Email from Community Management Regarding Fee Increase for 2026 [dated 11/10/2025]
Magnolia Shores Community HOA
Date: 11/10/2025
Dear Homeowners,
As your HOA Board, we remain committed to managing our community with care, foresight, and responsibility. Our shared goal is to ensure the long-term health of our neighborhood, keeping it well-maintained, financially stable, and a place we are all proud to call home.
Beginning in 2026, annual dues will increase by $12—from $430 to $442 per household. With 142 homes in our community, this adjustment will add a total of $1,704 to our Reserve Fund.
What is the Reserve Fund?
The Reserve Fund is a financial safeguard. It ensures that when major repairs or replacements arise & community amenity upkeep, we have the resources ready without needing unexpected special assessments.
In short, it’s our community’s “savings account” for both planned projects and unplanned challenges.
How Will the Reserve Fund Be Managed?
The Reserve Fund will be set aside in a secure account, separate from operating funds. The Board will ensure that it is managed conservatively, with safety and liquidity as top priorities. This typically means keeping funds in low-risk accounts—such as insured savings, money market accounts, or short-term certificates of deposit—where the money remains accessible when needed.
While these types of accounts may generate modest interest or returns, their primary purpose is to protect the community’s assets and ensure funds are available when required. The Reserve Fund is not designed for high-risk investments, but rather as a reliable financial cushion.
Zero-Based Budgeting and the Reserve Fund
Our HOA follows a zero-based budgeting principle, meaning every dollar of income is assigned to a purpose. The Reserve Fund is treated as one of those purposes, alongside regular operating expenses. In other words, the $12 increase per household is intentionally allocated toward strengthening the Reserve Fund and will not sit unused.
This way, every dollar collected has a “job” and contributes directly to the financial stability of our community.
Why This Matters
By steadily growing our Reserve Fund, we:
· Reduce the risk of unexpected large assessments in the future.
· Protect and enhance property values through proper upkeep.
· Build financial resilience for both planned and unforeseen needs.
We understand that any change in dues requires thoughtful explanation, and we hope this letter provides clarity on why the Board has taken this step. This decision was made with the best interests of all homeowners in mind.
We thank you for your continued trust and support. Please join us at the next HOA meeting if you’d like to learn more about the Reserve Fund or how your dues are managed.
With appreciation,
Your HOA Board
Sincerely,
Community Management, LLC on behalf of Magnolia Shores Owners Association, Inc. (225) 503-2648 | cmgt.org