Summary
PSI Management Report prepared for the November 14, 2019 Board meeting. This packet contains the formally adopted 2020 budget (revised upward from the October proposal), the October 2019 balance sheet and income statement, the First Class Fence contract for the Route 59 fence replacement, the Kramer Tree proposal, CD rate backup from Barrington Bank and Community Association Bank, and the AR Aging report. Also contains the embedded October 10, 2019 board meeting minutes (already ingested as minutes-2019-10-10).
This packet resolves the previously open question about the $68,805.09 vs. $62,080.09 budget discrepancy: $62,080.09 is the operating-only cash required from homeowners; $6,725 is the reserve contribution; $68,805.09 is the combined total — and also the total collected in assessments from 215 units at $320.02/unit.
Key Provisions
- 2020 annual assessment adopted at $320.02/unit — a 2.57% increase from 2019’s $312/unit. Operating: $288.74/unit; Reserve: $31.28/unit. 215 units × $320.02 = $68,804.30 ≈ $68,805.09 (rounding). This is the adopted figure; the October proposal had been $312 flat (see board-packet-2019-10-10).
- 2020 reserve contribution adopted at $6,725 — 6950 Replacement Reserve: $6,725; 6946 Operating Contingency Reserve: $0. An increase from the October proposal of $5,000 and from 2019’s $5,387.27. Still below the Waldman study’s $7,535 recommendation but substantially improved from the October proposal.
- Budget structure clarified: $62,080.09 (operating) + $6,725 (reserve) = $68,805.09 total. The November minutes’ “adopted at $62,080.09” refers to the operating budget; the reserve is separately allocated.
- First Class Fence contract executed — 1,365 LF of 6’ high board-on-board western red cedar fence; galvanized steel “Postmaster” posts set in 36” of concrete; 1×6 fascia board on each post; old fence removed and hauled. Price: $42,360.00. Work to commence no later than November 22, 2019.
- Kramer Tree proposal — 15 trees along Route 59 (4 Ash 8–10”, 2 Maple 2–3”, 2 Spruce 2–3”, 7 Box Elder 14–18”), all dead/declining, marked with yellow paint. Winter discount rate: $3,398.30 (standard rate $3,998.00). Authorized by Julie Maggio 10/11/19. Approved by Board at October 10 meeting; ratified here.
- October 2019 balance sheet (10/31/2019):
- CAB Interest Checking: $37,891.14
- CAB Money Market: $50,420.30
- Certificate of Deposit: $174,160.99
- Accounts Receivable (gross): $9,219.95 less allowance $3,200.00
- Total Assets: $271,258.48
- Total Reserves: $224,436.77 (Operating Contingency $10,483.40 + Replacement $213,953.37)
- YTD financials (10/31/2019): Total income $71,368.08 (vs. budget $68,034.27). Total expenses YTD $52,508.06 (vs. budget $60,868.49 — under budget by ~$8,360). Net total: $24,247.39.
- CD maturity decision: Barrington Bank $51,223.82 CD at 1.95% matures 1/2/2020. Current market rates lower than 1.95%; Board to decide whether to renew with Barrington or move to Community Association Bank. Second CD ($71,713.35 at 2.55%) matures 1/2/2021 — locked in.
- Contracts table (as of November 2019):
- Rollins (aerator): since October 13, 2009, ongoing (“Until canceled”)
- Secretary of State (annual report): 6-1-2019 to 6-1-2020
- State Farm (insurance): 8-15-2019 to 8-15-2020
- Apex (landscaping): 4-1-2019 to 11-30-2019 (current contract; 2020–2022 extension finalized separately)
- PSI (management): 5-1-2019 to 4-30-2021 ✓
- Hey & Associates (stewardship): 2017–2019 (expiring; 2020–2022 contract being finalized)
- Cukierski & Cochrane (taxes/audit): 2018–2020
Topics Covered
hoa-annual-finances, assessment-structure, vendor-contracts, fence-regulations, reserve-study-findings
Notable Details
- Budget revision between packets: The October proposal had $312/unit and $5,000 reserve. The November adoption increased the reserve to $6,725, raising the per-unit assessment to $320.02. The exact reason for the revision is not stated in the packet — likely a board decision to better align with the Waldman study’s guidance.
- Rollins contract start date: October 13, 2009 — confirming Rollins has been the aerator service provider for 10+ years as of this packet. The contract is open-ended (“Until canceled”), not term-based.
- Management fee increase: PSI fee changed from $1,128.75/month (2019) to $1,150.25/month (2020, April–November) per the detailed budget. Full-year 2020 management fee: $13,717.
- October 2019 management fees: October GL shows $444.50 paid to KSN (legal collections, one named account — redacted per Hard Rule 11); Harbro Construction $192.40 (monument fence repair).
- Action item error in packet: The fence agenda item says “A motion is required to approve the proposal from Choice Services” but the actual proposal and contract in the packet are from First Class Fence. The Board had previously directed management to obtain proposals; First Class Fence was selected; the agenda item language was not updated to match.