I suspect Florida resorts will take a bigger hit of the average and resorts outside of Florida may be less. Just a thought.
On the revenue side, where did the revenues increase? Rentals maybe?
I just checked, it must be better rates on their investments. I know they use laddered CD investing (100% FDIC insured). So they are probably getting better rates in the short term interest rate environment. But not sure why they would be paying $20 in income tax on $20 of revenue per week.
Well, they also have the Bade Debt Expense line item. Perhaps the deficit recovery is for something else, or perhaps to cover debt collections by a third party or even MVCI?
I like to see an apples to apples comparison. Based on the season you own, if the week was enrolled, how many points would you get and what would be the MF per point after the increase in your MF.
Given that it's a non-profit HOA, the increase in income taxes could be related to showing actual income during the diminished travel periods leading to lower than expected housekeeping and other costs for actual usage leading to a mismatch between income brought in and expenses. That is to say that they budgeted and collected more maintenance fees a couple of years ago and didn't spend them so it was income in the year before last that they paid last year or will pay this year.
Deficit recovery reads to me like it is making up for a deficit in prior year budgeting. As mentioned, folks not paying MFs shows up as bad debt. Overall, I get the impression that the HOAs budget was high as compared to expenses when travel went down, the board corrected for it by lowering the budget the next year and ran a deficit, and now the budget is going up to cover the deficit from the underbudgeting. Looking at the pattern of reported MFs at that resort shows that they went down in 2021, up some in 2022 and 2023 but not as much as current projections. That kind of matches what I would guess looking at these line items.
The Activities expense is up by over 15% and you are now paying $100 per week for Activities. I think this is a key area where savings can be achieved and activity users should share more of the cost. Many resorts have activities listed for almost every hour of the day even during the off season. There are too many 'free alcohol' and 'free food' events that seem to attract the most people (many of whom are not likely owners). The staff requirements for a full activity calendar also increasing staffing costs and management fee. I highly recommend that the activity model be changed. Perhaps each guest receives an 'activity credit' for their stay (based on stay length) and the activity cost needs to be paid for based on usage.
I suspect you know the answer... MVC drew up the condo documents. For the newer resorts, they pay utilities for their operations, but there is no rent and they keep the profit. This is true of the onsite sales offices. They pay the costs to operate the sales office and the utilities, but they don't pay a monthly rent to the HOA and they keep the profit from sales. The same is true for food and beverage. I don't know specifically about cabanas, but I would think it comes down to who owns the actual equipment. If the HOA buys, pays to fix it and replaces it, then the HOA should earn the revenue. At Westin Kierland Villas you need to check with the resort concierge for cabana rentals. The concierge is part of marketing which is part of sales. I can discern from that where the revenue goes.
The final total is right but I believe the percentage increase is higher than 4.76%. More like 12% based on my 2023 costs
Too bad there aren't any weeks there in the trust. It might have helped keep point fee increases down...
Actually I only took a quick glance at my numbers and I thought that validated what I also saw in the latest docs from the Custom House that showed a double digit increase. I see your numbers and they seem to confirm what you're saying but did you receive the recent docs? Did I misread them?
I believe the numbers are right and hope so. The BOD presentation included announcement of the percent increase of 4.76%, the 2024 MF as the $2,302.16, and reconfirmed the 2023 MF at the $2,197.20 I paid for this year. I do have difficulty getting to the announced number from the 2024 Estimated Operating Budget that was provided with the proxy materials.
Not yet. The maintenance fees for the Aruba Surf Club were billed on 10/28/22 last year.
