Fiscal Year 2023 Treasurers Report
The 2023 fiscal year runs through April 1, 2022 through March 31, 2023. With one month remaining, I anticipate we will have a cash surplus for the year of $9,000 and will end the year with $38,500 in the bank.
Income
Our homeowners dues this year were $2,500. With 31 homes, the HOA had $77,500 of income. I’m pleased to report that we had 100% paid by mid-April last year. Given some of our infrastructure needs, I recommend keeping the dues at $2,500 for the 2024 fiscal year. Doing so allows us to make headway on deferred maintenance and needed updates to our CCRs and bylaws.
Like last year, I will send invoices out by mid-March with a due date of mid-April.
Spending
Landscape maintenance was our largest expense for the fiscal year. To validate our spend, the Board did some due diligence and got quotes from additional providers and learned that our current provider is the most economical option. Spend for the Front Entrance Project was holdover payments from the project completed in 2022. The remainder of expenses came in within budget estimates.
| Operating Expenses April 1, 2022 to March 1, 2023 | |
| Front Entrance Project | $28,450.85 |
| Repairs & Maintenance – Landscape Maintenance | $23,380.00 |
| Utilities – Water | $6,333.41 |
| Insurance – Property | $2,472.00 |
| Utilities – Electricity | $2,044.01 |
| Block Party | $1,940.52 |
| Insurance – D&O | $1,460.95 |
| Repairs & Maintenance – Fence Repair | $500.00 |
| Legal Fees | $198.00 |
| Office Supplies | $142.25 |
| Repairs & Maintenance | $40.76 |
| Total Operating Expenses | $66,962.75 |
Expected needs in 2024
There are two unusual expenses anticipated for the coming fiscal year. First, and largest is catching up on deferred maintenance of the boundary fences in the neighborhood. Not only is it important to maintain the ambiance of the neighborhood, but the County requires that the fences protecting wetland areas be maintained. The HOA is responsible for maintaining those fences in public areas. Today, several sections of the fence are in disrepair, rotting, and falling over. The Board has gathered several quotes to replace the fence and the quotes are coming in at between $65,000 and $92,000 excluding staining and taxes. Handling such a large expense in a single year would require a special assessment. We are discussing our approach at the March 7 board meeting and will put a special assessment to a neighborhood vote if we propose to tackle the entire project in a single year.
The HOA bylaws and CCR were first written between 1999 and 2002 with a focus on initial buildout of the neighborhood and a focus on empty lots, builders, and the concerns associated with initial development of a neighborhood. Now that the neighborhood is well established and all of the lots are built out, it’s time for a refresh. The HOA held a vote last year and approved some updates. The Board drafted language and had attorneys review it. The documents need to be filed and additional updates made. We believe the most cost efficient plan is likely to be to adopt entirely new, modern bylaws and CCRs. This spend will be budgeted as well.
The state of the HOA financials is strong. However, we don’t have anything set aside in a reserve account for emergencies like repairing storm damage. It would be prudent to build up cash reserves to improve our ability to respond to unexpected challenges.
If you are interested in the HOA’s income statement through March 1 and balance sheets for FY 2022 and 2023, you can find them here. Please feel free to reach out to me at treasurer@reserveatpattersoncreek.com if you have any questions.