Revisiting the Future of Capital Funding at The Villages
Dear Villagers,
The Club Board of Directors (CBOD) faces the challenge of “Planning for the Future” to modernize and improve our facilities. There is, however, a policy gap we must bridge. The Capital Fund balance is limited to $1.2 million, restrained by the conservative growth tied to a national inflation index. This 18-year-old constraint no longer serves our growing needs, the sum is insufficient for the improvements The Villages needs.
In 2006, the amended bylaws included Section 8.3.4 Annual Contributions to Capital Improvement Fund, which limited and capped annual contributions to, and maximum balance of, the Capital Improvement Fund. The Villages must now manage the financial burden to prepare for the refurbishment of our aging facilities and amenities and replacing the aged underground infrastructure that supports our operations. By updating the Club bylaws and policies this year we will provide the Club Board with the ability to construct strategic plans for our future.
Regrettably, there was not the foresight to implement a savings plan or create a capital replacement fund, essential for financing these now costly updates. To address the community’s needs, the Club Board of Directors is considering a dependable funding mechanism that will minimize the financial impact on current residents.
A potential solution is the introduction of a “membership initiation fee” for new owners. This fee would serve to fairly distribute the cost of existing and future facilities and amenities among new and future residents. As your General Manager, I share the Club Boards vision of the Villages and I carry the responsibility to nurture that growth.
To implement these changes and ensure a sustainable future for The Villages, CBOD will seek member approval for new fiscal strategies, moving beyond the limitations of the past and towards a vibrant, well-funded community. Together, I believe we can build a bright future and increase the value of our homes.
—Theresa Ostrander, General Manager, The Villages Golf and Country Club
