NOTICE OF DUES INCREASE

At the August Board meeting of the DC HOA, the Board approved an HOA dues increase from $390 to $450 annually.  The change will be effective January 1, 2027.  The Board decision to raise dues was not made lightly and was made after considerable research and discussion.  The Board would like to share some of the justifications for the HOA dues increase:

Comparable HOA Dues – The Board researched dues charged in subdivisions of similar size and types/amounts of amenities.  The research indicated that the DC HOA dues were lower than market averages for subdivisions that have significant common area landscape maintenance, and operate parks and/or community gardens.

Cash Flow & Reserves – The DC HOA has been well operated for many years from an operating budget perspective.  However, for the last few years, mostly due to major projects, our cash reserves have been decreasing.  Although not a statutory requirement, the Board feels strongly that significant cash reserves need to be maintained.  The DC HOA annual operating budget is approximately $150,000,  the Board would like to have at least 50% of the operating budget in reserve at all times.

Increase is Overdue – Board research indicates that HOA dues have not increased for at least 14 years.   The dues increase approved by the Board, if prorated over 14 years, is about 1% annually; much less than cost of living increases or annual inflation rates.

Uninsured Losses – Every year the HOA experiences losses that are not covered by insurance.  Losses are primarily related to mailbox damage and tree mortality.  In the last 18 months, two mailboxes were hit and rebuilt.  We were fortunate, in these cases the parties that ran into the mailbox and caused damage were covered under their personal insurance, however this is not always the case, and mailbox replacement costs about $8,000 each.  Regarding tree mortality, the HOA spends between 5k and 10k annually to replace dead trees/shrubs/plants.

Potential Annexation – Deer Creek is still a Sanitary & Improvement District however we are always on the “short list” for annexation by the City.  Annexation is not an “if”, just a “when”.  It could be next year and it could be ten years from now.  Whenever it does occur, there will be a definite cost impact.  Mowing and maintenance items currently done by the SID may need to be continued by the HOA.

Volunteer Work – Deer Creek is fortunate to have a core group of men and women who perform maintenance tasks with volunteer time and even sometimes volunteer materials.  The volunteer efforts save our HOA considerable amounts of money, perhaps tens of thousands of dollars each year.  Volunteerism will always be present, but in the future the efforts may not be so robust, and the HOA will need to hire contractors to complete the tasks.

Your DC HOA Board