Hello OBYC Members,

The Board has received several inquiries requesting additional information regarding the 2025 dues increase. To answer the questions raised, I have put together a more granular analysis (below) of the situation we were faced with this year, as well as some history.  I hope it is helpful.

The dues have increased $339.00 over the last 7 years. This is an average of $48.42 per year. The increase in the dues from year to year is affected by changes in expenses but also changes in income. We try to account for all these items. We hope that our beach badge income, new member fees, marina fees, etc. hold up from year to year. We have been operating within our budgets in the recent past.

For 2024, we had a net income of about $14,000.00. We finished the year with a bank balance of about $14,000.00 due to extra income from new member fees and a robust marina rental season. This is not an official cash flow analysis, but bottom line, the amount we budgeted, we spent.  

This year we had three areas that represent the majority of the dues increase:

• Payroll:  

• • We budgeted $322,501 for gross payroll, payroll taxes and payroll processing expenses. This was an increase of $66,981 over the actual 2024 expense. This increase was necessary because:           

• • • Minimum wage was increased to $15.49/hour. This causes a domino effect. With an entry level badge checker now making $15.49/hour, we were forced to upgrade other staff who are occupying more skilled positions
    • In November of 2024, the Board became aware of a new federal law, effective January 1, 2025, mandating that any salaried employee must earn a minimum of $58,656.00. The administrator position has always been a salary position due to the inordinate number of hours the job requires during the summer, which would require us to pay overtime to an hourly employee. After examining our options, it was determined that the position should remain a salary position, thereby requiring the federally mandated minimum of $58,656.00. Since we set the club budget in November, we allocated $58,656.00, posted the administrator job, and set up interviews. In December of 2024, the Board learned that the new salary law was being overturned by a judge in Texas. Due to the uncertainty of what the impact would be and if another judge might uphold the challenge, the Board chose to stick with the minimum salary mandated by the law and move forward as planned. This was a substantial increase over what our former administrator was being paid. In addition, we elected to overlap our outgoing and incoming administrators for several months for training purposes. The total increase attributed to the club administrator amounted to $50,442.00. This represents $102.00 per home. 
    • Our Improvements Coordinator is also retiring. His job is hourly but will also require an overlap to train his replacement.  

• Capital Reserve Study:

• • The State of New Jersey now requires that all community associations complete an official reserve study every three years if assets exceed $25,000.00. 

• • • Although we have been funding our reserves for years, under the new requirements, it was concluded our reserves are underfunded.
    • This additional funding will further ensure that our association is better protected for the future.
    • To protect our assets, the Board chose to fully fund the reserve. Traditionally, we had funded our reserve at $49,400.00/yr.  The study recommended we increase to $76,981.00/yr. The increase of $27,581.00/yr represents $56.00 per home.

• Insurance:

• • Costs are steadily rising every year.

• • • The increase in cost from 2023 to 2024 was $9,142.00.
    • Total expenses for 2024 was $56,583.00. We budgeted $59,000.00 for 2025. The increase of $2,417.00 represents about $5.00 per home.

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To summarize:

 

We do our best to keep on top of the growing number of laws and regulations that are applicable to our club. What may have been simple in years gone by, now requires a great deal of attention on the part of the board. Everything possible is done to minimize impact on the members. It is worth mentioning that Board members pay the same dues as all other members. 

I have included a detailed budget in the areas of gross salary and insurance, which can be accessed using the button below:

Please let me know if you have any questions. 

 

Best Regards, 

Bill Lindner
President, OBYC