2026 Budget Q&A

Your DCMC (Delta Coves Maintenance Corporation) board of directors reviewed the proposed 2027 budget during the October general session board meeting. Members were invited to ask questions during the meeting and submit them after the meeting via email.

The board of directors ratified the final budget at the Nov. 2 general session after opening the floor for a second member comment period on the budget. 

Homeowner questions and comments

The budget contemplates expenses for items such as plant and tree replacement and turf management. The team meets with Monarch Landscape in late summer to review proposed plans for the following year. The reserve study also provides a 30-year plan for maintenance and beautification of the community. This will be updated in 2027 with a full site visit by third-party professionals. 

The 2027-29 Strategic Plan includes an objective to identify and implement three energy saving measures by the end of 2029. As part of this objective, Community Life and your board plan to explore the possibility of solar energy.

The 2027 Budget assumes a monthly assessment of $509 and an additional assessment of $191 for those living in The Cottages.

The strategic plan does not specifically identify an assessment amount for 2028/29. The budgetary increase for 2027 is proposed at 2% or $10.

The association has seen increases in several areas and — at the direction of your board — Community Life has worked hard to reduce costs where possible to offset these increases. The main areas these increases incur are:

  • Landscape maintenance
  • Tree maintenance
  • Reserve contribution
  • Management services
  • Gate maintenance
  • Electricity rates
  • Water rates

The initial draft of financial update to the reserve study assumed the association begins 2027 at 24.3% funded in the reserve and ends at 14%. However, this is based on projected balance and not an updated outlook of actual planned or needed projects. Your board expects a higher cash balance at the end of the year than originally projected. The reserve will be updated with a third-party site visit in 2027.

The reserve funding does not fall below legal requirements set by Assembly Bill 2050 — passed into law in 2026.

The 2027 Budget contemplates a contribution of $258,500 to the reserve.

The association is well positioned financially to avoid special assessments. 

The association does not have a policy regarding contract bidding. The board reviewed contracts as needed depending on significant market changes or service needs

In 2026, the insurance was put out to bid.

As noted above, the insurance was put out to bid through insurance brokers. At the direction of your board, Delta Coves Community Life works with these brokers to obtain pricing from several different carriers to determine the best prices for the policy needs of your community.

The association budget includes conservative estimates for any income that may be connected with unfavorable situations (late fees, violation fines, etc.). Budgets use a conservative reservation income estimate based on prior year actuals and trends.

Your board reviews all revenue sources before turning to assessment increases. Facility rentals and lender document fees provide a small portion of association revenue. Therefore any increases provide an insignificant impact on revenue.

Delta Coves' bad debt allowance is a balance sheet item and not budgeted due to a low delinquency rate. Most residents pay their assessments on time. Only 11 homes remain more than 30 days past due on assessments — more than half of these on payment plans and the rest currently working with the association on a resolution.

Delta Coves Community Life begins reviewing every line item for cost savings in July and continues that work, including regular check-ins with the board until the board adopts the budget in November.

During this process, we speak to all service providers to review the scope of services and associated costs. In many cases, we have been able to keep costs down for the association.

The association has contracted weekly pest management to treat the exteriors of all buildings at Island Camp and the docks. Dewebbing in immediately reachable areas is also provided. Dewebbing of the Island Camp roofs occurs quarterly. Ten rodent bait stations are monitored monthly at Island Camp. Common areas near the Dog Park, levee and walking trails are treated twice a month for gophers, ground squirrels, voles and moles. Jose Rodriquez, our Facilities and Maintenance Manager, spends significant time in the community monitoring service levels and communicating issues to service providers.

Delta Coves Community Life regularly monitors service quality and value to maintain our high standards. With approval from the board, we plan to send additional contracts out to bid next year — potentially including the pest service contract — focusing on providers with experience working with associations.

Dock power washing and cleaning occurs three times per year. The kayak ramp power washing occurs more frequently — especially during summer months. Additionally, dock maintenance includes repairs to individual slips and utilities components.

Annual dock maintenance and repair checks occur — with funds coming from the referenced budget line item. Larger repair and replacement projects are planned and budgeted within the reserve.

The developer subsidy covers the shortfall if builder and owner assessment income does not meet all budgeted expenses.

The board expects the association to be no longer dependent on the developer subsidy for the SSA1 beginning in Q4 of 2027. At that time, all lots should have an assessment being paid by either a builder, the developer, or an owner and assessment income should be stable. 

The 2027 budget does not assume an increase in SSA assessments and your board expects minimal increases in the future, if needed.

As noted above, there is no contemplated increase in the SSA assessment.

Keep in mind, the responsibility to approve assessment increases falls exclusively to the board of directors. The board discusses the budget and assessments at two open board meetings. In 2027, these meetings allowed for in person or virtual attendance. The board allowed residents to ask questions or make comments during both meetings and by email between before the second meeting to gain input from owners before approving the budget.

Any changes to contracts must be approved by the board in an open session. Residents may attend these meetings and provide feedback to the board during the appropriate period. Residents may also speak on non-agenda items and contracts during the member comment period or by emailing deltacoves@coherelife.com.

Delta Coves Community Life works throughout the year to identify savings opportunities for the association — including during budget season. The goal is to balance costs with the association's desired level of service.

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