- Question>I have been going through the Recommended funding plan. It shows in 2016 and 2017 significant increases in the Reserve contributions. When you calculated this, what did you estimate the annual dues for residents in 2017 to be.
- Answer> The MIA board did not calculate anything in the reserve study, this was done by a consultant, Reserve Study Specialists and is published unchanged. The board provided RSS the 2015 reserve fund contribution based on budget actuals with projections to year-end. Independently the board created the 2016 budget based on the approved $500 annual dues. The RSS reserve study recommends a 2016 reserve contribution of $44,481 (a 36.46% increase from 2015 reserve contribution level) and the 2016 MIA budget provides reserve contribution of $68,438 (a 109.96% increase from 2015 reserve contribution level). The current board cannot make commitments on future dues, however assuming the 2017 operating expenses increase by inflation (3%) from the 2016 projection and that the income level remains the same (no dues increase), then the 2017 reserve contribution would be about $63,325 which is greater than the 2017 reserve contribution of $60,698 recommended by RSS. The 2016 MIA board of directors will need to determine if a 2017 dues increase is need to support reserve funding liabilities.
For more information on how the law applies to reserve funding see: https://www.davis-stirling.com/MainIndex/tabid/1612/Default.aspx
The Board of Directors will be discussing the 2016 Reserve Expenses at the annual meeting (currently scheduled for 1/26/2016), please plan to attend if you are interested in the MIA budget and the reserve expense priorities for 2016. In the mean time if you have question please contact the board at Board@MIAhomeowners.com