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Budget & Finance Committee
Regency Tower’s Reserve Funds
After speaking to both our attorney and accountant, we have changed our recommendation. Instead, we are proposing a change to a POOLED RESERVE SYSTEM. Under the pooling method, each reserve item is still separately funded, but the money is put into one account. A pooled reserve fund can be then used for any reserve items as the need arises, creating more flexibility for the owners and Board, which more and more associations see as the main benefit. Pooled Reserves will also eliminate the need to add or delete reserve components resulting from fund changes in future Reserve Studies.
In order to switch the funds from the component method (the method we currently use) to the pooling method, a majority vote of the membership is required. Please refer to Chapter 718.112 (1) (f) of the Florida Statutes which requires that all associations put funds aside for large future projects.
Our maintenance assessment has remained the same since 2018. There have been no increases in 2019 and 2020, largely due to the financial controls put in place by your Board. As we were all paying our six concrete special assessment payments, it was even more critical that we not put an additional burden on owners. We have started preliminary work on our 2021 annual budget. We are waiting for the September financials, which are due next week, to finalize the budget.
We are also in the process of renewing our General and Flood Building insurance, which is 17% of our 2020 annual budget. Our insurance broker has warned us to expect an increase of around 25% as a result of reinsurance costs going up due to hurricanes, even though our area was not hit. We have requested quotes for a 5% hurricane deductible to help reduce the expected premium increase. Our current hurricane deductible is 3%.
The extent to which the Covid-19 Coronavirus may impact the condominium will depend on future developments, which are highly uncertain and cannot be predicted with confidence. We cannot reasonably estimate the impact Covid-19 will have to our activities, revenue, financial conditions or operations, however, such impact could be significantly negative.
Stay safe and please wear your mask.
*Copies of John Amatulli's Treasurer's Report can also be downloaded from the password protected Concierge Plus website and are available to owners in the Regency Tower office (Click Here to Concierge Plus website).
John Amatulli, Treasurer