2013 Annual Treasurer's Report

 

Income and expenses for fiscal year 2013, just concluded, have been predictable and close to budget, except for two line items.  Many expenses are governed by long term contracts, such as management, trash, landscaping, and snow removal.  Others, such as insurance, are negotiated yearly, and thus conform to budget.  Pool expenses have been slightly under budget for FY-2013.  Payments to Crowley for lawn mowing, snow removal , sand, and salt have been on budget.  We expect these expenses to be stable in FY-2014.

Significant payments over FY-2013 budget were made for two categories.  First, tree trimming and removal totaled $20,992.00 compared to the budgeted amount of $5,260.00.  Much of the extra expense was caused by the microburst/thunderstorm in July 2012.  We are fortunate that Hurricane Sandy caused only slight damage.  Second, there has been a significant increase in needed unit repairs through the course of FY-2013.  Painting and Repairs totaled about $41,000 in FY-2013, compared to the budgeted $23,000.

Repairs have been done on at least 43 units in FY-2013, including 10 each in Salem and Watch Hill, 8 in Larkspur, 6 in Cherokee, 4 each in Mohawk and Shawnee, and 1 in Pequot.  Painting & Repairs can be anything from replacing a broken front lamp to repairing wrought iron railings to improving drainage around a unit.   Painting & Repairs also has included projects for the common good, such as relocating the Shawnee dumpster to relieve parking problems and make the community more attractive.

It is the judgment of the board that needed repairs will continue at that pace.  For that reason, the budget for FY-2014 increases the Painting and Repairs category to $ 39,000 from $ 23,000.  To continue maintaining our common property, the Board recommends a $ 10 increase in common fees, from $ 240.00 to $ 250.00 per month, through June of 2014.

The final budget analysis for FY-2013 shows a deficit of $ 24,500.  Again, this was caused primarily by the need for tree trimming and property maintenance.All payments to reserves were made on schedule.

WZK Roofing has been paid the full contract amount of $ 388,220 from the loan we took out from First Niagara Bank. The balance of the loan has been used to pay for slightly over half of the new chimney caps.   Payments to First Niagara are $7972.39 per month.  Payments started in May 2013, and will continue through April 2018.

Payments to the reserve fund at Morgan Stanley will continue at $ 3944.61/month. The balance in the Morgan Stanley reserve account is $ 345,500.  A payment of $ 39,000 will be made from that account this week, as final payment for the roof caps.  Planned paving of Upper Watch Hill and Lower Larkspur will cost between $ 125-140,000, and is scheduled for fall 2013 (revised from fall 2012).  When the paving is done, other related maintenance will be performed when workers are on the premises.  We project  reserves to be at their low point in November 2013, at about $ 190,000, with contributions continuing at $ 3944.61month after that.  

According to the Oxford Park Schedule for Capital Improvements, which we call the reserve fund study, the roofing was scheduled for 2014-2016.  The final paving was scheduled for 2016-2017. By completing these now, we have used economic conditions to keep the cost significantly below original projections.  On the other hand, low interest rates have prevented saved money from accumulating value.

The next significant scheduled capital improvement is replacing decks that are original to Oxford Park units, notably 50 Phase 3 decks on Salem and Blackhaw.  The original plan schedules the work for 2017-2018. Three Oxford Park decks have been painted on a trial basis with a heavy-duty textured paint.  We estimate the costs of replacing Salem decks at $160,000, and the cost of refurbishing at $ 40,000.  Either decision thus requires a significant investment, so no final decision has been reached.  Other issues, such as tree maintenance and removal, will need to be reviewed as well.

At this time, Oxford Park’s financial position is good.  Oxford Park pays all bills in a very timely fashion.  Accounts Receivables for unit owners are fortunately in good shape.  All obligations to suppliers for recent roofing and roof caps have been met.  As the complex approaches 40 years in age, more maintenance will be needed.  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.

 

Will Rees , Treasurer         July 9, 2013