The association has funds in the bank to cover normal operations; however, based on our operational loss of nearly $1,000.00 and the recent discovery of a lapse in our liability insurance, the actual loss for 2007 could have looked more like $2,500.00. 

Based on a delta of $2,500.00 per year, we can not sustain ourselves indefinitely.  Based on cash on hand, it is projected that we have two years before a mandatory assessment would need happen to keep the association out of bankruptcy. This year we will place on the ballot a vote for an increase in dues.  Based on home owner feed back, we will address the amount and term of the increase.  Suggestions are welcome as to term and amount of an increase.  In a mandatory assessment situation the cost of the increase will be overly elevated due to legal and collection fees.

With the housing market slowing, our income is not likely grow at a rate that is equal to inflation.  With current income calculations, we would have to have a minimum of 4 houses per year be built, sold, and qualify for association billing in order to raise our current income by 5%. 

The $2,500.00 delta is a very real number and to put it in perspective, that is equal to about 15 additional homes paying dues of $175.00.

Thanks
Craig Hulbert
prepared 3/2/08