Windsor Life
Page 4
Rainy Day Planning
Here we are in March. How did that happen? Days fly into months,
and before you know it the snow will be gone and the flowers will be
blooming. Spring brings a new fiscal year for the Association, which
begins on April 1. With spring comes rain and it seems appropriate
this month to talk about saving for a rainy day. Although I will save the
bulk of the new fiscal year’s budget talk for the April issue, I do want
to spend some time this month on the capital reserve portion of the
budget and the current reserves and reserve study. Rainy day talk.
Capital reserves are long-term savings accounts for replacements and
repairs of large components owned by theAssociation, including roofs,
boilers, above ground garage replacements, concrete and asphalt
and the buildings. It is imperative that the Association understand
the condition and useful life of our buildings, property and associated
components, and this leads us to the reserve study. A reserve study
is a report put together by engineers and other professionals after
conducting a thorough examination of the
community. Exterior and interior elements are
examined as well as electrical and plumbing
systems. Every inch of the community is studied
and the data is compiled in one comprehensive
report. The report helps the Association to plan
what capital reserve repairs and replacements
will be done and when. It also provides the
basis for the calculation of the capital reserve
portion of the HOA fee paid by residents.
We are currently looking at Windsor Gardens’
reserve study and making plans. 5, 10, 15 and
20 year plans. Making plans far out into the
future helps an Association save capital reserve
funds in a well thought out way, saving for that
rainy day. Planning for capital expenses is one
of the best things a Board can do to ensure the
future health and stability of the Association.
Over the last few months I have shared various
reasons why living in a common interest
community, a condominium community, is different than living in a
single family home. Here is another. In a single family home, you
decide when you want to make repairs and replacements, and what
you are willing to tolerate insofar as making updates and repairs. For
instance, you can decide not to use a second bathroom for a couple of
years rather than fix a pipe. Not so for a community such as Windsor
Gardens. The governing documents obligate the HOA to maintain,
operate, repair and replace the common areas in the community.
Properly planning and maintaining the reserve fund is important, even
if the capital reserve fund is adequately funded now, we must be sure
that it stays that way. The Association’s current reserve study used
what is called a baseline method of funding. The objective of this
method is that while all of the components in the Association may
not be fully funded, there are sufficient reserves on hand so that the
reserve balance doesn’t approach or drop below zero. This method
offers the lowest homeowner contribution but the greatest risk.
In the upcoming fiscal year alone, we are facing the replacement
of 10 boilers; the replacement of half of the Parking Lot 9 garages;
five elevator modernizations; remediation and repairs to the lanais in
Building 11; a roof replacement; asphalt and concrete repairs; carpet
replacement in several buildings; and the re-piping of the heat pipes
in four buildings. These capital expenses alone will come in at a cost
of over $3 million. At the current amount assessed for capital reserves
on the HOA fee the Association brings in $708.48 per unit per year
for a total of $1,905,102.72 per year. A little over a million less than
needed for this year’s capital expenditures.
It is the goal of the Board to bring in the funds needed this year at a
rate that will cover the anticipated capital expenditures for this year.
This equals a $25 monthly increase to the capital portion on your
monthly HOA assessment or $300 per year per unit. This will leave
the funds that are currently in the capital reserve account to continue
to grow in anticipation of expenditures expected over the next 5 to 10
years.
The Board and the Long Range Planning Committee will be meeting
with experts over the upcoming months to obtain comprehensive
information on the projects that we are anticipating in the upcoming
years. This will include more information on our roofs, underground
garages, many components involving the infrastructure of the buildings
and drainage issues, just to name a few.
The Board, Long Range Planning Committee
and management staff have spent the last few
months examining the current reserve study as
well as meeting with outside professionals to
get a fuller understanding of the capital projects
in the Association’s future. This year alone,
the budget for capital expenditures exceeded
the reserve study projection by $1,816,567.
Although we didn’t spend the forecasted
amount, it is only a matter of time before we
do. The decision has been made to budget and
plan for a revised reserve study in this next
fiscal year. Based on current issues that are
impacting the infrastructure of this 54-year-old
community, a new look at the reserve study as
well as reserve funding must take place. Some
of the components that must be addressed as
we move forward are aging pipes and plumbing
leaks, new roofs, boilers that are outside of their
useful lives and irrigation and drainage issues.
We have scheduled a community meeting for Tuesday, March 22,
in the Auditorium at 7 p.m. to discuss budget increases, including
those related to capital expenses. We hope that you will join us for
this informative meeting.
While we are busy planning for the future of Windsor Gardens, there
is still much work being done day-to-day.
Grounds
In February, the Grounds Department did tree trimming and stump
grinding while continuing the work of snow removal. Denver saw 27
inches of snow from December through February.
Maintenance
A new door access system was installed in Building 22. A new sound
and storage room was constructed in the Auditorium to house items
used for concerts and productions. It was used for the recent Lannie
Garret concert, which was a huge success. New doors were installed
in Buildings 5, 34 and 39. Carpets were cleaned in Buildings 52, 56,
27, 22, 20, 37, 13, 32, 43 and 64 and several of the common area
rooms. New carpet was installed in the interior stairwell in Building
45. Some of the plumbing issues this month included an under floor
Snapshots
From General Manager Tami Bonner
SNAPSHOTS
continued on page 5
Rainy Day
Plans
