2022 Budget and Annual Disclosure
All members will soon be receiving the Annual Disclosure, which includes important legally required information about the Association including the 2022 budget and new assessments. There are two versions of the Annual Disclosure – one for the single-family subdivisions and one for the townhome subdivisions.
The Budget was approved by the Board in October. The 2022 Annual Budget for the entire Association is $7.56 million. The single-family subdivisions represent $4.22 million or 56% of the budget and the townhome subdivisions represent $3.34 million or 44% of the budget.
Included in both versions of the Annual Disclosure is the 2022 Pro-Forma Budget and Notice of Assessment Increases, which explains the key elements of the budget and assessments. The notice shows the assessment for the common operations shared by all owners (Common, Water Quality, Water Company, and Channels & Lagoons) needed to be increased by 19.9%, raising this assessment to $881 per quarter. The increase for
land-locked properties was less, due to a 50% discount on the Water Quality assessment. The primary reasons driving the increase were higher insurance costs, higher Water Quality operating costs, the new TRPA lake access fee (MOU), discontinued VHR fees, adding back an admin position, higher pavilion trash dumpster costs, and higher electricity costs. The increases were partially offset by staff reductions in security and pool operations, and lower legal costs.
The townhome version of the Annual Disclosure includes the cost of shared common operations (above) plus the cost of townhome operations and reserves. The assessment for the 12 townhome subdivisions’ operating expenses and reserves increased by an average of 4.5% for a variety of reasons unique to each townhome subdivision. When combined with the cost of shared common operations, the overall assessment for the townhome subdivisions needed to be increased by an average of 9.7%, raising the average townhome assessment to $2,579 per quarter with a range from $2,150 to $3,213 per quarter.
The Annual Disclosure also includes information about the reserves used to fund planned maintenance and improvement activities, as well as possible special assessments for major unplanned activities. Next year, one possible special assessment would be for funding the Controlled Methods Test (CMT) for aquatic weeds. This assessment of $600 per lot was previously approved by homeowners on the condition the test is approved by the regulators. A general special assessment to fund major improvements to the Water Company, is also possible. Two Town Hall Forums have been held on this complicated issue. A townhome subdivision special assessment is also possible to fund the replacement of the bulkhead in Cove-3C.
Members will receive the Annual Disclosure by regular mail or electronically, depending on preferences. The Disclosure can also be found on the Association’s website in the Documents folder – TKPOA.com>Documents>Accounting>Budgets>2022. A copy may also be obtained at the Pavilion office.
For questions about the Annual Disclosure please contact Kirk Wooldridge, General Manager ([email protected]). Questions about the budget and financial information may be directed to Ken Silveira, Treasurer ([email protected]), or Don Havard, Accounting Manager ([email protected]).