Special Meeting of the Unit Owners Scheduled for Monday January 13th, 2020, at 7:30pm in the 2nd Floor Party, for Review and Questions and Answers on the Proposed PTCA Budget for the 2020/2021 Fiscal Year

From Michael Parrie, Park Tower Condo Association Board President:

December 16, 2019

NOTICE OF SPECIAL MEETING OF THE UNIT OWNERS TO DISCUSS PROPOSED BUDGET FOR 2020-2021

To be held Monday, January 13, 2020, 7:30 p.m., in the 2^nd Floor Party Room

Adoption of budget to be considered at Board Meeting to follow Special Meeting (Monday, January 13)

Dear Owner,

Please find enclosed for your review the proposed annual budget for the fiscal year March 1, 2020 to February 28, 2021, as presented by our Management team and reviewed and edited by the Budget and Finance Committee and the Board of Directors.  (Click Here For Proposed Budget)  An initial draft was reviewed line item by line item, on three consecutive Saturdays in November.  Under consideration is a planned increase of 3.5% in assessments.  In addition, beyond the association’s control, RCN is increasing video charges because it is required to collect taxes and fees on behalf of the city.  This amounts to a total RCN increase of 5.6%.

Some other charges proposed for increase are the following:

Washer
Increase 25¢ per wash cycle (from $1.75 to $2.00), Increase 10¢ for additional soil settings

Dryer (stack)
Increase 15¢ per dry cycle (from $1.25 to $1.40)

Dryer (large drum / 30 pound)
Increase 50¢ per dry cycle (from 50¢ to $1.00 for first 20 minutes), Increase 25¢ for additional 10 minutes

Health Club Membership
Increase 5% for all types of categories (single, double, family; at all three buildings 5415, 5445, 5455)

Valet Parking
Increase $5 (from $130 to $135)

Self-Parking
Increase $5 (from $130 to $135)

Premium Parking
Increase $5 (from $145 to $150)

Day Parking
Increase $10 (from $170 to $180)

Hourly Parking
Increases 1 hour $10.50 to $12, 1-3 hours $12.50 to $14, 3-6 hours $16.50 to $18, 6 to 8 hours $20 to $22, 8 to 24 hours $36

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. Over the past 10 years, the Board has capped assessment increases by no more than 3.5% in any given year, and continues our excellent reputation of NEVER HAVING A SPECIAL ASSESSMENT.  We prepare for the coming year by closely following guidance from Management and the 2016 Reserve Study update. Reserve Advisors proposed an increased minimum annual contribution in 2020-2021 of $1,791,100 gradually increasing annually to $2,053,985 through 2024. We stay reasonably close to these recommendations.

Major projects over $50,000 in 2020-2021 and their projected costs include:

Domestic Cold Water Pump #2
$60,000
Low Rise Domestic Water Heaters #2 and #3
$100,000
Riser Projects – three tiers total
$500,000
Heat Exchangers
$100,500
Fan Coil Loop Pumps
$154,900
Garage Project – Continued (1P Membrane and 2P Concrete)
$805,000
Northeast Masonry Flashing along Bike Room and Garage
$150,000
Driveway Resurfacing Asphalt (this represents Park Tower’s portion that is shared with 5445)
$50,000
Pool Area Roof / Skylight
$250,000
Pool Walkway Roof / Gutters
$60,000
Roof Lighting Project
$56,700
Passenger Elevator Cabs
$80,000

This proposed budget includes an increase in projected annual income of $334,000 for total income of $7,435,600. Approximately $183,400 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 $5,644,500. The proposed annual reserve contribution is increased $51,400 to $1,791,100. We presently expect total reserve expenses for the year of approximately $2,534,500.

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.

Please join us at a Special Meeting to discuss the proposed budget on Monday, January 13, 2020, at 7:30 p.m. in the 2nd floor Party Room.  After hearing from fellow owners, the Board will consider the enclosed proposed budget for adoption at the Board meeting to immediately follow. All owners are welcome and strongly encouraged to attend and participate in the discussion.

Sincerely,

Michael Parrie

Board President

Park Tower Condominium Association