Master 2007 Annual Dues Data

[keishashadow]

I just got my BWV notice, the above is not correct. On the top of page 1, it shows Operating budget of $3.2539, capital reserves $.5765, estimated taxes 1.0208, total $4.8512 per point.

Then on page 2, it shows a developer subsidy of $.1154.

If you take $3.5138 - $.1154 subsidy - .030 Interest - .0133 member late fees - .1012 breakage income = $3.2539 operating budget dues.

Total dues $4.8512 per point.

Got our BW today, cannot remember what '06 was, assume there's an increase.

Didn't receive WL yet, anyone else, know what the dues will be for '07?

Under Capital Reserve Analysis for BWV what exactly is "common element renovation" cover?

 

[InstImpres]

Got our BW today, cannot remember what '06 was, assume there's an increase.

It was $4.69 to $4.85 so we are at 3.4%

VWL didn't arrive at my house today either, though MS told me VWL, BWV & BCV all mailed the same day.

 

[DebbieB]

Got our BW today, cannot remember what '06 was, assume there's an increase.

Didn't receive WL yet, anyone else, know what the dues will be for '07?

Under Capital Reserve Analysis for BWV what exactly is "common element renovation" cover?

My guess is "common element" would be the lobby area between BWI and BWV, plus the driveway and entrances. Possibly even the main pool because it belongs to both sides.

 

[keishashadow]

My guess is "common element" would be the lobby area between BWI and BWV, plus the driveway and entrances. Possibly even the main pool because it belongs to both sides.

makes sense, i was hoping it wasn't the actual boardwalk...was curious as to whether BWV has maintenance issues as to the friendship boats/piers ala monorail @ proposed CR issues.

 

[JimC]

Resort Name: BCV
Operating Budget (per point): 2.9998 with subsidy
Ops subsidy (per point): 0.1157
Reserves (per point): 0.6243
Res guarantee not to exceed (per point): 0.6243
Estimated taxes (per point): 1.0098
Total (per point): 4.6339

 

[JimC]

Still need VWL and HH

 

[Granny]

I believe VWL had the lowest increase for a change...2.5%


Resort Name: VWL
Operating Budget (per point): $3.17 after subsidy
Ops subsidy/guarantee (per point): $0.12
Reserves (per point): $0.55
Res guarantee is not to exceed $0.55per point
Estimated taxes (per point): $1.01
Total (per point): $4.73

 

[Granny]

It's also unusual that DVC pointed out the "low increase" in the dues -- I don't ever recall them mentioning the percent change year to year. Maybe they made a real effort to keep the dues increase low this year after several years of increases that were much steeper than the original years of DVC.

I think you are right. They not only pointed out the low increase this year, they also calculated the compound growth rate since the resort's inception. In the case of VWL, they are claiming a 4.5% compound growth rate in maintenance fees since the inception of VWL.

It does cause concern that if they yank the subsidy next year, we will see the real increase plus the subsidy to make the increase even larger.

One other note. I see that they give a nice analysis of the capital reserve, comparing the capital reserve fund balance to the estimated current replacement costs of the various components. They list (for VWL) five areas that make up the capital reserve:

Roof Replacement/Repair
Interior Refurbishment
External Building Painting
Common Element Renovation
Pavement Resurfacing

It is interesting that some of the capital reserves are approaching the estimated current replacement costs. Once they do so, I'm assuming that they won't need to add any more of that component of the capital reserve to the dues until they spend money out of that reserve? If I'm reading VWL's information correctly, it appears that the replacement for the roof, for example, will be completely funded in about five more years while they estimate up to 14 more years of useful life.

It would be nice to think that the capital reserves could be fully funded at some point and that contribution would become significantly lower until a major capital renovation/replacement?

 

[RobDoc]

Resort Name: Hilton Head

Operating Budget (per point): 3.8498

Ops subsidy/guarantee (per point): .0402

Reserves (per point): .8781

Estimated taxes (per point): .2560

Total (per point): 4.9839

 

[InstImpres]

It is interesting that some of the capital reserves are approaching the estimated current replacement costs. Once they do so, I'm assuming that they won't need to add any more of that component of the capital reserve to the dues until they spend money out of that reserve? If I'm reading VWL's information correctly, it appears that the replacement for the roof, for example, will be completely funded in about five more years while they estimate up to 14 more years of useful life.

It would be nice to think that the capital reserves could be fully funded at some point and that contribution would become significantly lower until a major capital renovation/replacement?

I like this theory, hopefully you are right. I wonder if the reserve contributed to part of the HH increase?

 

[JimC]

Resort Name: Hilton Head

Operating Budget (per point): 3.8498

Ops subsidy/guarantee (per point): .0402

Reserves (per point): .8781

Estimated taxes (per point): .2560

Total (per point): 4.9839

Thanks Doc. That would be a 14.8% increase over 2006! Was there any explanation for the jump?

 

[RobDoc]

Of the total dues reported for HH, $1.13 per point is for Capital Reserve (this is a fund that handles major repairs like roofs, appliance replacement, furniture replacement and any other non-routine expenses at the resort). Of that $0.8781 is Capital Reserve and $0.2560 is for estimated Property Taxes.

The operating budget for 2007 is $3.8498 per point. Notable increases over 2006 include: Housekeeping (+ .0961), Insurance (+ .0318), Maintenance (+ .0397) and Management Fee (+ .0731).

On the income side of the budget, there were increases in Interest Income, Breakage Income and Dues Assessment. Member Late Fees income decreased (which suggests that members are doing a good job of paying dues on time).

Also noted is an expense of $0.1328 per point for a loan payment needed for "water intrusion" damage repair. This is a new expense, not included in prior budgets. The repairs are expected to be completed in Spring 2007, but the loan (5.39%) will be repaid over the next 6 years. In 2007, only interest will be paid on the loan - which means that the expense will likely increase as principal payments are included over the next 6 years. It sounds like this is an unexpected expense - not covered by insurance or by the Capital Reserve budget.

 

[JimC]

Insurance and housekeeping costs being much higher than last year does not surprise me. The water intrusion loan could simply have been to cover the self retention portion of any claim. Using a loan might be preferred by most owners over a special assessment.

 

[heidicat17]

Is there a compiled chart of 20007 expenses for all the DVC properties as in past years? Maybe I've just missed it....

Here's the 2007 numbers for BCV: total $$ then $$ per point

Admin & front desk = $1,688,143 ; $0.5577
Annual audit =11,291 ; 0.0037
DVC reservation component = 17,468 ; 0.0058
Fees to the division = 21,216 ; 0.0070
housekeeping = 2,334,311 ; 0.7711
income taxes = 81,240 ; 0.0268
insurance = 573,204 ; 0.1894
legal = 1,000 ; 0.0003
maintenance = 1,855,988 ; 0.6131
Management fee = 1,149,718 ; 0.3798
member activities = 648,013 ; 0.2141
security = 145,431 ; 0.0480
Transportation = 590,261 ; 0.1950
utilities = 726,966 ; 0.2402