Post by Admin on Dec 19, 2015 20:34:57 GMT -7
Property Assessments explode
[li]At the end of 2015 almost 20% of landowners are NOT paying assessments and they collectively owe the community of Glastonbury over $270,000.00. For comparison, our 2016 budget is $141,775.00. Past due assessments in 2007 were sizable but still only totaled 60% of the annual budget. In 2015 past due assessments are almost 200% greater than our 2016 budget. If the GLA Board got serious about collecting past due assessments everyone could get a two year assessment vacation while still enjoying the same level of service. Hmm...isn't that what the debtors already have?
[/li]Glastonbury assessments have almost doubled since 2004.
- In 2004 the Glastonbury assessment for one parcel and a dwelling was just $240.00 per year.
- By 2015 that assessment had increased to $420.00 for one parcel and one dwelling.
- Adjusted for inflation, $240.00 in 2004 would be worth $301.54 in 2015. Our assessments have outpaced inflation by almost 40%. Why?
- Although new roads and homes were built since 2004 the total mileage of roads that the GLA Board is responsible to maintain and plow has remained fixed. All new roads are sub-division roads and it is the responsibility of the developer and/or landowners to maintain and plow them.
- Have you seen any improvement in the roads you routinely travel since 2004?
- Every year the budget increases. In 2015 we will have a surplus of money left over from snow plowing because of a mild winter. In 2016 we will have $30,000.00 extra in the budget because the 15 year, 8.75% road loan was paid off in 2015. Will our roads finally improve?
- In 2007 past due assessments totaled $60,000.00 and our operating budget was just under $100,000.00. Assessments increased by 10% for 2007, another 10% for 2008,10% more for 2009 and yet another 10% increase for 2010.
- By 2011 past due assessments more than doubled to $160,000.00 and even more alarming, the percentage of dues paying landowners shrank to 90%. For 2015 the GLA Board voted to raise assessments again by the maximum amount allowable under the Covenants; 10%. When will this punitive cycle stop?
[li]At the end of 2015 almost 20% of landowners are NOT paying assessments and they collectively owe the community of Glastonbury over $270,000.00. For comparison, our 2016 budget is $141,775.00. Past due assessments in 2007 were sizable but still only totaled 60% of the annual budget. In 2015 past due assessments are almost 200% greater than our 2016 budget. If the GLA Board got serious about collecting past due assessments everyone could get a two year assessment vacation while still enjoying the same level of service. Hmm...isn't that what the debtors already have?
[li]The percentage of delinquent landowners grows exponentially; it doubles approximately every 5 years and will eventually destroy the finances of the GLA. As of December 2015 almost 20% of the landowners are delinquent; they are not paying their assessments. Five years ago that figure was just 10%. If the same rate continues, 40% of the landowners will be delinquent by 2020, 80% by 2025 and 100% shortly thereafter. If we see more property assessment increases and/or the GLA Board lowers the cost of interest from 18% to 6% on past due assessments, we may reach the 40% delinquency point even earlier.
Read more in our Forum: Collapse of a landowner's association
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What do you think? Post your thoughts and comments below.
