A Message from your Board of Directors
In this challenging time, I wanted to take a moment to provide Lake Forest II members an update on how the Association is handling concerns surrounding COVID-19, as well as our continued effort to offer peace of mind as an organization and as a community.
Our hearts go out to everyone who has been affected by the virus. During this pandemic, we are reminded of how quickly things can change and how valuable community support is. We are here to help if you are impacted and need to go on a payment plan, please reach out to
celsner@lf2.org
to discuss your options.
In response to questions about monthly assessments during the Clubhouse closure, I wanted to take this opportunity to explain our financial situation. Lake Forest II is a non-profit corporation that provides many services for our homeowners. The recreational amenities at the Sun & Sail Club are only a part of this. Services for homeowners, except for the Clubhouse common areas, are ongoing during the closure and our regular expenses continue to accrue. Unfortunately, in a case of a mandated closure of this nature the Association loses income from guest fees, tennis classes, fitness classes, special events, banquet rentals, and the Adult Lounge. This substantial extra revenue is used to reduce your monthly assessment. For comparison purposes, during April of 2019, the Association collected about $30,150 from these events and activities, and $0 for these activities in April of 2020. Although there are savings from suspending these activities, there is significant revenue loss. The Association is in strong financial health, but relies on this extra revenue to reduce your monthly assessments. The Association has money in the Reserves for repair and replacement of Master Association and Tract assets, but this money cannot be used for day-to-day expenses such as utility bills and payroll. California Civil Code permits borrowing from the Reserves under certain circumstances, but it must be paid back which would then increase regular assessments.
The impact of the closure is too new to have enough financial information to determine the effect on assessments next year. We are doing everything we can to lessen expenses, primarily through reduced energy use, unpaid staff furloughs, and careful review of all expenditures. Only essential staff remains for accounting, escrow and refinance processing, the MAC department, CC&R enforcement, and maintenance of the club facility and various tracts.
We will continue to balance the safety of our community members and employees, as well as maintain business continuity during this unprecedented time. We will provide additional updates as to when and how the club facility will be allowed to open again.
Please take care of yourselves and stay well.
Sincerely,
Jim Richert
President, Lake Forest II Board of Directors
