December 2013
D i g e s t
The Official Publication of the Kiawah Island Community Association
Refined Process Leads to Balanced 2014 Budget
Months of hard work, meetings and discussions paid off as KICA’s
2014 budget was approved by the association Board of Directors at its
meeting on Nov. 11.
“The budget process began more than three months ago and has been
shaped by considerable input from staff and various member-comprised
committees,” said KICA Chief Operating Officer (COO) Jimmy Bailey.
“We believe this is a responsible budget that upholds the standards expected
by our membership.”
The budget process - which began in July and involved numerous staff
meetings, KICA committees and board reviews - was streamlined this
year, in an effort to aid the board and create a more comprehensive, fiscally
responsible budget. The new process was well received.
“The budget was very thoughtfully done and the process was the best I’ve
seen in my years on the board,” said board Treasurer Dave Schoenholz.
“The [2014] budget is fiscally responsible, with a modest surplus, and
allows for all of KICA’s key priorities to be achieved.”
Increased Revenue, New Services for 2014
KICA’s revenue is derived primarily from member assessments and
Contributions to Reserves (CTRs), which are a 0.5% fee paid by
purchases on all property sales. Due in part to budgeted increases in
both of these areas, as well as the $300 Supplemental Annual Assessment
(SAA) for 2014 and several new sources of income, the 2014 budget
shows revenues of $11,571,763, nearly $2 million more than budgeted
revenues for 2013. More than two-thirds of the revenue growth is
associated with the SAA.
Assessments will see a modest increase for 2014, up to $1,442 for an
improved property from $1,374 in 2013 (unimproved lots are assessed
half this amount). Add in the $300 SAA for 2014, and the total annual
assessment for 2014 is $1,742, 89% of the maximum annual assessment
of $1,943 allowed by KICA’s Covenants.
The annual amenity assessment which funds the Sandcastle Community
Center increased by 5%, from $123 for an improved property to $129, and
from $62 to $65 for lots. (Multiple-member fees apply; see full budget for
details). As in the past, secondary owners – who wish to use the Sandcastle
may pay an amount equal to the amenity assessment.
The annual segment assessment charged to members owning property
behind the Vanderhorst Gate (V-Gate) is changing for 2014. Due to a
surplus in the V-Gate reserve fund, the V-Gate assessment is being reduced
for 2014 by 22%, from $122 to $96.
“We feel it’s important to ask our membership to pay only what is necessary
to maintain our community at appropriate standards,” said COO Bailey.
The 2014 budget also shows an increase in CTRs from 2013 to 2014,
albeit a modest one. For 2013, KICA budgeted $1,292,000 for CTRs;
however, actual CTRs for this year are projected to outpace the budget by
13%. Based on current trends and conversations with multiple real estate
industry professionals, the 2014 budget reflects CTRs of $.15 million, an
increase of 3%.
Finally for 2014, KICA plans to offer two new services for the membership
that could potentially add revenue. First, KICA’s irrigation technicians
are certified to inspect backflow devices, which they regularly do for
KICA owned irrigation systems. In 2014, the association plans to add an
additional irrigation tech staff member to manage additional demand, as
well as to offer backflow testing services to our members, for a fee. KICA’s
fees for this service will be set to compete favorably in the marketplace, but
will offer a very convenient alternative to the membership.
Second, with the upcoming purchase of a Sprinter shuttle van, KICA
will begin offering, a paid shuttle service for the membership to various
locations such as downtown Charleston and the airport.
These services will now move into the planning and implementation
phases. More information on both will be released as available.
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