***2006 DVC Dues*** All Resorts Listed

[tjkraz]

Dues statements are in the mail. All resort increases noted below.

Discussion is welcome in this thread!!!


OKW:
2005 - 3.86
2006 - 4.24
Increase - 9.8% :holymoly:

VB:
2005 - 4.87
2006 - 5.27
Increase - 8.2%

VB (sub):
2005 - 3.84
2006 - 4.12
Increase - 7.3%

HHI:
2005 - 4.04
2006 - 4.34
Increase - 7.4%

BWV:
2005 - 4.41
2006 - 4.69
Increase - 6.3%

VWL:
2005 - 4.35
2006 - 4.61
Increase - 6.0%

BCV:
2005 - 4.27
2006 - 4.48
Increase - 4.9%

SSR:
2005 - 3.83
2006 - 3.98
Increase - 3.9%

[jnrrt]

Since I'm new to this:

Do dues increase every year usually, or only every 2 or 3 years? I know they are allowed to increase every year, but since some did not, I am curious.

Also, that increase at OKW seems extreme! Does that large of an increase happen often?

[jnrrt]

Re-reading, perhaps you just don't know the increases yet and are waiting for information?

[tjkraz]

Dues are adjusted every single year. The reason you see blanks above is simply because I don't have the amounts for those resorts yet. Members only receive statements for resorts they own, and some are still unaccounted for.

If memory serves, at this point all we will get is a brief statement listing the "estimated" dues for 2006. The condo association will then ratify the 2006 budgets at the meetings about 2 weeks away (really this is just a formality). Then we will get detailed budgets listing the 2006 expenses spread over about 20 categories (transportation, front desk, DVC management, etc.)

Once the budgets are determined, it's pretty easy to determine the per-point cost. They take the total projected expenses, subtract any revenues (interest income, breakage), and the remaining costs are divided by the number of points in circulation. They also add in property taxes and an allocation toward the capital reserve fund, which is used to deal with unexpected costs and long-term room rehabs.

Over the course of the program, 3-4% annually is the average. There were years in which dues actually went down. This year's increase at OKW appears to be the highest ever normal increase by percent. Prior to that, the highest increase was 8.6% in 2003 at OKW.

EDIT: Actually I was wrong about one thing above--the mailings coming now ARE the full resort budgets. I received mine today for SSR, and will post some 2005 / 2006 comparison numbers later. Perhaps someone else will do the same with other resorts later.

[jnrrt]

Thanks.

[tjkraz]

One other comment: The annual dues figures really only tell part of the story. As they say, the devil is in the details.

It will take a look at the detailed budget to find where the increases really occurred. It's possible that Orange country re-appraised the OKW property this year and most of the increase is due to property taxes. DVC has no control over taxes.

Another possibility is that the budget was set too low for 2005, and we're looking at a correction to that under-estimation.

Usually the increases are moderate enough to not make it worthy of extended scrutiny, but I have a feeling the OKW association meeting is gonna be pretty lively this year. ;)

[DSNY FN]

I will post HHI dues when we get our statement.

[vascubaguy]

I'm anxious to get my OKW budget info. I'd like to know what's up with that increase!

At the meetings, can members object to certain parts of the budget and demand explainations for the estimated increases? Secondly, would it do any good?

[tjkraz]

Here's a breakdown that was posted elsewhere:

Operating costs: 2.5657 2.8679 11.778
Capital Reserve: .4455 .4851 8.888
Property Taxes (est): .8507 .888 4.384

Total: 3.8619 4.241 9.861

One big possibility for budget increases: Gas prices. I know our local prices have fallen dramatically in the last 2-3 weeks, but I'm sure the budget was finalized long before that. And who really knows what the future will hold. I'm sure they projected some substantial increases in fuel for the busses in 2006. If those prices don't pan out, we may reap the rewards in 2007.

[ripleysmom]

The other possibility for the big increase at OKW is the new pool. I think last yr was the first yr that it was open right?

[tjkraz]

The other possibility for the big increase at OKW is the new pool. I think last yr was the first yr that it was open right?

That shouldn't have had a huge impact on the '06 budget--unless they under-budgeted for '05. The pool was scheduled to open in December '04 (delayed to Jan), so a full year's worth of costs should have been included in the '05 budget.

DVC said they were paying for the renovations to the pool itself, so members would only have to pick-up maintenance and cost of full time lifeguards. I can't remember the number of points at OKW, but I think it is in the neighborhood of 7-8 million. If so, every penny in dues brings in $70 - 80 thousand in revenues. DVC's own estimates were that the pool slide + lifeguards was going to cost members about $.02 - .04 per year. Unless maintenance has been 4-5 times projected budgets, I can't see this contributing to an increase of nearly $.40 per point.

[AFMom]

I just wanted to thank everyone for all the head-up info.... I haven't gotten my mail yet, and it was better to hear about the OKW increase from all of you than opening the statement! I think I would have fainted on my tile floor.
The reassesment of property taxes is an interesting idea - that's a distinct posibility. I really can't see why else the increase would be sooooo much higher than the other resorts.
Fuel increases can certainly account for any transportation increase,,,,,,
wow - this really was a shocker for me today....
Good thing SSR stayed reasonable....

[UsedtobeSmith]

Year OKW BWV VB VB(sub) HH VWL BCV SSR
2005 3.86 4.41 4.87 3.84 4.04 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.86 4.22 4.18 3.80
2003 3.49 4.11 4.36 3.45 3.70 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.48 3.80 3.77
2001 3.13 3.82 3.97 2.70 3.32 3.63
2000 3.16 3.94 4.08 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 2.76 3.20
1997 3.14 3.84 2.90 3.16
1996 2.99 3.70 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51

[cruise-o-matic]

There was a tax overestimate for 2004 HH dues, so that amount was subtracted from our '05 dues. Once you factored that in, we were paying $3.88 per point for this year.

Since we just bought in January, this is our 1st Annual Meeting notice. To those familiar with the previous notices, anything stick out? For example, the Resolution on Excess Assessments (2a on the HH notice). Also under General Notes, Developer Subsidy: "However, any expenses incurred during the guarantee period resulting from a Natural Disaster or act of God, which are not covered by insurance proceeds from the insurance maintained by the Association, will be assess against all Owners owning Ownership Interests..."

[chimera]

Hmmm...this goes a long way toward curing my add-on-itis :faint:

[Deep-Thots]

You can see a nice history of the annual dues (as well as dues increases) for each resort at our companion website: (tjkraz put this together)

http://www.mouseowners.com/DuesHistories.html


Kim

[Deep-Thots]

I note that we also have info for the increase at VWL:

from $4.35 to $4.61, an increase of 6% (okay, 5.98%, to be exact).


Kim

[lenshanem]

Wow, maybe I won't tell DH about the increase at BCV and VWL. Ignorance is bliss. :faint:

[TW1]

This is great. Thanks for all this info guys.

[PoohsPal]

Looks like I need a few more DIsney DOllars to cover dues now. Good thing Christmas is coming!!

[vascubaguy]

The increase at OKW has me revisiting the idea of selling my OKW contract.... hrmm... would make a nice dent in the kitchen remodel fund!

[vascubaguy]

Oh, I was also thinking that perhaps the MN fee increases will spur a "rental rate" increase for those that rent points.

[DSNY FN]

Oh, I was also thinking that perhaps the MN fee increases will spur a "rental rate" increase for those that rent points.


Wouldn't that be nice to see an increase from the falsly set lowball price of 10 a point I am a big advocate for higher rental prices.

[Leftcoaster]

I did a comparison with Old Key West in regards to the breakdown of last years dues versus this years. I listed the per point cost for last year, this year, the per point increase or decrease and the percentage increase or decrease over LY. Let's see how this shows up.... If anyone can give me tips on how to format this, I'd appreciate it. =)

The big things that jump out at me are a 10.1 cent per pt or 26% increase in Administration & front desk. Could part of this be tied to Magical Express? 10.5 cent per point or 15% increase for housekeeping costs. While it's only a 4.6 cent per point increase, there's a 40% jump in insurance. The increase for transportation (8.9 cents and 23%) is somewhat expected with gas prices... but, once again, is part of this increase related to DME?
Cost components 2005 2006 +/- % increase
Per pt per pt per pt

Admin & Front Desk 0.3868 0.4878 0.101 26%
Annual Audit 0.0014 0.0014 0 0%
DVC Reservation Component 0.0054 0.0055 2%
Fees To the Division 0.0071 0.0071 0 0%
Housekeeping 0.6839 0.7896 0.1057 15%
Income Taxes 0.0172 0.0232 0.0060 35%
Insurance 0.1163 0.1626 0.0463 40%
Legal 0.0001 0.0001 0 0%
Maintenance 0.4022 0.3831 -0.0191 -5%
Management Fee 0.2814 0.3174 0.036 13%
Member Activities 0.1035 0.1341 0.0306 30%
Security 0.0683 0.0703 0.002 3%
Transportation 0.3851 0.4748 0.0897 23%
Utilities 0.2097 0.2178 0.0081 4%
Ad Valorem Taxes 0.8507 0.888 0.0373 4%

[JudithM]

Leftcoaster, thank you for the comparison numbers.

[tjkraz]

Yes, thanks for the info.

I'm working on posting the full budgets for all resorts for at least 2005 and 2006 on the mouseowners.com website. With the holiday, it will probably take a few days to complete. I will post when that project is complete.

Tim

[jaysue]

Thanks for posting all this info

FWIW, Cold comfort for OKW owners - at least they need the fewest points which helps a bit when you add up the dues

cheers
jaysue

[jnrrt]

You know, what surprises me most is how much they've all gone up. I've been expecting it to sort of hold at around 3%, but really that's only SSR this time, and everyone else is exceeding that by a lot, except maybe BCV. They just all strike me as pretty big increases.

[jaysue]

The increases are pretty much in line with what I expected:

Gas Prices way up
Tight labour market in Orlando area
Hurricane reminders from 04/05 causing insurance upticks and more mtce costs
MYW bus transportation costs

All the above factors working together driving increases higher than inflation

:sherlock:

cheers
jaysue

[ilphil]

once you stop and think about all the factors behind the increase.
But it sure didn't keep me from almost having a stroke when I saw the figures.
Good thing I had already taken my blood pressure medication for the day!!!::eareek:

[vascubaguy]

I guess for me, it's fortunate that the majority of my points are at SSR, so not a big change. The dues for my OKW contract will only go up about $15 next year.

I'm wondering when Disney will start investing in transportation that utilizes hybrid, electric, and/or renewable sources of fuel.

Oooohhh... a thought just hit me... maybe some of the larger increases is for the "soon to be announced," "newly revamped" DVC member website, equipped with online reservation and account management features!!!! :goodvibes :yo-yo: