The Canyon Lake POA Board of Directors, Finance Committee, and staff work on the annual budget from October through March annually. On Tuesday, February 18, the Board conducted a Budget Workshop to review and discuss the proposed budget for the upcoming 2025-2026 fiscal year.
Workshop Documents & Links
Factors Impacting The 2025/26 Budget
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An insurance premium increase of 29% over the previous policy year
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Repairs individually costing $5,000 or less will no longer be funded through the reserve funds but instead will be included as part of the Operating Budget each year. This new accounting treatment added $130,000 to the annual Operations Department budget.
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Increased Payroll related benefits, including minimum wage increases added significant upward pressure to administrative and operational salary costs
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Funds derived from road litigation proceeds were previously held in investment funds earning interest. Those funds were predetermined to be applied to Road Repair projects and were utilized in the current year. The reduction in the balance of the investment account has resulted in a depletion of the earnings available.
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Cost increases initially indicated a budget increase of 10.4% or $30 per month. Restructuring costs and fee structures were consequently applied resulting in in a final increase of 5.1% or $17 per month in homeowner assessments.
What Is Covered By The Annual Assessment?
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Operating Fund: Used for the day-to-day expenses of the association. This fund is used for the association's day-to-day expenses. These include administrative costs, maintenance of common areas, utilities, and staff salaries. Routine repairs and general administrative expenses are also paid from this fund.
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Repair & Replacement Reserve Fund: This fund is used for major repairs or replacements of community assets that have long-term value and require significant investment, beyond just road-related expenses. Examples might include renovations of community facilities or replacing infrastructure.
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Capital Improvement Reserve Fund: Utilized for new projects that enhance the community's assets, not just maintain them. Examples might include building a new facility or adding new features to existing facilities.
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Road Reserve Fund: Specifically set aside for road maintenance and improvements within the community. This fund is crucial for planning and executing road repairs and upgrades, ensuring infrastructure is kept in optimal condition.
Proposed Summary of Annual Charges
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Operating Fund: $3,185
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Repair & Replacement Reserve Fund: $560
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Road Reserve Fund: $417
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Capital Improvement Reserve Fund: $63
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Summary of Charges:
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Annual
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Per Unit
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Regular Assessment
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$15,288,087
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$3,185
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Contributions to Capital
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Repair & Replacement Reserve Fund
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$2,687,000
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$560
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$2,000,000
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$417
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Capital Improvement Reserve Fund
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$300,000
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$63
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Total
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$20,275,087
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$4,224
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Monthly
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$352
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Next Steps
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The Board will review the final budget at their next Regular Session Board Meeting on Tuesday, March 2, 2025. At this time, the Board will vote to adopt the 2025/26 Annual Budget. Members are welcome to email the Board feedback at [email protected].
