January 2000

From the President

I would like to wish everyone in Villa Monterey a happy and safe holiday season. It is especially appropriate that you join me in wishing my fellow Board Members and Committee Chairpersons a happy holiday. They work for all of us and give their time freely without compensation. Recently, I attended a year '2000' economic conference. The three economists projected that next year would again see housing values increase in San Diego. Villa Monterey home values can only increase, under their scenarios, given the freeway congestion, the continued improvements in material condition and the pleasant ambience of Tierrasanta. We were lucky in purchasing a home here. Again, have a great holiday season, drive safe and be safe.

Warmest Regards,
Raymond R. Kruszona
VMHOA Board President

Christmas Tree Removals

Please be informed that Weststar Landscape, the Association's landscape company, will be removing Christmas trees on Thursday, January 6th, 2000. Your trees can be placed on the driveway curbs for pickup. Please remember to remove all ornaments, lights, tinsel, etc., from the trees prior to their disposal. Landscaping Please notice the changes to the VMHOA Rules & Regulations affecting landscaping policy at Paragraph H, starting on page 9. The general statement has been expanded to clarify further policy on homeowner changes to common area landscaping. This paragraph describes the procedure for homeowners to request authorization to make changes to the common area. The requests is not automatically approved and must be carefully reviewed to ensure that the changes do not conflict with the health and structure of the specific area, nor adversely impact the overall Villa Monterey Homeowners Association landscape theme. It also addresses homeowner liability for restoration costs. Paragraph e), is a list resulting from continuing research and consultation with a arborists and local nursery professionals. The plants are included for drought and disease resistance, robustness, and low maintenance costs. Although the homeowner is ultimately responsible for the upkeep of any changes, these plants are generally compatible with the watering and feeding schedules for existing plants. The potted plants addressed in Paragraph f) can possibly add the variety and additional color desired by some homeowners. Special attention should be given to the requirement not to place any potted plants in the common area. The policy for removal of these plants is monitored and implemented by the Board of Directors through the Landscape Committee.

Annual Management Fees

Annual management fees have been kept below the rate of inflation since 1992. It means we have managed to raise standards, make improvements, boost maintenance, and enjoy significant relative savings, while keeping our management fees below what they would be today based on inflation alone.

Based on inflation alone, today our monthly management fees should be about 10% higher than they actually are. During the past decade, it has meant a big savings of more than $8,000 for our homeowners.

With the cost of maintaining Villa Monterey going up each and every year, it is important to know that what we have paid for management services has been kept well below what they would ordinarily be if those fees were adjusted upward to allow for inflation. Adjusting upward for inflation is an accepted practice in tracking costs over time, since inflation reflects the general rising of prices throughout the American economy.

The bars in the graph (see mailed newsletter) indicate the annual payment for management fees which have averaged about $18,000.00 per year since 1992. The line above the bars represents the average annual fees which have been adjusted upward for inflation. A low rate of inflation of 2% annually was used to calculate the effect of inflation and is a conservative estimate.

Another way to look at this economic benefit is that we have, in effect, enjoyed a relative savings in expenses for having a professional firm manage our Association. Looking at the situation this way means that the homeowners here have collectively saved more than $8,000.00 on management fees alone during the past decade.

Prepared by Frank Toto.