New Hoa Management Letter by xnd18201

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									                                     Letter from the President
                                            November 1, 2007



Dear Southpark No. 2 Homeowner,

I wanted to write this letter to tell you about 2007 at Southpark No. 2. This year has been a tough one for
us both financially and emotionally. First of all, I will address the emotional. In June of this year, we
suffered a major loss. Jan Coulter, our bookkeeper and friend for the last sixteen years lost her fight with
lung cancer and passed away. We miss her terribly and will continue to remember her with fondness and
happy memories. Thanks to the hard work of the board and our wonderful property manager, Dale
Lavene, we have been able to transition to a new financial management system with Colorado
Management & Associates. While we have had a few glitches, the transition has been a smooth one and
the board is looking forward to our first full year with Colorado Management. Due to services they offer
that were not available with Jan, we have instituted some more streamlined controls on our accounting
and reporting which we hope will make us even more efficient as an Association.

Financially, we had a very expensive winter in 2008. Cost for snow removal far exceeded both our
budgeted $32,000, as well as our contingency fund of $23,400. In fact, the costs for snow removal,
electric light line problems (related to the frost line depth and expanding/contracting ground), and loss of
trees and shrubs due to last winter’s severe weather has cost us in excess of $70,000 this year.
Fortunately, because we maintain a healthy reserve fund (as recommended by our Reserve Engineering
Study) and because the board wisely postponed some projects originally planned for this year, we were
able to absorb that additional cost without looking to the homeowners for additional funds. I am pleased
to report to you all that we are still a financially healthy association and will continue to work to maintain
that fiscal health.

To that end, the Finance Committee and the Board worked very hard in developing our 2008 budget and
in deciding whether and how much to increase our monthly dues. Due to rising fuel costs, most of our
contractors (e.g., landscaping, security patrol, garbage removal, pool management) will be increasing fees
this year. In addition, Denver Water has announced another price increase in water to take place in 2008.

While we must work to cover these additional costs, we did not wish a dues increase to become a burden
to our homeowners at a time when they are also experiencing rising fuel and food costs. We, therefore,
took at close look at what our reserve fund balance will be at the end of this year. Because we are now
earning a little more interest on our reserve investments, our reserve fund balance will be approximately
$587,000 at the end of this year. This balance is slightly higher that that recommended by our outside
reserve study. Due to this slight surplus, your Board opted to fund the reserves at $17.00 per month per
unit in 2008, instead of at the $18.00 per month per unit rate used in 2007. This reduction on reserve
funding permitted us to keep the 2008 dues increase to $3.00 per month per unit. Therefore, beginning
in January 2008 our monthly dues will increase to $98.00 per month per unit. The payment
coupons we will be receiving in the next month or so from Colorado Management will reflect this
planned increase and I urge you all to pay attention to the increase in submitting your January
dues so that we can avoid all of the expense and hassle of reminders to homeowners, late fees, etc.
During my fourteen years as a Southpark No. 2 resident, our homeowners association has done a great job
of fiscal management and we have enjoyed very low monthly dues with only five five-dollar increases. In
fact, 20 years ago, the monthly assessments were $50 and today they are $95. We have accomplished this
while still providing outstanding services and amenities like a complete tree trimming program; new
tennis courts; a new pool deck; and regular upgrades to our sidewalks, driveways, landscaping, and
irrigation system. The board will continue to do its best to conservatively manage our operating budget
and our reserve investments to get the best “bang for our buck.” As I’ve mentioned in the past, based on
the present state of the economy and what we now know about our reserves, I would anticipate annual
incremental increases in our monthly assessments to either fund the reserves or manage increased
operating expenses. In addition and in light of continuing water rate increases, we all must react quickly
to repair running toilets and other leaks, as well as adopting other water conservation habits so we can
save water wherever possible.

I hope that you will join the core of dedicated volunteers who work so hard in managing our community
by volunteering for event and/or board committees. We always need volunteers to keep our community
strong. Please let Dale Lavene or one of the Board Members know if you are willing to work with us, be
it a single event like our Holiday Party, Pool Passes, the Garage Sale or the National Night Out Party, or
serving on the Finance or Architectural Control Committees. Our community is only as good as we all
work to make it.

All of my best wishes for you and our community in 2008,
Linda Lancaster
Board President

								
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