Good Evening Everyone,
The 2017 Timberidge HOA Annual Meeting on Sunday, February 26, 2017, ran very smoothly thanks to John Mackenzie of Secure Association Management. Thank you to the homeowners who attended. Your input during the 2017 Annual Meeting Presentation/2016 Year-in-Review by John Mackenzie and Robin Tercero Montgomery, THOA President, is truly appreciated.
Most of the meeting was dedicated to discussing the reserve study. As posted on November 27, 2016, Criterium-Dotson Engineers (Criterium) conducted a reserve study for the THOA on July 12, 2016, by evaluating the overall condition of the building components and systems that are the responsibility of the Association to determine the allocation requirements into the reserve fund to meet anticipated capital expenditures for the THOA for the next thirty years. The Board met with Phillip Nieman, P.E., of Criterium on September 2, 2016, to discuss the first draft of the Reserve Study. Criterium originally recommended that we begin with a substantial special assessment in 2017, but they were unaware of the recent special assessments for the west retaining wall replacement. We requested revising funding options that still make it possible for the THOA to proceed with capital item replacements without any catastrophic failures of construction materials. The final reserve study was submitted to the THOA board on November 4, 2016.
We were not surprised that Criterium deemed the site in disrepair and immediate need of many replacements. We knew the cost over the years would be substantial as evidenced by the Reserve Study Itemized Worksheet provided by Criterium. Based on their Executive Summary “of the facility assets, conditions and finances, the current contribution level for capital reserves is NOT adequate to meet the either short-term or long-term needs of the community. Both an immediate increase together with increases over time will be required to meet future capital needs.”
After Criterium reviewed how quickly reserve funds will be depleted if we remain at existing funding levels, three alternatives for reserve funding were presented to the Board. Please note that reserve funds do not include general operating budget items. Also, the Board specifically requested alternatives that show little to no increase in monthly assessments to illustrate the effects of that choice.
Based on the report, the funding alternatives presented by Criterium, and the capital improvements achieved after the reserve study was completed, the Board chose to focus on budgeting through 2020 to create a Board Recommended Option (see also 2017 Annual Meeting Presentation/2016 Year-In-Review). Please note that although the reserve study is a tool for capital replacement planning, funding levels will be adjusted to accommodate contingencies and is subject to revision as necessary. The Board may vote to increase the monthly assessments up to five percent (5%) annually as allowed by the Deed Restrictions (page 5, section 5 – vol. 1162, page 405).
Thank you for checking the website for updates. We will post the Minutes of the 2017 THOA Annual Meeting very soon. Consider signing up for notifications to receive Timberidge posts via email immediately by following the blog. Of course, you are welcome to attend the THOA Board of Directors meetings, and we hope you will consider joining the THOA Board of Directors to “Be a Voice for Timberidge.”
Thank you – Timberidge HOA Board