As mentioned in the other thread, dues for OKW went from $3.4944 to to $3.6766 or a roughly 5% increase.
A real big hit to the budget is the drastic reduction in Interest Income. In 2002, OKW had $417,000 of interest income coming in. That's down to $92,000 for 2004. A pretty big hit. (It was $209,000 in 2003). Member Late Fees & Interest are up (a commentary on the state of member finances?) as is Breakage Income.
The amount we are contributing to Capital Reserves and to the Estimated Real Estate Taxes were both increased.
Looking at the Operating Budget, there are increases and decreases. It looks like DVC is doing their best to contain costs. Housekeeping has been reduced 1%. Member Activities and the "DVC Reservation Component" have both been cut. The amount budgeted for Legal was also reduced. I'm curious how Income Taxes were reduced 57% or $174,000 but I assume they know what they are doing. Maybe the loss of interest has reduced the tax due?
The biggest percentage increase is once again Insurance. It is up 31% or $257,000. The next largest increase is Admin & Front Desk which is up 16% or $427,000. Maintenance is up 7% or $186,000. Also up are Utilities 9% ($114,000), Management Fee 6% ($114,000) Security up 8% ($34,000) and the Annual Audit up 5% ($525). Fees to the Division (paid to the State of FL) stayed the same.
Until the incoming Interest improves and/or Insurace costs are contained, I guess we will continue to see increases. Both of these are beyond the control of DVC. I want DVC to be prudent, but I would hate to see them make dramatic cuts to the way the resort is run instead of making nominal yearly increases.
So, what do folks see at the other resorts? Are Interest and Insurance the bad guys there, too?
A real big hit to the budget is the drastic reduction in Interest Income. In 2002, OKW had $417,000 of interest income coming in. That's down to $92,000 for 2004. A pretty big hit. (It was $209,000 in 2003). Member Late Fees & Interest are up (a commentary on the state of member finances?) as is Breakage Income.
The amount we are contributing to Capital Reserves and to the Estimated Real Estate Taxes were both increased.
Looking at the Operating Budget, there are increases and decreases. It looks like DVC is doing their best to contain costs. Housekeeping has been reduced 1%. Member Activities and the "DVC Reservation Component" have both been cut. The amount budgeted for Legal was also reduced. I'm curious how Income Taxes were reduced 57% or $174,000 but I assume they know what they are doing. Maybe the loss of interest has reduced the tax due?
The biggest percentage increase is once again Insurance. It is up 31% or $257,000. The next largest increase is Admin & Front Desk which is up 16% or $427,000. Maintenance is up 7% or $186,000. Also up are Utilities 9% ($114,000), Management Fee 6% ($114,000) Security up 8% ($34,000) and the Annual Audit up 5% ($525). Fees to the Division (paid to the State of FL) stayed the same.
Until the incoming Interest improves and/or Insurace costs are contained, I guess we will continue to see increases. Both of these are beyond the control of DVC. I want DVC to be prudent, but I would hate to see them make dramatic cuts to the way the resort is run instead of making nominal yearly increases.
So, what do folks see at the other resorts? Are Interest and Insurance the bad guys there, too?
