The following information is based on the Research collected from Maryland Department of Taxation and Assessment using the Index and Maps Prepared by the CRE Mapping Committee January 1992 as a guideline.
How many lots are in CRE?
Number of Lots identified within CRE 5150
Number of Lots identified within CRE Commonly Owed 498
Number of Lots Identified within CRE Billable 4652
How many houses are there in CRE?
Number of Lots Identified within CRE Member Owned 4652
Number of Unimproved Lots within CRE 1113
Number of Improved Lots within CRE 3539
How many revised lots are there in CRE?
Number of revised Lots within CRE 483
How many of these houses are Primary residences?
Number of Improves Lots designated as Primary Residence 2912
How many people purchased land in CRE each year?
Prior to 1981 332 1982 10 1983 13 1984 30
1985 17 1986 27 1987 52 1988 60 1989 128 1990 138 1991 117 1992 123 1993 142 1994 119 1995 116 1996 146 1997 126 1998 119 1999 126 2000 162 2001 187 2002 270 2003 324 2004 484 2005 567 2006 550 2007 135 1st qtr
The following information is based on Research collected from the Architectural Review Committee Yearly Reports.
For the period 2001 through 2006 Architectural Review has approved the following:
Homes 487
Additions 88
Carports 24
Decks 310
Docks 10
Fences 453
Garages 169
Hangars 6
Pools 31
Sheds 330
Sunrooms 21
Others 407
Revisions 113
Extensions 156
ATF 248
The following information is based on the Research collected from Maryland Department of Taxation and Assessment using the Index and Maps Prepared by the CRE Mapping Committee January 1992 as a guideline.
What is the value of the Commonly Owned Lots?
Combined Assessment of the Commonly Owned Lots $7,316,084.00
Recommendations:
1. First and foremost it is recommended that the Commonly Owned lots be moved to Open Lot status to protect the Association funds.
The Calvert County Treasurer’s Office was contacted upon completion of this research. According to the Office of the Treasurer the Association will be taxed at the full assessed value as posted on the web site, which is update three times weekly, at the rate of 1.004%.
This amount $7,316,084.00/100=$73,160.84 X1.004=$73,453.48 should be placed on the budget in place of the amount currently posted there. Any adjustments necessary to balance the budget should be noted as pending to be returned to the budget once these lots are moved to open space and the real tax amount is reduced to an appropriate value.
It should be noted that once land is moved to Open Space it is no longer buildable.
This is the equivalent of 345 M&O fees
2. Beginning July1, 2007, a transfer fee of not less than $50.00 should be billed to the buyer at each settlement.
This is standard as are other fees such as the fee for researching the balance due and any liens pending on any properties at settlement.
For the period January 2000 through December 2006 there were 2544 transfers of deed. That is an average of 363 transfers per year.
363 X $50.00 = $18,150.00
This is the equivalent of 85 M&O fees
3. The transfer funds should be split to fund employee wage increases and training, office supplies and equipment.
Some time ago several members of the Board became aware that management had been receiving regular raises while employees who were entrusted with the majority of the orientation of the 2679 transfers of deed since January 2000.
It is recommended that for the period of the next 2 years any transfer fees collected should be split 50/50 for a wage increase for non-supervisory administrative employees who were instrumental in the orientation of new property owners.
The remainder should be utilized for office supplies and equipment. This might include training.
4. A user fee should be associated with all submittals to the Architectural Review Committee.
The Following are suggested fees to show potential income.
Homes 487 X $250.00 = $121,750.00
Additions 88 X $100.00 = $8,800.00
Carports 24 X $50.00 = $1,200.00
Decks 310 X $25.00 = $7,750.00
Docks 10 X $50.00 = $500.00
Fences 453 X $25.00 = $11,325.00
Garages 169 X $50.00 = $8,450.00
Hangars 6 X $50.00 = $300.00
Pools 31 X $25.00 = $775.00
Sheds 330 X $25.00 = $8,250.00
Sunrooms 21 X $100.00 = $2,100.00
Others 407 X $50.00 = $20,350.00
Revisions 113 X $25.00 = $2,825.00
Extensions 156 X $25.00 = $3,900.00
ATF 248 X $50.00= $12,400.00
$210,675.00/ 6 years = $35,112.50/year average
This is the equivalent of 165 M&O fees
This income should be used to offset the administrative costs of the personnel including the costs of the engineer.
5. Finally, there has been some discussion about charging an M&O for each lot.
According to the Research:
Howlin Realty 39 Unimproved Lots
RMJ 30
Quality Built 26
William Mulcher 13
C&B 9
The cost of increased tax assessment, combined with added cost of M&O fee might cause these builders to either build on these lots to unload them bringing more homes into the Association, or combine lots wherever possible cutting the road fees.
In addition, multiple lot owners, with one improved lot and one unimproved lot adjoining, would be forced to combine lots to save the cost of the M&O which would also cost the Association the Road Fee.
Therefore, it is recommended that the Association pursue the collection of an M&O fee from each improved lot. Multiple lot owners with more than one improved lots are for the most part receiving an income from those lots, which will help them offset the cost of the increase. During the research for this report 121 improved lots were identified to fall into this category. These lots are owned by 39 members.
While this research is not the golden goose in that it does not show how to double the income of the Association. There is a possibility of matching the funding of approximately 595 M&O fees by saving real property taxes and introducing user fees.
6. It is recommended that every Board Member, Staff Member, and Association Member take a few moments to consider ways to shave costs so that the M&O can be more about Maintenance and less about Operations.
This document has a potential impact of over $5,000 on the 2008 Budget.
That's part of the plan I have been talking about
