What’s going on with the Special Assessment?
We have had some inquiries about the plan to “reward” those members who voluntarily paid in the $250 special assessment that was needed to keep the hotel open a couple years ago. As many members know, we had developed and put forth a plan to reduce the maintenance fees of those who did make payment for the next 3 years, leaving a $50 difference as a “reward.” At the time that plan was discussed and OK’d by the board, there was a significant number of members who had NOT paid in the special assessment. By the time this year’s maintenance bills were being prepared over 90% of members had made payment. This made it seem overly complicated to raise the annual maintenance fees by $75.00 for all members, then issue coupons for that same $75 to the 90% plus who had made the payment. This would create a lot of extra work, processing, and bookkeeping. It was decided at that time that it was a lot more sensible to just ADD the $75 as a special assessment to those maintenance bills that had NOT paid the $250 special assessment and leave the base maintenance fee as is. This will put everyone back on an even playing field.
We have used these payments to complete improvements on the hotel while not raising the regular maintenance fees. Maintenance fees were slated to be raised to $550 or $560 this year in order to continue these improvements. Instead we have been able to keep the fees at $500, which in essence, is the same as giving a $50 or $60 yearly refund of the special assessment. As you are aware, we have not raised maintenance fees in five or six years. In fact, our goal is to lower fees as our room revenues increase. We are beginning renovation of 25 of the bathrooms prior to the start of high season and plan on completing the remainder of the rooms after high season ends. We will also be updating the interiors by providing fresh paint, new bedding, mattresses and draperies once the bathroom renovations are completed and as funds allow. Improving our property will improve our revenue which will ensure that our fees can be kept to a minimum.