Controller’s Report

Published November 1, 2019
by Matt Nemes, Controller

In September 2019, the Board of Directors approved the 2020 capital budget. The approved budget includes the following:

  • Sea Lane and Auxiliary Roads
  • Landscape Enhancements
  • Queens Folly Boat Landing

Planning has already started on the Sea Lane Project with an estimated completion by the end of the first quarter of 2021. This project will repair the streets and correct the drainage on Sea Lane, Starboard Tack (Sea Lane to Rum Row), Lee Shore, and Weather Shore. Currently these streets have no uniform drainage. PDPOA will install new drainage infrastructure, grade the right-of-way, relocate conflicting utilities, and rebuild the new streets.

The landscape enhancement project includes multiple small projects throughout Palmetto Dunes. As the PDPOA continues to invest in the community, areas outside of the scope of the capital projects require attention.

The Queens Folly Boat Landing project enhances the boat launch and adds a dock. The current boat launch is considered too narrow and the current launch does not have an available structure for securing boats during transition. The launch will be widened to approximately 15 feet, and the pavers will be replaced with a solid driveway. Also, a fixed dock will be installed with informational signage around the dock.

  • After completing the capital budget in August, the operating budget process began. PDPOA’s revenue stream comes from multiple sources:
    Assessments paid by all residential and commercial properties located inside Palmetto Dunes comprise a significant percentage of PDPOA’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 current un-approved 2020 operating budget, approximately 34% of the total operating revenue is derived from the pass office. On September 1, 2019, the rental pass fee structure changed. Please see the table to the right for the change in fee structure.
  • The Community Enhancement Fee is collected from the purchaser upon transfer of each residential property within Palmetto Dunes.
    ARB revenue is derived from the charge of permit fees.

Operating expenses consist of expenses from the day to day operation of PDPOA. Management, the Finance Committee, and the board have been extremely diligent with keeping expenses in control while at the same time maintaining the appearance of the community and providing superior service.

For 2020, the total assessment will remain flat at $1,800. The $1,800 consists of a residential assessment of $1,800 and a storm assessment of $0 compared to a $1,702 residential assessment in 2019 and a storm assessment of $98. The 2020 operating revenues are budgeted to increase over the 2019 projections. The increase in revenue is due to an increase in the 2020 residential and commercial assessment and an increase in the rental pass revenue. The residential assessment is only 40% of the total operating revenue. The residential assessment increase is due to the future capital projects planned within Palmetto Dunes. As a result of these capital projects, the reserve fund’s percent funded is adversely impacted.

Management, the Finance Committee, and the board of directors will continue to review alternative revenue sources and look for other ways to reduce/maintain operating expenses. During the first quarter of 2020, the Finance Committee and management will review a ten-year plan. The ten-year plan will enable PDPOA to continue to be proactive and responsible for the upcoming needs of the community.

— Matt Nemes, Controller

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