2024 BUDGET SUMMARY BY GENERAL MANAGER ALLEN ROTH, CMCA®, AMS®, PCAM®
As required by the Bylaws, the Pagosa Lakes Property Owners Association Board of Directors adopted the 2024 budget for the association at their regular meeting on December 14, 2023. The 2024 annual assessment will increase by $2.09 a month increasing the dues by $25/ year to $325. The total operating budget is $2,884,156. The General Reserve Fund transfer amount is set at an additional $460,345 with the Trails Reserve Fund transfer at $56,400. The Capital Improvement Fund transfer is set at $313,740. The General Reserve Fund expenditures are budgeted at $861,799 and the Capital Improvement Fund is scheduled for $347,208 while the Trails Reserve Fund has $208,346 scheduled. The total budget amount for the Operating, Reserves and Capital funds is $4,301,509. Property owners’ assessments account for $1,951,625, or 67% of the income. Time-share owner dues account for 11% and Short-term rental owners’ dues account for 9 % while a myriad number of other methods of income including funds generated from our recreation amenities, community events and service fees account for the remaining 13.0%. The budget process begins in September with the first draft presented to the Finance Committee for review and to provide recommendations to the Board of Directors. The Board of Directors review the budget during their regular scheduled meetings in October, November and December, plus additional work sessions open to the membership. The 2024 budget break-down is as follows: Capital Improvement and Reserve Funds (for improvements to and major repairs and replacement of existing capital assets, such as our buildings, recreation center, lake improvements/docks and parks and trails and new construction) = $1,417,353
Administration (overall administration and accounting, Insurance, human resources, legal, property owner records, market fund accounts, licenses & certifications, elections, computer tech and postage) = $841,442 Community Standards (administration of property owner applications for improvements/construction, covenant enforcement and community enhancement) = $487,017 Property & Environment (management and maintenance of buildings and grounds, including the lakes, parks and trails) = $799,698 Recreation Center (operations & management, maintenance, utilities and programming for the recreation center campus) = $634,449 Lifestyle & Communications (recreation programs & events, clubhouse rental, clubs, website, newsletter, e-blasts, brochures, software programs, Board packets & Annual ballots) = $63,000 Utilities (electricity, natural gas, telephone, internet and waste collection for all property other than the recreation center) = $58,550
SO, WHAT DOES MY DUES ASSESSMENT PAY FOR? Department of Community Standards
$45
Department of Property & Environment
$78
Department of Administration
$71
Department of Lifestyle & Communication
$5
Department of Recreation & Amenities
$8
Utilities minus the Rec Center
$8
Cover the cost of Delinquents
$4
General Reserves
$59
Trails Reserves Capital improvements
$7 $40 $325
FINANCE REVIEW PLPOA faces the universal challenge of rising operational costs due to inflation, impacting everything from utilities to insurance, staffing, and services. While the 2024 budget doesn't mirror the 3.7% index hike, it does reflect pervasive inflation across all expenses. Staff salaries need inflation-adjusted raises amid heightened competition for skilled workers. Insurance costs, especially health insurance, are slated to surge by 18%. Rising building materials and labor costs escalate insurance premiums for property replacement. Legal expenses, pine needle pick-up, electric, gasoline and fish stocking show significant increases too.