitts for cleaning up after pets, garbage bags for our trash cans, to name a few. After going almost 10 straight years with only one increase, that has now changed for year 2023.
We have to keep up with services for our property that our Members expect, and at the same time, we have to be cognizant and avoid future shortfalls by budgeting accordingly. Staff, along with the landscape and budget & finance committee and board of directors, took several months of budget review, and the outcome was to increase $3 per month to keep us compatible with the current state of inflation, the fluctuating economy, and future uncertainty on services we use. Not doing so would be a financial oversight and miscalculation, and not satisfactory to our Members who expect our amenities and the property to be in quality shape.
In addition, on a more positive note, MPRHOA consistently keeps around 85-95% funding in our reserve accounts at all times. This is something unheard of in other HOA’s. What this means is if something on the property goes wrong, needs emergency repairs and/or replacement, the money is already there, because we have pro-actively put monies aside each year to fund for these expected and unexpected repairs. By having this proactive ongoing savings account, not only protects our members from unexpected special assessments, but at the same time any potential new owners looking to buy in MPRHOA can be assured our HOA is well funded adding value to our community and giving them a piece of mind that we are financially secure. We will continue to look for ways to save on future costs as we navigate through inflation and the ever-changing economy. Thank you.