Penn Estates 2027: Budget, Reserves & Assessment Update
Dear Members,
As we prepare for the 2027 fiscal year, the Board of Directors and management would like to provide the membership with an update regarding the Association’s budget, reserve funds, and the upcoming assessment.
Members were previously notified of the Association’s annual budget presentation, which was held on September 4 at 9:00 a.m. An additional budget presentation is scheduled for October 7 at 7:00 p.m. Members are encouraged to attend these presentations to learn more about the Association’s financial position and the planning that goes into preparing the annual budget.
For 2027, the annual assessment will increase by $50.00, from $1,466.00 to $1,516.00 for an improved lot. This represents an increase of approximately 3.41%.
While any increase in the annual assessment is significant to our members, it is important to understand how the Association’s reserve funds are used and why maintaining those funds is essential to the long-term financial health of Penn Estates.
Reserve funds are funds set aside for major repairs, replacements, improvements, and capital purchases that are not part of the Association’s routine operating expenses. These funds allow the Association to plan for significant expenditures without having to rely solely on annual operating income or incur unnecessary debt.
Over the past several years, the Association has used its reserve funds to make substantial investments in the community. By the close of 2026, the Association will have invested just over $2 million from the reserve account for improvements to common areas and the purchase or replacement of necessary equipment for the year. These investments have included projects and equipment intended to maintain and improve the community’s infrastructure, amenities, and services.
Using reserve funds for these purposes is an important part of responsible Association management. However, when substantial amounts are withdrawn from reserves, those funds must also be replenished. Continuing to maintain adequate reserves ensures that the Association is prepared for future major repairs, replacements, and improvements while reducing the need for large assessments or borrowing when unexpected needs arise.
The Association must also continue to address increasing operating costs. Like individual households, the Association is experiencing increases in the cost of utilities, insurance, repairs, maintenance, equipment, labor, technology, and other services necessary to operate and maintain the community. These costs affect the Association’s annual operating budget and must be considered when establishing the assessment.
The Board’s responsibility is not only to address the Association’s needs today, but also to plan for the future. Maintaining adequate reserve funds allows Penn Estates to continue making necessary improvements, replacing aging equipment, maintaining our common areas, and
preparing for significant capital expenditures without placing an unreasonable financial burden on future membership.
The $50.00 assessment increase for 2027 is therefore part of a broader financial plan designed to balance the Association’s current operating needs with the long-term need to maintain and replenish its reserves.
The Board and management understand that increases in the cost of living affect every household. The Association will continue to carefully review expenditures, seek cost-effective solutions, and prioritize projects and purchases based on the needs of the community.
We encourage members to attend the October 7 budget presentation at 7:00 p.m. and to remain informed about the Association’s finances and the planning necessary to maintain Penn Estates for the benefit of all members.
Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_fMPVSKoeQL2o5iOrzmzhbA
After registering, you will receive a confirmation email containing information about joining the webinar.
Thank you for your continued support and commitment to our community.
Sincerely,
Phyllis Haase
Community Manager
Penn Estates Property Owners Association
