The proposed budget for 2026 has been drafted. There is a $110 increase, representing 10%. This increase is going directly to the reserve fund. The reserve study was released at the end of 2024 and is posted on haydenlakeshoa.org for review. It suggested the Association start saving $165,000 per year in 2025 and increase that amount by 2.57% yearly to cover anticipated repairs and renovations of property owned by the Association. Without this information and until this point, the Board was grossly under saving annually for the reserves. Since the 2025 budget was already released, it remained set and we continued to strive to reduce costs and increase savings above budgeted. For 2026, to be fiscally responsible for the future, the Association must start saving significantly more than we have ever budgeted before. The recommendation for 2026 according to the reserve study is $169,241. We are targeting at least $136,000 with the goal to be above that.
The 2026 budget reduces operating expenses by more than $24,000. The Board would like all residents to understand that just because we are bringing in additional funds, does not mean we are spending additional funds frivolously. Since the beginning of the neighborhood, the yearly budget has been more or less balanced with a relatively small amount ($10,000-15,000) planned to go into long-term reserves. With the anticipated expenses of all items in the reserve study, we can no longer rely on a simple balanced budget from year to year. Only 5 years of the forecasted 30 in the study have reserve expenses of $30,000 or less. If we rely on paying the repairs yearly as they occur, most years would require a special assessment. The highest, 2036, could require an additional $1,300. If the reserve funds are depleted and the Association does not have the necessary funds available, the Board at that time may be required to take out a loan or wait until the special assessments are collected to make the necessary repairs.
One of the goals of a reserve fund is to have today’s homeowners and future homeowners share a fair and equitable portion of the financial obligations to maintain the community. Every resident pays into the long-term reserve fund, regardless if they plan to live here in 5-10 years. It is for minor degradation of facilities each year that will require known repairs and renovations in the future to maintain the attractiveness and functionality of the neighborhood, that will in turn maintain and elevate the desirability of the neighborhood for home values.
For 2026, a few categories have significant changes.
- General repairs will now include general, electrical, fence, and pavilion repairs.
- Irrigation repairs is increasing significantly. After several conversations with the landscapers about the 2-wire system, we should be anticipating more repairs. We have seen that this year and need to budget appropriately.
- Fountain maintenance is reduced. The fountains on lakes 1 and 2 are 10+ years old. Significant repairs may require a full system replacement, that would come out of the reserve funds.
- Elections is being eliminated as it is actually a mailout fee, printing, and postage rather than trying to separate those expenses out.
- Electric is being kept the same, but water is being reduced. We have stressed to the landscaper not to water more than required. This cost may be more in very dry years..
- We are using the mosquito spraying line item for all extermination, so it includes all neighborhood-wide spraying and extermination needs.
The Board understands an increase is unpopular. We are obligated by our fiduciary duties to make decisions for the long-term health of the neighborhood and Association. If you would like to submit comments or questions regarding the budget, please email them to Board@HaydenLakesHOA.org. Please note that we may not respond to each email directly but will address concerns during the Board meeting on Sep 24 at 7pm. Thank you for your understanding.
Hayden Lakes Board of Directors
2026 Hayden Lakes Proposed Budget