Hello Nisqually Meadows Homeowners,

We would like to take a moment to update you on the status of the 2024 Homeowners Association Budget and Homeowner dues. As you saw in the Annual Meeting packet, the finalization of the draft budget was pending the results of the Reserve Study. The Board reviewed the results of the Reserve Study, and has determined that no other increases are necessary to the budget. Homeowner dues for the 2024 year will remain $300 as stated on the draft, and again on the attached finalized budget.

Increasing Homeowners dues 66% was a difficult, but necessary decision. Our responsibility as Board Members in creating an annual budget is to look at the necessary operating costs for our neighborhood, to forecast expenditures that may fluctuate, and to combine the two in a fiscally responsible operating budget. We can not create an inadequate budget for the sake of avoiding dues increases. This will only hurt our neighborhood in the long run. So, let's dive into the budget a little more to give you a better understanding of the increases...

Lawn Care- Moss removal from curbs and mailbox stands once a year, Missing HOA properties, and fertilizer visits. This increased the cost $41 per month.

Insurance Policy- personal liability coverage was increased from $5,000 to $10,000. This is important in protecting the HOA in the event that someone is injured on HOA property. $5,000 would not be adequate coverage for injury costs.

Attorney- We have averaged $4,000 in spending per year over the last 5 years, but only budgeted averaged $1700. This category also includes contract review for the upcoming retaining wall at the detention pond on 105th, replacement of the back fence at that same location, major tree trimming at the main entrance, and clean out of catch basins in all 5 of our detention ponds. We are estimating that contract review for the listed projects will cost around $5000 -$6000 total. This would leave approximately $3000 for lien placement (yes, this is recovered eventually, but must be included as we are not guaranteed a timeline to recover it), and general council. General council is for any unforeseen issues with HOA owned property, homeowner issues, and etc.

Reserve Funding- This is what funds the upcoming projects. The amount in the budget is slightly under what the Reserve Study Specialists recommendation for a monthly contribution was. The Board unanimously agreed to keep the contribution at the same amount as the draft sent to Homeowners as part of the Annual Meeting Packet, so that dues would not increase further.

We hope this helps explain the current budget increases. If you have any questions, please feel free to send your questions to hoa@nisquallymeadowshoa.com.