On Owners’ March statements, they will notice the planned increase of 3.4% in assessments taking effect, along with the new monthly cable/internet fee of $53.43 and adjustments in parking rates.
The biggest factors impacting the budget and resulting in increases include:
A huge expected increase in property, liability, and umbrella insurance premiums budget to increase about $95,400. This represents 1.76% of our assessment increase alone. At a November Board Meeting, our insurance representative discussed the “hard market” particularly affecting US high-rises over 50 stories tall which are non-sprinklered. That as well as the increasing risk and rate of claims in the world around us from fires, severe weather events, and more.
Also, water usage has skyrocketed during the pandemic. Higher rates for water and sewer services, and taxes, coupled with more residents working from home and consuming more water together represent 1.53% of our assessment increase.
The Association also lost income due to the pandemic. In particular, the reduction in health club memberships and commercial parking spaces came to about $184,000.
Combined, insurance and water expense increases account for 3.29%. Add in the loss of income without any other changes and the increase could have been as much as 7%. However, management and the Board with active Budget & Finance Commission Members met throughout November to offset these unfavorable changes in other areas of the budget. Hence, only a 3.4% increase.
Overall, besides water and insurance, general expenses were reduced in some categories. However, additional income will come from other changes, as follows:
Valet Parking – Increase $5 (from $135 to $140)
Self-Parking – Increase $5 (from $135 to $140)
Premium Parking – Increase $5 (from $150 to $155)
Guest Parking – Increase $1 (or $5 for booklet of 5 stickers)
Tandem Parking – Increase $5 per vehicle (or $10 for the one spot, from $220 to $230)
Commercial Day Parking – Increase $5 (from $180 to $185)
Increases $2 for each category (1 hour $12 to $14, 1-3 hours $14 to $16, 3-6 hours $18 to $20, 6 to 8 hours $22 to $24, 8 to 24 hours $36 to $38)
A decision was also made to encourage electronic delivery of monthly statements, to reduce printing and postage costs. Beginning in March, Unit Owners will be billed back $1/month for paper statements. Learn more about this online:
As always, feel free to write anytime with any questions, to firstname.lastname@example.org.