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December
8, 2000
Dear Fellow Owners: As our new millennium approaches, I am pleased to report that the Lauren is in excellent condition. Our staff remain loyal and good, with little turnover. The building functions well and we are continually making improvements. The new furniture for the lobby has begun to arrive. Our ground and roof gardens continue to delight. And most important, our financial position is strong. Over the past several years, the Condominium has done an excellent job of ensuring financial stability. Seven years ago, our reserves stood at $70,000 and we were running operating deficits each year. We were faced with significant need to immediately repair and improve the building and did not have sufficient funds. Thanks to previous boards and of course to each of you, our reserves now stand at close to the level called for in our current 5-year plan. Our operating budget has tracked very closely with expenses for several years. This is in large part due to careful management and seizing cost-savings opportunities (e.g., switching pool coverage and other service providers). We are planning a number of capital improvements this year including replacing the very old washers and dryers and replacing some insulation and wiring. Our next major capital expense will undoubtedly be the roof. However, a recent study done by our roofing contractor recommends that we wait on the old adage of "if it aint broke don't fix it." They expect that we will have to replace the roof within the next few years. The elevators or at least some of their components would probably be the next expenditure. We do expect that operating expenses will increase by about 3 % this year, mainly in salaries and heating, cooling and water. However, given the level of our reserves and the interest that they now generate, the Board believes it is prudent to make a small reduction in the total contributions to capital reserves compared to the past few years and to transfer those savings to the operating budget. As you know, last year we were able to have no increase in condo fees and the enclosed budget calls for only 1.0 % increase in condo fees. I wish each of you Happy Holidays and a wonderful New Year! Elizabeth VanderPutten President
Elizabeth VanderPutten |
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