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2019/2020 GREATE BAY VILLAS ANNUAL BUDGET
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NEWSLETTER #7 – SEPT 2019
JUNE 11, 2019 PUBLIC MEETING WITH OWNERS
JANUARY 10 PIBLIC MEETING MINUTES
NEWSLETTER APRIL 19, 2019Below click on the link for the most recent edition of the Greate Bay Villas Newsletter by Bob Marshall.
NEWSLETTER JANUARY 2019Below click on the link for the most recent edition of the Greate Bay Villas Newsletter by Bob Marshall.
GREATE BAY VILLAS DEFINITION OF PROJECTS AND FUNDING APPROACHES
Until the August business meeting, the GBV Board through prudent budgeting, strategic scheduling of projects and careful financial and budget planning was confident that our Finances were satisfactory and our Reserve accounts were at a level where we could plan each future year to having a minimum of $100,000.00 on hand in order to react to unforeseen or difficult projects that could be caused by weather, catastrophe, or like events. Shortly after that, The Board almost instantly became faced with high dollar projects that needed to be attended to immediately namely; the flooding of Villa 78 and 2 others, the sudden appearance of Bats in a major number of our homes. Add these to the corroding chimney problem we had planned to budget for this year, we were presented with a budgeting requirement of approximately $120,000.00 to be spent forthwith. At this time and after careful and deliberate study, we have decided to consider various approaches for the community to adequately and efficiently handle the situation.
The Board after great deliberation is currently examining approaches to the association’s reserve fund. The need is immediate to implement various unavoidable projects which either have been continuously but cautiously put-off past their program’s estimated useful life, or where we have recently been presented with instantly developing unfavorable and unavoidable serious conditions such as floods, weather or specific unforeseen events. The net explanation is that we prudently believed we could manage to avoid a monthly rate increase or assessment, but we have come to the conclusion that is better to implement a strategy to get ahead of these pressures than to be presented with a failing system and larger dollar requirements at a later date in one or two years. The projects and conditions are as follows:
Unforeseen Drainage Issues in the flood zone
Several Villa Buildings have been flooding recently and these issues are serious. Some just became issues. One is a problem that we thought we had finally fixed, but recent storms proved the need for additional engineering work. Cost is $45,000. If we submit it again to our insurance carrier, their annual costs will go up astronomically at this point.
While we always responded to Bat problems as they occurred on a case by case basis, it was recently discovered that many homes in our Association have Bats. Cost to eliminate Bats is $40,000 with a 5-year warranty.
Chimney Stucco Maintenance
We have approximately 30 buildings that are either in current desperate need of repair or will need repair in the next 2-3 years. This project had been scheduled to be fully completed this year, but with all the project considerations, it has been delayed. Cost $60,000
The Cedar Shake shingles above front doors and windows are well past their useful life and are cracking off most buildings. We had planned to start a three (3) year program to do this, but that has been delayed each year for three (3) years. These need to be replaced as we have been putting this off. Cost is $120,000 and it will be scheduled over 3 years starting in 2019/20.
Building Stucco Crack Filling
Most Villa Buildings have cracks in the Stucco. In an effort to guard against seepage through those cracks a program is in order to mend the cracks. This is done with a polyethylene calk and will add useful years to the current stucco walls.Estimate in the works. – Time and Material per house condition.
The current roadbed is approximately 9 years old and is experiencing cracks and potholes. These need to be filled to prevent further deterioration. In another 5 years we will probably need to fully re-pave. To just do a filling job, the rough estimate is approximately $25,000. In 5 years the whole repaving may cost another approximate $125,000 which we may be able to fund at that time via reserve fund planning.
Second Floor Balcony Decks
An inspection of these deck found that the facia boards around the borders of the deck floors need to be replaced. None of these decks are known to be dangerously impaired, but the work cannot be put off or they will become so. $1000 per condo or $84,000. This project can be spread out for 5 years
Lake /Retaining Wall/Bulkhead
We have been negotiating with the Greate Bay C.C. for several years to replace the current structure which is decrepit. We have legally investigated ownership of the bulkhead but until very recently this investigation yielded a dubious ownership identity and legal costs to be definite would have proven to be high and might have taken us back to where we are with a split decision between the Association and the Club. However a few days ago the land drawings between the Club and Greate Bay Villas indicated that the bulkhead is 100% on the Club’s propertyso that payment for this project will no longer be ascribed to Greate Bay Villas Condo Association.
Legal/Calamitous Contingency Fund
In the last 2 years we have only been adding $7,000 to this fund. We need to return to putting $15,000 in the fund each year.
EXPLANATION OF FUNDING APPROACHES
Various approaches have been considered as described below which give a pictorial of our current Reserve Program and what we have looked at to deal with the financial problem.
The first study was an assessment of the full $120,000.00 requiring each Villa Owner to contribute $1,500.00 once in the second quarter of this calendar year. This approach allows the Board to complete all necessary projects and also keep $100,000.00 in the Reserve accounts for the foreseeable future.
The second was the assessment of the full $120,000.00 requiring each Villa Owner to contribute $476.00 once each year for three years starting in the third quarter of this calendar year. This approach also allows the Board to complete all necessary projects and also keep $100,000.00 in the Reserve accounts for the foreseeable future.
The third and fourth approach shows loans for the full $120,000.00 for both 4 and 7 years respectively. Both of these approaches are not acceptable because they require and inordinately high amount to be contributed to the Reserve Account each year in order to pay off the loans and also keep $100,000.00 in the Reserve Accounts. Additionally these approaches include interest payments of $27,000 and $39,000 respectfully if we took out loans which is an increased burdon on the Villa owners.
The next approaches were to investigate increasing the Monthly Maintenance Fee which all villa owners pay $20.00, or $30.00, or $40.00
The current financial situation has with the deletion of the Lake Bulkhead project become degrees better. So in effect, we are currently in a year of watchful-waiting to see how much we have in the Reserve Account at the end of the year and what the required projects will cost for the next year.