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BAY HILLS COMMUNITY ASSOCIATION September 2019 Treasurer’s Report and Outlook Within this month’s Beacon you will find the standard Treasurer’s Report with the status of accounts and monthly income and expenditures effective August 31, 2019. In addition, are proposed budget options for approval at the 2019 Annual Meeting. I would ask that you seriously look at the budget options, as I believe they have long-term impacts on our community. In reviewing prior budgets and the 2019 budget, it is apparent that we have trended toward overestimating income and underestimating expenditures, at least for the last several years, if not longer. I’m not throwing anyone under the bus, as I was previously the treasurer and was guilty of the same assumptions. When preparing the proposed budget, we have assumed each year that 100% of dues will be paid. The reality is that the last few of years we have seen dues being paid by roughly 87% to 90% of the total billed. As such, in putting together this year’s proposed budget, I have assumed an 87% collection rate on total dues billed. Obviously, this impacts the amount we start our planning with, but based on recent history this seems prudent. Anytime a resident does not pay their HOA dues, they are placing additional fiscal burdens on their neighbors, as those that do pay absorb the costs. In addition, we have in some cases, underestimated expenses. A few of the expenses are out of our control (i.e., taxes, insurance, P.O. Box, and tax returns) Others, while somewhat controllable, are necessary expenses that we can only moderately control (i.e., landscape maintenance, newsletter costs, traffic safety, annual meeting notice and costs, etc.) Our community infrastructure is aging and therefore in need of more maintenance & repairs. We were hit with a major unanticipated expense this year with needed repairs to the pavilion (over $14,000). We dodged a bullet with what would have been needed work to the basketball courts, because of the Counties need to make major stormwater repairs, resulting in the County replacing the basketball courts. However, we will incur a more than a $4,000 expense to install the secure gates and locks needed to keep the basketball courts and tennis courts accessible to Bay Hills residents only. The retaining wall at the volleyball court/pavilion area is in need of replacement, as is the pavilion roof. There has been much talk about building a half wall, either near the basketball courts or tennis courts for tennis and lacrosse players. And, unfortunately, we have had to install cameras at the playground and likely at the basketball courts to deter vandalism and potentially catch those responsible for the damages. This summer a safety rail at the playground was vandalized of its bolts and put back in place. I personally witnessed a young boy running across the bridge and when he grabbed the rail it flew off. The boy fell onto the bridge, nearly going off the side. I also understand that very recently, broken glass was placed at the bottom of the sliding board. A neighbor told me that while at the pool, she has seen teenagers running around on the pavilion roof. I asked her to call the police if she sees them again, I would ask everyone to do the same. Sadly, we probably need to consider a longer-term solution for video surveillance in our recreation areas. I provided proposed budget options for the board’s consideration with dues ranging from the current $120 annually up to $150 annually. I also need to point out that we ended last year precariously close to the amount in savings that significantly reduces the banking fees we incur. Should we drop below $35,000 in the savings account, we will see additional banking fees. I checked rates at a few banks with branches nearby, and did not find anything that would be better than what we currently have with BB&T. Recently, President Eckels and I met with our Management Company to address several items. During the meeting I asked how our HOA dues compared to other communities they managed. They told us ours are significantly lower than pretty much everyone else. They said that the community closest to us in size and amenities was probably Riva Trace. Their annual HOA dues are $1,000. They told us there was a townhome community in the area that has HOA dues of $1,000 per year and condo fees of another $1,000 per year. I was told that Foxmoor’s dues are around $300. However, when I checked their website the only reference I could find was to 2016 dues at $150 annually. Foxmoor lists two amenities, a rec area, with a half basketball court and a grass free play area, and a tot lot with a playground. Right now my projections, with cost of the Pavilion repairs and the cost of gates and locks at the basketball and tennis courts, are that we will have to dip into our savings to the tune of just over $12,000. If that holds true, we will end the year with roughly $30,000 in the savings account, meaning we will start incurring the additional banking fees. As such, the Board has voted to present two budget proposals for consideration. The first is to maintain dues at $120 annually. This option requires cutting back on landscape maintenance and slightly reducing traffic patrols provided by off-duty police officers. Residents at last year’s annual meeting, and in the Beacon survey, clearly indicated they want more of the Police patrols. Unfortunately, this is one of only a couple of budget items where we can control expenditures with enough impact to keep us from going further in the hole. The ` per year ($2.50 per month), when multiplied by 602 homes and the two apartment complexes, it provides the ability to meet all of the communities current budget demands and start putting away a small amount toward current and future needs. The Board recognizes that we just raised dues last year, and there is significant hesitancy to do so again. Unfortunately, I believe in the past we have neglected to keep dues at pace with growing community needs and now find ourselves in a precarious situation regarding our ability to address long-term infrastructure needs. In the annual ballot you will have three options. The first is to vote not to approve the budget. While this, to my knowledge, has never happened in the history of our community, I can only imagine the deleterious effect it would have on our ability to function as a board. The second option is to maintain dues at $120 annually. As previously noted, this will limit what we can do to maintain the aesthetics of our community. The third option is slightly complicated. This option will be to raise dues to $150 annually, allowing us to maintain current levels of service and putting some funds toward future improvements. However, it is important to note that a vote for the $150 dues is also an approval of the $120 dues, should there not be enough votes to raise dues to $150, but there are enough votes between the $120 and $150 amounts we will maintain dues at $120. As is always the case, we can elect to increase the HOA dues and make improvements or elect to reduce the amount we spend and hold the line on dues. You have a voice, so please complete and return your ballot, or better yet, attend the annual meeting at the Shore Acres Clubhouse on October 9th (Social Hour stars at 7:30pm, meeting at 8:00pm) and let your Board know what our priorities should be. Bob Ray Treasurer Bay Hills Community Association
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