GRF Board approves 2027 budget; per apartment per month cost up 2.6%

GRF BOARD HIGhLIGHTS

by Ruth Osborn

Communications Director

On Oct. 27, after months of painstaking scrutiny of all GRF departments, the GRF Board of Directors approved a $29.3 million budget, up about 2.2%, the smallest increase in four years. The board held the 2027 assessment to $253.97 per apartment per month, up only 2.61% or $6.46. By comparison, the current assessment is $247.51, which was up $12.54, or 5.3%, from 2025.

The 2027 budget process has been underway since mid-summer as directors sought new ways to “move forward beyond a status quo budget,” according to GRF President Jeff Mulqueen.

“We’ve taken a bold approach to our budget,” he added. “This year we have had extraordinary committee participation,” thanks to a new process, suggested by GRF Vice President Vicki

Annual increases in the GRF assessment per apartment, per month from 2018-2027. Burdman. The process started earlier than usual and allowed for more meetings between staff and directors to fully assess each budget line item.

Mulqueen gave special recognition to GRF Executive Director David Norvell, GRF Executive Manager of Mutual Services Dave Potter and GRF Human Resources Director Kristin Houston for collaborating with the board in the budget process.

As a result, GRF committees were able to make cuts totaling about $693,569 as follows: Administration, $580,000; Facilities, $27,000; Finance, $62,400; Member Services, $6,169; and Operations, $18,000.

These cuts reduced the 2027 budget enough to chop approximately $8.66 to curtail what would have been about a $15.10 per-apartment-permonth assessment, according to Mulqueen. “We’ve done our best work for shareholders,” he added.

Assessments typically fund about two-thirds of the budget. For the 2027 budget, they are estimated to finance $20.1 million with the remaining $9.2 million coming from the other revenue streams.

Other sources of cost recovery are rental income, trust property user fees, labor cost recovery, and LW Weekly display advertising.

The board considered other business as follows. For the complete meeting, visit lwsb. com and click livestream.

GRF Reserve Study Approval

The board unanimously approved the GRF Reserve Study with a projected starting balance of about $13 million as of Jan. 1, 2027. The purpose of the Reserve Study, which was prepared by Association Reserves, is to provide a comprehensive assessment of the condition of GRF amenities and funding to maintain them.

The reserve fund is entirely supported by a trust property user fee collected from each resident upon moving into Leisure World. As of Jan. 1, that user fee will increase from $7,000 to $8,000.

The study’s key findings include:

• The Reserve Fund is currently funded at 61.9%, indicating a fair position that minimizes the risk of special assessments for reserve projects and deferred maintenance.

• The Reserve Study recommended a funding allocation is $245,000 per month in 2027 to adequately support long-term maintenance and replacement needs. But the board approved a higher monthly allocation of $261,000 to further bolster the fund.

• The study included a site visit, along with review of financial expenditures.

Pipe Cleaning Contract

Upon the recommendation of the Facilities Committee, the board awarded a $147,179, three-year contract (2026– 2028) to Empire Pipe Cleaning and Equipment for preventative maintenance sewer cleaning.

The Physical Property Department issued a request for proposal to six companies. Two sealed bids were received, with Empire being the lowest of the two.

The scope of work includes cleaning the entire main sewer line system, consisting of more than 61,000 linear feet; providing 24-hour emergency response availability and submitting a service report. The next scheduled service is planned for December.

Facilities and Golf Course Landscape Contract The board voted to award a three-year $407,090 contract to Aztec Landscaping Inc. to maintain the golf course. A request for bid for the community facilities and golf course was issued to nine prospective bidders, and four bids were returned.

The board split the contract into two, one to maintain the golf course and the other, community trust landscaping. After awarding the golf course landscaping to Aztec, the board voted to defer awarding the community trust landscaping contract, pending further discussion in an upcoming executive session.

The GRF Board awarded a golf course landscaping contract to Aztec Landscaping Inc.

Paul Kryczko