The Landmark HOA Board recently contracted with Morrison Maierle Engineering to complete research on the overall condition of the roads and projected maintenance of our roads. The HOA Board would like to reach out to the community regarding our findings. We will be holding a community meeting to discuss the findings and our funding options. The meeting will be held Tuesday, April 14, 2020 at the River Rock Community Center @ 6:30 pm.
Comments can be sent to info@lunaproperties.biz who will forward to the board. All questions, comments, and concerns will be addressed at this Special Meeting!
Current Condition
· Current assessment is that the roads are in fairly good condition but are beginning to show signs of wear.
· Annual ongoing costs will be around $20,000 a year to maintain. This includes snow plowing, pavement preservation maintenance and right of way weed spraying.
· Our streets are 17 years old. Asphalt pavement typically requires some surface treatment in 16-24 years. Based on an on-site evaluation, the current road will require a pavement overlay in 2028 or 2029. Estimated costs for pavement overlay is $803,000.00.
With this in mind, we need to decide how to fund the maintenance. There are two options the board is considering:
· The first would be self-managed through the collection of reserve funds through special assessment and management of required maintenance through the HOA.
· The second option would be to partner with the County and create a Rural Improvement District (RID).
Self-managed Reserve Fund
The HOA would begin collecting funds in 2020 to build a reserve to fund the cost of the pavement overlay. The amount of the assessment would be at least $1,000 per lot per year over the next three years or more to accumulate enough funds for the road repairs. The special assessment funds would only be allocated for road repairs and would not be available for normal operating expenditures.
What is a RID?
A Maintenance Rural Improvement District (M-RID) is a legal funding mechanism through which a subdivision can raise reserves for on-going maintenance and improvements. The RID program provides planning, management, engineering services, and administration of the fund. For more info please click on the links below.
What are Advantages of a RID?
Scheduled Maintenance: The RID program develops a maintenance schedule and funding to ensure that our roads have good maintenance to extend the service life well into the future.
Competitive Bidding: Each year multiple RID improvements are competitively bid to qualified contractors. These bids are lower than those received on smaller projects due to the increased volume of work bid out for the combined RID projects. The HOA Board cannot take advantage of these savings, so must assess much higher amounts.
Tax Deduction: Most accounting firms consider the assessment a tax deduction so there is an advantage to fund road maintenance with RID funds vs. HOA funds.
Interest Accrual: Funds in the account do accrue interest comparable to the market for secure investments.
Savings: Implementing this RID will save us at least $20,000 a year on annual expenditures to maintain the roads. We will be able to allocate those funds towards much needed improvements in the community that we would like to see done. We currently do not have the extra funds to make those improvements. Plus, we will be able to keep our HOA dues at an affordable price!
Managed by Luna Properties, LLC
40 East Main Street - Suite 210
Bozeman, MT 59715
406.582.7490 office
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