The Finance Committee submitted the 2025 Budget to the Board for review on 9/20/2024. The Board approved the budget at the 9/24/2024 Board Meeting considering the following projected operating costs.

INSURANCE: After a 99% increase in premium cost last year, the Finance Committee joyfully reports that there was not an increase for the 2024/2025 renewal. Extensive research into how to save on insurance costs found that assessing owners for wind/hail deductibles was the best plan because most, if not all the cost can be covered by Loss Assessment Coverage when included in the homeowner’s policies. Most insurance companies offer Loss Assessment Coverage, which is for assessments resulting from losses, and many policies include coverage of $1,000.

While Property Insurance did not increase this year, our upcoming operating needs required planning to save on the buydown. Instead of buying it from 5% to 1%, as done in the past, the plan was to buy it down to 3% with 2% to be assessed to owners and 1% paid from reserves in case of a loss.

The Finance Committee via texts, emails and phone calls, educated owners of the need for adding/increasing Loss Assessment Coverage to $10,000, which usually costs under $20.00/year, while planning to assess 2% to owners. Unfortunately, some insurance companies are adding conditions to the body of policies that contradict the declaration page information. (One dec page showed $10,000 for Loss Assessment but, in the policy, it limits the coverage if the assessment is for a deductible to $1,000. Another policy had $5,000 on the dec page, but on page 47 deleted Loss Assessment Coverage.)  Considering the changing terms, it was determined that assessing 2% to owners would be too much risk so the coverage was bought down to 2% rather than 3%, 1% to be paid from Reserve Funds and 1% assessed to owners.

IMPORTANT NOTICE: Should there be a major Wind/Hail loss between now and 9/21/2025, the Association will assess 1% of the deductible ($347,413.86) to owners which equals a $1.33 charge per square foot. The charge for the smallest condo, 381 square feet, would be $506.73, for the largest, 2,195 square feet, $2,919.35. Therefore:

• If your homeowner’s policy includes Loss Assessment Coverage for deductibles in an amount equal to or greater than the assessment, it will be covered by your insurance company.
• If your coverage is less than the assessment, you will pay the difference.
• If your policy does not include Loss Assessment Coverage for deductibles, you will pay the full amount.

EACH OWNER MUST CONFIRM THE CONDITIONS AND AMOUNT OF THEIR LOSS ASSESSMENT COVERAGE EACH YEAR AT RENEWAL. PLEASE ACQUIRE COVERAGE OF $10,000 IF AVAILABLE.

HVAC: 1) Increased Maintenance Costs 2025 -The purchase of the Daikin Chillers included 5 years of preventive maintenance which ends this December. Therefore, after paying $9,500/ year for this coverage new proposals for full coverage are $32,000 & $37,000/ year going forward.

2) Proposals have just been received for 2 projects that will significantly increase the performance and efficiency of the chillers. One has been in the works for several months, the other is new technology that will address the long-standing problems with water treatment. The combined cost of these 2 projects is $152,000.

ASSESSMENTS: Cost reductions, realignment of the current expenses and savings on the Wind/Hail Deductible buy-down provided funding for the increase in maintenance costs and the critical improvements to the HVAC system. The changes allowed the 2025 Budget to maintain the current Assessment Rate of 54 cents/ per square foot/ per month.  Therefore, the monthly assessment will not increase on 1/1/2025, it will remain the same as 2024.