2015 Treasurer's Report

Thank you for the opportunity to serve as Treasurer for Oxford Park during the last year.

At the annual meeting in July 2014, several unit owners requested that the information presented in the annual Treasurer's Report be available before the next annual meeting. The Board and Management agreed.

Capital Projects

Long-term maintenance and capital improvements continued during FY2015 (ending 6/30/15), with completion of deck repairs and painting to Phase 1 and 2 decks that are original to the units. All remaining decks have been built by homeowners, and homeowners have the responsibility to maintain them. Project costs for FY2015 were $31,047, and were paid from the Reserve Fund. The goal is to avoid wholesale replacement of these decks, which was expected in 3-4 years.

Roofing and paving were complete during FY2013 and FY2014. All major projects scheduled through FY2018, under the guidance of the 2006 reserve study, have largely been completed.

Operating Expenses

Overall operating expenses for FY2015, ending June 30, 2015, have been significantly above budgeted amounts.

Many expenses continue to be predictable. The Board expects all minor and several major budget categories to be stable through FY2016 (ending June 30, 2016). These include trash removal, pool costs, water costs, management fees and bank loan payments for the 2013 roof project.

Insurance costs are expected to rise by 6%, which is shown in the FY2016 budget.

Routine maintenance and small repairs, from iron railings to gutters to chimneys, have been within budget expectations. In FY2015, repairs of some sort were performed on about 50 Oxford Park units. However, the extreme winter weather and a water main break have caused challenges. Snow and cold weather from January through March forced large-scale shoveling of roofs for the first time ever, with costs exceeding $21,000. The water main junction under Mohawk Court broke, with a cost to repair of $9,500. Including the necessary painting of Phase 3 chimney caps, total expenses for the budget category "painting and repairs" will total $65,000 for FY2015, compared to a budgeted $38,000.

A review of the last four years of winter sand and salt shows that average yearly expense has been $14,000, well above the budgeted $8,375. We have made the change in the budget for FY2016.

Overall snow removal and lawn care costs will increase by $10,000 in FY2016. The contract with Crowley will increase by just under $3,000 (3%) and another $7,000 is needed to pay per contract for last winter's above-average snowfall.

Proposed 2016 Budget

To prepare for the upcoming year, the FY2016 budget takes into account these increased costs. The new budget increases line item amounts for painting and repairs, landscaping and snow removal, winter sand and salt, and insurance. For that reason, yearly expenses are budgeted to be $533,500, an increase of $28,500 from FY2015. This represents an increase of $15 per unit per month.

Management expects the town of Cromwell to recalculate the monthly trash "tipping fee" reimbursement. The FY2016 budget shows a drop in income from $1100 per month to $600 per month. This represents $3 per unit per month.

For that reason, the Board of Directors has approved a common fee for FY2016, starting July 2015, of $273.00 per month. Garage owners will continue to contribute an additional $10 per month into a separate garage repair reserve fund.

Unfortunately, due to winter weather expenses, Oxford Park has needed to keep money in the checking account that normally would have been put into the reserve fund. The reserve fund, as of 5/11/15, has a balance of $168,500. Oxford Park's overall cash position continues to be solid, but the reserves do need to be increased. Oxford Park continues to pay all bills in a very timely fashion, which creates great relationships and keeps costs low with our vendors. Accounts Receivables for unit owners are in good shape.

Respectfully submitted,

Will Rees, Treasurer, Oxford Park Community

For the Annual Meeting, June 9, 2015