Assessments will increase to beef up reserves
MESSAGE FROM THE GRF
by Marsha Gerber
GRF Board President
Leisure World is 62 years old. It is a well-maintained, sought-after 55 and over community with an aging infrastructure. Replacing the Amphitheater, Security Gate system, Service Maintenance Yard, Clubhouses, etc., is a costly business, as was evidenced by the replacement of our pool.
There recently was a new nationwide standard passed by the Community Association Institute (CAI) because there is a natural reluctance for communities and their residents to exact huge charges on themselves. Fixing vital infrastructure is best accomplished by requiring constant, long-term funding to amass those funds beforehand.
New rules governing cooperative living communities such as Leisure World now demand that reserve studies identify common amenities, their life span and how much it will cost to replace them.
Preparing for future expenses to keep Leisure World safe and sound is a commitment the GRF Board governs by. The Board is also mindful of maintaining an affordable lifestyle here. Balancing the two is a challenging responsibility that board members take very seriously.
We have a reserve fund to repair or replace items in Leisure World when they are no longer safe or usable.
But many things in this community are considered what are called “Life-Long Components” and they are not 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.
