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Expecting a Big MF Increase at Grande Vista? [MERGED - FL resorts Fully-Funded Reserves]

dioxide45

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I received the proposed 2020 MF budget for Grande Vista and it looks like there could be a big increase. Discounting the way they show the reserve fee and only looking at the operating fee it shows an increase of $168.61. When you remove the increase in the Management Fee (because it is inflated because of how they show reserve funding on the proposed budget), the increase is still around $120. That works out to about an 8% increase over last year. I would expect some increase in reserve funding to finlate that 8% even higher.

I get that this is still a proposed budget, but the proposed increases in certain line items don't look promising.
 

hangloose

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Love MGV, but bad potential news on MFees. I’ll vote against it as an owner of two weeks at MGV. Just let me know how.
 

BarDown

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I'll be attending the AGM this year instead of signing over my proxy to BoD.
 

kds4

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Love MGV, but bad potential news on MFees. I’ll vote against it as an owner of two weeks at MGV. Just let me know how.
Agreed. I also have 2 weeks there. Without more info/justification, I won't vote in favor either.
 

DannyTS

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some of the largest increases I noticed in $/unit:

Front desk $13.52
Housekeeping $36.65
Insurance $15.75
Management fee $41.54 (up 32%!!!)

Why such an increase in the management fee?
 

bazzap

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some of the largest increases I noticed in $/unit:

Front desk $13.52
Housekeeping $36.65
Insurance $15.75
Management fee $41.54 (up 32%!!!)

Why such an increase in the management fee?
Shouldn’t the Management Fee be a fixed percentage?
 

dioxide45

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some of the largest increases I noticed in $/unit:

Front desk $13.52
Housekeeping $36.65
Insurance $15.75
Management fee $41.54 (up 32%!!!)

Why such an increase in the management fee?
Management fee is tied to the overall MF (Operating, Tax & Reserve). Since the reserve on the estimated budget is based on fully funding the reserves, it drives up the estimated management fee. If the ownership votes to waive fully funding, the increase in management fee won't be so drastic.
 

dioxide45

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I'll be attending the AGM this year instead of signing over my proxy to BoD.
If you can, try to go to both the annual meeting and the BoD meetings. You get far more information by attending the BoD meeting. Though there is no voting at the BoD meeting, voting happens the next day at the annual meeting.
 

dioxide45

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Love MGV, but bad potential news on MFees. I’ll vote against it as an owner of two weeks at MGV. Just let me know how.
You really can't. You can only vote to waive fully funding reserves. All the other line items are up to the BoD to decide.
 

DannyTS

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TheTimeTraveler

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some of the largest increases I noticed in $/unit:

Front desk $13.52
Housekeeping $36.65
Insurance $15.75
Management fee $41.54 (up 32%!!!)

Why such an increase in the management fee?


Not sure why the Management fee is going up so high but one has to really think twice about ever replacing Marriott as the property Manager.

Some years ago (maybe 2006 or so) some Marriott timeshare resorts lost their affiliation with Marriott and their resale value evaporated overnight. Anyone remember Spicebush or Swallowtail on Hilton Head ?




.
 

Venter

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I received the proposed 2020 MF budget for Grande Vista and it looks like there could be a big increase. Discounting the way they show the reserve fee and only looking at the operating fee it shows an increase of $168.61. When you remove the increase in the Management Fee (because it is inflated because of how they show reserve funding on the proposed budget), the increase is still around $120. That works out to about an 8% increase over last year. I would expect some increase in reserve funding to finlate that 8% even higher.

I get that this is still a proposed budget, but the proposed increases in certain line items don't look promising.
Count yourself lucky. Lakeshore has a proposed 20% increase
 

dioxide45

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Not sure why the Management fee is going up so high but one has to really think twice about ever replacing Marriott as the property Manager.

Some years ago (maybe 2006 or so) some Marriott timeshare resorts lost their affiliation with Marriott and their resale value evaporated overnight. Anyone remember Spicebush or Swallowtail on Hilton Head ?




.
Post #7 explains the "proposed" increase in the management fee.
 

dioxide45

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Count yourself lucky. Lakeshore has a proposed 20% increase
Again, these are proposed budgets and in Florida they include the reserves as if they are fully funded. Which more times than not the ownership votes to waive the fully funding requirement.
 

SueDonJ

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Again, these are proposed budgets and in Florida they include the reserves as if they are fully funded. Which more times than not the ownership votes to waive the fully funding requirement.
This "fully-funded Reserves" voting issue is one of the only ones over which owners actually have control. It's vitally important to vote your proxies because absent an owner-majority vote against fully-funded reserves, MVW is legally mandated to implement them.

Both Florida and South Carolina are "fully-funded Reserves" states; at the Florida resorts this is an annual voting issue but at the SC resorts it's intermittent. Each state has its own defined parameters which require resorts to maintain Reserves funds that exceed the Marriott standard. This isn't because Marriott is underfunding; it's because the states require a Reserves balance that covers up to the entire replacement cost of a resort, while the resort BOD recommendations can factor in things like warranties on major replacement items (roofs, siding, water heaters, etc etc etc,) Marriott's routine refurbishment schedules, extending the usable life of goods beyond the states' qualifications, etc.

I'm NOT saying that everybody should just vote "NO" on fully-funded Reserves. I am saying that it's an important voting issue that shouldn't be ignored, and if you're hesitant about what sounds like a scary vote - "But why wouldn't we want Reserves fully-funded?!?!" - then you should contact your resort BOD and ask them to explain the specific differences between what the state considers fully-funding at your resort and what Marriott considers it.
 
Last edited:

sjsharkie

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Does anyone have last year's budget.

Even if the budget reflects fully funded reserves, I don't ever remember the budgeted increase ever being this high in years past. I also own two weeks -- this hurts.

-ryan
 

dioxide45

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I have the 2019 proposed budget from last year. The proposed increase showing this year is much higher. Last year the operating fee showed a proposed increase of 5.4%, this year it is 18.6%.

However, the proposed increase in the reserve fee was over $150, but the actual increase ended up only being about $14. This year the proposed increase in the reserve fee is almost $300, but as previously indicated, that is based on fully funding reserves.
 

SueDonJ

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I have the 2019 proposed budget from last year. The proposed increase showing this year is much higher. Last year the operating fee showed a proposed increase of 5.4%, this year it is 18.6%.

However, the proposed increase in the reserve fee was over $150, but the actual increase ended up only being about $14. This year the proposed increase in the reserve fee is almost $300, but as previously indicated, that is based on fully funding reserves.
Wow. $14? I looked back through Barony and SW in the TUG MF's threads and Reserves there have always been much higher than that, even with the fully-funded mandates being voted down and minus the SA's/adjustments for recent storms damage. Think $150-$250 over a ten-year spread! Are you concerned that collecting as low as $14/Week would eventually, by necessity, require a large offset at some point?
 

Fasttr

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Wow. $14? I looked back through Barony and SW in the TUG MF's threads and Reserves there have always been much higher than that, even with the fully-funded mandates being voted down and minus the SA's/adjustments for recent storms damage. Think $150-$250 over a ten-year spread! Are you concerned that collecting as low as $14/Week would eventually, by necessity, require a large offset at some point?
I think dioxide45 was talking a $14 INCREASE in the reserve amount....not a $14 reserve.
 

Beachspace

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Glad i read this! I saw a $400+ increase in my MF this year as a 3br Gold owner and almost came un-glued! Sounds like the budget is just for the fully funding reserves and when that fails, the MF will only go up $50-$100 instead of $400+.
 

rickandcindy23

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Marriott just kind of does what it wants and gets those increases.

I keep thinking how the sales' department hard-sells people on timeshare, and then when owners decided they made a mistake and walk away, Marriott is never hurt by it. It's the owners who are hurt. We pay for the people who don't pay. That is truth. And it's horrible because it's entirely the fault of the salespeople.
 

jpc763

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I received a Notice of Budget Meeting for Imperial Palms Villas today. I don't usually pay attention to these as I cannot attend but this time I noticed a link to some documents. In the documents I saw a budget proposal.

The budget proposal showed a 42.8% increase in maintenance fees.

Am I missing something here?
 

jpc763

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I received a Notice of Budget Meeting for Imperial Palms Villas today. I don't usually pay attention to these as I cannot attend but this time I noticed a link to some documents. In the documents I saw a budget proposal.

The budget proposal showed a 42.8% increase in maintenance fees.

Am I missing something here?
I believe that it is due to Florida requiring fully funded reserves which I believe gets voted down every year. At least I hope that is what it is.
 
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