Responses to Community Budget Concerns

Last week the Board of Directors posted the proposed 2024 budget along with an explanation. We also posted a link for homeowners to submit questions. Our Board President worked over the weekend to address every submitted question so we can post responses. Below are your questions with answers:

Spectrum Questions

How do we transfer internet services to Spectrum? When will this occur? My HOA dues will increase by $40 a month, so I can cancel my Spectrum services by 12/31/2023, correct?

Yes. Instructions will be provided in about 2 weeks. There will be a phone number to call, in order to facilitate transferring your service to the HOA and setting up any optional/additional features you wish to purchase.

Can the Spectrum services be itemized, especially for those who need to be able to expense Internet costs for work purposes?

Yes. We are working on the best way to do this, but we should be able to provide an itemized statement of monthly HOA fees with this breakdown.

How much will I save with the Spectrum bulk purchase plan?

Each homeowner’s savings will depend on the specific services they currently use. For example, if you currently have the Spectrum 1 Gig internet (without ‘new customer’ discounts), you will pay $140/mo, to add the streaming TV essentials adds an additional $85/mo. Your savings could thus be as high as $185/mo or more. If you currently have the slowest speed Spectrum internet (with all possible discounts applied), you will pay $50/mo (plus tax). In this scenario you would pay $10+ less per month, while receiving internet that is more than 3 times faster and streaming TV channels through the Spectrum app.

Could we please get a breakdown of what the costs of various Spectrum services would be?

This offer gives 1 Gig. I currently have Internet Ultra. How much more will that be?

The 1 Gig internet package is the highest speed that Spectrum currently offers in our area. (Internet Ultra is 500Mbps or half the download speed of this package). Spectrum has provided some upgrade prices to us (below). More information will be available when you call to set up your services.

• Landline telephone: $19.99

• HBO-Cinemax: $4

• Starz-Encore: $4

• Showtime: $3

• TMC: $3

• Epix: $2

• Sports View: $2

• Entertainment View: $3

Spectrum’s internet and streaming services are the worst, since they don't have their own tower and piggyback with Verizon.

Spectrum has indicated that we should expect faster, more consistent and reliable service in our community with bulk internet purchases, since all homes will be on the same system/speed, rather than different levels of service. Note that this bulk purchase is for wired internet and has nothing to do with Spectrum Mobile (which shares a network with Verizon Wireless).

Specific Budget Items Questions

Why are the administrative and legal fees increasing significantly?

Our legal expenses in 2023 significantly exceeded the $15,000 budgeted. This was due to expenses related to having our attorney review all association documents, significant research and interaction with South Florida Water Management District and Toll Brothers over issues related to the lakes and conservation areas, many attempts to find options related to the gate into the elementary school property on Bismarck Palm, and several smaller issues. While these same expenses will not arise in 2024, we recognize that we will have the attorneys involved in closing out the Toll transition claim as well as any other issues that may arise. We have increased the budget to be more in line with actual legal fees.

The increase in the Administration expenses (line 50004) is due to a previous misclassification of these expenses. This amount has increased 3% over 2023 but was previously included elsewhere. These expenses are related to various back-office services provided to the Association by First Service Residential.

Why is “R&M Electrical” increasing so much?

The increase in this budget item reflects the expected cost of the Muse and Lakeshore Pointe Drive lighting projects, as well as repair or some fixtures outside the Clubhouse.

I thought we signed a multi-year deal on holiday decorations so why is that going up 38%?

The proposed budgeted amount for 2024 is the amount the current vendor indicated our services would cost in 2024. We will, of course, explore other options prior to then; however, the proposed amount is to cover the cost of staying with the same vendor.

What are the new insurance line items (directors & officers, other – crime) for?

These are items that were previously budgeted in the other insurance line items (Property & Liability) but have now been separated out in our policy. In 2023, we spend $20,479 for insurance, which was less than the total budgeted amount of $25,528. Because of rising insurance costs in Florida, we are budgeting to allow for a significant potential increase for 2024.

Why is “Electricity -- entrance lights” increasing so much? Are there efficiencies that could be made to reduce this?

The lights on Seidel were not functioning for much of 2022. We had the system repaired in early 2023. This has increased our electricity usage. New lighting systems will be all LED, and by replacing transformers we will have some efficiency gains. We could explore turning the lights off in the early morning hours to reduce costs. Note that we have also budgeted for a 10% increase in utility costs (which is the amount recommended by FSR).

Item 70219 – Landscape Replacements (townhomes) is up to $15K from $5K. What is this for?

This is related to the shrubs in the alleys.

Could you provide a full accounting (e.g. a gap assessment) that itemizes all budget changes for all line items on monthly HOA fees so that we can reconcile the full year-over-year monthly increase?

The detailed line-by-line budget was included in the official mailing to the community (and was attached to the email as well). If you need a copy, please ask. The budget shows the 2023 budgeted amount and the proposed 2024 amount for each line item. Most budgeted items increased 5 to 10% (based on information supplied by our vendors/contractor, etc.). We are budgeting 30% more for insurance for 2024. Several other categories have also been increased based on projected expenses in 2024 (e.g. various repairs and maintenance areas, the social committee budget, etc.). Please note that in some cases, the 2023 budget does not reflect actual expenditures; for example, our legal expenses were far greater than what was budgeted. To pay these expenditures, we had to cut back in other areas in 2023 (e.g.landscaping extras) and spend from savings. The proposed line-item expenditures for 2024 are expected to be better aligned with actual costs for 2024 than previous budgets.

Are any of these costs to be one-time only and therefore plan to lower dues in future budgets to reflect any decrease costs?…after these are implemented/completed won’t the only costs be for maintenance of these capital improvements?… and therefore could we not expect dues to be stabilized or even lowered?

Yes. The $30/mo proposed to fund various amenity improvements would be for the 2024 and 2025 budget only. The $12/mo related to security improvements at the clubhouse and the lighting projects for the Muse and Lakeshore Pointe Dr, etc. are for 2024 only. In future budgets only maintenance costs (and reserves for future replacement) will be budgeted. If we move forward with heating the pool, there would be a monthly cost associated (the amount would depend on the type of heating system chosen, gas being more expensive than geothermal). The expected maintenance and reserve costs for the other amenity improvements under consideration are relatively low.

What happened to the lifestyle director? Her job should have been replaced. We moved here for the events that Horizon West neighborhoods were known for. Independence and Summerlake pay LESS for their monthly fees and have more events. We don’t even have food truck events anymore. And those cost the association NOTHING. And the events the social committee puts on are not the quality I moved here to enjoy.

This is useful feedback. While the Board has considered returning to a model with a part-time Lifestyle Director, this is significantly more expensive than what we budget for social events organized through the Social Committee (about 3 times the cost). Independence and Summerlake are much larger associations and can therefore divide the cost across many more residents. We could still consider something like this for the future; however, it would come with a cost of $10-20/month.

Questions and Comments Regarding Amenities

There's a Horizon West community park being planned & designed to the east of Panther Lake Elementary School. Would it not be prudent to first see what those amenities are before adding sports courts in Lakeshore for public use?

The Board has consulted with the County Parks in regard to the planned Watermark Neighborhood Park. Their current plan is for the park to include a paved walking trail, a covered playground, a picnic pavilion, a multi-purpose field (like our ‘great’ park (aka Lakeshore Park), and fitness stations. There is some consideration for adding a dog park, mini skate park, volleyball court, or community garden; however, these items are not currently budgeted or included in the site plan. There is noplan for sport any sort of sport court facilities at Watermark Neighborhood Park.

Our Family would love the below in the following order of preference.

1. Sport courts for pickleball, basketball, and bocce.

2. A heating system for the Clubhouse pool.

3. Shades sails and improved seating for the community playgrounds.

What is the priority and timeline on these projects?

The board will seek further community input to help with prioritizing these (or other) items. The list above is in approximate cost order (highest to lowest). We should be able to undertake one of the ‘large’ items in 2024 and the others in 2025 based on the proposed budget.

Why would Lakeshore provide sport facilities that anyone can use?

The sport court amenities will be for Lakeshore residents and their guests’ use only. They will be fenced, with access controlled through the same fob system as the pool and clubhouse. The facilities will have video security as well. (Other communities in our area with sport facilities all limit access to residents/guests only).

How is the Board planning to address the security and safety problems the new proposed sport amenities will pose?

The Board has researched best practices in safety and security of such community assets and will continue to do so as plans are developed. We believe that with an appropriate combination of location, fencing, landscaping, lighting, locked access points, and video monitoring we can minimize these potential concerns, while providing new recreational activities and opportunities for community engagement to Lakeshore residents. The Board has consulted with several other local HOA boards and managers, none of whom reported any significant security concerns related to their amenities.

I see the proposed budget includes heating for the community pool. Why??? The pool is not used often during the Summer, and it's expected to be used more in the Winter?

The Clubhouse pool is regularly used by many residents during summer and late spring/early fall months. Heating the pool is under consideration because it is something that has been frequently asked for and is something that can extend the usable season for our existing pool facility. There are a variety of heating options, including geothermal systems that have very low operating costs (and can even provide some water cooling for summer months).

How about surveying/asking homeowners what changes in amenities we’d like to see.

We intend to use several different methods to gain additional input about specific amenity improvements and additions. The board has research options so that we have an understanding of the costs involved which will allow an informed discussion about priorities.

Why are we not considering relocating the dog park instead of building new sports venues? If you surveyed homeowners, you'd find a large % of homeowners have dogs and would like a much nicer, more convenient space to let dogs play.

This is definitely something that is under consideration.

Questions About First Service Residential

What are we doing with First Service? Is there a savings from management company now that you are doing your own website which is a benefit for the management company tools provided.

The Board has researched and considered alternatives to First Service Residential and has concluded that at this time, FSR provides services that are comparable to or better than the alternatives at a competitive price. We will continue to regularly monitor this relationship. Our contract with FSR did not provide a ‘website’ with the functionality we now have; they simply provided a resident portal for document management.

Miscellaneous Questions & Comments

In the future - is it possible to include more community input or a vote in regards to decisions that are made that drive an increase in HOA monthly dues?

Homeowners are welcome to attend the monthly Board meetings and weekly Board workshops, which always include a time for questions and comments. The Board always welcomes (and even solicits) input, for example, there was a significant amount of input gathered regarding the decision to enter into the Spectrum bulk purchase agreement. The idea of the HOA providing pressure washing throughout the community came as a suggestion from several homeowners, as did the idea of amenity improvements.

When will the two Palm tree stumps be removed by the Clubhouse pool? This has been an open issue for 9+ months.

We have considered a number of alternatives for that area around the pool and did not want to replace the trees until all options had been considered. The planned landscape improvements for 2024 include addressing the pool area.

Why don't we have the option to use the $83k "door fee" to offset the increase in HOA fees?

The door fee is a one-time payment for the 5-year contract with Spectrum. If used to reduce monthly assessments, this would reduce the assessment by only $3.74/mo. Instead, this one-time payment will be used to improve our community assets, thus providing a long-term/permanent benefit to the community.

What action is being done to lower our HOA fees? These increases with the significant increase in insurance it getting out of control.

We have undertaken a number of actions to lower the HOA’s expenses, for example, hiring a new pool company which is providing better service at a lower cost, lowering our utility costs through the Spectrum bulk purchase (which will also include the Clubhouse internet, phone and TV), controlling utility expenses by fixing leaks in the irrigation system, adjusting the AC temperature in the Clubhouse, installing more energy efficient landscape lighting, etc. At the same time, the Association faces higher costs from many of our vendors (seeing most contracted services rise by 5 or more percent for 2024). We are lucky that our contract with Juniper locks them in to a 3% per year increase. The Association is also still transitioning from a situation where Toll Brothers was underwriting a lot of our expenses to one where we are funding those all internally. The Board is committed to a robust maintenance plan to keep all of the community’s assets in top shape (and thus avoiding large expenses to replace assets prematurely). Please note that most of the proposed increases for 2024 are related to new services that the Association will provide, at significant savings for homeowners (the Internet purchase from Spectrum and community-wide power washing), and the capital funding for amenity expansion and improvement (which is a 2-year only increase). Without these increases, the dues would rise 5-8%, which is relatively modest given overall inflation, rising insurance costs in Florida, etc.

Will there be a vote by the homeowners as to approve or not approve the budget as is?

Following our governing documents and Florida statute 720 governing homeowners' associations, the Board of Directors determines the budget for the association.

Why aren’t the townhouse residents paying for the lighting and sod rather than everyone else?

As per the Association’s governing documents and the agreements between the developer and Orange County, the Muse is a community asset that the Lakeshore Preserve HOA provides and maintains with open access for everyone. While the Muse is located adjacent to our townhomes, it is not solely for townhome residents’ use; therefore, its maintenance is part of the common expenses of the association.

When they pressure wash the sidewalks, can we pay to have the company also do our driveway?

We will explore this possibility with the vendor.

Complaints and comments we do not have responses for or are redundant to already answered questions above.

Are you people high? We are not living in a time of great prosperity...this is NOT the time to be increasing dues for frivolous things like a bocce ball court and/or heated pool. WTH?

Who put this budget together? None of the numbers tie and it's poorly presented. It should make sense and be easy to read and comprehend. Examples...pages aren't numbered so how can they be referenced for comments? Your <possibly> page 2 of numbers...what are $170, 110, and 210...I mean what are those numbers supposed to mean???? Yeah, no kidding...they're adding landscaping and pressure washing together, well so what? What's the purpose of showing those followed by the total assessment number? Makes no sense...why?

Our Spectrum internet here sucks...what is being done to improve the reliability of the service

The increases are outrageous and unnecessary. I would like the opportunity to review all financials, and all deals made with Toll Brothers, Spectrum and First Service. Also, all contracts regarding Management and Legal Expenditures. You cannot assume or expect everyone in this community can afford a monthly increase like this one.

What is the timeline for new amenities? really excited to hear about this!

No new amenities or sports areas should get installed. Instead reduce legal and management fees and use that money to FIX what we already have! CThe Clubhouse needs TLC -- landscaping, palm trees, new lighting, improved volleyball, playground repairs!

#50059 Social Events:

Up $5K to $35K? Too much allotted – works out to be almost $3K/Month!

#50125 Web Page / Internet.

Up $2K/Year.

The new web page is great – however we pay for the FSR web page as well. I realize the FSR page is not good and very cumbersome – but I don’t like the idea of paying for two web sites. Community did not have a say / vote on this.

774005-40C Special Projects Catastrophic Events:

I agree we should collect for a reserve fund – especially with the issues we had at the pool, etc. Just bad timing with the internet and all the major increases from above. So, whatever “savings” were communicated to us with the Spectrum deal are now gone. I strongly feel more amenities is not the answer – more traffic, more outsiders, more to police and manage, and much more to maintain. We first need to take care of and fix everything that needs fixing (IE broken hammocks, broken clubhouse doors that don’t close properly, lobbed off palm trees and landscaping in pool area, significant number of broken pool chairs that have never been replaced, broken lighting throughout the community up-lighting on palm trees along Lakeshore Point entrance and Reflection Park, etc.).

$35k for Social Events???? Seriously??? I can't imagine how that is being spent ($3k/month!) and it's only benefitting a small % of residents. NOT in favor of $30k/yr, much less $35k!!

This increase is unacceptable. We have increased property taxes, increased property insurance and inflation is hurting most homeowners. The proposed budget increase is over 34%. This is outrageous. The community is receiving an $83,000 rebate from Spectrum. This money should be earmarked for community improvements. We also don't have a line budget showing increases for community maintenance and proposed projects. Everyone needs to know why the monthly fees are increasing so drastically. Please DO NOT adopt this budget.

I could go on and on so let me stop now and summarize by saying that this proposed budget is outrageous and the board is derelict and NOT representing the best interests of home owners with a 30+% increase. DO BETTER!"

While the dues are increasing, it looks like we are getting a lot in return for that money. We pay Spectrum over 300 a month now, so that will be a huge savings. Every other community around here has basketball or tennis or something, so will be nice to have these too. Excellent work.

Need to get rid of one of our two websites and use the money saved elsewhere.

How about a new board with people who have the best interest in not gouging our residents for higher fees.

"Ummm, with respect, what the heck are you folks smokin' on the Board? The proposed budget is out of control. Not everyone here drives a Mercedes or a BMW, and not everyone here has the extra monthly income to support these huge increases.

"This is absolute bullshit. The money from specturm should go towards these items instead of increasing our fees. Per the docs you cannot increase fees this much at one given time. Amenties are set prior to the first sell of a home in a community for a reason -- so we arent here adding more cost. Where is the money coming from you maintain all these proposed items? Oh let me guess, US just later after you spent the kickback on the build of them.

You all are out of control. 1200+ more a year per home! People CANNOT afford this."

Townhomes should always be more for what is required there but look at the monthly now, everyone else is now just as high. There should be a bigger difference.

“Think of that as a weekly trip to Starbucks, or a monthly lunch at the New York Beer Project." This is inappropriate. We choose how we want to spend our money. I'd rather give up holiday lighting and added electricity for a meal. All these proposed additions and increasing monthly dues closer to $500/month doesn't necessarily add value to the community. If anything, it's a turn off on buyers wanting to enter the community and putting more of a strain on your current homeowners. 30%+ hikes in HOA is WAY MORE than the current rate of already higher than normal inflation! How can we do this to our community???? Are the assessment increase for 2024 already part of the new HOA amount for 2024, you budget summary page is unclean. Confirming that my budgeted 2024 HOA for 2024 is $399.99.

This is a fantastic Borge’s proposal! With additional amenities. I congratulate you and thank you for your time and thoughtful contributions. I have no objections, but praises for a job well done.

To raise our monthly fees by over $`100 per month in a year where everything has gone up so much (my taxes went up $700 this year and my insurance $650), why would you burden the community with another $1200 a year. I go to the pool all the time and most times I am the only one there. To get a heater makes no sense. There are parks being built and there are public areas to do the other things proposed. To build something that only a few would use but make everyone shoulder the burden for is not fair. This trend to increase the assessment by so much will effect our ability to sell our homes in the future.

First off you have increased the HOA every month every year. Furthermore I do not understand how you can commit the entire community to such ridiculous agreements and have the belief that you can simply purchase as you see fit. HOA is for maintenance and managing the community not decorating the clubhouse with useless accessories. This is not a communist society that you chose the internet provider and force charges on all the community residents. This is simply wrong and disappointing that you feel can take that step. Please stop minimizing $100 (33%) increase in Executive Homes by referring to visits to Starbucks. Are you also saying $30 increase in 2024 for amenities followed by another $30 increase in 2025? How about surveying/asking homeowners what changes in amenities we’d like to see. These significant increase without adding much value doesn’t equate to the HOA board bringing value to the community as this budget notice proclaims. If anything this could lead to a drop in home values in an already challenging market with 7+% mortgage rates.