August 22, 2008 – Marina Towers Condominium Association voted Thursday to submit to unit owners a proposed budget for 2009 that will increase their assessments by four percent. Residential property manager David Gantt says the increase is necessary because income is down. He says interest income on operating accounts has dropped $21,000 from last year. Income from unit repairs and move-in fees are down as well.

The budget for legal expenses is being increased to $40,000 in anticipation of problems collecting assessments and disputes with Lasalle Hotel Properties, owner of Hotel Sax and adjacent commercial property at Marina City. “We anticipate that there could be legal fees involved with the commercial entity on a number of different scores,” says Gantt. “One of them might involve the carpeting out in the mall area. One of them might involve noise complaints with new tenants moving in.”

General legal fees this year were budgeted at $20,000. In 2007, the budget was $15,000.

Another big expense is water. MTCA’s water bill has gone up 15 percent from last year and is expected to go up another five percent by next year. $92,654 has been spent on water this year and the budget for 2009 is $100,000.

Gantt says the budget will add $685,000 to reserve funds next year. He says it will cost about $600,000 per year for the next four years to repair and maintain balconies. According to his figures, MTCA will keep about $2 million in reserves “over a long period of time.”

Total income and cash outflow for 2009 is budgeted at $4,311,652.

Assessments could earn you credit card points

Unit owners could see some benefits to Draper & Kramer moving its operating accounts to Barrington Bank & Trust. As early as November, assessments could be paid by credit card or electronic funds transfer. The cost to charge by credit card would be $3.99, paid by the unit owner. This is expected to decrease late fees and legal expenses related to collections.

The board decided not to discuss an increase in late fees, proposed by the Finance Committee, from $50 to $75.

The proposed budget will be mailed to unit owners along with their assessment bill this month. They’ll have 30 days to review the budget and comment before the board votes on it. By law, the budget has to be ready by the end of the year.

Support for fitness center

About 400 residents responded to the exercise facility survey, according to residential property manager Gantt, with 91 percent supporting such a facility.

The fitness center would be built on the 20th floor in space created by stacking washers and dryers and moving a wall to make the laundry room smaller. It would be 40 feet long and face the river. It was not clear if such a facility would be in both residential towers or just one.

Gantt says he is in the process of getting cost estimates, but “it’s not going to be cheap.” He says another survey will be sent out in about a month to get opinions once costs are known. One cost that would not be going up is liability insurance, says Gantt, as long as there are no heavy barbells.

HD upgrade almost complete

MDU Communications has completed its upgrade of high-definition television equipment at Marina City. HD subscribers in the east tower are enjoying 60 HD channels and the west tower should be ready next week. Another 75 HD channels are expected by the end of the year at no additional cost to subscribers.

The MTCA board met for 24 minutes. Robert Abell arrived five minutes late. Peter Desch arrived 13 minutes late. Vice President Don O’Malley, William Balcerzak, Harold Bellamy, and Marc Straits did not arrive at all. There was no closed session.

 Listen to the entire meeting