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December 11, 1996 Dear Fellow Owner: On behalf of the Board of Directors, I am pleased to send to you the enclosed Lauren Budget for 1997. You will note that the condominium fee increase of 3.67 percent is the lowest in this decade. The rate is consistent with the increased projected in last year's Five Year Plan, 1996-2000. This is a responsible budget that reflects both the increasing costs of operating and maintaining an aging building and this Board's commitment to control spending. In addition to providing for the continued operation of the Lauren at its current level of amenities and comfort, the 1997 budget includes four important capital projects.
The Lauren’s financial health is strong. None the less it is important to remember that this building is a quarter century old. With age, normal equipment maintenance costs can be expected to increase. More important, there are a number of major replacement items that will be necessary around the turn of the century. Replacement of the roof is one example. In order to avoid very large increases in condo fees at that time or worse, large special assessments, reserves need to be increased. There is time and this can be accomplished slowly, but it must be done. With continued commitment to cost control, future increases in condominium fees should remain in the 3.5 to 4.0 percent range for the remainder of this decade. Sincerely,
Brian J. Larkin, Ph.D. |
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