OMCC Notice #2060910 Update 2: Fiscal Year 2017 Adopted Budget
The Board has approved the 2016-2017 Fiscal Year Operating Budget. Each year’s Budget is developed using the recently-end year’s expense and revenue, anticipated operating costs for the upcoming fiscal year, and required contributions to the two reserve accounts.
The Reserve accounts must accumulate funds yearly to fund upcoming expensive capital projects, such as repairs to streets and sidewalks, curb paining, unanticipated snow removal costs and the removal of dead and dying trees (expenses which may exceed that amount budgeted in the Operating Budget). The reserve account contributions are mandated by Virginia State Statute and by our OMCC Bylaws.
The 2016-2017 Budget reflects a 3.0% increase in assessments. Your quarterly assessment will increase to $251.32. The late fee payment remains the same. We are happy to report that because of prudent financial decisions by the OMCC Board of Directors, the 2015-2016 expenses were well controlled.
However, there is still work to do before the Board can feel confident of the projected income and expenditure. Unbudgeted rising legal fees are negatively impacting our reserve funds. Our work on the budget was concluded before the October HOA meeting and will be published on the web site. We hoped to keep the 2017 home owner fees equal to that of 2016 at $244 but this was not possible. The current HOA financial position to the end of August 2017 remains positive. Naturally the majority of our income is generated through homeowner fees, most of which are paid at the start of the year. Regrettably some owners do pay later and this not only incurs additional late payment charges but also injects uncertainty as to HOA income to meet expenses. It is important therefore to maintain a healthy “Reserves Balance” to ensure we can meet any shortfall in fees received.
Note: Total Revenue from HOA Income , Interest Income, and projected expenditures for Fiscal Year 2016-2017 has been send out in the 2016-2017 Annual Report. Homeowners may also view the approved budget at the following hyperlink: 2016-2017 Budget