I hope everyone is well this holiday season. I did not send a letter
after the annual meeting in October because I was waiting to get next year's
insurance information together. I would
like to thank the owners present at the meeting for their overwhelming support.
I know there were a couple of owners calling around before the meeting,
spreading misinformation, and slandering the board. At the meeting, these
people were given a chance to stand up, face-to-face, and address their issues
but none chose to do so. Again, I appreciate the positive comments about the
job the board has done.
If you missed the meeting, you need to know that insurance on coastal property has increased dramatically. The board also decided to have the building appraised to be sure we were insuring for the correct value. The appraisal came back at $14,600,000 and we had been insuring for $12,000,000. At the meeting, we forecasted that our insurance premium was going to be at least $600,000 and might be as high as $1,000,000. We put the insurance out for bid and worked to get the best possible price for coverage. Our premium this year will be $425,485.50. The deductible has been increased from 2% to 5%, which is now the standard for coastal property. Last year our insurance was $160,000 but considering what condominium complexes have been paying since Ivan and Katrina, we are lucky. The attorney for the Association works for 60 other Associations and feels like we did well. We actually came in below the average for what other Associations have paid. Our Insurance has to be paid within the next 30 days or we will have to finance the cost at a high interest rate so everyone needs to pay their assessment ASAP. We have $150,000 in our budget for insurance and at the annual meeting, we voted to use that money and then have an assessment for the balance which will be $275,485.50. It was also discussed at the meeting to raise condominium dues. The increase will be 10%. A breakdown of the assessment and dues is included on a separate page.
There are several projects needing
completion as soon as possible. First, is a storm water drainage problem around
the complex. We should have a proposed plan and bid
within the next 30 days to correct this problem. The estimated cost of this
project is $25,000 - $30,000. Next, is the Sugar Shack, which is in the final
planning and bid stage before construction. Estimated cost, $35,000 to $45,000. Finally, and most
important, is the sealing, repairing, and painting the entire complex at a cost
of $547,160. At this time, this is the low bid. We hope to do these jobs using
most of the money from reserves. However, we may have to have another minimal
assessment to complete these necessary improvements.
I look forward to the coming year,
working with Elizabeth and my fellow board members. Please continue to check
the
Best Regards,
Robert Stuart
The insurance assessment will be
due
Unit 100 - $437.00
Efficiency - $856.00
1 Bedroom - $1345
2 Bedroom
- $1765
3 & 4 Bedroom - $2690
* A late fee has been
established of $750 plus 1.5% interest per month should the full payment not be
received by
The new dues will start
Unit 100 - $88.00
Efficiency - $171
1 Bedroom - $268
2 Bedroom
- $352
3 & 4 Bedroom - $535