Proposed Budget – 2022

GH Homeowner,

The most important task that the Grand Hampton Board handles each year is the preparation and management of the budget for the community. The budget determines assessments which provide funding for both current operating expenses as well as reserves to cover future costs for replacing and refurbishing community assets which wear out over time.

We are happy to report that Grand Hampton continues to be in excellent financial condition. Once again, we have met our primary goal of prudently managing our resources to maintain Grand Hampton as a premier community with strong property values by maintaining the quality of amenities and services while keeping assessments stable now and in the future.

This year we have significantly improved the budget process by instituting quarterly reviews which help keep actual expenditures in line with the budget. We plan to consider additional improvements to the budget process in the coming year.

Preparing the 2022 budget has been particularly challenging since we are in the middle of a number of major initiatives which affect our spending and assessments, and many costs are increasing due to the economic impact of the Covid pandemic. The proposed budget which we will consider for adoption at the October 4th Board meeting is attached. Here are the highlights:

1. The most significant challenge to HOA assessments is the increase in reserve requirements based on the reserve forecast which was updated this year. It had been four years since the last update and future costs for both labor and materials are rising. The budget includes a $90,000 increase in reserves which impacts both general and enclave assessments.
2. Securitas, the company which currently manages the front gate and provides the overnight rover, has requested a significant increase due to conditions in the labor market. We are currently negotiating with Securitas to mitigate the increase.
3. Other notable increases include Insurance (+$20,000), Holiday Decorations (+$10,000) and Landscape Replacement (+$5,000). The Building and Grounds committee will be working to contain these increases in the coming year.
4. This budget also includes spending for the newly adopted plan to address our street tree problems: Arborist Fee (+$10,000), Tree Maintenance (+$21,000). In addition, there is funding for planned initiatives from the Community Safety Committee (+$15,000).
5. Fortunately, these increase are offset by significant savings (-$44,000) from the new Community Management Agreement that we negotiated with Melrose Management this year and by anticipated savings from moving to a new bulk internet service agreement which is currently being negotiated (-$194,000).

Based on these changes we expect a small decrease in quarterly HOA assessments. In the current economic environment this is a welcome outcome.

Enclave assessments are increasing largely due to increased reserve requirements. We have been working with representatives from all of the enclaves to explain the increases and to seek input where we have options for impacting their dues.

If you have questions or comments, please email Chris Haines (chaines@Melrose.Management).

– Rich Kennedy, President and Rich Craig, Treasurer of the Grand Hampton Board of Directors