2026 Annual Budget Meeting — Douglas Plats HOA

Handout 1 of 3

2026 Operating Budget

Full expense breakdown for the Douglas Plats HOA's first fiscal year, covering 95 lots.

Yearly Expenses — Recurring Annual Costs

Stormwater Pond Maintenance$4,000

Insurance — General / D&O$2,000

Property Management (95 lots × $13/mo)$14,820

Administrative / Mailings / Misc.$500

Subtotal$21,320

Until Filled — Contingency Funds (Spend Only If Needed)

These funds are budgeted as a ceiling — money is only spent if a situation actually requires it. Whatever isn't spent by year-end rolls into the association's reserves rather than being refunded or carried as a loss. However, if usage is high in 2026, these allocations may need to increase in future years to adequately cover the association's needs.

Legal / Accounting covers attorney fees, CPA costs, or other professional services if needed — for example, reviewing governing documents, handling a collections dispute, or filing tax returns. If the year is uneventful, this line may go largely unspent.

Reserve for Future Repairs is seed money for the HOA's long-term repair fund. The stormwater pond and any shared infrastructure will eventually need maintenance beyond routine upkeep — this begins building that cushion so the cost doesn't fall entirely on a future special assessment.

Legal / Accounting$6,000

Reserve for Future Repairs$1,445

Subtotal$7,445

One-Time Expenses — Charged Once at Startup

Management Company Onboarding / Setup Fee$1,235

Subtotal$1,235

Total 2026 Budget$30,000

Quarterly Dues — 2026

Due April 1, 2026

$78.93

Due July 1, 2026

$78.93

Due October 1, 2026

$78.93

Due January 1, 2027

$78.93

Payment transaction fees: eCheck — $2.49 | Debit card — $9.99 | Credit card — 2.99%
Tip: Pay your full annual amount in one payment to minimize transaction fees.

2027 Budget Outlook

Our best hope for 2027 is that the base budget drops to approximately $21,320 with quarterly dues around $56.11/owner — but this is dependent on how contingency funds are used in 2026 and what the overall financial outlook looks like heading into next year. It's an optimistic target, not a guarantee. Dues could remain closer to the 2026 level or potentially higher depending on circumstances.

What's expected to be removed: The $1,235 Management Company Onboarding & Setup Fee is a one-time cost Windermere charges to establish the association in their system — setting up bank accounts, onboarding owners into the portal, and configuring all records from scratch. This only applies in the first year. The contingency lines — Legal/Accounting ($6,000) and Reserve for Future Repairs ($1,445) — may also be reduced if 2026 ends with those funds largely unspent, since the board will have real spending data to base 2027 allocations on rather than first-year estimates.

Why items might not be removed: If the HOA board votes to change management companies at renewal (January 2027), a new company would likely charge a similar or higher setup fee. If legal issues arise in 2026 — such as collections disputes or document revisions — the board may keep the legal budget at or above $6,000. Similarly, if the reserve fund is drawn on for a repair, the board may choose to increase reserve contributions in 2027 to rebuild that cushion faster.

The 2027 budget will be drafted by Windermere and submitted for board review and ratification before the year begins.

Note: Per Washington HOA law, this budget is considered ratified unless 50%+1 of voting members vote to reject it, regardless of whether a quorum is present.

Handout 2 of 3

Property Management Services

Windermere Community Association Management by Ebright Wight serves as our professional managing agent at $13/lot/month ($1,235/month for 95 lots), handling day-to-day operations on behalf of the board.

Financial Management

Collects quarterly assessments and maintains dedicated HOA bank accounts
Monthly income statements, balance sheets, and delinquency status reports
Draft annual operating budget submitted for board review
CPA coordination for tax returns and association audits
Financial records retained for up to 7 years

General Administration

Attendance at 1 all-owner general membership meeting per year
Manager report prepared for each board meeting
Annual meeting packets prepared and distributed to all homeowners
WA Secretary of State non-profit filing and registered agent service
Rules and resolution drafting as directed by the board

Owner Services & Communication

24/7 online owner portal for account information and association documents
Staff available during business hours for owner and board member calls
Ownership transfers and resale certificate processing
Board governance guidance and industry information
24/7 on-call emergency line for urgent property issues

Contract Term: February 15, 2026 – January 31, 2027 (auto-renews annually)
Contact: Brandye Hubbs, CMCA, AMS · [email protected]
541 W. Bakerview Rd., Bellingham, WA 98226

Handout 3 of 3

Your HOA Board — Roles & Responsibilities

While Windermere handles day-to-day operations, the HOA Board of Directors retains ultimate authority — setting direction, approving spending, and ensuring the association operates in the best interests of all 95 homeowners.

⚖️ Governance & Decision-Making

Adopt and amend CC&Rs, bylaws, and community rules
Set policies for conduct, common areas, and homeowner expectations
Ratify all vendor and service contracts
Ratify or reject the annual operating budget
Hold 1 general membership meeting per year

💰 Financial Oversight

Review and approve the annual budget; set quarterly assessments
Authorize withdrawals from the reserve fund for major repairs
Approve any special assessments if the budget is insufficient
Ensure adequate General Liability and D&O insurance is maintained

🚀 First-Year Priorities

Establish association bank accounts
Distribute CC&Rs, bylaws, and rules to all 95 homeowners
Seat a full board with elected officers
Notify all homeowners of the 2026 dues schedule and payment options
Set up email list, owner portal access, and mailing procedures
Confirm all required insurance policies are active

Windermere handles: Day-to-day operations, collections, record-keeping, and reporting.
The HOA Board decides: Policies, budget approval, major spending, and community direction.

2026 Budget Meeting

2026 Operating Budget

Property Management Services

Financial Management

General Administration

Owner Services & Communication

Your HOA Board — Roles & Responsibilities

⚖️ Governance & Decision-Making

💰 Financial Oversight

🚀 First-Year Priorities

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