After several years of little to no increase in annual assessments and lake fees, the Board of Directors has approved modest increases for 2020.
The increases come following a thorough review by the finance committee, with the goal of creating a sustainable funding model for the Lake Corp to properly fund expenses and reserves.
The average increase will be approximately $100 per lake user/family, both for shareholders and easement members. Additionally, the new lake transfer fee, which is paid by the buyer when a property is sold, will be $7,500. The transfer fee had remained unchanged at $5,000 since it went into effect in 2007.
The finance committee found that 85% of operating costs increase with general inflation every year while assessments and fees have increased less than 1% a year for more than a decade. This combination has put the Lake Corp in a position of having to defer some maintenance. The long-term health of the reserve fund has also become a priority following an increase in certain non-operating expenses, including legal fees.
The modest increases for 2020 will properly position the Lake Corp to maintain the lake to the standard we all expect, and the Board is committed to an annual review moving forward to ensure financial health.