At the Royal Mauian Homeowners Association Board of Directors meeting held on November 21, 2024, board members and owners convened to conduct essential year-end business, including financial reporting, a reserve study review, and approval of the 2025 budget. The meeting, led by board president Mary, included directors Jerry, Don, Jack, Maggie, and Treasurer Paul Perino, who provided detailed financial updates and led key presentations.
Paul Perino reported the HOA’s financial position remained sound, with revenue modestly exceeding budget projections and expenses coming in slightly under budget through Q3. He noted particular savings in payroll, utilities (notably due to reduced propane and water usage), and property taxes, the latter due to a reclassification from short-term to long-term rental status. However, the board was cautioned about increases in insurance premiums and estimated federal taxes due to reserve fund interest income.
The reserve study revealed the HOA’s reserve fund is at 43.5% funded—considered moderate risk but aligned with national averages. The board adopted the 2025 reserve study and its associated projects, including roof resealing, window and door replacements, and the removal of invasive African tulip trees. Notably, a motion passed to pre-authorize reserve-funded projects, streamlining approvals for budgeted work unless substantial cost deviations arise.
The 2025 operating budget was also approved unanimously. A 7% increase in HOA maintenance fees will go into effect, driven primarily by a steep rise in property and flood insurance premiums. Despite this, the board emphasized that all other categories were tightly controlled, with efforts to minimize fee increases through careful planning and leveraging solar reimbursement contributions.
Resident Manager Jack Wilson highlighted completed maintenance projects, including landscaping, pool area improvements, structural expansion joint repairs, and basement wall renovations. He also praised the certified arborist hired to trim large trees and addressed plans to remove 13 deteriorating African tulip trees, noting both safety and environmental concerns. Replacement plans, likely with hedges for sound and visual screening, will be finalized with county input.
The meeting concluded with appreciation for board members, staff, and Jack’s team, recognizing their dedication and effectiveness in maintaining the property while navigating external challenges like water restrictions and rising insurance costs.