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Mr. Roger
Hirschland |
December 10, 2010
Dear Fellow Lauren Owners:
We have a new budget for 2011, which defines not only what we spend throughout the year, but also your condo fees. The budget is enclosed for your review. Your fees will increase next year by 3.98 percent. The chart at the end of this letter shows the new fees for your unit or units.
The board, the manager, and several residents worked hard to keep the budget increase both responsible financially and in line with our historic range of increases. There are three key messages that I would like to convey with regard to the increase this year and the state of the Lauren financials as a whole.
First, this year we completed several strategic investments in our building to make sure that the Lauren continues to be a special place to live. Our hallway renovations, along with the more recent upgrades to the elevators and front office, ensure that we keep with the times aesthetically and that the walk to our unit looks as good as the destination,
itself. We have also invested in critical infrastructure to keep our building safe (e.g., the exterior façade repairs) and to increase our operational efficiency (e.g., our new boilers and hot water heaters, which are paying for themselves with increased energy efficiencies). These investments cost money, but we have chosen projects carefully and spread expenditures over time.Second, I hope you will agree that the building remains tasteful and well maintained, thanks to the hard work of our staff. We have kept our operational standards without letting their costs spiral out of control. Less than one percent of this year’s increase in condo fees is due to operational cost increases.
Third, we continue to plan carefully with an eye to the future. The majority of the increase in fees this year reflects our need to continue contributing monthly to the dedicated heating/air-conditioning (HVAC) reserve fund, which we are building over the years to ensure that we will not need a special assessment at such time that the whole HVAC system requires replacement. At present, that dedicated fund stands at around $350,000; we’re aiming to build it to $2 million. Despite historically low interest rates eroding the returns we expected, we remain close to our reserve schedule established three years ago.
You will soon receive new payment coupons from Simmons Management Group. If you send your fees by check, please make sure that the appropriate coupon accompanies your check, so that your payment will be properly credited to your account. Fees are due the first of the month and must be credited by the tenth of the month to avoid a late fee.
Your board consists of Elizabeth VanderPutten, Dwight Clark, John Filice, Barrett Witkin, and me. We welcome your attendance at the monthly board meetings, as well as suggestions or comments at any time to make our home an even better place to live.
Cordially,
Roger
B. Hirschland
President, Board of Directors
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