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Committee discusses operating budget drivers: dues, APF role, golf fees and a proposed 4% merit pool
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Summary
Committee reviewed operating budget assumptions ahead of April recommendations, including how member dues and APF fees feed reserves, golf fee adjustments to shift revenue toward nonmembers, and a proposed 4% merit pool for staff compensation.
Director Christine Novello framed the committee’s task: the March 18 meeting is the penultimate review before the committee formulates formal recommendations on the operating budget at its April 1 meeting.
Cliff, a staff member, reviewed the operating plan and explained how dues, asset preservation fees (APFs) and reserve allocations interact. "This speaks to why it's so important when we put a budget together that we look at member dues because member dues are guaranteed," Cliff said, describing dues as a stable revenue source compared with weather-dependent revenue such as golf and events. Cliff and other presenters explained that the budget sets aside a reserve fund allocation (7.5% in current practice) from dues plus APF inflows and reserve investment income to fund capital projects.
On golf fees, Cliff reported changes the golf committee recommended for FY 2026 to reach the same aggregate revenue target by shifting where revenue is collected: a $6 peak-season increase for nonmembers, a $3 increase in transition-season (May and October) nonmember rates, and a $1 peak-season increase for members (including a $1 transition-season member increase). "We are taking our, nonmembers and increasing their rate to $6 during peak season and then doing an and then implementing an increase during our transition season," Cliff said, and he stressed that the total revenue expectation for golf does not change, only the mix of payer types.
Committee members pressed staff on whether the wage/merit pool was reasonable. The budget currently proposes a 4% pool to cover merit increases and other payroll adjustments; staff and committee members noted the 4% is a budgeted pool and not an automatic employee guarantee. "Yes Gary that is correct," Director Novello responded to a public question, indicating the 4% is a proposed maximum pool for budget purposes. Staff later said the rule of thumb in broader markets for merit increases this year is roughly 3.5–3.9%, and that 1 percentage point in the pool equates to roughly $65,000 in budget impact.
Residents asked several procedural and policy questions: whether the transfer fee charged on property purchases is included in operating revenue (staff confirmed it appears in membership revenue in the operating budget), and whether APF or dues should be structured differently by home price (staff replied that the association treats the buy-in equally because amenities are equal for all properties). The committee also discussed communications and member outreach to explain why dues are used for reserves and operating support; several committee members urged better communication about long-term costs and the role of the reserve study in reflecting rising replacement costs.
Ending: The committee directed staff to provide more detailed assumptions and to circulate focused items ahead of the April 1 meeting so members can prepare specific recommendations on dues, reserve allocations and the operating assumptions.
