Explanation of Major Income Budget Items – Part 1
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Explain some of the major Income line items:
- Section 8.1 of the Declaration of Covenants, Conditions, and Restrictions (the “CC&Rs”) for Riverwood Athletic Club (the “Community”) provides that each fiscal year the Association Board must approve a Base Assessment to be levied against all Units. The 2016 budget contemplates a Base Assessment of $60 per Unit Per month, and that there are 1,022 Units.
- Section 8.5 of the CC&Rs provides that the Board may levy a Specific Assessment against a particular Unit, to recover the cost of special services rendered to the owner of that Unit upon request of that owner (and not generally to all owners). The only special services contemplated by the 2016 budget are Silver, Platinum, or Gold level memberships in the Fred Smith Company Sports Club (the “Sports Club”), and the Specific Assessment reflects the additional costs for those Sports Club memberships.
- The Capital Contribution reflects a $200 contribution made on the initial transfer of record title to a Unit other than to Riverwood on the Neuse, LLC (the “Declarant”) or a Builder, per Section 8.10 of the CC&Rs. This amount funds a capital expenditure reserve established by the Association.
- The Administrative Charge reflects a $245 per Unit administrative charge, imposed upon the transfer of a Unit pursuant to Article XV of the CC&Rs.
- In 2001 the Declarant and the Town of Clayton entered into a “Utilities Agreement,” allowing the Declarant to install (at the Declarant’s cost) custom street lighting within the Community, and for which the Town of Clayton would reimburse the Declarant for the cost of “standard” street lighting. The Utility Reimbursement amount represents the expected reimbursement for 2016.