BY JOHN A. NAGY, SLI Reporter
A proposed annual budget for Seven Lakes West that raises dues by $250 is moving closer toward a final vote by property owners.
The Seven Lakes West Landowners Association has developed a $3 million spending plan that includes raising dues from $1,300 a year to $1,550 for the fiscal year that begins May 1. The budget also includes several fee hikes on a number of other services and amenities.
The association’s Board of Directors initially approved the budget at its December meeting, and a second required vote was scheduled for its Jan. 25 meeting. The budget will then be sent to all eligible property owners for their approval, an act required by the association’s by-laws. Results of that vote will be announced at the annual meeting.
Board treasurer Lois Ann Eisel and other board members led two budget workshops, including one on Jan. 11 and another via the Zoom digital meeting platform Jan. 13 that attracted more than 80 participants. In those presentations, Eisel reviewed the budget’s growth over the last few years, the association’s budget reserves and proposed spending for the coming year.
As proposed, the new spending plan allocates $1.93 million for operating expenses and $1.16 million for capital expenses.
The finance committee started the budget process with more than $4 million in operating and capital expense requests. That level has since been reduced.
In most cases, rather than eliminate funding totally for most projects, the committee left seed money in the new budget, with the expectation that fuller funding could come in later years. For instance, improvements to Johnson Point and the front gate are proposed for $25,000 and $50,000, respectively. Those amounts were reduced from the original requests of $150,000 for Johnson Point improvements and $100,000 for the front gate because plans have yet to be developed for the work.
Looking at revenue increases, adding $250 a year to an individual property owner’s dues would net an additional $320,000 a year, Eisel said. Other proposed increases:
● Raise the charge on kayak storage at Johnson Point from $75 to $100 a year;
● Increase the charge on boat slips at Johnson Point from $850 to $1,000 annually;
● Increase RV storage charges from $250 to $300 annually
● Increase Longleaf and Johnson Point storage fees from $170 a year to $225.
The budget increase is being driven, in large part, by several big-ticket projects. Capital spending for the proposed budget has increased 44.6 percent, or $336,000, according to Eisel. The largest item in that list is expansion of the Seven Lakes West mailhouse. The current mailhouse is quickly near capacity, and an expansion is being planned to allow more mailboxes to meet demand from new homeowners.
“A member who arrives tomorrow should be treated like a member who arrive five years ago,” said board Vice President Todd Brown.
Other proposed capital spending includes $49,000 for repairs and improvements to the community center; $23,000 for security camera upgrades; $15,000 to upgrade fire hydrants; and $38,000 toward improvements at the Lake Auman dam.
A couple of property owners asked board members whether such projects could be done with a special assessment, rather than a wholesale increase in dues. Eisel said that was impractical because collecting for the assessment would occur over a period of years, whereas spending for the improvement, such as an expanded mailhouse, would need to be paid out in a single year.
“We need to take in $200,000 in one year,” she said. “We do not have the capability to go out and borrow money.”
Other property owners have expressed concerns about the hike in fees for amenities such as boat slips. Brown said the board has looked at the level of fees compared to other communities and feels they are “well below” what is being charged elsewhere for equivalent services.
Brown said property owners need to be prepared for the prospect that dues could continue to rise in coming years to keep up with inflation and the rising number of residents building homes in Seven Lakes West. The community has seen unprecedented growth in the last few years.
Brown said with the proposed future amenities such as upgrading the front gate, adding staff to the back gate and other upgrades, “it’s pretty easy to predict there will be increases. That’s just my prediction. I hope I’m wrong.”
