2021 Operating Budget Approved: Residential Assessment Remains Flat at $1,800 for Next Year
Yes, that’s right–no increase in the homeowner’s assessment for 2021!
At the October Board Meeting, the 2021 operating budget for the Association was approved. The operating budget process begins in July when department heads begin developing their initial drafts. The Finance Committee reviewed the first draft of the budget at the September Finance Committee Meeting. Between the September Finance Committee Meeting and the October Finance Committee Meeting, staff updated the budget based on recommendations from the Finance Committee. At the October Finance Committee Meeting, the committee reviewed the second draft and approved a motion for board consideration at their October meeting.
Revenue is generated from multiple sources.
- Assessments paid by all residential properties and commercial properties located inside Palmetto Dunes comprise a significant percentage of the Association’s operating revenue.
- Property maintenance and security generate revenue from contractual services and usage fees.
- Pass Office revenue is generated from the sale of commercial vehicle decals, daily vehicle passes, and short-term rental passes. Based on the approved operating budget, approximately 29% of the total operating revenue is derived from the pass office.
- The Community Enhancement Fee is collected from the purchaser upon transfer of each residential property within Palmetto Dunes.
- ARB revenue is derived from charging permit fees.
Operating expenses consist of expenses from the day to day operations of the community. Management, the Finance Committee, and the Board of Directors have been extremely diligent with keeping expenses in control while at the same time maintaining the appearance of the community and providing exceptional service.
For 2021, the residential assessment will remain flat at $1,800. The residential assessment is roughly 42% of the total operating revenue. A portion of net income before depreciation is allocated to the Repair and Replacement Fund to fund future major infrastructure repairs in the community.
This budget includes a $2.4 million transfer from the operating budget to the Repair and Replacement Fund. Over the last six years, we have contributed approximately $15 million to the Repair and Replacement Fund while continuing to reinvest in the community assets. The annual contribution to the Repair and Replacement Fund is key to the ongoing infrastructure replacement needs in Palmetto Dunes. Over the next 10 years we are budgeted to spend approximately $30 million on replacing infrastructure and equipment. These expenses will be fully funded with the Repair and Replacement Fund, avoiding the need for special assessments.