It only makes sense that when I take my turn for The Beacon Section 22 article, we turn to the numbers side of our community. Jerry Newmin wrote an excellent article last month on the future of Burnt Store Marina, so I will spend time on our current position and peek ahead to next year when we pay down our debt.
As Treasurer, I can say with certainty that Section 22, and its Amenity Assets (BSMCC, Fitness Center, Irrigation, and the Dog Park) are in a strong financial position. If you have attended a monthly Board meeting, you will have heard me say that Section 22 does not commingle assessed dues with the Amenity Assets. They stand alone and are budgeted as roughly break even. It would not be in anyone’s best interest to try to make these Assets profitable when those of us in the community are paying $380 per year to pay down the debt used to purchase them. And fortunately, since 2017, all subsequent Boards have recognized and supported this concept.
Currently, we have $2.8 million in cash on hand. We also have $1.5 million invested in FDIC insured term investments. Those instruments vary by maturity and yield, with maturities staggered to make sure cash is available through the year. Our position is pretty much where we were last year at this time as well. But now we are in the off season. We will see the summer months burn through cash. In total, I expect across all Assets and Section 22 we will spend $300,000 per month this summer. This is budgeted, expected, and will be reported at each monthly meeting if anything – good or bad – causes this to change. And that does not include reserve expenditures for the 2 new wells and phase 2 of road resurfacing.
Looking forward, the 2026 budget season is right around the corner. It is a deep dive into our reserves and ability to pay for infrastructure, as well as opportunities to cut costs. We do know that the $380 special assessment for debt repayment will be roughly half that next year. We increased the annual assessment last year in support of the upcoming reserve spending, and my early expectation is that we will be able to stay at last year’s number, but don’t hold me to that!
I would like to bring up one subject in hopes awareness of the issue will help going forward.
HOA Dues in Arrears = $158,000, includes administration fees, legal fees, and interest.
70 (3.7%) of total 1,906 homeowners have balances due from this year
Additional 12 Homeowners are 2+ years delinquent
As someone that forgot to renew my car registration this year, there are understandable reasons why these are out there. You should be able to see any outstanding balances through Vantaca. If you do not have a login for Vantaca, I highly recommend one. It is the easiest way to track balances and make payments. Please contact Alliant for access.
Finally, Section 22, and for that matter all Florida HOAs, are facing increasing pressure. Insurance costs, inflation and aging infrastructure are a few reasons. We have residents that have backgrounds that would be helpful with these challenges. I hope that we will see more homeowners getting involved and asking questions, whether financial, infrastructure, or just items that you have seen, and we may be missing. As we move through the second half of 2025, I encourage all homeowners to come to meetings, ask questions, and strongly consider volunteering for the Board.
