UPDATED January 10th

SPECIAL UNIT OWNER MEETING AGENDA

For Review Of The PTCA 2021/2022 Proposed Operating Budget

Monday January 11^th, 2021

Via ZOOM Meetings Online

ZOOM Meeting ID# 857-8916-2946

ZOOM Meeting Link: https://us02web.zoom.us/j/85789162946         

ZOOM Conference#: 1-312-626-6799

7:30pm  Call to Order

This is a meeting of the owners. The meeting chair is expected to be the Board President Michael Parrie who will bring the meeting to order, direct discussion and call on participants to speak as necessary. Please be courteous and respectful to those speaking. Wait to be recognized by the meeting chair before speaking.

Report Items:

1. Presentation and Comments from Board.

2. Unit Owner Questions and Comments Regarding the Proposed Operating Budget for the 2021/2022 Fiscal Year, Distributed by U.S. Mail on December 21, 2020.

3. Further Considerations.

Adjournment

After a motion and second from the floor, the Unit Owners may vote to adjourn the Special Meeting of Unit Owners.

A sample resolution for an owner from the floor follows: “I move to adjourn the January 11^th 2021 Special Meeting of the Park Tower Condo Association Unit Owners for review of the proposed operating budget for the 2021/2022 fiscal year, at___PM.”

Original Post December 28th

Special Meeting Scheduled To Discuss The Proposed Budget For the PTCA Fiscal Year 2021/2022

From Board President Michael Parrie

December 21, 2020

NOTICE OF SPECIAL MEETING OF THE UNIT OWNERS TO DISCUSS PROPOSED BUDGET FOR 2021-2022

To be held Monday, January 11, 2021, 7:30 p.m., via Zoom

Meeting ID# 857 8916 2946

Invite Link: https://us02web.zoom.us/j/85789162946

Adoption of budget to be considered at Board Meeting to follow Special Meeting (Monday, January 11)

Dear Fellow Owner,

Please find enclosed (Click Here for your review the proposed annual budget for the fiscal year March 1, 2021 to February 28, 2022, 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 3.4% in assessments.  We understand that this is difficult to accept considering the pandemic and struggling economy.  However, we must also be fiscally responsible to our building that is 46 years old and recognize there are rising costs the Association has very little power to directly control.  If we did not carefully consider all planned expenses, then we would have been looking at almost a 7% assessment increase.

In particular, this budget has been seriously impacted by three factors:

1. A huge increase in property, liability, and umbrella insurance premiums in the amount of $95,400.  This represents 1.76% of our assessment increase alone.  Our insurance representative shared at the November board meeting that we are entering a “hard market” that affects all US high-rises over 50 stories tall and are non-sprinkler.  Furthermore, fires, weather events, and other realities outside our control are a huge factor.  And, there are few to no insurance companies to competitively bid lower.
2. Another increase in city of Chicago water expense.  The higher rate, coupled with more residents working from home and consuming more water, represents 1.53% of our assessment increase alone.
3. A loss of income due to the pandemic.  In particular, the reduction in health club memberships and commercial parking spaces comes to $184,231.

Combined, these two percentages are 3.29%, and with the loss of income demonstrates how much work was done in other areas of the budget to help offset the increase and loss.  The result was a lessening of the possible assessment increase.  Had all else remained equal, if you go by these three factors, it would have required almost a 7% increase.

Besides assessments, the other area targeted for increase is parking.  This is the second year in a row we are raising parking rates over several years.  We have found our parking charges to be in the middle range of other area garages, neither being excessively high nor too low.  In addition, we have lost about 60 commercial parkers with less workers on site in our mall offices.  Overall, the Board does not intend assessments to cover all the expenses of the garage, and therefore the proposed parking charges are as follows:

Next month, we celebrate our one-year anniversary with The Habitat Company serving as managing agent.  Thus, everyone should now be familiar with how to access their monthly assessment statements electronically.  To cover the cost of owners who still receive paper statements, the Association will be adding a $1 monthly charge for the printing and mailing to those owners.  In order to avoid this charge, please sign up for electronic statements.

Overall, the 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 during these difficult times.  We continue our excellent reputation of NEVER HAVING A SPECIAL ASSESSMENT.  We prepare for the coming year by closely following guidance from Management and the 2020 Reserve Study. Reserve Advisors proposed an increased minimum annual contribution in 2021-2022 of $1,791,100 gradually increasing annually to $2,094,100 through 2024.  We stay reasonably close to these recommendations.

Major projects over $50,000 in 2021-2022 and their projected costs include:

This proposed budget includes an increase in projected annual income of $189,400 for total income of $7,597,000. Approximately $184,200 of that increase is accounted for by the adjustment in assessments. Total proposed non-reserve operating expenses are $7,597,000. The proposed annual reserve contribution is decreased to $1,758,100. We presently expect total reserve expenses for the year of approximately $1,921,700.  Overall, we are keeping a healthy and responsible reserve fund balance.

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 11, 2021, at 7:30 p.m. via Zoom.  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