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December 14, 2003 Dear
Fellow Owner:
I am pleased to report the Lauren has had another good year and remains in solid financial condition. Rentals and sales of units continue to keep pace or exceed local market expectations. Our Dupont Circle neighborhood continues to thrive and remains a prime location to live. Contributions to Capital Reserves were in line with the recommendations of our 2003 Reserve Study Update. Capital expenditures were minimal in 2005 and consisted mostly of analysis and upgrades to the building mechanical systems. Capital improvements under consideration for 2006 mainly involve improvements to the building HVAC system. Operating expenses for 2006 are projected to increase. Energy prices, led by our contracted natural gas rates, have continued to rise and account for nearly 60% of the operating budget increase. Income generated from the Capital Reserve fund has begun to creep upwards with the rise of interest rates. In keeping pace with the findings of our Reserve Study, the projected annual contribution to the reserve fund has been increased to $173,000. We have been very fortunate over the last several years to be able to not only maintain, but hopefully increase the overall value and standard of living at the Lauren with very modest increases in condominium fees. Unfortunately energy costs have dictated a larger than usual increase. The enclosed budget, provided for your information, calls for an annual increase of 8.8%. Your Board and Management feel this is a responsible estimate to maintain the standards of the Lauren and keep the Association on solid footing in the future. 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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