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2006.06 June letter to homeowners regarding new assessment
Homeowners,
Enclosed is the assessment for your unit for the fiscal year running July 1, 2006 through June 30, 2007. You will find this new assessment 36% higher than the assessment you have been paying for the last 12 months.
At our annual meeting on April 8th, the board presented a $336k budget we had created for the new fiscal year and the budget included this 36% increase in expenditures and assessments. The reasons we needed such a large increase in the budget and assessments were:
� In the 2005-2006 fiscal year we projected $245k of operating revenue and $293k in operating costs, leaving our Association with a $49k net operating loss.
� Expected 20% increase in propane charges
� Expected 12% increase in electricity rates
� A need to align operating assessments with expected costs
� The need to begin setting aside reserves for future replacement costs
� The association is currently using reserve funds to offset operating expenses.
We are continuing to pursue measures to improve the energy efficiency of our buildings and thereby minimize future assessment increases.
We believe the budget is conservative and if utility costs are less than forecast we intend to direct any savings to the reserve fund.
If you have any questions regarding the budget or assessment, please feel free to contact me at carr@sonic.net or (415) 307-1454.
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