2027 Budget Preview

View Budget Audit Notes here. 13 issues found and a 20% error in totals.

Lakemont's 2027 HOA Budget — A Few Observations and Questions - From Carrie’s Facebook Post

I received the 2027 HOA budget in the mail today. While the budget outlines proposed spending, it provides limited context about what's changing, what homeowners can expect, or the reasoning behind key decisions. There may be additional context from the Board that isn't reflected in the budget materials shared with homeowners.

A few things stood out to me:

• HOA assessments/dues: Annual assessments have increased 38.4% since 2023, from $489 to $677 per household, including a 4.9% increase for 2027. How is the Board balancing increased spending with preserving Lakemont's historically low HOA dues?

• Operating expenses: Budgeted operating expenses are increasing 7.1%, compared with a 4.9% increase in assessments. What's driving the increase?

• Landscaping: Additional landscaping spending is increasing 39% in 2027, from $36,000 to $50,000. What additional improvements or services will homeowners receive?

• Interest income: The HOA projects approximately $7,000 in interest income for 2026, but none is budgeted for 2027. Could this revenue help offset assessments?

• Operating surplus: Financial projections suggest approximately $47,000 in accumulated and projected operating surplus. How much of this is available, and could any of it have been used to reduce the 2027 assessment increase?

• Reserve contributions: The planned contribution decreases from $48,000 to $40,000, below the reserve study's recommendation. What changed to support this decision?

The Board has discussed irrigation improvements intended to reduce water consumption and long-term costs. That's a good example of the kind of progress homeowners would appreciate seeing highlighted in a budget summary.

A brief treasurer's summary would help homeowners understand the changes, spending priorities, and financial tradeoffs without having to interpret detailed financial documents or attend Board meetings.

I'd also welcome more opportunity for homeowner input before budgets are adopted. The draft budget wasn't circulated to homeowners for input before the Board adopted it.

Budget ratification meeting: Monday, November 30, at 5:30pm, following the 4:30pm Board meeting at US Bank or via Zoom. Meeting details and the full budget are in Dana Pavel's October 22 email. Questions can be submitted to lakemont@macphersonspm.com by 3pm on November 20.