Re: monthly assessment calculation | <– Date –> <– Thread –> |
From: ROD CHAMPNEY/HP/HIGHLINE CROSSING (RCHAMPNEYdelphi.com) | |
Date: Thu, 30 Mar 95 00:07 CST |
Monica, This is in response to your questions regarding how monthly assessments should be calculated. Here is what we decided at Highline Crossing (Littleton, Colo). Criteria: 1. Assessments should approximate costs where possible; i.e. members should be assessed a variable amount if the costs are variable and a fixed amount if the costs are fixed. Two primary variable "allocators" are the number of people in the "unit" and the size of the unit. 2. We wanted to keep the highest to lowest monthly fee in the range of 2:1 3. Special costs will be allocated among the special cost group. (For example, not all units have garages, so garage maintenance and insurance costs are to be divided among garage owners.) Here is what we came up with: 1. Per unit expenses will be divided equally among the 36 homeowners in our community. These include snow removal, office supplies, common house telephone, legal and accounting fees, parking and walkway maintenance and replacement, etc. Our estimated monthly expenses for these items are divided equally among each homeowner. 2. "People" related expenses are allocated based on "equivalent adults" where each adult counts 1 and each kid age 4-18 count 1/2 and kids under 4 count 0. (Lots of discussion to get to this scheme.....good luck!) People expenses include garbage collection, common house utilities (gas/electric/water), repairs & maint for common house, etc. So, if there are a total of 62 equivalent adults in the community and a household has 2 adults, 2 kids, and 1 infant (3.0 equiv adults) then that household would pay 3/64 of the monthly people related expenses. (Correction 3/62). 3. Unit size related expenses give frontal footage a 50% weighting and finished square footage a 50% weighting. Both of these variables affect structural insurance costs, exterior maintenance, etc. Although this may seem a little complicated, it meets our criteria (see above) and it is not too difficult to administer by plugging all of this into a spreadsheet (i.e. Lotus or Excel) and bouncing it against an expense budget which is divided in these categories. We have decided to budget and adjust monthly quarterly during the year-or-so that we are under construction and partially occupied and then to go to an annual budgeting cycle once we are fully occupied. (Note: We fine tuned our categories to keep the 2:1 highest to lowest ratio. Our interim fees average $85/mo with the expectation our long term fees will be under $100/mo average with a range of $65/mo to $130/mo. We have a wide range of unit sizes [we are a condo development] from 1 to 4 bedrooms and family sizes from singles to couples with 3 kids.) I would be happy to answer any questions you may have on this scheme and I could send a copy of the spreadsheet we developed. I am the community "treasurer" and take care of invoicing/collecting monthly fees. Rod Champney Highline Crossing 1620 West Canal Court Littleton, Colorado 80120 (303) 795-7942
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monthly assessment calculation Zukrow, March 29 1995
- Re: monthly assessment calculation ROD CHAMPNEY/HP/HIGHLINE CROSSING, March 29 1995
- RE: monthly assessment calculation Rob Sandelin, March 30 1995
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