Previously Mailed To Unit Owners 

December 26, 2018

NOTICE OF SPECIAL MEETING OF THE UNIT OWNERS TO DISCUSS PROPOSED BUDGET FOR 2019-2020

To be held Monday, January 14, 2018, 7:30 p.m., in the 2^nd Floor Party Room

Adoption of budget to be considered at Board Meeting, Monday, January 28, 2018, 7:30 p.m.

Dear Fellow Owners,

Enclosed for your review is the proposed annual budget for the fiscal year March 1, 2019 to February 29, 2020, (Click Here For Proposed Budget) as presented by our Management team and reviewed and edited by the Budget and Finance Committee and the Board of Directors.  An initial draft was reviewed line item by line item, on three consecutive Saturdays in November.  Under consideration is a planned increase of 3% in assessments.  We also expect an increase of the cable/internet charge from $45.61 to $46.79 per unit per month in April.Only a handful of ancillary charges are proposed for increase:

This budget represents our best effort to responsibly maintain and protect owners’ collective investment in Park Tower, while providing a positive and reasonably comfortable living experience for all our residents. We’ve continued our commitment to maintain a healthy structure by planning repairs, improvements and replacements when reasonably necessary. We prepare for the coming year by closely following guidance from Management and the 2016 Reserve Study update. This includes budgeting to maintain a healthy reserve fund. Major projects in 2019-2020 and their projected costs include:

This proposed budget includes an increase in projected annual income of $213,000 for total income of $7,101,600. Approximately $152,100 of that increase is accounted for by the adjustment in assessments. The bulk of the balance in the increase comes from cable/internet, and income from parking operations.  Total proposed non-reserve operating expenses are $5,361,900. The proposed annual reserve contribution is increased $99,600 to $1,739,700. We presently expect total reserve expenses for the year of approximately $1,652,200.

Management, the Budget and Finance Committee, and the Board reviewed the proposed budget and worked together to consider general expenses for the coming year, and future needs for effective and efficient operations and responsible maintenance of the building. All our anticipated reserve projects are listed under the section “RESERVES” on the proposed budget page 3. We have continued our focus on increasing our annual budgeted contribution to the reserve, with the goal of meeting forecasted physical and structural needs for the building. A professional reserve study updated in 2016 by Reserve Advisors, who proposed an increased minimum annual contribution in 2019/2020 of $1,714,000 gradually increasing annually to $1,966,900 through 2023. We stay reasonably close to these recommendations. While considering the reserve budget each year, we use the Reserve Study recommendation as a guideline. Keeping a healthy annual contribution will be a key fiscal challenge for the Association. Increased attention to our structure is necessary to properly maintain it as it ages.

For Owners review and consideration, we present here as solid a budget as possible, accounting for everything we can reasonably foresee and promoting a positive living experience. We also understand that unknown conditions may arise from time to time requiring our attention.  This budget continues on a path set by prior Board’s to strengthen our reserve cash flow and keep up with operating expenses, so our Association is strong, the building is financially and physically healthy, and our residents and owners remain comfortable. Should anything unforeseen arise, we are in an excellent position to address it with confidence that our history of NO SPECIAL ASSESSMENTS will continue into the foreseeable future.

Please join us at a Special Meeting to discuss the proposed budget on Monday, January 14, 2018, at 7:30 p.m. in the 2^nd floor Party Room.  After hearing from fellow owners, the Board will consider the enclosed proposed budget for adoption at the meeting scheduled for Monday, January 28^th. All owners are welcome and strongly encouraged to attend and participate in the discussion.

Sincerely,

Michael Parrie

Board President

Park Tower Condominium Association