MISSION STATEMENT

Mission Statement..We will work to preserve and enhance our way of life through our homeowners association and provide information to the property owners to accomplish that goal.

Tuesday, April 26, 2011

Sleepless nights

Our situation with the road repair and rebuilding plan is costing me sleep. Myself and others have been working on a way to pay for the project from existing and future revenue from the reserve funds. Now the new numbers arrive and they are substantially higher even using the original plan for differing type overlays and complete re-basing of some areas. One surfacing type for the less traveled areas actually more than doubled in estimate as well as the expected life being substantially lowered. All this is troubling. Spreading the project over a longer time frame ( 5 years) can be done but then even with continued maintenance there will be a lesser time frame before the major work will need to be started again.

Another factor in this is the continuing issue of maintaining our existing physical assets. We have a document (reserve study) detailing the projected time frame and monetary requirements for maintaining our physical assets going forward. In my personal opinion some items are necessary and some can be postponed but this will still take a toll on our reserves.

When the road project starts in 2012 we should have around three million in reserves for roads and general non-operating use. Conservatively we will get $550,000 per year from existing assessments to place in reserves. We must remember we must not spend down the reserves completely. My opinion is we should maintain at least $750,000 for any possible unforeseen necessity. The last road estimate we received was $4,100,000 but that is not going to be a final figure and it will go higher.

Everything I am covering here has been discussed in open meetings of the finance commission as well as to a degree in roads. Anyone is welcome to attend these meetings to keep up on developments. This post is getting too long so I will end here but do not be surprised to see further posts on the subject. I am so tight I will squeeze a penny until Lincoln screams but this is really getting tough. Until later………

Ken Dillenburg