ORPS Budget 2026–27 Explained
On Monday, May 18, the Board approved the 2026–27 operating budget as recommended by both the Finance Committee and Management. For most owners, the first question is understandably: What will the increase in my HOA assessment be beginning July 1?
The increase for the coming fiscal year is $14 per month . Monthly assessments will increase from $560 to $574 , while annual assessments will increase from $6,720 to $6,888 . This represents a 2.5% increase .
Key Factors That Helped Limit the Increase
1. Administrative Restructuring and Staffing Efficiencies
Management and the Board decided not to replace two administrative positions: the Chief Operations Officer, previously held by David Reid, and the Resort Services Manager, previously held by Jennifer Miranda. Responsibilities have been redistributed among existing staff, supplemented by only two seasonal part-time employees. These adjustments generated meaningful savings that will continue into the next fiscal year. 2. Stabilization of Utility Costs After several years of significant increases, utility costs stabilized during the past year and ultimately came in under budget. While some uncertainty remains regarding natural gas and electricity pricing, most utility costs are expected to remain relatively stable in the coming year. 3. Moderation in Insurance Costs Insurance expenses declined this past year modestly. Our insurance broker anticipates increases next year; however, they are expected to be considerably more moderate than those in recent years, and appropriate allowances have been included in the budget. 4. Disciplined Departmental Budget Management Management did an excellent job controlling departmental expenses, with many departments finishing below budget. Rather than applying a blanket 4% inflationary increase across all departments, the new budget was built using the previous year's actual expenditures as the baseline. This more disciplined approach helped generate additional savings.
Areas Where Costs Increased
Although strong financial management helped offset many expenses, several significant cost pressures required additional funding in the 2026–27 budget.
1. Landscaping Contract Increases Many owners expressed concerns regarding the quality of landscaping services during the past year. As a result, the landscaping contract was put out for competitive bid. The new bids came in substantially higher, increasing costs by approximately $260,000 annually , or roughly $17 per owner per month . 2. Employee Compensation Adjustments ORPS staff continued to provide outstanding service throughout the year. The budget includes an average 4% wage increase for employees, along with slightly larger adjustments for several staff members who assumed expanded responsibilities in operations and resort services following the administrative restructuring. 3. Increased Reserve Contributions and Tree Maintenance Costs The updated reserve study recommended increasing annual reserve contributions by approximately $6 per owner per month in order to strengthen long-term financial stability. In
69411 Ramon Road, Cathedral City, CA 92234 - (p)760-328-3834; (f)760-328-7852; orps.com
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