July 9, 2025
2025 expenses from January through May are actuals. 2025 expenses from June through December are based on the actuals through May being annualized (multiplied by 12/5), except for: Insurance : The 2025 and 2026 estimates are based on the actual cost of the 3 policies covering 6/29/24 – 6/29/25 that Lake Developers II has paid and WHOA would assume responsibility. The premiums will likely increase, but the increase is difficult to estimate. Gate House : Gate Entrance expenses usually happen in the spring, so annualizing the expense based on those months could be an overestimation. The months of June through December 2025 will be estimated as $0. Landscaping/Mowing : expense is based on the average of the 2023 and 2024 expense. This is viewed as the best estimate since these expenses are much less in the spring months, so annualizing the 2025 expense thus far wouldn’t be accurate. The expense significantly increased in 2024, but the HOA had less land to maintain prior to 2024, and the contractor’s rate increased. So, it’s unknown if 2024 was an outlier or the new normal. This is why an average of 2023-2024 was used. Manor House Building Repairs : The large January 2025 bill likely isn't reflective of a new cost level, so the expense will be 50% of the annualized total, which is in line with the 2024 expense. An invoice for HVAC repairs was recorded on 7/9/25 that has been manually adjusted for July 2025 to reflect a new, known cost outside of the annualized estimate mentioned above. This amount was not used when estimating the expense for 2026. The 2025-2026 expenses could potentially be much larger if the roof is repaired or replaced, which seems likely. The roof replacement has been estimated as $35/sq. ft., which would be $420,000 ($35 * 12,000 sq. ft. = $420,000). Pool : expense is based on the average of the 2023 and 2024 expense. This is viewed as the best estimate since the pool expenses typically don't start until June annually. Stormwater Tax : expense is currently $892.50 per month, but has an annual increase in July. The 2024 increase was 40%, so this was assumed for 2025 and 2026 since the expense started in September 2023. Property Taxes : The 2025 and 2026 estimates are based on the actual cost of the 2024 property tax bills paid by Potter companies. The tax bills will almost certainly increase, especially once the next phase of lots are sold by Lake Developers II, but the amount of increase is difficult to estimate. 2026 income is assumed to be the same as 2025 income. 2026 expenses are based on the monthly average of 2024 and 2025 expenses, except for the Insurance and Stormwater Tax expenses mentioned above. There are a few other items to note below: WHOA isn’t covering fees for property management, accounting, administrative tasks, and/or other necessary daily/weekly tasks that are performed by employees of Potter companies. The costs for such services would be $45,000 at the bare minimum for hiring an employee to cover these expenses or outsourcing to external firms. WHOA isn’t covering the legal fees, which has been estimated as $5,000 annually. Download the complete financials here .