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December
13, 2002 Dear
Fellow Owner:
I am pleased to report the Lauren has had another good year and remains in good financial condition. Rentals and sales of units remain strong, with resale values continuing to rise. What may be a record number of unit renovations took place this past year, a good sign of individual owners commitment to the building and furtherance of the value of the building as a whole. Our surrounding Dupont Circle neighborhood continues to be enlivened with the addition of more shops and restaurants, making the prime location of the Lauren that much more so. Several capital improvement projects were underway during this past year. The replacement of the building's original roofing system has been completed. The roof garden has been greatly expanded and improved. A few minor details are yet to be completed, but already we believe this expenditure has surely added value to the building and increased the quality of living at the Lauren. Current construction is underway on projects to bring the building into compliance with the Americans with Disabilities Act. These various projects will allow safe and manageable access to building for all residents and visitors. Another major project this past year was the replacing of the valves that control the flow of water through the buildings heating and air-conditioning system. This project was performed so that the system could be regulated more efficiently, and as a general maintenance issue. Capital improvements projected for 2003 are limited. The Board views the coming year as an opportunity to replenish the capital reserves for future projected projects. Projects in the near future include completing the roof deck renovation and upgrading the security camera system. An updating of the 2000 Reserve Study is scheduled to take place this year. Projected operating expenses for 2003 show a minor decrease ($1000). Building and health insurance have increased measurably, while utility costs have stabilized, or been locked in when the option is available. Income generated from the capital reserve fund is projected to decrease, due to lower interest rates, while income from the building owned rental unit is projected to increase. Foreseeing the opportunity to rebuild the capital reserve fund during what is projected to be a slow year in capital expenditures, the projected annual contribution to the reserve fund has been increased to $153,922. In keeping with the trend over the past several years, the enclosed budget calls for a modest increase of 1.8% in condominium fees. The Board would like to wish each of you a wonderful holiday season and a happy New Year! Sincerely,
Dwight
K. Clark |
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