WKORVN MF increase analyzed
I have finally gotten some time to put the info from the WKORVN budget into a spreadsheet and do some analysis. This has shed some interesting light on the increase in MF at WKORVN.
First off, I want to say that I am working off of the glossy explanation sheet that accompanied the budget and MF bill. It lists many of the increases and decreases in costs that are reflected in the 2010 budget and the 2010 MF.
The good news is that Starwood and the HOA have managed to reduce expenses at the resort in several areas, resulting in a total savings of $153.67 in those areas compared to 2009 expenses.
This comes from two major sources. Reduced utilities costs ($90.70, the co-generation plant gets the credit for much of this) and reduced labor costs ($54.74). It seems that with the downturn in the economy they are able to find local people to work at the resort. In previous years the labor pool was so short they had to import workers, which cost more than the locals.
The bad news is that increases swamped these savings, so many people may not have realized or appreciated the efforts that Starwood and the HOA made to keep costs under control.
The majority of the increase in MF comes from items that Starwood is not able to control. They include the increased Ad Valorem (property) tax, increased Exise Tax, and owners not paying their Maintenance Fees. There was also a deficit in the 2009 budget that had to be made up for in the 2010 MF. Much of the 2009 deficit (about $80) is due to the increased property tax that was not budgeted.
If, for the sake of comparison, you set aside the uncontrollable increases included in the 2010 MF and then compare the 2009 MF to the 2010 MF, you may be surprised to learn that Starwood and the HOA have effected an overall savings from 2009 of $76.52. Yes, that is right, if the taxes didn't go up, and if owners paid their MF on time, and if the 2009 budget shortfall had actually been paid in the 2009 MF instead of the 2010 MF, your MF for 2010 would be $76.52 SMALLER than what your bill for 2009 should have been.
So how did I arrive at that startling conclusion? Well here is a quick peak at the figures.
- $15.00 - Increased Exise tax
- $307.63 - Increased Property Tax
- $215.77 - Reserve for noncollectable accounts (delinquent MF)
- $ 82.75 - Prior year tax deficit (1/2 year at increased tax rate)
- $621.16 - Total increase due to taxes and delinquent MF
My actual bill increased $617.83 from 1,861.77 to $2479.60.
If the deficit from 2009 that is billed in 2010 ($36.50) is added to the 2009 MF ($1,898.37) and subtracted from the 2010 MF ($1821.85), then you end up with your controllable 2010 MF actually being $76.52 less than what your 2009 bill should have been.
If someone wants to tell me how, I will be glad to post the spreadsheet that shows all this.
So my whole point in posting this is that after doing this analysis, I feel that Starwood and the HOA have been doing a good job in trying to control costs at my resort.
OK, have at it.