Financial Updates

The Cost of Running Punta Piedra

Punta Piedra

Punta Piedra

— 2 min read
Share

Punta Piedra is a large community spread across four phases of development.

The Association supports a wide range of services and infrastructure, including:

  • Security and access control
  • Administrative and maintenance staff
  • Landscaping and common-area upkeep
  • Roads, sidewalks, walkways, and lighting
  • Pools, hot tubs, bathrooms, and sport courts
  • Fresh water pila maintenance
  • Sewer and wastewater treatment operations
  • Ongoing repairs and emergency maintenance

These are not small responsibilities. Many of the Association’s costs are fixed and continue month after month. 

At the current level of services and maintenance, Punta Piedra costs roughly $40,000 USD per month to operate. Current dues collections bring in roughly $30,000 USD per month.

That leaves a shortfall of approximately $10,000 USD each month. That is the issue. The Association is spending more than it collects.

Why This Matters Now

In June, the Association sent owners a financial update explaining the seriousness of the current situation.

This newsletter is a follow-up to that message.

For years, the Association has relied on reserve funds to cover shortfalls when monthly collections did not fully cover monthly expenses. That is not sustainable.

Those reserves have continued to decline.

Without meaningful action, the Association is at risk of running out of operating funds before the end of the year.

This does not mean services stop immediately.

It does mean the current model is not sustainable.

The Association cannot continue spending more than it collects and expect services to remain unchanged. 

The Monthly Gap

At the beginning of each year, the Association receives an influx of dues because many owners choose to pay annually. That helps cash flow temporarily, but it does not fix the underlying monthly gap.

The issue is not only timing.

The issue is that recurring expenses exceed recurring income.

What Can Change

There are only a few ways to solve a deficit.

The Association can reduce expenses.

That may mean fewer guards, reduced services, deferred maintenance, limited repairs, or other reductions in operations.

The Association can increase income.

That may require an increase in fees, which cannot be done without a properly noticed Assembly and a vote by the membership.

Or the Association can do both.

For now, the Board and staff are reviewing expenses carefully. No new capital expenditure projects should move forward unless they are necessary for safety, legal compliance, or essential operations.

The immediate goal is simple:

  • Stop deficit spending.
  • Protect essential services.
  • Prevent the Association from becoming insolvent.

Read more