Your Association consists of 1,048 townhomes, approximately 360 acres of Limited Common Property and annual assessment of $840, unchanged from 2016. The annual financial review was conducted by independent accounting firm McFall & Associates. Revenue was up $901,968 with expenses totaling $797,846. Overall revenue exceeded expenses by $104,122. Your Association currently holds Debt of approximately $76,000 from the purchase of 4 vehicles in 2015. Total operating reserves continued to decline, ending the year at approximately $159,000, down from $216,000 in 2016. The auditor recommends a 3 to 6 month operating reserve.
A continued upward trend in real estate values lead to 136 properties being sold, compared to 114 in 2016. For the year, 14 applications for major improvements or additions to townhomes were processed, down from 19 in 2016.
Foreclosures have fallen off dramatically from the peak around 7 years ago. Just 2 new foreclosures occurred in 2017 and bad debt write off totaled $10,756 from 6 properties. Collection of past due accounts continue to be a challenge. 2017 started with a total of $43,548 in past due assessments for 36 properties. Aggressive steps for legal action for collections remain in place following the placement of a Lien. When a property becomes 120 days past due, the Association’s attorney sends a certified letter to the deeded owner. If the owner does not make the account current, establish a payoff plan, or fails to respond, a lawsuit is filed. This resulted in bad debt recovery of $11,350 for the year. Satisfactory judgments against delinquent owners include wage and/or bank account garnishment and a downgrade to their credit. We currently have several judgments pending execution.
With the $1.00 per hour increase in starting wage for both full-time and part-time hourly maintenance employees in 2016, staffing shortage and turnover have stabilized. We ended the year with a staff of 13 full-time and 2 part-time employees, unchanged from 2016.
During the course of the year, two major infrastructure improvement projects were completed.
In Drake Courts: Contract removal of the Cora Circle tennis courts including groundwork, new concrete retaining wall, expanded office parking & new sidewalk. The project also included ravine restoration and drainage improvements to alleviate severe street runoff erosion behind 100-102 Clubhouse Dr. Total cost for the projects was $72,817.
With the City-wide conversion to curbside sanitation service the beginning of 2017, all remaining wooden trash corrals for trash cans were removed. Any remaining corrals became the responsibility of area owners at their request. In addition to regular grounds maintenance services and these infrastructure projects, repairs were also made to cart sheds, court street lights, and signs. Tree trimming to clear roofs and remove low hanging limbs was performed in most areas. Special projects for townhouse owners were also performed with the Association providing the labor and equipment and owners paying for materials. Projects included rocking yards, repairing or replacing railings and front walkways, removing and planting bushes and shrubs, replacing landscape timbers and metal edging and French draining downspouts for erosion control. These Special projects are an ‘extra’ service provided as time and resources allow and in the order, they’re received. Regular grounds maintenance services are always a priority.