BUDGET
The 2008 budget reflects your Board of Directors best and careful efforts to compile, analyze, and present to you and the Association a fiscally sound and realistic operating budget based on current available information. This Budget illustrates your Board’s concern for the building to be not only fiscally sound, but operationally and mechanically sound as well.
The budget enclosed reflects a 0% increase in assessments. The satellite expense has been increased by $2.00 per month, for which the date of implementation is expected to be January 1, 2008. Owners who are participating in an online bill payment program should have their payment increased by this amount in order to maintain a zero balance each month. Last year’s assessment increase was 6.45%.
Some of the approved operating expense increases are, to a degree, beyond our ability to control. The following is a list of items of particular note:
Electricity increased $47,500 or 31.25%
Reserve Contribution increased $16,621 or 6.65%
Elevator Maintenance increased $9,970 or 46.09%
Cable/Master TV Antenna increased $7,920 or 8.51%
As you may already be aware the price of electricity has dramatically increased. The increase is due to the deregulation of the industry that was implemented earlier this year. Next year’s annual increase in expenditures for electricity is approximately $47,500. This is the single highest dollar amount increase within the 2008 proposed budget.
The second highest dollar amount increase is the reserve contribution, which is increasing by $16,621. In 2007 the Board contracted with Reserve Advisors Inc. to perform an updated reserve study and the new contribution is consistent with what the new study advises.
The third highest dollar amount increase is the elevator maintenance category, which is increasing by $9,970. This week, the association has entered into a preventative maintenance agreement with a new elevator company. We are hopeful that the reliability and service of the elevators will be improved with this recent change.
The fourth highest dollar amount increase is the cable/master television antenna category, which is increasing by $7,920. This increase is due to a pass thru rate increase from Direct TV to Prime Time Sports.
Finally, this proposed budget provides for a total annual contribution of $266,621 to the Reserve Fund. The following capital projects under consideration for 2008 are:
- Hallway Renovation Project
- Improvements to the Lobby Baseboards
- Replacement of the Mechanical Room HVAC Unit
- HVAC Duct Work for the Management Office
- Replacement of the Trash Compactor
As always, I would be more than happy to discuss specific details, or answer any other questions you have with regard to this budget. Feel free to call me at 312-482-9793, or e-mail at mccarleb@draperandkramer.com.
Bryan McCarley, Property Manager
You can also download copies of our recent budgets (Hit Right Click/Save As):
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Board Members