Treasurer’s Report – Dunham Laker, Summer 2015 by Jane Debbrecht
At the October, 2014 Annual Meeting, a budget of $68,550 was approved for 2015. As you are aware, the majority of our expenditures occur during the summer. To date, we have spent a total of $22,600 and expect to remain under-budget for the remainder of the year.
Also presented at the Annual Meeting was a dues increase for the 2016 calendar year. The current annual rate of $140 has been in effect since 1999. The following is a graph of annual expenses, excluding special projects, over the last 20 years:
As you can see, the Board has effectively managed costs to try to stay within the amount collected each year. However, we have had special projects such as extending and fixing the fences, rebuilding the rafts and retaining experts to advise about the greenbelt, which have been additional costs.
Several years ago, we conducted a survey of other Home Owner Associations with a lake in southern Michigan, to determine the level of reserves they considered necessary. The overall response was a reserve fund equivalent to about one year of operating expenses. This is to cover any unexpected costs or litigation, special projects, excessive weather-related damage and the time delay between when dues are paid and invoices need to be paid. Our balance at end 2014 was $52,095. Thus we have fallen below the one-year reserve fund level, and expect to end 2015 lower still.
The dues for the 2016 calendar year, with payment required by May 31, 2016 as usual, will be raised to $175. This amount will allow us to replenish our reserve, and keep the dues at a fixed level for several years.