Pelican Bay News – Proposed Annual Assessments for Fiscal Year 2014

Pelican Bay is one of the finest communities in Naples to own Real Estate. Be aware of the current news regarding the 2014 Fiscal Year Budget with the below article. As always, feel free to contact me directly at (239) 289-2650 with any questions or for more information on Pelican Bay Real Estate.

Audit and Budget Committee recommendations

Published in the Pelican Bay Post, August 2013, Written by James Hoppensteadt, Foundation President

The Pelican Bay Foundation Board of Directors is scheduled to approve a budget and annual assessment at the August 23, 2013 Board meeting. Starting with budgeting in May, the drafts are then straightened up through the next few months and are reviewed by the Audit & Budget Committee in late June. The recommended changes are then passed on the Treasurer, who is responsible for delivering a proposed budget to the Foundation Board for consideration no later than 60 days prior to the fiscal year. The Board then must adopt an annual budget and determine the annual assessment at least 15 days prior to the new fiscal year on October 1st, 2013.

This year, the A&B Committee budget review made recommendations on the 2014 Budget and the resulting FY 2014 Per Unit Member Assessments for the Operating Fund, the Replacement Reserve Fund, and the Cable TV obligation. Meetings were set to discuss all aspects of the financial data and the proposed budget for the best possible decisions by the Foundation Board at the late August meeting. The goal of the new “bottom up, zero-based budget with a view towards efficiencies” will deliver the Foundation’s Vision Statement to “Preserve and enhance Pelican ZBay as Florida’s premier, mixed-use beachfront community.”

The following overview of the Operations Fund, the Replacement Reserve Fund, the Capital Fund, and the Cable TV Fund—proposed and recommended budgets, fees and assessments.

Operations Fund: The Committee will be looking at the guest fee rate and tie it to the annual increase, much as the member assessment increases, so as to improve the equity between member and guest charges. Guest fees are expected to be looked at, but not increased in FY 2014. Two fees listed with changes in the FY 2014 Proposed Budget are the capital resale fee of $6,000, which will already increase on October 1, 2013 and the pre-paid beach fitness class fee, which is proposed to increase from $6 per class to $8 per class. The Committee also discussed the Member Rental Fee, which is collected with every lease of Pelican Bay residential property.  Currently at $125 per lease, the committee recommended that the Fee be increased to $200 per lease on October 1, 2013.

Cable TV Proposed Assessment: The proposed Comcast Cable TV assessment for FY 2014, pursuant to a long-term contract with Comcast, stipulates for an annual rate increase. The per unit rate required is $424 including tax. This represents a 6% increase per unit from FY 2013.

Replacement Reserve Fund Proposed Budget: With respect to the proposed budget of the Replacement reserve Fund for FY 2014, the Foundation contracted with Reserve Advisors to conduct a reserve study. A draft of the FY 2014 reserve study was provided to the Replacement Reserve Subcommittee of the A&B Committee for discussion at a meeting of the RRS, the issue of beach renourishment being the focus. After meeting to discuss this issue, the Foundation Board agreed that it will be responsible for paying for the renourishment of a portion of the Pelican Bay beach and will incur that cost out of the Foundation monies. This applies from south of the Ritz to the north section of the beach near the Foundation’s north beach facilities. The Reserve Study also reflects future expenditures for beach renourishment beginning in 2020 and every six years thereafter.

Pelican Bay does not equate to project approval. Rather, each budgeted project is remanded back to the appropriate Foundation Committee during the year for approval or non-approval. Therefore, with respect to the proposed capital expenditures in FY 2014 of $2.2 million, none of the budgeted Capital Fund projects were being recommended for funding approval at this time. After projects move through their respective committees, they are put before the A&B Committee for financial vetting and possible recommendation to the Pelican Bay Foundation Board. Only the Board has the authority to purchase/construct significant capital assets. The Capital Fund’s balance, as of June 30, 2013, is approximately $8.2 million.

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