The next board meeting is June 16, 2021 and is going to review and vote to approve a new year budget change. The change includes an increase of HOA quarterly dues from the current $235.70 to $295 (a $59.30 increase). If you working on the math of your head its a total of an extra $237.20 per year. This proposal for a budget increase was mailed out to all homeowners, we all encourage you to check your mail and review it.
If you need a copy please reach out to Melrose Management.
Why Is the Board Proposing a Due Increase?
The short answer, to keep Latham Park financially secure. The previous board did a study of our reserves and found that they were poorly underfunded.
What are reserves? These are our savings accounts that we lean on when major repairs or problems need to be addressed for our community. Over time we can expect that things will need to be repaired or replaced like the kids playground, the pool, dock, ect. These reserve funds are in place so when they need repair we can fix them.
To sum it up the board is trying to get ahead of any big financial costs we will face in the coming years as major repairs will be needed on our grounds and amenities. It’s great to get out ahead of the problem while it is small and manageable. Of course, since this requires a due increase it just hurts a bit.
A Message From the Board
All HOA members have received a letter from Melrose, the HOA's administrator, which has been mailed to inform the community of a pending dues increase. The increase will be discussed and voted on by the Board at the next meeting on 06/16/21 at 6 pm. There will be a period for questions and comments for all HOA members. The HOA budget has two components, operation expenses and reserves. Expenses are the operations and maintenance of the community. Reserve balances are maintained to replace/repair existing assets as required. Examples of this would be replacing the cabana roof, re-paving the pool deck, new construction on the boardwalk. The reserves act as our savings for a rainy day and are to an extent mandated by the state of Florida. The increase in dues is twofold, we are budgeting for a 10% increase to compensate for the increase in vendor prices. The majority of the increase is not due to operating expenses but rather our underfunded reserves. Last year Melrose asked the Board to consider a professionally completed reserve study to ensure our reserves are being fully and correctly. The Board hired Florida Reserve Study and Appraisal, Inc to conduct the reserve study. The report read... "At the current time, the association is considered to be 29 percent funded. This represents a poorly-funded status. The higher the percent funded, the more likely an association is to avoid a special assessment." The reserve study conducted an audit of the HOA's capital assets and projected out over the next 30 years identifying the frequency and cost of maintaining and/or replacing our assets. The reserve study suggested increasing the dues for reserves and implementing a 3% annual increase to offset inflation. The original recommendation was not implemented in Aug 2020 because of COVID-19 concerns. The current board requested an update in 2021 and reviewed it with Florida Reserve Study and Appraisal, Inc. Unfortunately, the situation has not improved with regard to the dues requirements to properly fund the HOA. The Board, therefore, intends to increase dues to ensure the financial stability of the HOA. Once a reserve study has been completed it is the Board's fiduciary responsibility to ensure the HOA's stability. The Board doesn't intend to increase annually unless operational expenses increase. The study will be performed every 5 years to ensure proper funding. Due to the confidential nature of the report, the study is available to ALL homeowners. You may request a copy from Melrose or the Board. Furthermore, the Board has also given a detailed description of all the expense accounts which is included in our comparison below. If you have any questions or comments we encourage you to attend the Board meeting on June 16th to provide questions or comments to the Board before a vote is conducted. Even with the intended increase in dues, Latham Park still has very low dues compared to our surrounding neighbors. We are a strong, united, and desired community in Horizon West, and with the proposed dues increase we can continue to protect our property values. Latham Park Board of Directors
Budget Comparison 2021 vs Proposed Increases
Below is a look at the current budget vs. the new proposed budget. You can also view the budget comparison here. The yellow marks the increase in expenses while the green highlights places where the we saved money in the budget.
Below each line item is a description provided by the board as well a reasoning of why budget was increased if it was a category that is getting a budget increase.