For the past two weeks, Management has been receiving inquiries questioning why the Board recommends the waiving of the reserves. I feel that it is my duty to explain our financial status and how it pertains to the reserves.
It is a given that the Association should have enough funds for any future repairs or replacements of major common elements of the building. In the beginning of the financial year of 2011, the Association accumulated $245,000 in the reserves account.
As the result of diligent work by the Board and Management, we were able to save and transfer to the reserves $150,000 on June 15,2011, and on November 30, 2011, another $150,000, (see attached bank statement). Before the end of the year, we expect to transfer to the reserve account another $50,000, which will bring the total amount of our reserves to $595,000.
As of December 1, 2011, the Association’s fund balance totaled $1,320,000 (see attached bank statement-1 and statment-2), which is the remaining amount after having completed several major projects in 2011, including but not limited to:
- Painting and waterproofing of the building
- Installation of garage gates
- Installation two automated glass doors in the lobby
- Redecoration of the lobby
- Resurfacing of the swimming pool
- Replacement of three swimming pool water heaters
- Upgrade of the security system
- Landscaping upgrades
As per Florida Statute 718.504 (21) and the Condominium Bylaws Paragraph 10.1.(a and i) the Board must adapt the budget with statutory reserves. This means an average of $100 will be added to your monthly maintenance. However, YOU have the right to waive the reserves by the vote of the majority of the ownership at the duly called meeting, which will take place on December 15, 2011.
Please be aware that your failure to send both proxies will result in this increase.
Attached you will find the Limited Proxy and Annual Meeting Proxy. Please fill out these forms and send them back to the Management Office by:
- email: email@example.com,
- fax at 305-466-7741,
- mail: 19501 W. Country Club Drive, Aventura, FL 33180 or
- in person.
If you are sending it by mail overseas, please send it express.
You can also send us a simple email authorizing the secretary of the Association on behalf of the Board to vote on your behalf for the Limited Proxy AND the Annual Meeting Proxy. It should read like this.
We thank you in advance for your cooperation in the very crucial event.
Behalf of Board of Directors.