Mimosa

Cabana FAQ List

Oct 20, 2005

Mimosa Tax District
Cabana Renovation Project Q & A

Question: Why do we need to renovate the cabana?
Answer: The existing cabana was built in 1962 and is in dire need of major maintenance. The roof needs to be replaced. The shingles are falling off the outside walls. The bathrooms are inadequate and nearly impossible to keep clean. There is no indoor or covered space for any activities.

Q. Why do we have to expand the cabana?
A. In order to meet the current building code, all public buildings and bathrooms must be handicapped accessible. That requirement almost doubles the size of the bathrooms. Currently there is no covered space to get out of the sun or sudden rain. The planned covered pavilion will provide tables and chairs for eating, games and recreation.

Q. Why does it cost so much?
A. The cost of building materials and supplies has nearly doubled in the last two years. We were somewhat surprised at the cost estimates. That is why we continued to get seven estimates even though only three are require by our By-Laws. Based on the consistence of the estimates, we believe the estimates are justified for the work to be done.

Q. How much is left on the existing loan for the pool?
A. The original loan for the pool in 1998 was for $265,000 payable over 10 years at 8.5%. In 2003, we refinanced $158,000 of that loan at 6.5% and issued bonds to provide for the repayment. The refinancing saved us $27,540 in interest charges. Currently there is $134,188 left on the loan with funds set aside for the January 2006 payment of $29,663. Each year?’s payment is less since we only pay interest on the unpaid balance.

Q. Why don?’t we just pay off the existing loan before we take on more debt?
A. The existing loan cannot be prepaid or consolidated with a new loan. The final payment on the existing loan is scheduled for January 2010. We cannot wait until 2010 to fix the cabana.

Q. Can we afford another loan at this time?
A. Over the last three years, the board has implemented a number of changes aimed at controlling and reducing our expenses and increasing our revenue while maintaining our taxes at a constant rate. We have clearly demonstrated that we can operate with a $35 ?– 40,000 surplus. That amount will be sufficient to service a loan of approximately $200,000. We have been able to build up our reserve fund in excess of $100,000. A large portion of that will be used to fund this project. At the same time we believe that it is prudent to maintain a sufficient amount in our reserve fund to meet any unexpected emergency. We are confident that we can afford this at this time without any increase in taxes.

Q. Why can?’t we wait until we save up enough money to pay for this without a loan?
A. The cost of this project will escalate faster than we can save the money. When we looked at this three years ago, preliminary estimates were $150,000. We did not have a sufficient reserve fund and we had not demonstrated a consistent ability to operate within our budget. We have corrected these two shortcomings and now find that building costs have doubled. Builders who have bid on this project have made it clear that these prices are only for this year. The price will be more if we wait until next year.

Q. What other major projects do we have to complete?
A. We resurfaced the parking lot last year and that should last for 7 ?– 10 years. We resurfaced the tennis court last year and that should last at least five years. We need to replace the tennis court lights and have estimated that to cost about $2,500.

Q. Will the renovated cabana increase usage of the area?
A. We have always maintained that 87 families is the proper level of membership with residents getting priority over non-residents. We will not increase membership beyond 87 families. The expanded area is intended to provide a more enjoyable and pleasant recreation area. It is not intended to increase membership.

Q. How will we deal with parking issues?
A. There are several occasions each year when parking has been a problem, in particular, holiday parties and swim meets. Toward the end of this past season, we experimented with parking on the ball field for those occasions. It worked well. We will continue to do that in the future on those occasions when we expect large crowds.

Q. Will the new community room be available for rentals and private parties?
A. Yes, the community room will be available for rentals, meetings and private parties with approval of the board required on a case by case basis. Non-pool usage will be restricted to residents and the hours of usage will be restricted. Since the cabana must still be winterized and the pipes drained, usage will not be available on a year round basis.

Q. What is the timing for this project?
A. Assuming that we get your approval tonight, we will present our plans to the Town Planning and Zoning Commission on November 7th. If it is approved by P&Z, we hope to have the concrete poured before the freezing weather sets in. If the foundation is poured, construction can continue through the winter. We expect the project to be completed before Memorial Day 2006. If there are significant delays, we will postpone the project until after Labor Day 2006. We will not jeopardize the pool operating season. Concurrent with these reviews, we have started to discuss the financing with several banks. The board cannot authorize the financing without approval of the tax payers. We will ask for your approval at the November 2nd meeting.

If you would like to discuss any of this before the scheduled meeting, please call me or any of the other board members.

Don?’t forget to visit our web site to see the proposed new cabana. www.neighborhoodlink.com/ridgefield/mimosact

Joe O?’Brien
President, Mimosa Tax District
10/19/05