Message from Board President George Pauley:
Dear Fellow Owners,
Enclosed for your review (link below) is the proposed budget for the fiscal year March 1, 2016 to February 28, 2017, as presented by the Budget and Finance Committee and accepted by the Board of Directors. The proposed budget was prepared by our managing agent and reviewed and amended by the Budget and Finance Committee. Under consideration is a planned increase of 3.5% in assessments. We also expect an increase of the cable/internet charge to $43.18 per unit per month. The Board is reviewing the proposed Budget and has called for a Special Meeting of the Unit Owners on January 11, 2016, at 7:30pm in the Party Room. This meeting is for further discussion, any additional considerations and to answer questions.
The proposed budget includes an increase in annual income of $171,300 for total income of $5,947,200. Approximately $160,600 of that increase is accounted for by the adjustment in assessments. The bulk of the balance in the increase comes from cable/internet, and income from parking operations. Total proposed non-reserve operating expenses are $4,459,300. The proposed annual reserve contribution is increased $66,500 to $1,472,900. We presently expect reserve expenses for the year of approximately $1,182,600.
This proposal represents Management’s and the Committee’s best efforts to anticipate general expenses for the coming year, and future needs to operate and maintain the building responsibly and efficiently. Management, the Board and Budget and Finance Committee have focused on increasing our annual budgeted contribution to the reserve, with the goal of meeting forecasted physical and structural needs for the building. A professional reserve study was completed in 2014, which proposed a minimum annual contribution of $1,360,000 through 2020. However, as we have seen this year with the kitchen basin project, and failure of a masonry wall on the 2nd floor, resulting in leaks, as our building ages we will run into events that can be unpredictable. So to continue strengthening our reserve and prepare for unknowns, is a goal. We therefore agree with a proposed contribution exceeding the reserve study’s recommendation.
This year we plan to recommence replacement of our hot water risers, replacement of several hot water heaters serving kitchens and bathrooms, repairs to the outdoor pool, insulation and branchline replacements for the ’06 pantry heating and cooling units, renovations to the health club, and rebuilding the north lobby door. With these and other coming physical needs, the focus on a healthy contribution to the reserve fund has been key to stewarding the financial and structural health of Park Tower.
Please join us at a Special Meeting to discuss the proposed budget on Monday January 11th at 7:30 p.m. in the 2nd floor Party Room. We will consider the enclosed proposed budget for adoption at a Board Meeting on a date following the Special Meeting. All owners are welcome and strongly encouraged to attend and participate in the discussion.
Park Tower Condominium Association