Less than three months ago, I was elected as the PGI Section 22 HOA Treasurer. As things begin to quiet down at Burnt Store Marina after the busy winter season, it is a good time to give a quick financial update for PGI Section 22, and its amenities. Every year in November the Section 22 Board approves a budget for the following year. It is the budget which drives the yearly maintenance assessment. Once the budget and assessment are approved, owners are notified of the annual assessment, which is due January 1. This year, in addition to the annual maintenance assessment, a special assessment for the purchase of the community amenities of $380 was separately assessed. This is the last year for this assessment, and the Section 22 HOA Board is proud to say the amenities loan has been paid off. At the beginning of the year, due to the annual assessment, the Board has what appears to be lots of money. As I write this article, Section 22 has over $3.5 million dollars in various accounts, including over $700,000 in reserves. As the year progresses, that amount will diminish as bills are paid, and capital improvements are paid out of our reserves. In addition to Section 22s funds, the amenities have approximately $900,000 cash on hand. The BSMCC, fitness center and irrigation system are operated as separate entities. To the casual observer it would appear that the amenities are flush with money. The reality is that they, like Section 22, are dependent on annual payments, and their balances also diminish as the year progresses. They also need to maintain adequate reserves and cash on hand to pay for unexpected repairs and capital replacement and improvements.
Last year, a reserve study was completed for Section 22. After the Surfside collapse, the Florida Legislature and Governor Ron DeSantis implemented rigorous reserve requirements to ensure the structural integrity of condominiums. For Section 22, most of these requirements are not applicable. With that in mind, improving our reserves is an important goal for the Board. It is funds for our roads, wells and other capital requirements. If you attend the monthly Section 22 Board meetings, you are aware that the Board has started handing out a one-page financial summary of the balances to all of Section 22 HOA and the amenities’ financial accounts. Also listed is a summary of how Section 22 and the amenities are doing relative to their budget, income and expenses.
If you want to do a deeper dive into our finances, our financial records are available on Alliant’s website, BSM22.org. You simply log into your portal, and you should be able to review Section 22’s monthly financial records in detail. Nobody likes to talk about money, but I did want to mention a difficult problem the Board is having with a limited number of owners. The problem is owners not paying their assessments in a timely manner. Assessments are due January 1st. As of March 1st, the Board had over $225,000 in delinquent assessments. This number, after sending out reminders and late notices, had diminished to $134,000 by May 1st. But, $134,000 is a lot of money! We all have a large investment in our properties in Burnt Store Marina. Paying your fair share of the expenses is your obligation for living in paradise. At the heart of the Section 22 Board is its desire to make our community the best it can be. The Board is composed of seven members, who are all volunteers. Like all boards, there is a diversity of opinion, but that diversity of opinion is an important strength. This diversity provides an important platform to debate community issues. The Board and its many committee members, like all the other COAs and HOAs at BSM, volunteer their time, and receive no compensation. When the Fall rolls around please consider volunteering for the Board or one of its important committees.
