December 15, 2025

NOTICE OF SPECIAL MEETING OF THE UNIT OWNERS

TO DISCUSS PROPOSED BUDGET FOR 2026-2027

[Formal Mailing Sent Monday December 15th]

To be held Monday, January 12, 2026, 7:30 p.m., in the 2nd Floor Party Room

Adoption of budget to be considered at Board Meeting to follow Special Meeting (Monday, January 12)

Dear Owner,

Please find enclosed for your review the proposed annual budget for the fiscal year March 1, 2026 to February 28, 2027, as presented by our Management team, and reviewed and edited by the Budget and Finance Commission and the Board of Directors.  An initial draft was reviewed line item by line item, on three consecutive Saturdays in November.

We are looking at a 4.4% assessment increase for the upcoming year.  We prefer to have a slightly larger increase in assessment with NO special assessment next year, rather than have a lower assessment increase and then need to make up for the difference with a special assessment.

Type                    Average Increase
Studio                   $24.21
One Bedroom      $33.20
Two Bedroom      $53.44

Reserve studies are typically done every five to ten years.  Our last one was done in 2024.  With the changing economy/inflation and environment in which we live, and to inform us about future assessment changes that are needed, we plan on doing another reserve study in 2026.  Based on the results of that study, we may need to be ready for higher increases in future years if we find new information that requires us to shore up our reserves.

Upcoming costly projects include our last six hot water risers, the 2nd floor deck and pergolas, the 2nd floor coating under deck, the domestic hot water tank for the high rise, fire pumps, the beginning of HVAC risers, and the 2nd floor deck roof (northwest).  Of course, this is subject to change based on current conditions at the time, such as natural disasters driving up insurance rates, tariffs and inflation.  We would love to keep assessments capped at 3.5%, but that would not reflect reality.

We continue to experience the loss of rent on the market space, unit 14c, which is presently vacant.  A commercial broker has not been successful in finding us a new tenant.  As a result, the board is forming an ad hoc commission to review the market space and make recommendations on what to do with the space.

Similar to prior years, the building insurance rates continue to go up.  In fact, over half of a million dollars of our budget is attributed to insurance costs.  In addition, water and other utilities, property taxes, union payroll (Local 1 and 727), metals, electronics, supplies, and material all drive up the cost. It is suspected that this may seriously pressure the assessment levels over the next several years.

We continue to subsidize the health club compared to the expense to operate it, and arguably the garage, with lower rates in comparison to other buildings in the area.  Thus, both the health club membership rates and parking rates are proposed to increase next year.

Budget and finance commission member Paul Groeninger did two studies on parking and assessments in the area, and he found that our parking is slightly lower than the average cost.  For assessments along North Sheridan Road, it is difficult to compare as there are differences, such as some buildings having no indoor guest parking, no air conditioning, and no on-site management and/or engineer.  Even so, he found our assessments are a little bit below the average of comparable properties.  For properties south of Park Tower, including downtown, the assessments are higher by about $200 to $300, and owners often pay for their own heat, air conditioning, and water.

The two buildings to our north are seeing higher increases.  5445 N. Sheridan Road has had 5.6%, 8.7%, and 7.68% assessment increases over the last three years.  5455 N. Sheridan Road has had a 9% assessment increase and multiple special assessments.  Our Habitat property supervisor has stated that out of his 10 buildings, the assessment increases have ranged from 4.4% to 14.9%, with Park Tower representing the lowest increase thanks to sound budgeting and guidance from our management office and, in particular, 18-year property manager Tim Patricio.

As always, the contributions to the reserve follow Reserve Advisors’ recommendations for an over 50-year-old building, as closely as possible.  Indeed, we need to keep this reserve healthy for upcoming expenses.  We would like to keep our building’s status of NEVER HAVING A SPECIAL ASSESSMENT, and therefore the budget you are presented with is proposed to assume we will contribute the appropriate amount to the reserve to do so.

Besides assessments, we are increasing some fees and rates for ancillary services.  Laundry is proposed to increase 3%, while parking and health club membership are proposed to increase 4%.  With these changes, total projected revenue is budgeted to increase $347,100 over the current fiscal year.

(Review list of proposed changes in budget cover letter, Click Here.)

Reserve projects over $50,000 in 2026-2027 and their anticipated costs include:

Racquetball Court Roof  $101,338
Sealant Maintenance  $107,000
Exterior Masonry Repairs  $147,829
Fitness Center Improvements (pool furniture and cardio equipment)
$88,200
Market Renovations (TBD)  $103,909
Party Room Renovations  $51,419
Mall Air Handling Unit  $139,259
2nd Floor Air Handling Unit  $199,248
Pool Air Handling Unit  $146,758
Riser Projects  $609,000
Water Valves Phase 3  $130,000
Kitchen/Bath Exhaust Duct Cleaning  $65,000
New Heat Exchanger Isolation Valves  $86,000

The proposed annual reserve contribution increases by $146,400 to $2,259,100. This is very consistent with the recommendation in the Reserve Study and was closely considered as our team worked to determine what our capital repairs and replacements needs are.

Please join us at a Special Meeting to discuss the proposed budget on Monday, January 12, 2026, at 7:30 p.m. in the 2nd Floor Party Room. After hearing from fellow owners, the Board will consider the enclosed proposed budget for adoption at the Board meeting to immediately follow. All owners are welcome to attend and participate in the discussion.

Sincerely,

Michael Parrie

Board President

Park Tower Condominium Association

View Letter And Budget Summary Here: Park Tower Budget Mailing 12.15.25