Understanding our Lakewood Dues
Understanding the Dues Chart
ACTUAL DUES:
Our dues have stayed far below the "Maximum Annual Assessment" throughout our 45 years.
During the first 30-35 years of Lakewood, dues were kept AT OR BELOW the pace of inflation, as our amenities were still brand new, and sufficient reserves had not yet begun to be saved for future capital projects and improvements.
During the last 10 years, our aging amenities have begun to reach the end of their life cycles, including the Dam, pools, play parks, the marinas, docks, facilities, and more.
The more current boards of the last 10 years, working without reserves already in place, have made the necessary decisions to increase dues in order to fully access our Maximum Annual Assessment. The necessary increases have allowed us to begin to repair and replace existing amenities, and also to build up our required reserves for long-term planning.
INFLATION
This line traces the path of actual inflation, or CPI (Consumer Price Index) since 1973.
1973 DECLARATIONS
The Declarations, or Covenants, are the origin of any Homes Association. They are created by the developer, and handed to the association who buys the property. They provide direction on policies, regulations, dues increases, and future plans.
Our original 1973 Declarations indicated that we should increase dues each year at 1.5% the amount of the increase of CPI for the year. As you can see, this pattern sky-rockets, due to the impact of compounded interest. So in 1975, the Board made a new formula, to help tether the pace to a slower rate.
1975 BYLAWS: "Maximum Annual Assessment"
This is the line that our LPOA Board has never passed. It paces inflation at a little less than 1.5%. In 1975, the Board made this formula to tether the original formula down to the $200 starting point, instead of sky-rocketing due to compounded interest.
If we had stayed at this line for the first 35 years, we would have had an extra $2 million in revenue to use for capital projects and improvements. Here's the formula that we follow.
*Please take the time to read the Text in the image, which provides great understanding, and can sometimes be overlooked:
Our dues have stayed far below the "Maximum Annual Assessment" throughout our 45 years.
During the first 30-35 years of Lakewood, dues were kept AT OR BELOW the pace of inflation, as our amenities were still brand new, and sufficient reserves had not yet begun to be saved for future capital projects and improvements.
During the last 10 years, our aging amenities have begun to reach the end of their life cycles, including the Dam, pools, play parks, the marinas, docks, facilities, and more.
The more current boards of the last 10 years, working without reserves already in place, have made the necessary decisions to increase dues in order to fully access our Maximum Annual Assessment. The necessary increases have allowed us to begin to repair and replace existing amenities, and also to build up our required reserves for long-term planning.
INFLATION
This line traces the path of actual inflation, or CPI (Consumer Price Index) since 1973.
1973 DECLARATIONS
The Declarations, or Covenants, are the origin of any Homes Association. They are created by the developer, and handed to the association who buys the property. They provide direction on policies, regulations, dues increases, and future plans.
Our original 1973 Declarations indicated that we should increase dues each year at 1.5% the amount of the increase of CPI for the year. As you can see, this pattern sky-rockets, due to the impact of compounded interest. So in 1975, the Board made a new formula, to help tether the pace to a slower rate.
1975 BYLAWS: "Maximum Annual Assessment"
This is the line that our LPOA Board has never passed. It paces inflation at a little less than 1.5%. In 1975, the Board made this formula to tether the original formula down to the $200 starting point, instead of sky-rocketing due to compounded interest.
If we had stayed at this line for the first 35 years, we would have had an extra $2 million in revenue to use for capital projects and improvements. Here's the formula that we follow.
*Please take the time to read the Text in the image, which provides great understanding, and can sometimes be overlooked: