Use of Association fees
In addition to our snow removal and landscaping costs, which
include lawn cutting/edging for our single family homes and lawn
cutting/edging and fertilization for our common grounds, our
Association fee pays for all operating expenses inclusive of:
management fee, insurance, legal, accounting services/audit, maintenance services, pond maintenance,
irrigation services, electric, water, administrative costs such
as postage & copying. NJ laws also require HOA’s to budget
annually for the replacement of capital assets through their
Capital Reserve account.
Engineering study
An engineering study is done every 3-5 years to itemize
Heatherwood’s capital assets and determine the appropriate value
and replacement cost.
This then determines what funding is required/needed for
the Capital Reserve fund to replace/maintain said assets.
Association fee deposits
Association fees are deposited into our Operating Accounts and
Capital Reserve Account. The Operating Accounts, which receive
approximately 78% of the money, is used to pay all annual
budgeted expenses such as lawn maintenance, snow removal,
management fees, and maintenance fees. The Capital Reserve
account, which receives approximately 22% of the money, is
restricted to being used for restoring/replacing our community’s
common hard assets such as the fencing, street sidewalks, and
pond equipment etc.
Financial Management
Heatherwood hires an accountant whose responsibility is to audit
our Property Management Company and to prepare and file
Heatherwood’s taxes. Both of these tasks are completed on a
yearly basis.
It is important to note that as a non-profit Homeowners’
Association we pay taxes only on interest income, but the
appropriate forms still need to be filed yearly on a timely
basis.
In addition, the Treasurer of the Board of Trustees reviews the
financials on a monthly basis and conducts periodic audits of
expense lines.
Heatherwood’s contract bidding process
The contract bidding process is always used for landscaping,
snow removal and property management
contracts. It is also used for projects of high dollar
amounts. There are occasions when a vendor that has been used in
the past is engaged for a project without going through the
bidding process. This is only done when, from years of
experience, it is known that a vendor’s cost has always been the
most reasonable.
The Board of Trustees (BOT) writes a request for proposal (RFP)
and sends it to our Property Management Office. The Property
Management Office then sends the RFP to potential reputable
bidders with whom they have done business with through all the
Associations they manage. Ideally, a minimum of three (3) to
five (5) bids is desired. Once the proposals are received, the
BOT reviews all bids and prepares a summary sheet with all
pertinent information. Once discussed, the BOT makes a decision
and awards the bid.
The only service that is not handled by the Property Management
Office is for property management companies due to the conflict
of interest. In this case, the BOT handles the entire process.
Volunteering
We are very proud of and grateful for the work that our
volunteers do and we do understand that there are residents who
are unable to participate on committees due to various reasons,
inclusive of physical restrictions. Noting that this is your
situation, there is always a way one may contribute. While
seemingly small in scope, everything that is done for
Heatherwood adds value. For example, when taking a walk, if you
see a piece of trash on the sidewalk or street, pick it up. When
spraying your property with weed killer, extend the spray area
to include the sidewalk and curb line. When sweeping your
property, include the curb line. While these suggestions/efforts
may seem relatively small, they go a long way in helping
Heatherwood, both from a maintenance and financial perspective.
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