What is the health of the Grand Central Park RAIs financials?
As a candidate for our HOA board, I've taken the time to thoroughly review our association's 2025 budget. I believe transparent financial management is crucial to our community's success, and I want to share my analysis with you so we can make informed decisions together.
Where Our Money Comes From
Our association expects to collect approximately $3.59 million in 2025. Here's the breakdown of our major revenue sources:
Association Dues
$1,760,560
49% of total income
- • $146,713 per month average
- • Our financial foundation
Shared Cost Reimbursement
$528,708
15% of total income
Costs shared with other entities/partners
Capitalization Fee
$479,080
13% of total income
- • Collected during property transfers
- • Peaks in July and December
Where Our Money Goes
The association plans to spend approximately $2.98 million on operations in 2025:
Major Operational Expenses
Landscaping
$979,195
33% of expenses
Water
$456,000
15% of expenses
Onsite Services
$418,680
14% of expenses
Financial Health Assessment
What We're Doing Well
- • Balanced Budget: Operating income covers planned expenses
- • Diversified Revenue Sources
- • Strong Seasonal Planning
Areas for Improvement
- • Reserve Planning: Current transfer of $303,996 is insufficient
- • Thin Operating Margin
- • Water Expense Optimization Needed
- • Landscape Contract Review
- • Foundation Budget Management
Reserve Fund Status
Current Reserve Fund Status
The HOA reserve fund is currently underfunded, with a balance below the recommended level.
Industry best practices suggest maintaining at least 70%–100% funding to avoid special assessments or deferred maintenance.
The study highlights a shortfall, meaning upcoming expenses could strain the budget.
Upcoming Expenditures
1–2 Years (Immediate Needs)
- • Roof Replacements: Several buildings in the community are due for new roofing due to aging shingles and potential leaks.
- • Road Resurfacing: Asphalt resurfacing is planned to fix cracks and potholes that have worsened over the years.
3–5 Years (Mid-Term Projects)
- • Pool and Clubhouse Renovations: The community pool needs resurfacing, and the clubhouse requires new flooring, paint, and HVAC updates.
- • HVAC System Updates: Aging heating and cooling systems in shared facilities are becoming inefficient.
Long-Term Considerations (5+ Years)
- • Fence and Gate Replacements: The perimeter fencing and entrance gates will need upgrades.
- • Plumbing and Electrical Work: Older infrastructure may require updates to prevent future failures.
Why Reserves Matter
- • A healthy reserve fund ensures financial stability and avoids unexpected special assessments.
- • Well-funded reserves contribute to higher property values.
- • Proactive planning helps spread costs over time instead of imposing large fees all at once.
Action Plan to Bolster Reserves
- • Increase reserve contributions through gradual HOA dues adjustments
- • Phase in necessary projects to prioritize urgent repairs
- • Explore alternative funding sources including grants and loans
- • Improve financial transparency with regular updates on fund status
My HOA Financial Commitments If Elected
- •Push for a Contingency Fund if one does not exist
- •Review Major Contracts for Cost Efficiency
- •Improve Financial Transparency by disclosing all fees and expenses in more detail
- •Optimize Community Events by streamlining processes and reducing costs
- •Plan for Long-Term Sustainability by setting aside funds for future needs
- •Implement a transparent budgeting process
I believe our association is generally well-managed financially, but there are opportunities to strengthen our position. I welcome your questions and feedback on this analysis.