2014 Annual Treasurer's Report

 

Oxford Park – Report of the Treasurer – Annual Meeting – 7/8/2014

 

In Fiscal Year 2014, ending 6/30/2014, Oxford Park capital improvements and large-scale maintenance continued. Project costs during FY-2014 were $ 200,885.


As scheduled, paving of Upper Watch Hill, Clubhouse Drive, and Lower Larkspur was completed in September 2013. The final cost of paving was approximately $ 130,000.


Also, as reviewed in the FY-2013 treasurer’s report, the board ultimately decided to resurface aging Phase 3 decks on Salem Drive and Black Haw Drive with a special deck shield paint. Prior to this project, the deck shield paint was applied to one deck on Cherokee and one on Salem in 2012, with satisfactory results.  The final cost of deck repair was $ 30,200.


Final payment of $ 39,000 for Phase 2 roof caps was also made after 7/1/2013, during FY-2014.


The current balance in the Oxford Park reserve account, as of June 30, 2014, is $ 199,500. Contributions of $ 47,000 were made during FY-2014.Because of the deck surface project, this reserve balance is below projections made during the planning of roofing and paving projects.  On the other hand, the deck surfacing may delay or eliminate total deck replacement scheduled forFY-2018, and many of these decks were becoming unusable.


Monthly payments of $ 7972.39 are being made to First Niagara Bank for the FY-2013 roofing project. Payments started in May 2013, and will continue through April 2018. Monthly payments of just under $ 4,000 are made to the Morgan Stanley reserve account. These payments are made from the capital reserve portion of the common fee.


Overall operating expenses for FY-2014 have been very close to overall budgeted amounts. As usual, many line items reflect predictable expenses or ongoing contracts, and expenses are very close to budget. Other expenses, notably tree trimming, repairs, and snow removal, can fluctuate greatly due to unpredictable events. Although basic  snow removal is covered by our annual contract, the cost of sand, salt, and extra snow removal exceeded budget by $ 12,000 during FY-2014. In prior years, storm damage and general repairs have had the same results.Expenses associated with some line items have been lower than budget, thus overall expenses have stayed within budget.


At $ 31,000, expenses for painting and repairs have been $ 8,000 under the allocated $ 39,000 for FY-2014. However, this expense is $ 8,000 above the $ 23,000 budgeted in previous years.


Long-term large-scale repairs and capital expenses, as scheduled through FY-2016 in the Reserve Study, have been completed.  The board expects to complete the repairs of common-property decks in Phase 1 and 2 during FY-2015, for $23,000, funded by Oxford Park Reserves.


Oxford Park’s financial position continues to be solid. Oxford Park pays all bills in a very timely fashion.  Accounts Receivables for unit owners are in good shape.


Oxford Park will need to review more long-term maintenance needs. As the last major capital improvements listed in the 2006 reserve study are completed, the Association will need to review the next long-term maintenance needs and possibly commission a new engineering study.


In addition to well-maintained buildings and property, trees and landscaping are an important part of Oxford Park.The board expects tree trimming, removal, and replanting will require significant planning and expense in the future.


In view of the continued need to make payments to the reserve fund, the increase in costs for insurance and other services, and the likelihood that other costs will increase during FY-2015, the board has authorized a 2% increase in common fees, from $ 250.00/month during FY-2014, to $ 255.00/month, starting August 1, 2014.


Respectfully submitted, Will Rees, Treasurer, July 6, 2014