Deciding LMOA's Financial Future |
How do you want to conserve Lake Monticello's array of services?
The Challenge We Face
One of the Board of Directors' top priorities is to manage our association’s financial health. Our Finance & Audit Committee conducted a 10-Year Outlook and determined that LMOA Operations are underfunded. This is projected to deplete our reserve funds, creating a $4.5 Million shortfall in less than a decade. Sufficient Reserve Funds are required by law to ensure the replacement and repairs of LMOA's common property. Proper maintenance of the common areas protects the property values of our Members and their quality of life.
What Caused This to Happen?
- The inflation rate in 2022 was 8%, and the costs of goods and labor have permanently increased.
- The community has grown and so has its need for various services (there are 4635 lots and an estimated 12,000 residents).
- $6 million from the Emergency Reserves Account (ERA) and other reserve funds was spent to replace and repair deteriorated facilities from 2015 to 2017.
- To help its Members during the pandemic, the LMOA Board of Directors decided to raise dues by only 1.5% in 2020 instead of the annual increase of 3% allowed by our Bylaws.
What Has Been Done to Help the Situation?
LMOA believes it has reduced Operations to a minimal level by:
LMOA believes it has reduced Operations to a minimal level by:
- Cutting a full-time position and reducing other staff expenses by $100K in the 2024 budget
- Eliminating 4 admin and maintenance positions (2022-2023)
- Reducing LMPD by 4 Officers (2022)
- Examining contracts and utility bills to secure savings and better pricing
- Examining potential revenue streams
- Minimizing reserve fund spending (LMOA is not overfunding reserves)
- Postponing non-essential repairs
- Enhancing investment efforts
- Implementing a more aggressive collection campaign, collecting $125K in outstanding due payments in 2023
- The Food & Beverage and the EC&C Departments are undergoing reorganization
The Good News
Together as a community, we can decide how to avoid a budgetary crisis in constructive and responsible ways. The Board of Directors will be deciding on a proposal in the next several weeks. Your participation in this important survey can help them develop a financial roadmap that best serves our community in 2025 and beyond. The deadline to participate is 12 PM on February 14, 2024. Please let your voice be heard!