Invoices for the 2023 HOA Fee Assessment were sent out by email earlier this week and this communication provides some additional detail on the basis for this year’s fees. Thank you to those that have already forwarded their payment. For those wanting to make an e-transfer it can be sent to treasurer@sunsetdunespei.com. Cheques can either be hand-delivered to the HOA Vice President Maurice Roy or mailed to the HOA mailing address:
Sunset Dunes PEI HO
PO Box 82
Borden-Carleton, PE
C0B 1X0
The following table outlines the fees (in total after HST is applied) in the various fee categories, comparing the 2023 fee assessment to the two previous years.
Key points:
- There is a further increase in the snow removal fee due to the higher cost service contract for this year, with this fee applied to 27 lots with existing or approved homes
- There is an increase in the water system fee applied to the 13 lots on the system due to higher service contract expenses and an allowance for further repair costs on the system as was seen in 2022, with additional detail on the water system provided below
- Common Area and Admin fees are somewhat lower, reflecting captured cost savings
- The Reserve Fund fee is increased with the addition of a $500 Lila’s Boardwalk capital project fee, as previously approved at the August Annual General Meeting (AGM)
Water System
As a result of concerns regarding increased costs of the water distribution system servicing the 13 lots located beyond the pumphouse towards to tip of Campbells Way, the HOA established a Pumphouse Committee chaired by Maurice Roy in the fall of 2022. The Pumphouse Committee has the objective of overseeing the operation and maintenance of the system including water quality control, maintenance, inspections, repairs, contractor and lot owner point of contact, etc as well as the provision later this year of a system status report and associated recommendations.
All expenses associated with the operation and maintenance of the water distribution system are invoiced equally only to the 13 lot owners who have access to the system (regardless of whether or not the lot has a dwelling) by means of annual HOA fees based on anticipated costs as well as actual costs incurred in the previous year.
The water distribution system is nearly 20 years old and was designed in lieu of individual wells per lot in order to meet provincial requirements needed to avoid potential saltwater contamination issues given that the tip of Bells point is surrounded by water.
Operational and maintenance costs have increased due to the following:
- increased costs for the Water Quality Control maintenance contract, due to inflation
- normal costs associated with an aging system such as requirements for expensive parts and repairs to the chlorine injection system and to repair a pumphouse plumbing leak
- interim repairs to the flushing hydrant potentially as a result of uprooted trees associated with Hurricane Fiona
- prior to the HOA taking over from the Developer in 2021 the Developer did not fully invoice HOA fees associated with the maintenance and operation to lot owners serviced by the Water Distribution system, thereby subsidizing the true cost.
The fee assessment for the water system in 2023 is based primarily on the expenses actually incurred in 2022 and 2021 and any known changes going forward, with history being the best guide for expected future expenses.
The service contractor the HOA used to monitor the system and test water quality is the largest expense. This was $5,700 in 2022 and there was an increase in the contractor rate for this year, so we expect this expense to be $6,600 in 2023. In 2022 we had $2,200 in repair expenses on the system in October and November, after having operated without any issues since the HOA was established. In 2022 we had to replace a chlorine injection lance and fix a small piping leak. Our 2023 budget has an expectation of a similar $2,200 for repairs on the system. In fact, we started the year with a January $1,200 expense to replace all the seals on the chlorine injection system. The third component of expense for the water system is electricity, with a $1,400 expense in 2022 and an expectation of a similar cost in 2023.
So, in total, we estimate it will cost $10,000 – $11,000 to annually operate the water system. Which translates this year to the $900 fee assessed for each of the 13 lots on the water system for 2023.
The planned 2023 Sunset Dunes Water Distribution System report will be made available prior to this year’s August AGM and will identify key recommendations to insure the long-term sustainability of the system including reducing operational and maintenance costs where possible.
For additional information please contact the Pumphouse Committee Chair at sunsetduneshoa@gmail.com
Lila’s Boardwalk
The 2023 fee assessment includes a collection of $500 per lot as part of the Reserve Fund fee to provide sufficient funds for the Lila’s Beachwalk recapitalization upgrades as adopted at the Sunset Dunes PEI Home Owners Association Annual General Meeting held in August 2022. A similar $500 fee is anticipated for 2024 and 2025 to complete the entire Lila’s project.
The scope of this capital upgrade project is as follows:
- 2023: Remove all boards (most of which are rotten) from the start of Lila’s Beachwalk to the wetland section and replace with either a new wooden boardwalk or a gravel or wood chip substrate pending a cost-benefit analysis and survey of Lot owners to be conducted in the spring of 2023.
- 2024: Replace the section of the boardwalk within the rear dune wetland area leading to the beach access stairs with either pressure-treated wood or a floating-type structure inclusive of composite material.
- 2025: Replace the beach access stairs, potentially with aluminum stairs, including a removable section nearest the beach in the event of storm surge events.
A project Steering Committee will be chaired by HOA Board member Maurice Roy. The roles and responsibilities of committee members will include the following:
- Providing recommendations to the HOA Board regarding the recapitalization of Lila’s Beachwalk which aligns with the 2022 AGM proposal as adopted
- Reviewing documents and conducting research, including cost estimates
Lot owners interested in sitting on the Steering Committee are encouraged to contact sunsetdunespeihoa@gmail.com by Feb 14, 2023. A copy of the recapitalization proposal for Lila’s Beachwalk can also be found by visiting the Sunset Dunes website at sunsetdunespei.com under the Members Document section 2022 AGM, Proposal 1 – Lila’s.
HST Treatment for the 2023 Fee Assessment
With an increase in fees collected from about $53,000 in 2022 to nearly $89,000 in 2023, the HOA has been advised by its accounting firm, MRSB, that HST registration is now required. This means that your 2023 fee assessment invoice looks a little different this year compared to last year:
- a 15% HST is applied to Snow Removal, Common Area Maintenance, HOA Administration, and Reserve Fund fees
- the Water System Fee has no HST applied as providing drinking water service is HST-exempt.
