May Re: Fiscal Year Budget and Maintenance Fees. Aloha, Owners of Kakela Makai Oceanview Community Association,

Transcription

1 1 Hawaiiana Management Company, Ltd. Kukui Grove Executive Center 4370 Kukui Grove Street, Suite #208 Lihue, Hawaii Tel: (808) Fax: (808) Internet: May 2017 Re: Fiscal Year Budget and Maintenance Fees Aloha, Owners of Kakela Makai Oceanview Community Association, This year s budget, which will take effect June 1, 2017, was approved by the Board of Directors and ratified by the owners on April 19, After careful consideration of operating and reserve expenses and contributions to reserves, the board unanimously agreed not to raise maintenance fees. Maintenance fees will remain at $800 for the year, payable in two installments of $400 each, due on July 1, 2017 and January 1, Hawaii Revised Statute Requirement Maintenance Fee Payment Information Hawaii Revised Statute requires that owners be provided with certain information on an annual basis with regard to the operating budget. The 2018 Budget is available for your review on the Kakela Makai Oceanview Community Association (KMOCA) website The Association governing documents require that delinquent accounts be charged interest at 10% per annum, prorated daily from such due date until paid. Additionally, a $50 late fee will be assessed after 30 days delinquency. The association has established a priority of payments policy that requires payments to be applied in the following order: legal charges, non-sufficient funds or postdated charges, late fees, fines, special assessments, miscellaneous charges, then maintenance fees, applied to the oldest balances first. Maintenance Fee Coupons or SurePay Program A maintenance fee statement and return envelope for the July 1, 2017 payment will be mailed out in June. If you are enrolled in Hawaiiana Management s electronic SurePay payment program, a statement is not needed, and no action is required on your part. If you are not using Hawaiiana Management s SurePay program for automatic maintenance fee payments, you may want to consider using it now. SurePay and Other Automatic Payment Instructions To enroll in SurePay, return the enclosed application to Hawaiiana Management Company prior to June 15, 2017, to ensure that your July 1, 2017 payment is made on time. If your maintenance fees are paid by a financial institution or bill payment agency other than Hawaiiana Management s SurePay program, please make sure that your financial institution or payment agency is provided with the maintenance fee amount, which is effective on July 1, Sincerely, For the Board of Directors Kakela Makai Oceanview Community Association Richard Roberts, CMCA, AMS Management Executive Hawaiiana Management Company, Ltd. Managing Agent 1

2 2 Hawaiiana Management Company, Ltd 2018 Monthly Cash Operating Budget For Kakela Makai Oceanview Community Association N Approved by Board of Directors on February 15, 2017 DESCRIPTION JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY ANNUAL REVENUE TOTAL MAINTENANCE FEES 79,600 79, ,200 INVESTMENT INTEREST ,188 CHECKING INTEREST DESIGN REVIEW FEE CLUBHOUSE CLEANING TOTAL REVENUE , , ,624 UTILITIES JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY TOTAL ELECTRICITY ,400 WATER ,792 GAS 1,280 1,280 1,280 1,280 1,280 1,280 1,280 1,280 1,280 1,280 1,280 1,280 15,360 TELEPHONE ,680 TOTAL UTILITIES 2,436 2,436 2,436 2,436 2,436 2,436 2,436 2,436 2,436 2,436 2,436 2,436 29,232 CONTRACT SERVICES JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY TOTAL CLEANING SERVICE 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 17,004 GROUNDS ,000 POOL ,260 SECURITY EQUIP. MAINT ,400 TOTAL CNTRCT SVCS 3,222 3,222 3,222 3,222 3,222 3,222 3,222 3,222 3,222 3,222 3,222 3,222 38,664 MAINTENANCE JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY TOTAL GROUNDS ,200 POOL ,300 BUILDING REPAIRS ,000 TOTAL MAINTENANCE ,500 2

3 3 Approved by Board of Directors on February 15, Monthly Operating Budget For Kakela Makai Oceanview Community Association DESCRIPTION JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY ANNUAL PROFESSIONAL SVCS TOTAL ADMIN SUPPLIES & SVCS ,920 AOAO ADMIN EXPS ,200 CLUBHOUSE PROCESSING FEE MANAGEMENT SRVCS 2,733 2,733 2,733 2,733 2,733 2,733 2,733 2,733 2,733 2,733 2,733 2,733 32,790 AUDIT 1,310 1,310 LEGAL FEES GENERAL ,800 LEGAL FEES COLLECTIONS ,000 PROF & ADMIN SVS-OTHER ,256 TOTAL PROF. SERVICES 6,416 5,106 5,106 5,106 5,106 5,106 5,106 5,106 5,106 5,106 5,106 5,106 62,576 OTHER EXPENSES JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY TOTAL PROPERTY INSURANCE 2,053 2,053 LIABILITY INSURANCE 2,814 2,814 D AND O INS 1,613 1,613 INSURANCE-UMBRELLA 1,184 1,184 ASSOC APT R. P. TAX STATE GET TOTAL OTHER EXP. 7, ,922 TOTAL OP EXPENSE 20,697 11,648 11,648 11,648 11,648 11,648 11,723 11,648 11,648 11,648 11,648 11, ,894 LOAN PAYMENTS TRANSFER TO RESERVES 3,182 3,182 3,182 3,182 12,730 3

4 KAKELA MAKAI OCEANVIEW COMMUNITY ASSOCIATION YEAR 2018 RESERVE PROJECTS AS OF FEBRUARY 15, 2017 COST NOW and NORM LIFE values are best estimates by Hawaiiana Management and vendors who were nice enough to inspect the property or give a best guess. 4 It may be advisable to employ an expert to evaluate those projects with high cost. RESERVE FUND STATUS - COMPONENT METHOD M. FEE RESERVE. MAINT. First Plan Year - Fiscal 2018 Reference Year 2017 THE MODEL'S FINDINGS FOR % FUNDING 2017 Deficit CHANGE CONTRIB FEES Final Plan Year 2037 Recommended Reserve Funding 100% (69,696) -51% (124,948) 77, Maintenance Fees 159, Maint Fees 159,200 Target Reserve Funding Level 60% (139,856) % (173,007) 29, Other Income 3, Othr Inc 2,424 Minimum Reserve Funding Level 50% (157,396) -89% (185,022) 17, Operating Expenses -122, Exp -148,894 EOY 2018 Funding %@ Approved Lev % (43,357) 159, Reserve Contribution 39, Contribution 12,730 Condition Codes Source Codes Source Codes Projected Reserves At Start of ,097 Target Funding L 60% EXCELNT E Contractor Proposal 1 Cost at Similar Project 5 Projected Reserve % at Start of % Tgt Ann Contrib 11,932 GOOD G Contractor Estimate 2 Statistical Guideline 6 Minimum Inflation 2.0% Req Contrib-Tgt (127,924) FAIR F Engineer/Arch Estimate 3 Inflate First Year? Yes Projected Savings Interest 0.5% App. % Change POOR P Cost When Last Done 4 CAPITAL INVENTORY NORM DONE LAST CO NEXT COST COST FUNDING EOY ITEM ADJUSTMENT LIFE LAST COST ND DUE DATE NOW SRC RQMNT RES DEFICIT Entry and Security System ,000 24,988 24,988 Septic System Inpsection Ports Upgrade ,000 9,995 9,995 Wood Shake - R & R ,948 5,490 5,490 Landscaping & Irrigation - Refurbish ,326 3,993 3,993 Metal Fencing - Paint ,059 2,824 2,824 Exercise Equipment - Stationary Bike , ,803 1,803 Exterior Wood - Paint ,648 1,521 1,521 Irrigation Controller ,236 1,141 1,141 Water Heater ,133 1,046 1,046 Water heater Spa - Heater ,120 2,472 2,472 Exercise Equipment - Stride Stepper , Signage - Misc. Small ,940 2,955 2,955 Pool - Filters ,708 2,781 2,781 Signage - Community Monument ,090 2,318 2,318 Exercise Equipment - Treadmill , Spa - Filter , Exterior Security Fixtures - Solar , Signage - large, Clubhouse Spa - Pumps/Motors II for Jets ,451 Pool - Pumps/Motors , Security Cameras ,318 1,545 1,545 Security Camera DVR ,545 1,030 1,030 Exterior Stucco - Paint ,100 2,730 2,730 Pool Deck - Repair & Seal ,890 Pool - Furniture Loungers ,489 1,442 1,442 Pool - Furniture Chairs ,604 1,023 1,023 Interior Surfaces - Paint Clubhouse & RR ,801 2,401 2,401 Termite Treatment ,648 1,041 1,041 Spa - Pumps/Motors I , Pool - Furniture Tables ,130 Spalling - Repair Contingency ,060 Exterior Stucco Wall At Lower Level ,980 Restroom Refurbish ,150 2,943 2,943 Kitchen Cabinets/Counters Refurbish ,635 2,649 2,649 Parking Lot & Ramp - 10% Repair Contingen ,153 2,373 2,373 Furniture - Chairs , Ceiling Fans , ,413 1,413 Drinking Fountains ,472 1,413 1,413 Exterior Pillar & Wall Fixtures - Replace ,096 1,198 1,198 Metal Pedestrian Gates , PooL & Spa Rails , Exterior Doors - Metal Pool Equipment Room Tile Flooring ,304 7,986 7,986 Tile Walls ,304 7,986 7,986 Tile Flooring ,240 3,803 3,803 Partitions ,399 1,569 1,569 Interior Clubhouse & RR Fixtures - Replace ,090 1,426 1, BGT18 5/23/2017 4

5 5 CAPITAL INVENTORY NORM DONE LAST CO NEXT COST COST FUNDING EOY ITEM ADJUSTMENT LIFE LAST COST ND DUE DATE NOW SRC RQMNT RES DEFICIT Toilets & Urinals ,472 1,141 1,141 Sinks & Counters , Pool - Tile Surface ,840 4,120 4,120 Spa - Tile Surface ,240 1,177 1,177 Pool & Spa - Coping , Septic System Tank & Leach Field - Replace ,600 7,974 7,974 Wood Shake Clubhouse - Replace ,394 7,894 7,894 Wood Shake RR Bldg. - Replace ,197 3,947 3,947 Exterior Doors - Wood Restroom Building , Gutters & Downspouts Metal Fencing 3.5' ,209 8,643 8,643 Windows ,725 2,649 2,649 Sliders ,768 1,978 1,978 Metal Fencing 5.5' ,378 1,501 1,501 Jalousie Windows , Exterior French Door - Clubhouse , Pool Deck - Replace ,339 14,202 83,898-69, End Yr Totals 399, , ,097 (69,696) 5

6 Kakela Makai Oceanview Community Association Board Approved 2018 Cash Flow Plan Prepared By: Richard Roberts and Hawaiiana Management Company, Ltd Maintenance Fee Plan to Accomplish All Known Improvements and Repairs For Next 30 Years Assumed Rate of Inflation: 2% Assumed Savings Interest Rate: 0.5% 30 Year Projection of Maintenance Fee Changes 350, , , , , ,000 50,000 0 Maint Fee Resv Exp Balance 100% Reserve 60% Reserve Contingency Reserve Fun $0. FY Starting -Reserve -Loan -Operating +Maint. +Other +Interest =Ending % Maint. Fee Net Reserve Percent Year Balance Expense Payments Expenses Fees Income Income Balance Change Contrib. Funded ,097 56, , ,200 2,424 Included 201, % (43,357) 168% ,739 4, , ,200 1,200 1, , % 4, % , , ,200 1,200 1, , % 5, % ,540 22, , ,200 1,200 1, , % (19,898) 105% ,660 5, , ,200 1, , % (5,965) 90% ,653 16, , ,384 1, , % (17,375) 76% ,183 39, , ,256 1, , % (39,150) 61% ,801 7, , ,946 1, , % (3,117) 53% ,351 44, , ,904 1, , % (37,254) 40% , , ,949 1, , % 12,453 39% ,629 43, , ,446 1, , % (24,265) 31% ,846 16, , ,418 1, , % 9,265 32% ,559 7, , ,889 1, , % 24,582 37% ,674 88, , ,083 1, , % (47,268) 26% ,887 34, , ,737 1, , % 14,963 31% ,252 24, , ,974 1, , % 33,511 41% ,288 17, , ,253 1, , % 46,416 53% ,431 66, , ,270 1, , % 1,034 57% , , , ,776 1, , % (50,737) 55% , , ,776 1, , % 65,065 71% ,142 60, , ,776 1, , % % ,756 18, , ,776 1,200 1, , % 38,133 82% , , , ,776 1, , % (61,211) 80% ,704 27, , ,776 1, , % 19,616 83% ,207 9, , ,776 1,200 1, , % 32,757 84% ,987 16, , ,776 1,200 1, , % 20,852 82% ,001 16, , ,776 1,200 1, , % 16,533 79% ,796 82, , ,776 1,200 1, , % (54,588) 70% ,380 63, , ,776 1, , % (41,049) 59% ,271 16, , ,776 1, , % % 6