This Just In...2006 OKW dues up 10%

[KellyDVC]

I live in FL and just received my OKW 2006 operating budget, etc estimate. The estimated annual dues for 2006 are $4.2410 per vacation point. The 2005 dues were $3.86 per point (I think). Anyway that's up 9.8%, if my calcs are correct.

What does everyone think - seems steep to me.

I am also an owner at BWV and SSR. If not posted by the time I receive my notices on those dues, I'll post those as well.

Thanks.

 

[disnefile]

I was shocked at the increase. I expected 7% tops. I hope this does not repeat next year. Dues increases seem to go up a lot the last few years. Much more than inflation. Renting seems a better option more and more.

 

[robinb]

Yikes!

Disneyberry made a nice chart last year with all the dues changes. But ... now we can't post HTML anymore so the chart is hard to read. I cut and pasted the chart into an html file and put it here:
http://personalpages.tds.net/~rb/DIS/dvcPointChangeChart.htm

 

[BCV23]

It's got to be the slide.

 

[robinb]

It's got to be the slide.

 

[DebbieB]

BWV was up 6% - 4.41 to 4.69.

Didn't OKW have a bigger increase last year too? Perhaps due to the age, more things need repaired?

 

[Chuck S]

I wonder what did make them go up so much? Until I see a comparision, I'll guess insurance, employee benefits, etc. I wonder if subbing out the maintenance added to the increase? I'll bet a lot of it is also "transportation" (fuel for the busses). High fuel costs will add price increases to everything...electricity, maintenance, busses. Maybe the estimate is high and we'll get a little back next year, if fuel costs drop back down to "reasonable".

 

[tjkraz]

Could all be property taxes.

No way to know without the detail. I'm guessing the OKW association meeting will be pretty lively this year.

 

[littlestar]

I wonder if Magical Express caused it?

 

[JimFitz]

I'm out.

 

[Disney Doll]

Does the slide come out of dues payment, or is there another special budget that the slide comes out of???

Seem to have been a lot of renovating going on at OKW last year, rooms and such.

 

[tjkraz]

DVC claimed they were paying for the slide, but the operating expenses (maintenance, lifeguards) would become the responsibility of members. These costs should have been reflected in the '05 budget since the slide opened in late 2004.

 

[DebbieB]

Does the slide come out of dues payment, or is there another special budget that the slide comes out of???

Seem to have been a lot of renovating going on at OKW last year, rooms and such.

DVC paid for the construction of the slide. The cost to maintain the slide plus the salaries of the life guards both come out of dues. I think the slide opened last December, so the cost should have been in the 2005 budget. It should not have produced a large increase this year.

 

[MinnieGirl33]

Hurricane damage???

 

[JimC]

Yes it is high based on history. But it seems in line with our expectations. Insurance, labor - particularly benefit costs, the cost of fuel and utilities all have gone way up. For some context those increases are in line with our Marriott properties as well.

 

[BCV23]

I was being facetious about the slide. No way could upkeep and guards account for that increase.

Do the new sofabeds and appliances come out of dues?

 

[JimC]

Hurricane damage???

I suspect Disney manages its natural disaster risks with insurance and self retention contracts. But I don't know how they allocate costs to business units or assign risk to members. Clearly Disney would take a much greater self retention than an individaul HOA would. So they probably address that in a way that protects the HOA and indirectly the members.

I also expect the auditors examine the allocation of costs to operating and capital reserve funds each year as part of their work.

The hurricanes probably do affect Disney's insurance rates and therefore what the HOA must spend to participate in the programs.

 

[JimC]

I was being facetious about the slide. No way could upkeep and guards account for that increase.

Do the new sofabeds and appliances come out of dues?

They come out of our capital reserves.

 

[JudithM]

We have not seen any mailings from DVC regarding budget yet at our home.

My guess is part of the increase is due to taxes. We were told at the OKW annual meeting last year that the estimated taxes for 2005 were lower than the actual tax bill which arrived shortly before the meeting.

My other educated guess is some of the expenses others have mentioned like fuel costs, utilites, manpower, etc.

The slide opened January 14, 2005.

From what I understand the OKW meeting tends to be the livliest of the DVC annual meetings, so I bet this year will be no different.

 

[Chuck S]

I was being facetious about the slide. No way could upkeep and guards account for that increase.

Do the new sofabeds and appliances come out of dues?

Yes and no, they are paid for by the capital reserve funds, so their cost is spread out over years based on estimated rehab intervals.

Per Point 2005 2006 +%

Operating costs: 2.5657 2.8679 11.778
Capital Reserve: .4455 .4851 8.888
Property Taxes (est): .8507 .888 4.384

Total: 3.8619 4.241 9.861