May 28, 2024 Dear Owners,
On May 20, 2024, the Board of Directors adopted the annual Budget for the fiscal year, beginning July 1 , 2024 and concluding June 30, 2025. As a result, the annual assessment per lot was set at $6,048 or $504 monthly, an increase of just over 2.4%. The attached Budget Summary, is broken into three basic categories: 1) Operations requires almost $472/month in assessment. Wages, Utilities, Insurance and Landscaping are the big-ticket items impacting the operations expenses. Even with a 4% Cost of Living increase for most of the staff, employee costs make up just over 45% of the operating budget, which sets ORPS below the 50%-60% typically found in a Resort community. While the insurance market continues to harden, the Board was able to take advantage of a greatly reduced Landscape Contract to soften significant increases. Additionally, the Board reduced the dependency on the Resort Fee for Operations by $50,000. The Lifestyle Manager was increased to an 11-month position and a seasonal position was added to the Maintenance department. Please note that Lifestyle administrative wages are treated like an amenity and paid through assessments. Finally, the Operations Contingency is 2.5%, down from 3% and completes the general picture. 2) Reserve Fund contributions go toward a fund specifically set for repair, maintenance, and replacement of major components such as roofs, carpets, roads, pool equipment and the like. The monthly assessment contribution is almost $84, and with interest generates more than $1.3M annually. Reserve projects tackled over the off-season will include a major renovation of Pond #1, adjacent to the 11/12 fairway, other pond dredging as well as replacement of the El Saguaro Front Door. Satellites will continue to be improved through the use of Reserve Funds. 3) Capital Fund contributions are for future projects, both smaller in scope and to partially fund longer- term facility improvements. As addressed earlier, the Board was able to take advantage of a reduction of the Landscape Contract to make a significant contribution to the Fund of $40,000. However, the vast majority of this contribution comes from Resort fees and totals just over $151,000 annually. If all the expenses were tallied up and divided by the 1,213 lots which make up the community, the monthly assessment would be almost $589. However, the Resort has significant non-assessment income, such as the daily Resort Fee, Food & Beverage, Laundry, and others, which total almost $1.2M, and offset expenses that would ordinarily have to be borne by assessments. In the additional materials provided behind the Budget Summary are more detailed information on the management of this, more-than $8.5M corporation, including how Reserve Funds are calculated and Insurance Policies. Also find attachments behind the Policy Statement, many of which are required by California law, dealing with the Collection Policy, Dispute Resolution and A&A Rules, among others. There are also information sheets regarding things like Payment Information for Assessments, and an "Opt-in" form. For you to receive notifications and documents electronically, the Association must have the "Opt-in" form signed by the Owner and have it on file. The Resort is quiet right now due to the off-season, but I look forward to another active year, which showed how much fun you can have when you’re "home again."
Respectfully, Ed Vitrano Edwin J. Vitrano, General Manager
69411 Ramon Road, Cathedral City, CA 92234 - (p)760-328-3834; (f)760-328-7852; orps.com 2
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