Waterford Lakes November 2020 Budget Meeting

 

Waterford Lakes HOA Annual Budget Meeting       

November 19, 2020

Attendance:       5 Board Members, PSG, 7 Residents

Call to Order & Pledge of Allegiance

September Minutes Approved

Secretary’s Report:

·       Beginning in 2021, the minutes and/or bulletins will be distributed the following ways to cut down on printing costs which run $1000 per year.

1.     Posted on the HOA Website – google Waterford Lakes HOA,

2.     Emailed to residents who have given us their email address or a family member’s email,

3.     Printed copies by the Clubhouse back door, or

4.     Call Anne Inman to have a copy delivered to your door.

**Call/Text Anne @ 317-504-9268 or Email @ anneinman1@hotmail.com with your information.

·       An updated Waterford Lakes HOA Community Directory will be made available in early 2021 via email.  If you would like us to print a copy for you the cost is $10.

Treasurer’s Report (through the end of October):   Checking:                            $18,380.30

                                                                                            Certificate of Deposit:      $53,533.46

                                                                                            General Reserve Fund:    $89,347.63

                                                                                            YTD Income/Loss:             $3,010.18

Annual Budget Presentation and Q&A:  Steve Cooper & Anne Inman, Finance Committee

Operational Budget and General Reserve Fund Budgets unanimously approved.

·       Ballots and proxies submitted:                  56/ “YES”    0/””NO            Thanks for everyone’s participation.

·       2021 Monthly HOA assessment $160.00/month. Questions contact PSG @ (317) 837-9860.

Committee Reports:

1.     Social Committee:           

·       Christmas Open House   Saturday, December 5^th  Noon-2pm

Pitch-in (KFC Chicken & drinks provided)                Gloves and masks will be worn by servers.

RSVP to Janell Miller (317-506-0758) & Geri Conway (317-506-9344)

Let them know if you would like to have the option of carryout or a meal delivered to your home.

 

·       We will be offering BINGO at the clubhouse this winter.  If you would like to join in the fun, and socially distance, the date is January 14^th @ 1:00pm.

 

2.     Finance Committee:      

We are planning to do the following in 2021 under the General Reserve Fund:

·       Replace roofs on seven (7) additional buildings

·       Do eight (8) Project Xteriors (starting with Crystal Court) including: cedar repair, power washing, sealing, caulking and painting

·       Roofing (all building) materials are in very short supply and costs are escalating. We had a tough time rounding up enough shingles to finish the buildings in 2020.  We will have to be flexible in 2021.

 

3.     Clubhouse Committee:

·       Dates still available for Holiday family get-togethers. The clubhouse Christmas decorations will stay up through the month of December.

·       $75 rental fee and a $50 refundable deposit.  No extra charge for setup the day before, if needed.

 

4.     Election Committee:

·       There will be several Board positions coming up for re-election at the Annual Meeting in April.  If you are interested in running for the Board, contact Anne Inman @ (317) 504-9268 or Maggie Jones @ (317) 408-9884 for more information.  Board nominations can be made to PSG @317-837-9860 by February 15th.  Officers are selected by the elected Board members.  You will have an opportunity to meet the candidates at the March 18, 2021 HOA Meeting before voting in April.  This is a great opportunity to get involved in the community.  If you would like to participate on a committee in 2021 contact Anne Inman.  We love volunteers!

 

5.     Architecture Control Committee:

·       As we repair and paint the exteriors, PSG will be removing any items that have been screwed or nailed to the cedar over the years.  The Covenants do not permit permanently anchoring things to the exterior structure.

·       Take time to read the Landscape and Architecture Guidelines on the Waterford Lakes HOA website. Submit the required Architecture/Landscape form for approval prior to making any additions/changes or installing a DISH.

 

6.     Landscape Committee:

·       Mr. Sandavol has done the final mowing for 2020.  We want to thank Mr. Sandavol, his wife, and son for their commitment to keeping our community looking so good.  Every year he goes out of his way to do extra projects at no additional cost for us.  The commercial mowers are very heavy, our lots are small, and we have many obstacles to mow around, so no service is perfect. 

o   We have plans to continue to enhance the entrances and shade garden in 2021.  A special thank you to everyone who contributed their time, money and talents.

 

7.     Geese Committee:           The committee has attached an article explaining the importance of controlling the geese and duck population in our community.  We have made great strides this year.  We have a NO FEEDING waterfowl policy.  Bird feeders do attract the ducks and geese.

New Business:

PROJECT SMOKE ALARMS:  The Board is sponsoring a fire safety campaign to change smoke alarm batteries and/or install new smoke alarms where necessary.  Janell Miller & Becky Hindman have met with the Washington Township Fire Department to arrange replacing batteries in our community.  If you would like to have your batteries replaced, sign up with Janell Miller by December 30^th.   You must furnish your own 9 Volt batteries but the service is free.   

To sign up: call/text Janell Miller @317-506-0758 or email  oldddave@aol.com by December 30th. 

Contact Mike Jackson @ 317-412-1252  if you would like him to install new smoke alarms.  The cost is $45/installation and you must purchase/provide your own smoke alarms (Lowes).

The fire department reminds us that your smoke alarms should be replaced at least every ten (10) years. Many of the residences have the original smoke alarms.                                

2021 HOA Meetings Announced @ 6:30pm in the Clubhouse

March 18^th                             Meet the Board Candidates                         

April 15^th                                 Annual Meeting & Board Elections                            

August 19^th                            Guest speaker: Dawn Lowden, Community Realty & Avon Town Council VP

November 18^th                    Annual Budget Meeting & Vote

Respectfully Submitted,

 

Secret Santa Spreads Holiday Cheer:        A special thanks to our resident Secret Santa who has provided Christmas gifts for our residents once again.  The young neighborhood elves have placed them at your front door. 

 “Santa Claus is anyone who loves another and seeks to make them happy; who gives herself/himself by thought or word or deed in every gift they bestow” (Edwin Osgood Grover).

Waterford Lakes HOA Reserve Fund Special Meeting & Announcements September 24, 2020

 

Waterford Lakes HOA Reserve Fund Special Meeting & Announcements

September 24, 2020

 

Announcements:

 

1.     We would like to stress the importance of considering insuring your unit with the UtilityShield protection plan offered by Citizens Energy Group (888-544-4541).  It is currently $19.95 for total line protection which is added to your water bill.  We continue to have residents experience broken water lines between the water meter and the home which can be very expensive to repair. You are financially responsible for the critical lines, pipes and wires inside and under your slab. Your HO6 Homeowners Policy typically does not cover these repair situations. Discuss this with your insurance agent.

 

2.     Contact Anne Inman @ 317-504-9268 if you would like to hire a teenager to rake leaves or clean up your landscaping this fall.  Also, garage door magnets are available for $15/set.  If you are interested in replacing your exterior light fixtures contact Anne for the information and specifications (approx. $200 including installation).

 

3.     It has been extremely hot and dry this summer.  We have had to hold off on the next lawn application until we get some rain.  Our infamous weed this year is called “spurge” will be treated in this next treatment.  Unfortunately, the spurge weed drops lots of seeds and is the gift that keeps on giving!

 

 

4.     Sandavol will mow around the ponds and clean the banks up for the winter.  We have asked PSG to hold off cutting down the decorative grasses until Spring.

 

Upcoming Social Events:

 

·       Saturday, October 30^th                  Ladies Pot Luck Lunch and Recipe Exchange  

Noon-2pm @ Clubhouse

Bring a copy of your recipe to be printed.

                                   

·       Friday, November 13^th                   Ladies early 4pm dinner @ the Iron Skillet.  

Ride sharing will leave at 3pm; RSVP with Janell Miller; meal paid for in advance.

 

·       Saturday, December 5^th                Christmas Open House 1-3pm @ the Clubhouse

 

·       RSVP for social events to Janell Miller 317-506-0758 or Geri Conway 317-268-4253.

 

Some Financial Facts: 

·       $14,000 average cost to roof each building (54 buildings); Materials have gone up significantly and shingles are hard to buy; Plywood sheeting for the roof has gone from $18/sheet to $40/sheet

·       $1520 winterization package to pull, store and do maintenance checks on our four fountains

·       $3850 annually to treat the ponds for green algae and submersed weeds

·       $27,000 average annual cost to mow and trim the property

·       $22,000 insurance premium for our master business owner’s policy with Nationwide.

 

Annual Budget Meeting:                Thursday, November 19^th @ 6:30pm Clubhouse

You will be receiving the annual budget packet for review prior to the November 19^th meeting.  The annual budget will include the establishment and maintenance of a General Reserve Fund for capital expenditures and replacement/repair of Common Area and the exterior portion of the dwelling units. Homeowners will vote to adopt the annual budget presented by the Board and Finance Committee at this time. Immediately following approval, each Owner shall be given written notice of the monthly assessment for 2021.

The establishment of a General Reserve Fund was presented at the September 24^th special meeting.  Overall the importance of building our reserves; painting the exteriors; repairing gutters, privacy fence & concrete; and completing the roofing project was well received.  100% of the increase in the monthly assessment will go directly into your unit over the next five year phase.

 

Sincerely,

 

Anne Inman, Secretary

Waterford Lakes Homeowners Association Notice of Special Finance Meeting Thursday, September 24th

Waterford Lakes Homeowners Association   

Notice of Special Finance Meeting     Thursday, September 24^th

 

In 2017, the Board approved a monthly assessment increase from $125/month to $150/month to help fund the $750,000 roof replacement project. In addition, $72,000/annually was to be moved from the operating budget to the Roofing Reserve Fund.  By the end of 2020, we will have completed 28 roofs with 25 buildings and the clubhouse remaining.  However, due to increases in material costs over the past four years, the association’s original timeline for the completion of the roofing project has been extended. As promised, this project will be completed without the need for a Special Assessment.

This year the Board appointed a Finance Committee to undertake a General Reserve Study and present a detailed 10 year Reserve Plan with a Phase #1 and Phase #2.  This Reserve Study included:

·       an infrastructure assessment estimating the remaining useful life of the major physical components of the Waterford Lakes property;

·       obtaining price quotes from contractors;

·       putting together capital repair & replacement timelines and schedules; and to

·       determine how much money is necessary for the Association to adequately fund the General Reserves to meet both our immediate and future capital maintenance, repair and replacement needs as set forth in our governing documents.

The Board and Finance Committee are set to present the 10 year General Reserve Plan and fee schedule on Thursday, September 24^th.  We will have two sessions so we can better socially distance.

 

            6pm-7pm      Waterford Court, Lakewood Court, Lake View Court Residents

            7:30pm – 8:30pm               Crystal Court & Waterford Lane Residents

 

 

Respectfully,

Board of Directors and Finance Committee

 

 

Finance Background Information

 

Roofing Reserve Project

·       The amount spent on roof replacement between 2015-2020:                     $384,628

·       Average cost per roof:                                                                                                               $13,736.72

·       Equivalent to 46 months @ $150/month HOA assessment to pay for your unit’s new roof

 

Scheduled General Reserve Fund Capital Costs between 2021 and 2030

·       Complete roof replacement project:                                                                              $376,000 (2024)

·       Power wash, seal, caulk & paint exteriors:                                                                $154,285 (over 10 yrs.)

·       Privacy fence repair:                                                                                                                  $10,400 (phase 1)

·       Replace gutters:                                                                                                                            $66,000 (phase 2)

·       Replace clubhouse windows:                                                                                              $4,000 (phase 2)

·       Replace clubhouse flooring & upgrades:                                                                                       $12,000 (phase 2)

·       Replace two fountains:                                                                                                                              $10,000 (phase 2)

·       Repair concrete driveways, sidewalks:                                                                                          $150,000 (phase 2)

·       Replace lost common area trees (Dan Jones Rd)                                                                     $10,000 (phase 2)

·       Master Insurance Policy Deductible in reserves                                                                      ($25,000)

·       Future roof replacement in 30 years/approx. $1.5 M.    (+$30,000/yr. set aside beginning 2025)

Projected Ten Year Capital Expense:                                                                                                $792,685 + Reserves  

 

The Board has approved the implementation of the 10 year Reserve Plan and the following assessment increases to be put toward the General Reserve Fund:

2021                        $150/month + $10/month = $160/mo. (+$12,720 General Reserve Fund)

2022                        $150/month + $20/month = $170/mo. (+$25,400 General Reserve Fund)

2023                        $150/month + $30/month = $180/mo.  (+$38,160 General Reserve Fund)

In addition, 38% of the operating budget ($72,000) will continue to be transferred to the General Reserves annually to fund capital expenses.  

 

 

 

What our documents state about the replacement Reserve Fund:

Article X: Assessments   “The annual budget may include the establishment and maintenance of a replacement reserve fund for capital expenditures and replacement and repair of the Common Area and such exterior portion of the Dwelling Units as designated in this Declaration, which replacement Reserve Fund shall be used for such purposes and not for usual and ordinary repair expenses. Such replacement reserve fund for capital expenditures and replacement and repair of the Common Area and Dwelling Units shall be maintained in an interest bearing account or accounts in a bank or savings & loan association that does business in Hendricks County selected from time to time by the Board.”

Article IV: Common Area “Common Area includes all the uses designated as such on the recorded final Plat of Waterford Lakes including but not limited to the lakes, yards, gardens, driveways, sidewalks, parking areas, nature paths, and recreational area, if any, but excluding all Lots and dedicated streets.”

Article VII: Maintenance, Repairs & Replacements  “In addition to maintenance of the Common Area, the Association should provide exterior maintenance upon each Lot, which is subject to assessment hereunder as follows: paint, repair, replacement and care of roofs, gutters, downspouts and exterior building surfaces. Such exterior maintenance shall not include glass surfaces, screens and screen doors, window fixtures and other hardware, patios, and such items as the Board of Directors may designate as long as items of exception apply equally to all units.”

The Purpose of a General Reserve Fund

Annual budgets must include an amount set aside into a General Reserve Fund.  Calculated properly, this will provide the necessary funding for the Association’s long term capital repairs and replacements. The purpose of the General Reserve Fund is to project and plan for the major expenses ahead of time, so when the useful life of the infrastructure item is gone, the funds are available for capital repair and/or replacement.  This is also a mechanism for owners to pay for the use of items while they are owners.  For instance, if an owner lives in a home 15 years, and the useful life of the roof is 25 years they will have paid for fifteen years’ worth of the use toward replacement.  Without sufficient General Reserves, an association can face financial circumstances which ultimately result in greater expense to the owners and negatively impact the appearance of the community and property values.  An underfunded reserve fund leads to deferred replacement/repairs; maintenance issues grow more expensive; further straining an already inadequate reserve fund.  Buyers may shy away from a home in an older community that does not have a meaningful Reserve Fund.

The Bottom Line… Adding money to our HOA Reserves will not be popular for many of our Association members, however, everyone will benefit immediately.  The Board has the fiduciary duty to maintain the infrastructure, adequately fund the Reserves, and continue to make this a desired Community.