FUTURE INCREASE IN MONTHLY HOA DUES:
As indicated in the August Tanoan Talk, the Board of Directors has continued to discuss and review current and upcoming expenses and how they would impact monthly dues. During the August Board meeting Farley Verner, Managing Partner of the CPA firm Hinkle & Landers gave a presentation covering the 2017 TCA audit. He reported that no material nor significant weaknesses were identified. However, of significance to the BOD, was that a review of the Replacement Fund Percentage Funding had dropped to about 30% in 2017 compared with the “gold standard” of 70% in 2008. Hinkle & Landers estimated Tanoan’s total Replacement Cost due to a single catastrophic event to be $3.7M. TCA’s approximate current Replacement Fund Balance is $1M.
Review of Association Reserves “No Site-Visit” Reserve Study for the TCA 2017 – 2018 year indicates that TCA’s reserve Fund is 40% funded. TCA’s most recent Reserve Contribution Rate is $13,000 monthly. Based upon anticipated future expenses, they recommended a monthly contribution of $17,600, followed by 10% increases for the next several years to build adequate funding.
In response to the above audit and study, the BOD is considering a $19 per month increase in HOA dues to the already existing dues of $106, to equal $125 per month. This would result in a monthly increase to the HOA of $12,901. This would allow for the recommended deposit of $17,600 into the Reserve Account with additional monies to be deposited into the HOA’s monthly Operating Account. The Operating Account handles utility expenses, salaries, unanticipated maintenance expenses, etc., which are expected to increase, as evidenced by maintenance on an irrigation line (see below). This $19 monthly increase would, the BOD believes, be necessary in view of future expensive projects, such as paving in 5 – 7 years and deteriorating infrastructure. $125 in monthly dues is comparable with other area HOA’s, such as Tanoan East. The BOD will discuss this issue during its regular September meeting. Should the Board approve this dues increase, you will be advised by e-mail and/or letter. The above is provided as background in the BOD’s deliberations. Also, thanks to those residents who provided positive input during recent Board meetings.
GOLF COURSE COMMITTEE:
The Golf Course Committee has had productive meetings with the Tanoan Country Club’s General Manager. He has advised that he will present his proposal for the Club’s 2018 course conditioning budget to the Committee for its review during the fourth quarter of this year.
Directors Marshall Adams and Patti Hinds, in coordination with LEECO, have developed a plan to replace the single meter on the St. Andrew’s line with 7 meters. The replacement costs before rebates and credits are $133,000 to $154,000. These proposals would eliminate water loss of approximately 149.6 gallons/hour costing approximately $7,200 per year. We have had 5 break repairs since June 6th averaging $1,751 per repair. The Board will be reviewing this project at upcoming meetings.
VOTE! VOTE! VOTE! to fill the two vacancies on the Board!
As this is my last message as the TCA President, I would like to express my thanks to my fellow Board members and the HOA staff for their dedication, support and advice. It has been a most rewarding experience serving the Tanoan Community.
Paul Dembnicki, President