The Official Newsletter of the Lake of the Woods Association, Inc. Vol. 20, No. 16
540.972.2237
LOWA.org
/LOWAssociation
December 2, 2022
Treasurer’s Report
Holiday Home Decorating Contest LOWA is pleased to sponsor the 3rd Annual Holiday Home Decorating Contest. Registered homes will be included on a map on LOWA.org, members can tour the community and look at the homes. • • • • •
Contest Rules & Deadlines
December 2: Deadline to register your home for one category. December 8: Deadline to decorate your home. December 9-11: Garden Club will judge homes. December 12: Winners notified. December 16: Winners published in Lake Currents.
Visit www.LOWA.org/HolidayHomes2022 to register. Winners will be chosen from one of three categories. Gift cards will be awarded to first place and a runner-up. Hallmark Holidays Garland, wreaths, lights, everything for the picture perfect greeting card. Wacky Tacky Snow globes, figurines, inflatables, lots of lights, lasers. Anything goes!
Winter Wonderland More seasonal, less Christmas, Snowmen, sleighs, and more.
Fitness Center Closure Mon., Dec. 5 at 5 PM The Fitness Center will close at 5 PM on Dec. 5, for carpet cleaning. The center will reopen on Dec. 6 at noon.
President's Letter 2 Board Agenda 2 Association News 2 - 10 General Manager 3 Board Minutes 3 Financials 4-5 Calendar 7, 8 Viewpoints 14 Orange County 17 Classifieds 18 - 19 Employment Opportunities 19
Fri., Dec. 2 Christmas Tree Lighting 7 PM, Outside Fitness Center area Sat., Dec. 3 Christkindlmarkt 9 AM-3 PM, Community Center Tues., Dec. 6 Coffee & Conversation with Board Members 10 AM, Woods Center
by Walt Diercks, Treasurer, LOWA Board of Directors We are now more than halfway through our current fiscal year, which will end April 30, 2023. As you may recall, in several of my most recent Lake Currents reports I have written about the adverse effects that inflation and staffing issues have had on LOWA’s finances, and its ability to provide services to its members. From April 2021 through October 2022, inflation, as measured by the Consumer Price Index, is up over 12 percent, while the member assessment in this fiscal year’s budget increased 6.2%. This means that, with half of our current fiscal year over, our member assessment income already is lagging almost 6% behind inflation. The economic climate is challenging, and I am confident that LOWA and its members are up to that challenge. The second quarter results are now in. Despite inflation and staffing challenges LOWA is still projected to finish with a very modest operating cash surplus. Our amenities as a group (the Equestrian Center, the Pools, the Fitness Center, Communications, Community Activities, and Golf Operations) are performing close to budget expectations. However, the Clubhouse and Fareways continue to have significant negative variances from budget. This is consistent with national trends showing that restaurants are being challenged by rising costs, staffing issues, and consumers reducing their discretionary spending. Adjustments are being made to address these negative variances. We will continue to diligently contain costs and look for opportunities to increase amenity revenue. New Construction & Renovation Fees collected through Oct. 31 this fiscal year amount to $263,709. At the same time last year LOWA had collected $335,001 in NC&R Fees. The current state of the economy, as well as the declining number of undeveloped lots at LOW, probably account for the lower collected NC&R Fees this year. We still anticipate that NC&R Fees collected this year will be able to provide us with at least $200,000 to support next fiscal year’s budget. This year’s NC&R Fees experience does suggest that LOWA cannot continue to expect that NC&R Fees will provide the level of funds they have in the past. By the time you read this, LOWA will be well along in its process for budgeting for its next fiscal year beginning May 1, 2023. That budget process will, by necessity, address the impact that inflation and staffing issues are having on LOWA’s budget. Three days of hearings on the budget with both the Finance Committee and the Planning Committee just ended on Dec. 1. The Board presently is scheduled to adopt the budget for the next fiscal year on Feb. 15. Now is a good time for members to educate themselves about the proposed budget and to provide comments and suggestions to staff, members of the Finance and Planning Committees and members of the Board. One final item: Recently it has been asked on social media whether Orange County real estate taxes are being assessed and paid on LOWA common space (examples are the lakes, the roads, and the golf course) owned by the Association. The answer is “No.” In fact, under Virginia law, localities are prohibited from assessing real estate taxes against LOWA and other HOAs for common space. LOWA presently owns two residential lots, which are not part of the common space, and pays about $400 per year in real estate taxes for these two lots. LOWA pays no other real estate taxes.
Sat., Dec. 10 Christmas with the Silver Tones 5 PM, Clubhouse (CH Restaurant will be closed for this special event)
Sun., Dec. 11 Dinner with Santa 4-7 PM, Clubhouse (Reservations only)
Wed., Dec. 14 LOWA Regular Board Meeting 2 PM, Community Center, Zoom LOWA Website Links TEKControl (Visitor Management) LOWA.ORG/TEKCONTROL