Dues question. Does anyone know what the management fee encompasses?

[SoCalKDG]

Dues breakdown for BWV's. Does anyone know what the management fee encompasses? Is this paid to DVC or Disney?

3) Member Late Fees =101,987/0.0209
4) Breakage Income =479,273/0.0980
5) Dues Assessment =15,801,019/3.2321
6) Total Revenues =361,372/0.0739
6A) THERE IS A ONE TIME SUBSIDY FROM THE DEVELOPER=361,372/0.0739
7) Admin & Front Desk =3,308033/0.6766
8) Annual Audit =10,978/0.0022
9) DVC Reservation Component =27,872/0.0057
10) Fees to Division =39,066/0.0080
11) Housekeeping =3,945,940/0.8071
12) Income Taxes =115,419/0.0236
13) Insurance =845,862/0.1730
14) Legal =1000/0.0002
15) Maintenance =2,674,559/0.5471
16) Management Fee =1,867,605/0.3820
17) Member Activities =810,863/0.1659
18) Sales Tax on Support Facilities =298,682/0.0611
19) Security =223,260/0.0457
20) Transportation =1,260,670/0.2579
21) Utilities =1,426,468/0.2918
22) Total Expenses =16,856,278/3.4479

 

[tjkraz]

Profit.

That's Disney's incentive to continue managing the timeshares rather than selling it to someone else like Mariott.

 

[DebbieB]

From the 2006 Discription of Cost Components:

"Fee paid to DVCMC for providing management services (including home office expenses) to the Association according to the Property Management Agreement. The fee is equal to 12% of the total operating budget exclusive of real estate taxes, transportation fees and the Management Fee. Management fees incurred during the ended December 31, 2004 were $1,710,765."

From Additional Budget Notes:

"DVCMC (Disney Vacation Club Management Corp), a Florida Corporation, is the manager of the Association and is also an indirect subsidiary of TWDC (The Walt Disney Company). Pursuant to the Property Management Agreement, DVCMC has been delegated the authority by the Association to provide all services, through employees and experts retained by it, incidental to the management and operation of the Condominium...."

 

[RobDoc]

The Management Fee pays for the Member Services operation, printing and distribution of things like Vacation Magic and pays the salaries for the DVC corporate structure. It does not pay for resort-related costs like Front Desk staff, housekeeping, maintenance, transportation, etc.- as each of those has it's own line entry in the budget.

 

[MinnieGirl33]

I would think Jim Lewis' salary comes from here too, no? Unless he falls under TWDCo intstead of DVD.

 

[tjkraz]

The Management Fee pays for the Member Services operation, printing and distribution of things like Vacation Magic and pays the salaries for the DVC corporate structure.

If the management fee pays for the operation of the DVC program, and it's billed at a fixed rate of 12% of all other expenses (less taxes, trans, etc.), then it would seem that things like the volume of MS calls and additional MS hours would have zero impact on our dues, yes?

It could INDIRECTLY lead to cuts in service elsewhere if DVC feels a need to better balance its budget. However, it's effectively an incentive to DVC to operate as efficiently as possible since any remaining dollars from DVC's 12% is profit.