Estimated Impact on Current (2004) Condominium Fees if Complete Conversion to Public Sewer Took Effect Instantly in 2004

 

 

Current (2004) Condominium Fee Revenues                                                          249,912

 

2004 Operating Budget Items Eliminated*

Sewage Contract                                                26,400

Sewage Plant Supplies                                         3,000

Sewage Plant Maintenance                                    4,000

 

Total Operating Items Eliminated                                      33,400

 

Reduction in Reserve Contributions

2004 Budgeted Reserve Contrib.

- Recommended Reserve Contrib.**

(59,404 - 51,337)                                     8,047

 

Total Reductions in Current (2004) Budget                                    41,447

 

Less: County Wastewater Charges (new budget item w/sewer)        -3,600

 

Net Reduction in Condominium Fees                                                                      37,847

 

Estimated Percent Reduction in Condominium Fees from 2004 Level:  37,847 / 249,912 = 15.1%      

 

 

* Does not include reduction in electricity charges (rough estimate = 25% or 3,600 reduction)

 

**Based on adjusted 2004 Reserve Study completed by Miller and Dodson, Capital Reserve Consultants

 

 

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Review of Billing Details on Sewage Charges No Longer in Condominium Budget

 

1.  Equivalent unit capacity purchase charge (aka "connection charge"): $3,000/unit, one time upon connection to public sewer.  Billed by county to home owner directly; financing available from county. 

 

2.  Debt Service and Retirement on unit's share of $748,000 capital project cost:  Billed by county to home owner directly.  Financing available over 30 years, as expanded on elsewhere.  May be part of mortgage payment escrow process; check with mortgage company.  Loan payments may be transferred to new owner or balance paid off at any time.

 

3.  Note: Wastewater charges after conversion become part of Dreams Landing operating budget, as shown above.

 

 

10/25/04