From: Cheryl Potenza <[email protected]>
Sent: Friday, October 18, 2024 8:16:56 PM
To: Cheryl Potenza <[email protected]>
Subject: CUO Proposed 2025 Budget
Good evening all,
The 2025 proposed budget is attached for your review. It is not final.
There will be a brief summary review of the budget at tomorrow’s meeting.
We will schedule a special meeting for next spring so that we can review the financial environment we are currently facing and discuss the various options we have in order to continue our success as a vibrant association. We will try to have an in person meeting as well as a zoom type call so everyone can attend.
There will be no increase in the monthly condo fees for 2025.
There will be a one-time fee to each condo to cover the under accrual for the current annual property insurance.
The amount for each condo is:
2 Bedroom – $709.00
2 Bedroom Deluxe – $793.00
3 Bedroom – $979.00
3 Bedroom W/Den – $1,030.00
Penthouse – $1,350.00
Penthouse End Units – $1,688.00
The one-time fee is due on March 1, 2025. You can pay earlier than that but please no partial payments. Our property insurance policy year runs from June to June. At this time we do not know what the premium will be for June-December 2025. We assume the elevated premiums we have been paying will preclude another increase but that remains to be seen. If there is no increase our budget insurance amount should be sufficient to pay for the new premium without additional one time payments.
Another area of concern our members have expressed is the financial impact the condo reserve study law will have on our association. The study is complete and we are reviewing it to see how best to implement it while minimizing the financial burden on our members. There is a small wrinkle in regard to the Carousel and the reserve law. The law was written only for residential condominiums and most HOAs. The Carousel is not a residential condominium. It is a mixed use/hotel condominium with a residential component. Most of the general common elements found in other residential condominiums are Hotel common elements at the Carousel. All Hotel elements are under the control of the hotel and not the Board and are not subject to the reserve law. The Board and Hotel have worked in harmony on all association issues for the past 25 years and will continue to do so regarding the reserve study. The Hotel and the Board will comply with the reserve study and will work with the author of the study as a team over the coming years. The only divergence from the reserve law will be in regard to the funding requirements for a replacement reserve. Since 2000 the Residences and Hotel have handled all reserve type costs from operating cash flow with the exception of major projects (>$500k). Major projects have been funded by a combination of special assessments and bank financing with bank financing seeming to be the preferred method of most of our members. Each member can pick whichever option works best for them.
While we are not required to fund a replacement reserve and can continue our current methodology of funding major projects we think it is important to get feedback from our members on how to best fund future projects. And that is one of the reasons we think it is best to have a special meeting to review our options in this area.
Thank you,
Carousel Center Board of Directors
Yours in service,
Cheryl
Cheryl Potenza, CMCA
Condominium Association Manager
Carousel Center Condominium
410.524.4865 – Direct
410.524.1000 Extension 7822
410.524.2552 – Fax
www.carouselcuo.com
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