Dear Fellow Owner:
Enclosed are: the Notice of the Budget Meeting, The Proposed Budget for Calendar Year 2010, the Schedule of Reserves and a Package for two proposed changes to the Amended and Restated Declaration of Condominium for Pelican Point.
The Budget Committee analyzed our association’s income and expenses. We also considered likely 2010 capital expenditures and future reserve needs. After verification of proposed utilities rate increases and some research of insurance trends, we concluded that our monthly assessments will need to increase by 3.5% to $502. Costs are being driven by Insurance, Utilities, Staffing, delinquencies and Reserve contributions, an estimated $471 per unit [or 94% of the $502 per unit].
The Board may consider alternatives before making a final decision that possibly could make a small difference in the monthly assessment amount. However, if we approve initiating a Reserve Study and Engineering Report, we will probably find that we will need larger reserve contributions in future years. As our building ages we will need more operating funds for repairs and maintenance. If the adopted budget proves to be inadequate, the Board may amend it or call for a special assessment.
The better news is that we think we have sufficient funds to complete the Roof Replacement Project and we do not expect to levy any special assessments during the coming year. The ground work for the Garage Project has been completed but the project has been postponed.
We have been researching the cost and quality of accounting services by an outside company. The cost would be offset by changing our Property Manager’s focus to maintaining and enhancing building systems and project management and oversight. The quality of reporting by a professional management firm would be valuable for Board decisions; and owners would be able to use various payment options, including ACH and credit card. Our collection processes would be more systematized and therefore easier to minimize. And by reducing our Manager’s bookkeeping chores and changing his work schedule to four days a week, we would offset the cost of the service.
We have been increasing our FTE [full time equivalent] staff hours this year from 2.0 to 2.6 and broadening the nature of staff responsibilities to better serve the needs of our owners and residents. The salary budgets in 2009 and 2010 are lower than any year since 2002. We have added our cleaning/plant-care lady and a part time office organizer/administrative assistant. We now have a Jacksonville Beach Police Officer residing at Pelican Point and walking the property daily, reporting incidences to us and to his department. We think that these additions and changes will benefit our community immediately and in future years.
We thank you for your understanding and cooperation. Please feel free to call if you would like more information or if you want to offer suggestions.
Very best regards,
Colette C. Sellers,
President, Pelican Point Condominium
For the Board of Directors
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