4 minute read
MESSAGE FROM THE PRESIDENT
As we approach the end of 2024, let’s take a look back at what we have accomplished. Here are key highlights as we close the fourth quarter of this year.
Financials:
Based on Income and Expense, September 2024 financial statement, we are slightly ahead by $138, 718 for the year to date.
YTD Income. YTD Budget. Variance
$2,969,914.90 $2,650,905.00 $319,009.90
$2,831,196.97 $2,641,935.00 ($189,261.00)
$138,718.00 $8,970.00 $129,747.00
We are on track with funding our annual reserves allocation of $500,000. We have contributed $375,000 YTD vs YTD budget of $375,000. We have also contributed $20,000 to our annual ADWR ( Arizona Department of Water Resources) allocation of $20,000.
Systems Integration and Cost Reduction:
The Board signed a 120 day agreement with City Property on September 1 to provide one stop financial and property management services including an on site General Manager. This agreement included migration of stand alone systems, subscriptions costs and services into an integrated platform. This consolidates data and metrics to drive results and real time reports and community documents to the Board and homeowners. Migration of our disparate systems into one technology platform and elimination of two admin headcount will result in annual savings of $383,000 for 2025.
Key Projects:
Reserve Study:
The draft for the 2025 Reserve Study is currently under review including validation of annual reserve priorities and costs.
Water and Lakes:
Lake 4 valve replacements, Lake 5 valve stem and bolt replacement and Lake Valves survey have been approved. The Lake valves survey is a preventive maintenance survey conducted periodically to pro-actively identify and prioritize problem areas. Stocking of lake utility fish was approved for deployment this year. The Board also approved pre-stocking of lake chemicals on hand to address any golden algae occurrence.
Maintenance:
The contract for monthly Pest Control including rodent stations, control of ants and warranty on termites has been approved to replace inconsistent past practice, The contract for inspection and cleaning of playground equipment has been approved to ensure compliance and safety.
Access to Recreation Centers:
We have had repeated incidents of trespassing in Los Altos and Saratoga after hours and the Board has authorized a Trespass Enforcement Request for the Mesa Police Department. No trespassing signs have been placed and Mesa Police Department will make reasonable requests for unauthorized persons to leave for violations of ARS 131502.
2025 Budget and Assessment Fees:
The Board and the Budget and Finance Committee has spent three extensive sessions to validate current and historical data relative to line item income and expenses to ensure an accurate 2025 budget. Last Wednesday, November 13, after lengthy and rigorous discussions with the Board, Budget and Finance and input from a homeowner, the Board decided to implement a 5% increase in 2025. Thus, the quarterly payment will increase to $167.73 with an annual payment of $670.93, a net annual increase of $31.95.
The data points that the Board considered in making this difficult decision included:
• Low Reserve Fund. The draft of 2025 Reserve Study states that our Reserve Fund is 32.8%. This means the Reserve Fund Status is Fair, and the HOA’s risk of special assessments and deferred maintenance is currently Medium. We should be at 70% or more funded to be rated strong relative to reserve fund strength. This is the lowest level of reserve funding since 2019 at 82.9% funding, 2022 at 63% funding and 2023 at 65% funding. This poses a serious risk to the financial health of the Dobson Association. • Increased costs. The new administration has proposed tariffs as a priority. If implemented, this will increase construction material prices from oversees an additional 60 to 100% increase in prices in cement, steel, drywall, insulation etc. which will be potentially passed on to businesses and consumers. The City of Mesa has also proposed a 8.5% increase in water and waste water and 9% increase in natural gas.
I recognize that this is an additional burden especially to our fixed income individuals and families and how we have to balance this with the Board’s responsibility to restore our financial health and to maintain our community assets now and in the future. It is the Board’s responsibility to decide what is in the best interest of the community. The final motion was to approve a 5% increase in assessment fees for 2025 and distribute the projected year end net income of $70,000 as follows; $50,000 as an additional reserve allocation and $20,000 for contractor maintenance.
Thank you and together we will work to meet our challenges and thrive as the community of choice in Mesa.
