Reston Association refocuses fees and the community budget for 2025 on facility maintenance instead of new capital improvement projects. The decision came after a community survey and after staff presentations.
HOA Refocuses Fees on Facility Maintenance
On May 30, 2024, the Reston Association (RA) started its budget planning process. Staff presented proposed priorities to the HOA board based on the directors’ strategic plan, which took effect in February. Community residents also submitted their thoughts through a survey the year prior. Moreover, the community conducted a reserve study to evaluate facility conditions. Based on all of these findings and suggestions, RA refocuses fees on facility maintenance.
The association has approximately 61,000 members. This year, annual assessments began to include recreational passes. The association will also review the community’s charges for service, facility rentals, classes, and events. The plan is to create a new fee schedule for board approval before the first draft of the budget in September.
In addition, RA plans to reduce member fees and increase fees for non-members to make them more in line with member dues. The new proposal is based on benefits, as fees will be calculated based on how many people use each service. Services and amenities used by all members, such as community pools or popular events, will be shouldered by assessments. Meanwhile, individual offerings such as pool use for private lessons will incur higher fees.
A New Approach to Capital Projects
RA staff plans to obtain feedback from the community on all capital improvement projects that cost more than $500,000 and projects of interest to members. For smaller projects, like trail repaving, RA may notify the residents without soliciting feedback. Director John Farrell advises staff to coordinate with the Parks and Recreation Advisory Committee on the process.
Apart from capital projects, the budget will also prioritize staff pay, retention, and recruitment. The association is conducting a compensation study which will impact staff wages. Moreover, the community will consider the impacts of benefits, insurance, and inflation.
According to Ed Vroom, the non-profit association’s Chief Financial Officer, the community has filled vacant positions this year. However, there were also departures.
Debating the Assessment Rates
Despite agreeing on the suggested priorities, the HOA directors are split on how to set assessment rate expectations for 2025. They also disagree on whether to leave the potential of a “buydown” on the table or use surplus or reserve funding to reduce fees.
The board adopted a budget of $22.1 million with an $817 assessment the previous year. According to the RA Fiscal Committee, buydowns may be an unsustainable method of artificially lowering HOA fees, which the HOA had already done in previous years.
Twenty-five HOA members submitted 61 comments on the budget. The board will discuss the comments at the next meeting. Meanwhile, the reserve study is expected to finish in July, and the initial budget draft will be given in September. The budget will be finalized by November.
