LBCA Members,
As discussed during the supplemental budget meeting last month, new water rates are going into effect next year. The new water billing policy and associated rates are detailed in the updated LBCA Water Billing Policy.
Thanks,
Tom Watson
President LBCA
As we mentioned at the last annual meeting, rates are going up significantly. And by significantly we mean double or more.
Rates have not changed in almost ten years. Simple inflation mandates an increase. In addition, the community has not collected sufficient funds to pay for major maintenance to the system. We’ve only collected enough to cover operating expenses and do a project here and there.
That’s not enough to ensure safe, high quality water service into the future.
Some components, like our main water distribution lines, are 50 years old. These lines, along with every other component of our system, must be replaced over time. Certain items have exceeded their expected lifespan. Other items will soon.
We need to get ahead of this and do proactive maintenance before it becomes an emergency and far more expensive. We also must build the capital reserves to deal with emergencies and ongoing maintenance into the future.
In 2016, Garrison engineering estimated $600K in needed capital repairs and risk-reducing measures like drilling a second well. Adjusted for inflation, this same estimate is now $800K. And, this estimate did not include other things we’re responsible for, such as culvert and ditch maintenance on our community property.
Short story: we need to double our annual income. Where today we raise roughly $50K each year, we need to raise $100K.
Our primary goal is to be awarded the State Revolving Fund low interest loan to pay for the engineering-recommended capital repairs. We’re talking about a 2-2.5% interest loan as opposed to 7% from a bank. This is a huge cost savings.
To qualify, we have to demonstrate financial viability in our rate structure.
Per state law, and common sense business management, each HOA must maintain a 30 year financial projection. This projection has all expenses, including annual operating costs, major maintenance project costs, and capital reserves we need to build. It then compares that against our annual income to prove we have the financial means to pay for everything. This is the “financial viability” we must demonstrate to the state in order to secure the low interest loan.
So, we created one, and determined this is what we’d need to pay for each year.
| Expense | Estimated Annual Cost |
|---|---|
| Estimated annual operating expenses, increasing with inflation 3% per year | $35,000 |
| Annual loan payment on a $100K 0%10-year loan in 2025 to pay for engineering, Small Water System Maintenance Plan documentation, cultural and environment reviews needed to apply for the State Revolving Fund low cost loans. | $10,000 |
| Annual loan payment on an $800K 2.5% 20-year loan in 2026 to pay for new distribution lines, a second well, pumphouse fencing, storage tank replacement, and other maintenance items. | $51,000 |
| Annual deposit into a Capital Reserve account to build up a $250K reserve in 25 years to pay for future major projects. | $10,000 |
| Annual deposit into an Operating Reserve to cover operations costs if we fail to collect dues from members to build up a $25K operating reserve in 5 years. | $5,000 |
| Total | $110,000 |
To pay for these items above over thirty years, we need to raise ~$100K each year. And, this income must increase with inflation each year to accommodate inflation-increasing costs. This project is detailed year by year in this budget forecast spreadsheet.
Across the board, everyone pays double the base fee. That’s $1,200 instead of $600.
On top of that, the overage fees for exceeding 20,000 gallons per quarter are increasing slightly. That means those of us who water lawns and gardens, run water theme parks for their kids or other water-intensive activities will pay more on top of the base.
On Oct 1, the new water overage limit and overage rates go into effect. If you use over 7,500 gallons of water in Q4, you’re going to pay a higher overage fee in January.
Starting Jan 1, 2025 the new annual base fee goes into effect, along with the new overage fee schedule.
Starting next year, everyone will be billed quarterly. This means you will be billed $300 per quarter plus any overage from the previous quarter starting in January 2025.
There will be no “statement fee.”
If you want, you can pay $1,200 in January and carry a credit on your account, but you will still be billed quarterly.
Our thirty year forecast is, by definition, an estimate. Each year costs, priorities and unexpected circumstances will cause plans to change. Therefore, it’s imperative that the board communicates all plans, shares all financial records, and that members actively participate in member meetings.
All capital funded projects will be done per recommendations from a third party engineering firm and in accordance with recommendations from Washington State. These projects will be communicated to members early for feedback and questions.
Our annual budget process will detail the money we earmark for certain projects each year. All expenses are tracked in our online accounting system Wave, reconciled against the community bank accounts, and made available for inspection by members. All board documents are now stored in a centralized, online location, so that future boards will have all the information the board maintains over time.
These shared systems ensure we maintain transparency so everyone knows where the money is going and why.
We understand that this is a big change. We will be available to discuss and answer questions at the upcoming meeting on July 21st at the Stanwood Library at 2pm. You can also contact us at board@livingstonbay.org.
Thanks,
Tom Watson
President, LBCA
As a follow up action item from the 2022 annual member meeting, we have uploaded two financial documents into the Financial Reports folder.
Please provide any comments and questions on the budget to board@livingstonbay.org.
Thanks,
Tom Watson
President / LBCA
System Flushing Notice
On Thursday October 20, 2022 the water distribution lines will be flushed. The community is requested to not use any water during the day of flushing from 9 am to 1 pm because the flushing may stir up sediment in the water and this sediment could be drawn into your domestic plumbing.
If you are concerned about water usage during the day, please fill containers or bathtubs so that you will have sufficient water available during this time.
Once the flushing has been completed there will probably be some sediment in the lines – before using any water in your home, turn on an outside faucet and allow it to run for several minutes or until the water clears up.
Thank you for your forbearance during this time. Our goal is to provide you with water of the best possible quality at all times, we are sorry for any inconvenience that this flushing may cause. If you have any questions, please call us at the above number.
Sincerely,
King Water Company
Hi Everyone,
Please find our 2020 Water Quality report below. Our 2021 report will be coming soon and will be posted much more quickly this go round.
Thanks,
Tom Watson
President
Hello Livingston Bay!
New LBCA Board Members
On Oct 3, 2021, the Livingston Bay Community Association elected new members to the Board of Trustees. Scott Lankford was appointed to the unexpired term vacated by a board member no longer in the community. Scott’s term will expire in one year. The new Board members and their positions are:
President Thomas Watson
Vice-President Frances Straus
Secretary Samantha MacDonald
Treasurer Anna Radford
Trustee at Large Scott Lankford
Sincere Thanks to John Gablehouse
John Gablehouse, after many years of tireless service to Livingston Bay, has stepped down from his position as LBCA President. John has graciously offered to help the new board while we take over the many things John has managed during his tenure.
We wish to express our sincere gratitude for all the hard work John has volunteered over the years. We have some big shoes to fill.
New Board Member Email Addresses
The LBCA has established new email addresses for the four corporate board positions. These email addresses will be transferred to future board members to maintain continuity and access to historical records as new board members come on.
President President@livingstonbay.org
Vice President Vicepresident@livingstonbay.org
Secretary Secretary@livingstonbay.org
Treasurer Treasurer@livingstonbay.org
How to Contact the Board
We welcome as much community participation from LBCA members as possible. To this end, we have set up an email address for members to submit questions, comments, or issues they would like to see the LBCA board address.
To contact the board, please email comments@livingstonbay.org. All board members will be notified when messages are received, and responses from the board will be saved for future reference.
Rescheduling the Annual Meeting
The Oct 3, 2021 meeting did not achieve quorum. We are working to find a date to reschedule the meeting so that members will have an opportunity to raise motions and conduct business. We will follow up with the date for this meeting soon.
IMPORTANT: Greensand Filter Water Restriction
The greensand filter project is going to happen soon. Estimated work will be started as early as mid Nov! This is earlier than planned.
During the project, community members must limit their water usage. We will only have access to water in the tank for up to one week. If we run out of water before the project completes, that’s it. We’re dry until the service is restored.
Renters: Lot owners who rent out properties please be sure to notify your tenants that water use must be limited during the project.
If you have any comments or questions, please feel free to contact us at comments@livingstonbay.org.
Thank You,
Thomas Watson, President
Please see attached minutes for the recent Board meeting held on 6/19/21.
Livingston Bay Community Association 