The Villas at Polo Towers budget

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

The budget for the Villa's at Polo Towers has been posted online. It appears that there will be a modest increase of 4.95% for the two bedroom unit I own. DRI's financial statement is a little different in that there are two financial statements, one of which is the Master Assoc. budget but, if I'm reading things correctly, cash reserve funding is finally getting to a point where I feel more confindent the resort can maintain it's quality without fear of large SA's down the line. I believe the cash reserve funding is not in the $160 range, up from just $72 in 2009.

It appears the line for expected deliquencies is up significantly as well but, not as bad as the previous year.

Again, I'm not financial expert and I have been known to interpret the financial statements incorrectly but, it appears the resort is on better financial footing than I've fealt it's been in the past and is heading in the correct direction as far as maintaining the quality resort we had in mind when we originally purchased.

2011 fee's
Studio MF $393.39
1 Bedroom MF $789.02
2 Bedroom MF $1,188.72

2010 fee's
Studio MF $ 374.11
1 Bedroom MF $ 751.79
2 Bedroom MF $ 1,132.73

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

The Suite's budget is out as well. Total increase for 2011 vs 2010 is more significant than with the Viila's at 6.5% but, the Suite's have had some catching up to do IMHO as some areas had been underfunded. Eventually I anticipate the Suite's and Villa's MF's to be nearly identical. Different styles yes but similar (or the same) quality.

Cash reserve funding is looking better at $126 per unit (it will likely be different per unit, 1 bdrm vs 2 bdrm, as I simply divided by the total number of units), allowance for bad debt has been increased by 330%.

Management fee's appear to have only increased 3.65%.

While I'm never overly pleased with larger increases in MF's, the Suite's, at least IMHO, have underfunded their cash reserves in the past and have some catching up that's needed to be done. Underfunding a cash reserve results in SA's and the Suite's have had two since we've been owners. It does not surprise me that the Suite's would have a larger increase in MF's than the Villa's and, I anticipate as much next year.

2011 fee's
1 Bedroom MF $ 718.78
2 Bedroom MF $ 1,076.88

2010 fee's
1 Bedroom MF $ 674.92
2 Bedroom MF $ 1,011.15