What Affects Dues Increases?

[Degli]

I've seen through this site that OKW is getting a pool. How does this affect their dues? Since their dues are still the lowest, this is where we were thinking of purchasing. What other factors affect dues increases? Any help, thanks.

 

[PamOKW]

Dues increase when actual costs increase. Disney is going to pay for the installation of the slide. OKW members will have the cost of the lifeguard, maintenance and planning for upkeep of the slide added to their dues. The estimate is this will be $.02-$.04 per point.

In recent years, dues have gone up because DVC has had to pay more for employee health insurance. A comment at the recent meeting sounds like DVC, as Disney also just announced, also needs to put more funding into the employee pension fund. Declining interest rates have also had an effect on the amount of money DVC has for funding capital improvements at DVC resorts. Increases in property tax due also raise the cost of dues. Basically, dues are most effected by the elements that DVC cannot control -- just like in your own home budget.

I wouldn't be overly concerned about differences in dues amounts. The differences are so small that fluctuations move them closer to each year to year.

 

[Degli]

So even though OKW is the oldest of the DVC resorts, maintanence on the buildings is already built in to the dues. Major renovations should'nt affect anything?

 

[PamOKW]

That's right. DVC is very good about "planning ahead". They have an estimate on the life of everything from the room furnishings to the roadway pavement. Because of their history running hotels at WDW, these estimates are quite good. Every year a portion of the dues goes to this "fund". This is the Capital Reserves portion of the budget. I'm not positive, but the drop in interest rates may have effected how much DVC budgets for this -- this would account for a small increase in the dues to compensate. However, as you suggest, it's better to pay a few cents now than to get a bill for hundreds of dollars down the road.

 

[Degli]

Thanks PamOKW, you've been very helpful!

 

[dianeschlicht]

I think the original plan for DVC was implimented at OKW when it was only called Disney Vacation Club. I think the fact that our dues have gone down some years instead of always increasing is because of great pre-planning. When BWV, VWL, and BCV came on board, they were connected to other resort properties, and that seems to cloud the issues of maintanance a bit. I'm not sure why it should, but it seems to. Perhaps having the DVC resort portion share desk services and housekeeping with a non-DVC resort is actually increasing those costs.

As Pam said, insurance and taxes, etc are greatly responsible for increases as well.

BTW, OKW already has 4 pools. What they are adding is a pools slide.