Laguna Woods HOA fees to rise nearly 6% – Orange County Register


Appraisals will increase by $ 11.90 – or 5.8% – from January for residents of Laguna Woods Village, as directors of the Golden Rain Foundation board approved a business plan for the year to come at a regular meeting on Tuesday, September 7th.

This brings the total GRF valuation for Third and United Mutual members to $ 217.50 per mansion per month.

According to a report from Village Management Services staff, the proposed budget will require $ 41,271,680 to cover its operating expenses for the year 2022.

Further breakdown the source of funds: $ 2,598,144 will be placed in reserve funds; $ 764,160 will go to the contingency fund; $ 1,222,656 will be deducted from the surplus of previous years; $ 10,168,650 is forecast in revenue from various sources during 2022, leaving a net sum of $ 33,242,678 to be paid by the members of the corporation.

Director Jon Pearlstone, former treasurer of the GRF board, urged the board to reconsider passing the budget, expressing concern about the lack of efforts to alleviate costs for residents.

“We haven’t been as thorough on this budget as we represent it to the community,” said Pearlstone. “Our staff have no incentive to cut costs.”

The indifference and setback that Pearlstone said he received during his tenure was the reason for his resignation as treasurer; he cited several examples, including a preventable tax liability event of $ 593,000 that GRF faced due to an operational budget surplus of $ 1.5 million resulting from the reduction in services. The rest of the savings were stored in the contingency fund, said interim CFO Steve Hormuth.

“In the enthusiasm to cut costs, we did not consider the tax implications at the time,” said incumbent treasurer James Hopkins, noting his support for an analysis of the tax event.

“I’m comfortable with what’s happened and I’m very comfortable with what we’ve got,” Hopkins said. “I can’t wait to hear everyone’s assessment, [and] where we are going strategically with our planning.

GRF approved the 2022 7-1-1 budget plan, with Director Egon Garthoffner abstaining and Pearlstone objecting.

Reserve fund plan

As part of the 2022 budget plan, the board approved the allocation of a contribution of $ 17 from monthly assessments to the reserve fund, which is $ 2 less than the $ 19 from the previous year.

Regardless of the slight decrease, the reduced rate remains in line with a 30-year financing plan, which determines the financing needed to maintain, repair, replace or restore major components of the common areas taking into account future expenses, according to a report from the VMS staff. .

The reserve fund contributions will be complemented by an increase in the trust facility fee, which is expected to increase from $ 5,000 to $ 7,500 per qualifying transfer.

The board approved the 8-1-0 contingency fund plan, with Pearlstone in objection.

Capital plan

GRF has approved a 2022 capital plan that will fund $ 7.2 million in projects over the coming year.

The final figure was roughly $ 6 million less than the initial projection of $ 13 million in spending.

The most ambitious projects on the bridge include a $ 1.5 million financial software upgrade, a $ 1.25 million evaluation and refurbishment of Clubhouse 1, and $ 700,000 asphalt paving programs and waterproofing coating, estimated at 25 years.

The board approved the 8-1-0 contingency fund plan, with Pearlstone in objection.

COVID-19 Update

Over the past month, the town of Laguna Woods has seen an increase of 40 cases of COVID-19, according to weekly reports from the OC Health Care Agency.

To date, the number stands at 488 cumulative cases since the county began tracking the spread of the virus. No additional deaths were reported.

VMS CEO Jeff Parker said the county’s current COVID-19 status reflects conditions recorded in February, four months before Governor Gavin Newsom lifted state-level restrictions to reopen the economy.

County-wide, public officials reported a slight drop in the number of new cases this week, according to the OCHCA.

Broadband charges

GRF passed a resolution that would increase fees for premium programming and digital broadband services by 5% in 2022 to offset costs.

All services are expected to increase by 5%, with the exception of cable recording devices, due to a 45% decrease, and the Showtime monthly plan, to increase by 10%, as shown in a report from the VMS staff.

The current tariff structure has not increased in terms of costs since its implementation in May 2013. According to the staff report, the number of digital subscribers has almost doubled since then, while set-top box technology, costs of digital transport and other associated costs have increased.

“This (increase) is due to the cost of broadband,” President Bunny Carpenter said. “But keep in mind that people can go to Showtime to stream shows and pay less.”

Council approved the resolution by unanimous decision. The resolution must now meet a 28 day notification requirement for membership review.


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