(UPDATED October 10, 2025)

Fairway Cove homeowners will once again avoid a significant increase in assessments for 2026, while ensuring the community remains well positioned to meet ongoing needs, fund important capital improvement projects, and address unexpected challenges.

This positive outcome reflects the Board of Directors’ continued diligence and commitment to responsible financial planning, as demonstrated through the approval of the 2026 Fairway Cove Budget at the October 8, 2025 Regular Board Meeting. 

The 2026 budget totals $210,129.84, with quarterly assessment rates increasing by only 3.4%—from $367.85 in 2025 to $380.67 in 2026, a difference of approximately $12 per quarter.

This careful adjustment comes at a time when service costs and association obligations continue to rise. Fairway Cove’s annual assessment to the MetroWest Master Association (MWMA) will increase by $1,000 in 2026, significantly smaller than the more than $7,000 increase absorbed in 2025. MWMA’s newly adopted 2026 budget totals $3,322,894.53, with each member community contributing its proportional share. MWMA assessments represent Fairway Cove’s single largest expenditure, totaling $76,578.72, or 36.44% of the 2026 budget.

The Budget Process
In preparing the budget, the Board of Directors, with guidance from Vista Community Management, worked diligently to balance unavoidable cost increases with the community’s ongoing needs. The 2026 budget accounts for higher expenses related to Master Association fees, landscape and grounds maintenance (the first increase in years), Orlando Police Department services, and insurance coverage. At the same time, the Board remains committed to maintaining reserves and ensuring long-term financial stability.

The Board appreciates the many homeowners who reached out or attended the October meeting to share their perspectives. While opinions varied, all participants shared a common goal: protecting and investing in our community responsibly.

The October 8 meeting also provided an opportunity for homeowners to better understand the budget process and gain fact-based insight into Fairway Cove’s financial standing and obligations.

Per our management contract, Vista Community Association Management bears Fairway Cove’s legal fiduciary responsibilities, with oversight from each member of the Board. Vista develops a proposed budget each year based on:

• Community needs

• Board feedback

• Reserve study guidance

• Projected service costs

• HOA financial best practices

During the August 2025 Board Meeting, members discussed goals and priorities for the upcoming year.

Vista drafted the proposed budget based on these factors and shared it with the Board, and was shared with homeowners via newsletter and website, several weeks before the October meeting.

The October Board Meeting was the first and only opportunity for the Board to review and finalize the proposed budget, make any necessary adjustments, and clarify misinformation circulating about the budget process, particularly regarding Prior Years Retained Earnings and reserve funding levels.

Understanding Retained Earnings and Available Funds

The annual budget is a financial roadmap. Some accounts may exceed estimates, while others come in under budget. In some years, this balances out; in others, it may result in a surplus or a deficit.

Prior Years Retained Earnings, listed under liabilities, reflects the association’s accumulated financial position since inception. Fairway Cove’s current retained earnings total $122,958.42. This figure does not represent a cash account or available funds. It’s an accounting meter.

Prior Years Retained Earnings shows the net balance of surpluses and deficits over the many years since Fairway Cove was established in the late 1980s, serving as an indicator of long-term financial health.

If the association ends a year $5,000 under budget, retained earnings increase by $5,000; if it runs $5,000 over, the total decreases by the same amount.

As a Florida not-for-profit association, Fairway Cove’s assessments must equal its expenses. Therefore, the retained earnings line is simply an accounting measure, not an asset.

As of the October 8, 2025 board meeting, the actual cash surplus on hand totaled $23,502.26, calculated as follows:

• Operating Account Balance: $144,874.21

• Less Prepaid Assessments: $20,650.91

• Subtotal: $124,223.30

• Less Six-Month Emergency Operating Reserve: $100,721.04

• Remaining Surplus:$23,502.26

Prepaid Assessments are assessments homeowners pay in full, typically at the beginning of the year. Six Month Emergency Operating Reserves is a standard practice and recommendation. This protects HOAs, especially during potential unforeseen pandemic, economic, or related hardship situations, which have impacted Fairway Cove previously.

These funds are being reinvested in projects that benefit the community as a whole.

Hurricane Cleanup / Insurance Deductible Reserve

During the October 8 meeting, the Board discussed the “Hurricane Cleanup / Insurance Deductible” reserve fund. Historically, Fairway Cove’s reserves focused only on physical assets such as walls, landscaping, and ponds.

A 2020 Reserve Study recommended creating this fund and set a target balance of $97,858 by 2030. Since then, the Boards over several years have contributed annually toward this goal. This is the fifth year with a related reserve and the third year in a row with nearly unchanged contributions, with no prior objections raised, and as outlined and recommended in the 2020 reserve study.

A 2024 Reserve Study, prepared by a different firm, did not analyze this specific fund because it is not tied to a specific physical asset. The 2024 Reserve Study focused on physical asset reserves (wall, landscaping, pond, etc.). Nonetheless, these contingency reserves remain essential for preparing the association for unexpected events like storm cleanup or uninsured damage.

Fairway Cove’s insurance covers general liability and Directors & Officers (D&O), with a $1,000 deductible per occurrence. However, storm-related damage is not covered, meaning Fairway Cove is responsible for any such costs directly.

Learning from the Past, Planning for the Future

Fairway Cove is a 30+ year-old community of 138 homes. The neighborhood’s needs and priorities have evolved over time. The Board’s responsibility is to manage for today while preparing for tomorrow.

In October 2018, homeowners received notice of a $45 per quarter assessment increase due to budget shortfalls following prior reductions in assessment rates. This event illustrates the importance of consistent, forward-looking planning.

Each Board faces its own challenges. The current Board’s approach is not to criticize the past but to learn from precedent, ensuring stable financial footing and avoiding surprise assessments in the future.

Through prudent management and cost savings, Fairway Cove currently maintains a modest but meaningful surplus of $23,502.26. These funds are being reinvested in community improvements, and without needlessly dipping into reserves.