Principle II
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Certain costs for Association Amenities will be borne by all property owners (Basic costs) while others will be paid by the users (Fee for Service costs).
1. Amenity Tiers – Amenities will be classified into one of three tiers:
| Tier |
Description |
| I |
Assets and basic services available to all property owners for which there is no additional fee. All costs for Tier I amenities are basic. |
| II |
Association assets and services which are subject to a fee for service for the amenity. These fees are associated with…
- Providing additional assets or services in conjunction with Tier I amenity that exceed those provided as a Tier I amenity.
- The usage of Tier I facilities by “special interest groups” (private parties and QH Community Clubs) that result in additional costs and or restrict the usage of the amenity for general use while in use.
- Assets or services provided by the association solely to meet the needs of special interest groups
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| III |
Assets, related services, and programs whose use is restricted to those who pay “user fees” which are based on the Full Cost of the Amenity, i.e., all costs associated with a Tier III amenities are Fee for Service.
Note: The Marina is currently the only Tier III amenity. |
2. Association Amenity Costs and Fee Basis – The following criteria will be used for all amenities to determine Basic versus Fee for Service costs for property owners…
- Basic – Costs of assets, services and programs that meet the broad-based needs of the community and are available to all property owners. Basic Costs are paid by all property owners generally though annual assessments. Special assessments may be necessary at times to fund asset purchases or major improvements.
- Fee for Service – Costs of expanded or special (supplemental) services and programs that are not included in the basic costs. Fee for Service Costs are paid for by the user of the additional services and programs in the form of service or use fees, membership fees or rent. Fees may be based on actual costs incurred, budgeted costs or cost-based formulae (e.g. average costs, projected future costs, amortization schedules etc.). Any cash shortfalls that result due to differences between actual and projected/calculated costs will be borne by all property owners.
3. Amenity Fee Oversight
- The Association’s Board determines which services/costs are Tier II and Tier III (Fee for Service).
- To ensure consistency, the services and fees associated with amenities will be analyzed on an annual basis and will be reviewed and approved by the Board.
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