North Village View

North Village 2022 draft budget

by the North Village Board of Directors

The North Village board has approved its draft 2022 budget for publication, in preparation for a final vote at the Thursday, Oct. 21 meeting. The accompanying table provides a brief summary, and the corresponding assessment the board proposes for 2022.

 

2022 Draft Budget

2021 Budget

2020
Actual

Operating Costs

 

 

 

Maintenance

$232,846

$226,901

$209,148

 Security

$65,000

$48,203

$48,242

 Trash

$93,760

$81,903

$75,065

Total Security and Trash

$158,760

 $130,106

$123,307

Non-Maintenance

$159,663

$153,523

$150,432

Total Operating Costs

$551,269

$510,530

$482,887

Contribution to Reserves

$150,906

$148,822

$200,336

Total Expenditures

$702,175

$659,352

$683,223

Annual Assessment

$790.74

$742.51

 

Quarterly Assessment

$197.68

$185.63

 

Guided by the bylaws of the North Village Homes Corporation, certain expenditure increases are capped by the Consumer Price Index change (CPI) from last year to this year. Those expenditures include everything but the special contracts for security and trash. The CPI change for the evaluation period was 4.4.% but the expense increase for those categories under the CPI ceiling have been limited to 2.7%. The overall increase, when all outlays are considered, projects to be an overall 6.49% increase over last year.

Budget Analysis
If you’re reading this article you have an interest in understanding the budget for next year. We hope you’ll find this information helpful.

Maintenance costs are the largest part of the budget, consistent with prior years. Of the $232,846 we are budgeting for 2022, the fixed price landscaping contract accounts for $113,246 of that. These funds will help ensure that the common area lawns are mowed and that the leaf collection will continue as well. This contract came in at 3.0% higher than last year. Another large component of the maintenance category is the tree removal line item, budgeted at $50,000. We continue to see the need for tree removal, despite addressing it each year; the $50,000 might even come in lower than actual when all is said and done. We ended up spending $58,038 in 2020 and expect to spend at or above budget this year, having just spent $30,000 on the last tree removal round, with more to come.

Trash and Security Expenses
We have special contracts for trash and security, authorized by homeowner-approved bylaws, that account for approximately $158,760 in our budget. Many have complained about not seeing security without realizing we had a shared contract with another community that allowed for lower costs. This year we will be trying a new security service with hours dedicated solely to our community. We hope that this increased visibility will help with a variety of needs brought to our attention.

We are budgeting $93,760 for trash removal for 2022. This number has increased to reflect additional funding for bulk trash removal as a result the continued failure of many residents to use the bulk trash pickups included in the Potomac Disposal contract. We will be staying with Potomac Disposal this year as our request for proposals elicited only one other proposal, with a price 32% higher than Potomac’s. We continue to stress that 4 bulk trash pickups per home are included in the Potomac Disposal contract. Please encourage your neighbors to contact them via their simple website form or by phone so we don’t need to utilize an extra resource for bulk trash pickups—let’s work together to minimize these extra costs.

The third category of our budget is the non-maintenance portion and includes the Montgomery Village Foundation management fee, legal, bad debt and required expenses such as audit and insurance. This category is slightly higher than 2021 with the increase primarily due to MVF’s agreement with us, but that increase is lower than the CPI increase for the year.

The planned contribution to Capital Reserves for 2022 of $150,906 is an increase over 2021, but consistent with recommendations of our 2020 reserve study. We expect to incur costs related to recommendations in that study that cover some road repairs and some concrete repairs. We are looking to replace some entry signs over time as well. Recently, the capital reserves were used to redo the asphalt and grading in Highland Hall near Hurley Park, as an example of its purpose.

We look forward to input from North Village residents on the 2022 budget. Please provide questions or comments to Community Manager April Steward at 240-243-2327, or e-mail asteward@mvf.org before our October board meeting on Thursday, Oct. 21. The method and/or location are still TBD at this time.

North Village View: for residents of Essex Place, Highland Hall, McRory, Perry Place, Picton, Pleasant Ridge and Salem’s Grant.

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