Dues Increase for 2014
Posted on Nov 23rd, 2013
In September 2013, the Avensong Master Board hired Miller-Dodson Associates (capital reserve consultants and engineers) to perform replacement reserve studies for the Avensong Master Association and Avencroft at Avensong HOA. The purpose of a reserve study is to provide us with an inventory of the common community facilities and infrastructure components that require periodic replacement. The study also assesses the current condition of these items. A projected replacement/repair schedule is provided, along with a financial plan to fund the replacements and repairs.
For the Avensong Master, common assets include all amenities and associated equipment, furniture, and infrastructure (i.e. pool, playground, tennis courts, clubhouse, volleyball court, etc.); sidewalks, curbs, gutters, and benches located on common property; fencing; common property; and a retention pond located behind the Village. Over the past few years, the Master Association has had the benefit of sound fiscal planning based on a reserve study that was prepared in 2008; however, it was time to update this study.
As of June 30, 2013, this Association had $65,000 in reserves with an annual contribution of around $40,000. Based on the new reserve study, the annual reserve need for the Avensong Master HOA is now $42,202 per year. This is a slight increase over the recommendation provided in the previous study. Consequently, to cover this variance and a slight increase in operating expenses, the Board voted to increase the dues $10 in FY14 (or $5 per payment).
The short-term benefits of this increase include the following: a tree pruning/canopy project will occur next month; landscaping improvement projects on Avensong Crossing and at the intersection of Avensong Crossing and Avensong Ives Way will occur in the spring; sidewalks and gutters will be pressure washed in the spring; and general repairs and painting will occur in all common areas. The long-term benefits are that the Master HOA will be financially secure to repair/replace its assets over the next 30 years and will have funds necessary to make modest upgrades/updates to landscaping and facilities not covered by the reserve study.
Click here to review the FY14 budget for the Avensong Master Association. Click here to review the new reserve study for the Avensong Master.
For Avencroft, common assets include the mailboxes and the private streets and concrete curb and gutter leading off of Harmony Court. These are called "asphalt pipestems." This will be the first time a reserve study has been conducted on Avencroft's assets.
For the past several years, Avencroft's annual dues have only paid operating expenses, and there have been no contributions to reserves. As of June 30, 2013, this Association had $78,650 in reserves. This may sound like a lot; however, replacement and maintenance of asphalt, curb, and gutter are not cheap. The study recommends a $5,258 annual contribution to reserves to fund repairs/replacements over the 30-year study period. As a result, the board voted to increase dues $88 in 2014 (i.e. $5,258 divided by 60 homes) or $22 per quarter.
The short-term benefits of this dues increase are that the mailboxes will be replaced in FY14 and a landscaping deep rejuvenation project will begin in the next month and continue into the early spring. The long-term benefit is that the Avencroft HOA will be financially secure to repair/replace its assets over the next 30 years.
Click here to review the FY14 budget for Avencroft. Click here to review the new reserve study for Avencroft.
For the Village, no reserve study is needed because this Association has no common property or assets. Annual assessments pay for landscaping, management fees, and other operational costs (e.g. attorney fees). During the economic turndown in 2011 and 2012, the Village suffered from increases in non-payment and bad debt due to foreclosures and bankruptcies. Rather than increase the dues to cover operational expenses, the Village Board at the time decided to adjust the service levels to meet cash flow needs. This included reducing the pine straw applications to once per year. While we are happy to report that the payment rate in 2013 is much higher (92%), an increase in dues of $70 per year (or $35 per payment) is necessary to cover increases in operational costs including, but not limited to, an enhanced service of two applications of pine straw per year.
Click here to review the FY14 Village Budget.
Rest assured, all three Association Boards will continue to aggressively pursue homeowners who do not pay their assessments.
Coupon books and/or invoices are being prepared now, and you should receive them in the mail soon. The first FY14 payment for all associations is due January 1, 2014. You will have 30 days to make your payment without interest or late fees.
As in previous years, Avencroft's annual assessment will be broken out into quarterly payments due on January 1, April 1, July 1, and October 1. The Village's annual assessment will be broken out into biannual payments due on January 1 and July 1. The Master HOA's annual assessment will be due in biannual payments as well; however, the due dates for the Avensong Master are January 1 and April 1. The HOA will be placing out signs as reminders this year.
Thank you for being responsible homeowners and paying your dues on time.
Avensong Community Association Board of Directors
Village at Avensong Board of Directors