Two of our main concerns with the ALRA and its residents are transparency and communication. If you go to the ABOUT US tab you can see the slide show presented at the AGM in October 2020. The ALRA board wants to remain fiscally responsible to its residents and of course to the Lake itself. The ALRA board will not raise fees this year as we all know too well that the economy of Alberta has not been well. We will send the invoices out early this fall to give ample time for everyone. Maintaining and improving on first class amenities requires a strong revenue base, hence annual fees. Every lot in Arbour Lake has a legal “Encumbrance” registered against the Certificate of Land Title that legally requires the owner to pay a yearly Residents Association Fee. The ALRA collects this fee in January to fund all operations for the upcoming year. The Annual Fee goes towards daily lake operations, staffing the Association, the upkeep of all stone arbours in the area and the two main entrances into Arbour Lake. A copy of each resident´s land title is kept on file in the ALRA office. The ALRA requires a copy of the Certificate of Land Title on file as proof of property ownership. The current fee schedule is comprised of four different categories as follows:
Regular Lot $262.50
Lake Access Lot $367.50
Lakeshore Lot $525.00
Multi Family Residential $210.00
(All prices include GST)
Fees are due January 1 of every year.
Arbour Lake fees were set in the early 1990’s at $196 (including GST) for the standard house (higher for lake access and lake front). They have not been raised since, which is unusual since the cost of operating the lake has increased substantially in the last 20 years. The Bank of Canada shows that inflation (increases in the cost of living) of $196 in 1993 would require $322 in 2021. Source: http://www.bankofcanada.ca/rates/related/inflation-calculator/)
The Arbour Lake Residents Association has carefully managed the fees we have collected, and will not need to raise fees this drastically. A significant concern is the Arbour Lake Pavilion, which will need to be rebuilt before the year 2050 when it is 70 years old. Other concerns include normal operational costs that have risen with the past 20 years of inflation and sustainable maintenance. Without raising the fees, we will not be able to accumulate adequate funds to properly address these issues or update the Pavilion Building. The price is adjusted using The Bank of Canada’s target inflation rate of 2.5%. The growth of the fund comes from two components: investment returns from a professionally managed ultra-conservative fund and new yearly contributions of $50,000. Using this model, our building replacement fund would equal the actual replacement cost of the building prior to 2050.
Lake Pavilion Building replacement cost: $5 million (approx.)
Replacement fund: $1.4 million (approx.)
This will make our lake financially sustainable, thereby preserving this wonderful community asset for our children and grandchildren.