Based on our reserve fund study from the previous post, we have determined that we will need to increase our fees to cover our future costs and expenses.
Effective Jan 1st, 2017 we will be increasing our monthly fees from $167.37 to $210.00 per month.
The increase in fees will be mainly used to cover our increased reserve fund contribution. We are raising our reserve fund contribution from $90,000 to $130,000 for the year of 2017.
We are expecting that we will also have to repair our Attics due to problems with how our attics were installed.
Attic repair and upgrade costs are expected to be around $65,000 a year for the next 5 years as we space the repairs across about 40 units a year.
The fee increase also includes a larger budget to allow the siding and windows to be cleaned annually, and a larger budget for grounds crews and our property manager.
In 2018 we will be increasing our target reserve fund contribution from $130,000 to $165,480 for the year of 2018.
We will be continuing the Attic repairs and upgrades through 2018 completing 80 units by the end of the year.
In 2018 we estimate a 5% increase in costs across the board, reflecting increasing costs due to building aging and inflation.
We have factored these costs into the $210.00 monthly fee increase.
Our current budget places our next expected fee hike to occur in 2019.
If you have any questions or concerns please email the board at firstname.lastname@example.org