The latest POA eblast featured the HSV GM’s Annual Report and it had some very interesting news. The new build house permits for 2020 came in at 93, compared to 60 for 2019. So far this year there have been 32 new build permits issued. Also, the average listing price for active residential houses was $359,275 and the “days on market” was 59.
This means our housing market is alive and well and there’s significant growth in new builds. That being said, this is the area the FRATF should look to for new revenue. More money will be needed to fund the BOD’s main duty of spending our dwindling reserves and this is an area that doesn’t require a vote or Declaration amendment.
Our new neighbors will reap the benefits that we have already invested in, and maintained, over these many years. They should pay their fair share to support the infrastructure and invest in our future as we have.
It’s abundantly clear that the BOD will not listen to our calls for restraint and prudent use of our funds, so we must find ways to tap into new revenue streams without further taxing our older residents. But again I question whether the FRATF will listen to solutions that differ from the one they’ve already decided on –which is increasing the two-tier with a vote of the non-resident property owners.
By Gene Garner, April 23, 2021
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Lloyd Sherman
04/23/2021 — 12:18 pm
As usual, Gene speaks from a perspective of common sense. However, the current market we are in cannot be just accepted as the norm going forward. While we can hope it will, anyone telling you they know what is going to happen in real estate after the “new norm” is set in place, is blowing smoke (or inhaling it). We have very low house inventory which is resulting in quick sales for those listed. Some can’t find what they want and will build. However, with the lack of trades people to build, increased prices on everything from lumber to appliances to concrete, when do we hit the point where building will never have a return on the investment and people stop building. I don’t know; nor does anyone else. This is brand new territory. But let’s just say we finish 100 new builds a year. We get $82,860 in assessment revenues. Let’s double that and increase for the use of amenities so now we are at $165K a year. That helps but doesn’t solve the problem. We have too many amenities/departments that we have to subsidize and there doesn’t appear to be any appetite for even attempting to determine how those subsidies can be reduced. Anybody bringing forth the ludicrous concept of operational audits and improvement in processes and procedures is cut off at the pass. Let’s look at some simple numbers to illustrate:
Function/Amenity Excess/Deficit
Administration ($2,654,591)
Development ($1,851,196)
Public Safety ($4,064,283)
Public Services ($934,878)
Lakes ($623,644)
Food & Beverage ($376,835)
Golf ($1,811,401)
Recreation ($1,987,661)
($14,304,489) – This number represents the TOTAL SUBSIDY for all
departments and amenities.
Public Utilities $3,480,600
Net Assessments $15,004,600 *
$18,485,200 – This number represents the income we receive
Budget Depr. ($3,426,724)
What is left $753,987 – This number represents what is left over for our backlog and to protect us in years like 2020 turned out to be.
*Bad debt budget for 2021 is $3,950,000. Based on 1st QTR number is projected to be $4,534,540
Now, given that bad debt continues to rise and the current projection will add another $500K a year in bad debt that would leave us with an excess of $250K to handle emergencies, backlog, etc. So now does it make sense why this last year’s board and F & P were so insistent on controlling spending?
We have over $14 million in subsidies and yet management and the board continue to resist any action that just might lower that number. And as I have said before, until that has been done to property owner satisfaction, any mention of assessment increases is a non-starter from my perspective.
Although the above was used for illustration purposes, please do not accept or assume that the numbers are 100% validated although they came directly from the 2021 budget.
We just can’t keep doing basically the same thing over and over again and expect the results to be any different than they have been. A strategic cultural shift has to happen within the Village structure or it is going to be business as usual.
Gene Garner
04/23/2021 — 2:03 pm
Of course you’re right Lloyd, our problems won’t be solved until the subsidies are reduced -but what BOD has reduced subsidies in the last 20 years? I tried to warn, in my last paragraph, that we can’t depend on the FRATF to recommend any solution but another increase in the two-tier assessment paid by improved lot owners.
Your statement “…any mention of assessment increases is a non-starter from my perspective.” is laudable but not very realistic. The BOD did it once before and they can do it again. Keep in mind there are almost twice as many unimproved lots as improved and they can control the vote.—Gene