listed in the reserve study. ….

listed in the reserve study. In those occasions when a “Life-Long Component” needs replacement, there needs to be money available to pay for what could be the most expensive repairs a community will ever endure. We just spent nearly a quarter of a million dollars to fix one of them. The wall Leisure World shares with Frontier near the North Gate had deteriorated over 60 years. We shared the cost of the fence with Frontier but our part was still nearly a quarter of a million dollars. It had to be paid out of capital funds because there were no reserve funds for this. That means there now is less capital funds available to do new projects.

A primary goal is to maintain a healthy reserve fund to replace our aging infrastructure. As this year’s budget nears completion, in order to accomplish this it is clear that the monthly GRF assessment must be increased. The GRF Board has not voted on the amount yet, but by law, the most it can be raised is 20% of the current monthly assessment.

It is safe to say that the wage increases mandated by California law will also be a factor in the 2024 monthly assessment. These wage increases were 20% minimum last year for entry level jobs. Also construction costs of cement, wood, and building materials have gone up 25-50% this year alone.

All four committees, as well as the entire Board, will be reviewing the budget in depth. We will keep you informed as the numbers solidify during the coming weeks.