The following is the latest in a series of monthly messages from the RVR Master Association Board, called “A View From the Board.” The messages summarize recent Board decisions and discussions and are designed to bring RVR homeowners up to date on issues important to the community.
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Summer is over and the fall colors are here. This is a fun time of year for hiking and enjoying the outdoors. It's also the time when budget season begins. Our management team has been hard at work, looking at the numbers and preparing us for the next year.
Anyone who has poked their head back into the community, now that the menace of Covid seems to be over, has probably noticed that prices have gone up…way up!
Inflation now seems to be a tenacious and troublesome part of everyday life. The most recent Bureau of Labor Statistics Consumer Price Index (CPI) for the Colorado Mountains/Plains shows an 8.5% increase from July 2021 to July 2022. To make matters worse, construction costs seem to have far outpaced that increase in our valley. Those of you who collect a Social Security check will also soon notice an 8.7% cost of living increase, the highest in 40 years!
Unfortunately, this means that everything from gas and food, to landscaping and ski lift tickets are going to be more expensive than last year. This also means that HOA dues must go up accordingly to keep pace.
For anyone who wants to take a deeper dive into those statistics, you can find some information at the U.S. Bureau of Labor Statistics here.
There is a silver lining here. Our HOA has been effectively managed throughout 2022. We are on track to complete the year with budgeted expenses in line. We’re on solid ground and we have a very good idea of what is needed to be successful in 2023. That said, as good financial stewards, we are obliged to propose a budget that assumes inflationary factors.
Let’s get down to brass tacks. What does this mean for our dues?
Management has endeavored to create a well-thought-out budget for 2023, keeping costs contained as much as possible. Ashley and his team created a detailed forecast for the year end, followed by a detailed 2023 budget, scrutinizing every line. The end result?
The proposed budget, that we are now sharing with the public, shows an increase in dues of 8.3%. That means a $30 increase for all homeowners in our operating and reserve dues combined.
As much as we would like to drop that number, we feel that budgeting below the Consumer Price Index would be a mistake given our inflationary environment.
What’s next?
We are sharing the budget as early as we can, giving the community an opportunity to give feedback on a preliminary budget draft.
Management completed a carefully considered budget in accordance with the timeline they laid out. Now it is time for the community to have a look at this draft. Next week we are holding feedback sessions in the Ranch House where we will be available to discuss this proposed budget with homeowners. We invite any interested parties to come down to the Ranch House (or via zoom)
Q&A Session, #1 Tuesday, Oct. 18 from 5 to 6p.m.
Register in advance for this meeting: https://us06web.zoom.us/meeting/register/tZElde-qpj4iHNwvwlzW1hh-lFRF6vitbjA2
Q&A Session, #2 Thursday, Oct. 20 from 5 to 6 p.m.
Register in advance for this meeting:
https://us06web.zoom.us/meeting/register/tZEtf-ivpzkrHN0rirW6Ngjwi_NdzqJdpKRR
Another draft budget will then be included in the October board packet (board packets are always emailed out the Saturday before each monthly board meeting). In this meeting we will discuss feedback that has been given and the Board will have the chance to discuss as a team.
During the November Board Meeting (11/16), the Board will vote on the proposed budget. If approved, it will be posted to the website and a vote will go out via Survey Monkey on December 2.
A Job Well Done
In the Board’s view, we had an excellent year in 2022. We saw service improvements at the Ranch House and the landscaping and irrigation crews executed the summer season with smiles on their faces.
From a financial perspective, the management team worked hard to deliver all of this with financial precision, staying within budgeted expenditures.
It is our hope that 2023 will be every bit as successful. We are not increasing dues to fix issues. We are simply repeating what we feel was a successful formula from 2022—with cost adjustments in line with inflationary trends.
As we get closer to the end of 2022, we should all hope for the best, but plan accordingly in order to secure our future as a place where we love to live.
Without further ado, you can find the links below to our proposed 2023 Budgets below:
On behalf of your volunteer RVRMA Board,
Michael Banbury
Board President