Regency Isle Homeowners,
The April dues statements have been sent out that reflect a dues increase for the coming fiscal year. The purpose of this email is to give you some background and the basis for this increase.
During the March 6, 2021 BOD meeting, the Board reviewed and approved the budget for the 2021-22 fiscal year during the new business portion of the meeting. The main issue discussed was the projected 40% increase in our insurance premium as a consequence of Hurricane Sally. Given this projected premium increase (~ $100,000 versus the previous policy year), the Board had little choice but to factor the projected increase into the budget that was approved. The result was a significant increase in homeowner dues versus the past fiscal year. The minutes from this BOD meeting that include a detailed budget discussion/rationale along with the new dues schedule based on the four different unit configurations were/are posted on the Regency Isle HOA website. In addition, the annual meeting package that all owners received a couple of weeks ago included the Board-approved budget that included the new dues amounts.
As you know, the ratification of the Board-approved budget takes place during the annual homeowners meeting. Because the Board did not know if/when the restrictions on masks, social distancing, etc., would be lifted in Alabama, the decision was made to move the annual meeting from our 3rd floor conference room to the Orange Beach Senior Center where the annual meeting was held last year. This space meets all requirements for social distancing. The first available Saturday date was May 1, so the annual meeting was moved to that date.
The dilemma – Regency Isle operates under a April 1 thru March 31 fiscal year. Waiting until May 1 to ratify the budget including dues increase would have meant that we would have missed one month (April) of the dues increase, thereby putting us behind the revenue budget for the year. While it could have been possible to delay the increase until after budget ratification on May 1, we would have had to “double up” on the monthly increase for the month of May, followed by a reduction back to the published monthly increase beginning with the June billing. It just didn’t seem practical to ask our accounting firm to take on this task.
In short, I sincerely apologize for any confusion and concern that the dues increase in the April billing statement caused. None of us ever wants an increase in our dues, especially one this large. In conversations with our insurance agent, and based on our insurance policy premium history over the past 15 years pre- and post Hurricane Ivan, we fully expect (baring another hurricane this year) that our insurance premium should go down next year and over time. As premiums go down, the opportunity to lower dues should present itself to future Boards.