The 2012 Pro Forma Budget was finalized by the Board in November and mailed to all owners along with other important Association information.  The budget is the Board’s best estimate of the Association’s expenses and revenue next year.  The main revenue of the Association is the monthly assessments.  We do have other small revenue streams from several sources, such as the laundry room and Clubhouse rentals.  In addition, to increase the Association’s earnings the Board is planning on using a financial advisor and conservative investment instruments to improve the reserve account yield and reduce the amount that must be contributed to the reserves each year from owners’ assessments.   That allows the total 2012 transfers to increase as needed by 18% while not increasing the amount contributed from the assessments; the additional funds are provided by the increased earnings forecast for next year. 

 

You will notice a few major changes in the expenses budgeted for 2012.  The most significant is a one-time expense for an entry gate system.  This is budgeted at $110,000.  The Board has been considering this change since 2010.  The installation reduces the Association’s sentry costs by 60%, over $100,000 per year.  After 2012, the Association will realize a net annual savings of $100,000.  The Board is sensitive that a visitor entry gate will be new for residents and require accommodation and adjustment.  The project is in the planning and proposal stage and complete details and a schedule will be provided to all residents in advance so that we are ready when the gate is installed.  This will be a team effort on the part of all Tara Hill, residents, staff, the continuing patrol officers, and the Board, to control the HOA’s long-term costs.  While an entry sentry will no longer be needed, patrol officers will continue on-site to provide courtesy assistance and presence when Tara Hill staff is not on-duty.

The resulting budget for 2012 required an assessment increase of 1.5%.  This will be reflected in each unit’s monthly assessments. 
 

The Association continues working on controlling costs and in spite of continuing water, gas, and electricity rate increases, the Board expects to be able to hold utility costs to the same level as 2011, with water savings from irrigation and plumbing improvements, boiler improvements, and the switch made in the exterior lighting to energy-saving fixtures.  Administrative costs are also budgeted without increase and the larger reserve contribution is funded through greater reserve fund earnings.

Expected improvements throughout the coming months, besides the new entrance, are a roof maintenance service agreement for all Tara Hill roofs, continued landscape improvements to upgrade the appearance and decrease water usage, use of new equipment which allows better and longer-lasting clearing of communal drain lines, continued replacement of walkways damaged by tree roots, balcony and patio fence repairs, wood trim painting, and pool heater replacement.  While we wish we could undertake additional projects and move forward on improving Tara Hill more quickly, we recognize that owners’ finances are sometimes restricted and that rather than increase assessments significantly, with patience, the investments made now will provide cost savings in the future that can be reinvested in enhancing our community.

 

 

Owners who pay electronically through the Mutual of Omaha payment website or through your own banks: remember to update the monthly assessment amount beginning January 1.  If you would like to begin using one of these electronic methods, the instructions are posted at www.tarahillhoa.com.

 

Owners who have been mailing in their checks with a coupon will receive a new coupon book in December showing the new monthly amount for each month in 2012.  Please look for it in the mail and keep your book in a safe place throughout the year.  Replacement coupon books cost $5.00.  Mailed payments can only be processed using a coupon.  If you do not have a coupon book and wish to mail paper checks to the processing center next year, please request a book from Tara Hill administrative staff no later than November 25, so that your order can be included.  Any orders received after that date will be a special order and the cost would be $5.00.

 

A 2011 year-end statement will be sent to all owners showing any outstanding balance and the January 1, 2012 monthly assessment amount.  However, that is the only statement that will be sent for 2012.  It is important to submit your correct payment amount in time each month to prevent additional fees from being assessed, in accordance with the Association’s Collection Policy.