Dear Condo del Sol Owners,
In order to comply with new Idaho State law, which requires announcing changes to Quarterly Assessments 30 days prior to the beginning of the next calendar year, we are providing notice that beginning in Q1 2025, Quarterly Assessments will increase by 15%. This equates to approximately $150 per unit. While this is a difficult decision, it is prudent and necessary for the following reasons:
- Absence of previous increases: Condo del Sol Assessments have not increased to accurately reflect inflation or the age and condition of our property.
- Unbudgeted expenses: The 2024 budget was overspent primarily due to unbudgeted items related to infrastructure age, such as deck failures, sewer issues, unit water and freezing issues.
- Proactive planning: We need to increase contingencies to be better prepared operationally for surprises like those mentioned above, and to protect the Reserve Fund for its intended use (Capital Improvements). The hope is that by increasing the Reserve Fund balance, we can mitigate any required special assessments to owners (for projects like roof replacements). The proposed 2025 budget is designed to increase the Reserve Fund to over $250,000 by year end.
- Future projects and repairs: The recently received preliminary Reserve study, while still subject to review, indicates a lot of work is required over the next few years. Once finalized in Q1, 2025, the study will be published to owners along with a 5+ year funding plan. Large reserve expenditures will be subject to owner vote.
- Roof replacements: The study confirmed that a roof shingle replacement project is becoming increasingly urgent. Pace of replacement and a more accurate cost estimate will be determined in the first half of 2025, and the project proposal will be presented to owners for a vote.
The final Quarterly Meeting of 2024 will be held on December 16th at 4:00pm (PPT). The 2025 budget will be circulated to owners in advance and discussed during this meeting. As always, we encourage owners to call in and be prepared with any questions.
Sincerely,
Condo Del Sol Board of Directors