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Expecting a Big MF Increase at Grande Vista? [MERGED - FL resorts Fully-Funded Reserves]

Discussion in 'Marriott Vacation Club' started by dioxide45, Oct 4, 2019.

  1. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    I received the proposed 2020 MF budget for Grande Vista and it looks like there could be a big increase. Discounting the way they show the reserve fee and only looking at the operating fee it shows an increase of $168.61. When you remove the increase in the Management Fee (because it is inflated because of how they show reserve funding on the proposed budget), the increase is still around $120. That works out to about an 8% increase over last year. I would expect some increase in reserve funding to finlate that 8% even higher.

    I get that this is still a proposed budget, but the proposed increases in certain line items don't look promising.
     
  2. hangloose

    hangloose Guest

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    Love MGV, but bad potential news on MFees. I’ll vote against it as an owner of two weeks at MGV. Just let me know how.
     
  3. BarDown

    BarDown Guest

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    I'll be attending the AGM this year instead of signing over my proxy to BoD.
     
  4. kds4

    kds4 TUG Member

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    Agreed. I also have 2 weeks there. Without more info/justification, I won't vote in favor either.
     
  5. DannyTS

    DannyTS TUG Member

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    some of the largest increases I noticed in $/unit:

    Front desk $13.52
    Housekeeping $36.65
    Insurance $15.75
    Management fee $41.54 (up 32%!!!)

    Why such an increase in the management fee?
     
  6. bazzap

    bazzap Tug Review Crew: Rookie TUG Member

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    Shouldn’t the Management Fee be a fixed percentage?
     
  7. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    Management fee is tied to the overall MF (Operating, Tax & Reserve). Since the reserve on the estimated budget is based on fully funding the reserves, it drives up the estimated management fee. If the ownership votes to waive fully funding, the increase in management fee won't be so drastic.
     
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  8. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    If you can, try to go to both the annual meeting and the BoD meetings. You get far more information by attending the BoD meeting. Though there is no voting at the BoD meeting, voting happens the next day at the annual meeting.
     
  9. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    You really can't. You can only vote to waive fully funding reserves. All the other line items are up to the BoD to decide.
     
  10. DannyTS

    DannyTS TUG Member

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    that's what I thought
     
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  11. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    It is.
     
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  12. TheTimeTraveler

    TheTimeTraveler TUG Member

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    Not sure why the Management fee is going up so high but one has to really think twice about ever replacing Marriott as the property Manager.

    Some years ago (maybe 2006 or so) some Marriott timeshare resorts lost their affiliation with Marriott and their resale value evaporated overnight. Anyone remember Spicebush or Swallowtail on Hilton Head ?




    .
     
  13. Venter

    Venter TUG Member

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    Count yourself lucky. Lakeshore has a proposed 20% increase
     
  14. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    Post #7 explains the "proposed" increase in the management fee.
     
  15. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    Again, these are proposed budgets and in Florida they include the reserves as if they are fully funded. Which more times than not the ownership votes to waive the fully funding requirement.
     
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  16. SueDonJ

    SueDonJ Moderator

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    This "fully-funded Reserves" voting issue is one of the only ones over which owners actually have control. It's vitally important to vote your proxies because absent an owner-majority vote against fully-funded reserves, MVW is legally mandated to implement them.

    Both Florida and South Carolina are "fully-funded Reserves" states; at the Florida resorts this is an annual voting issue but at the SC resorts it's intermittent. Each state has its own defined parameters which require resorts to maintain Reserves funds that exceed the Marriott standard. This isn't because Marriott is underfunding; it's because the states require a Reserves balance that covers up to the entire replacement cost of a resort, while the resort BOD recommendations can factor in things like warranties on major replacement items (roofs, siding, water heaters, etc etc etc,) Marriott's routine refurbishment schedules, extending the usable life of goods beyond the states' qualifications, etc.

    I'm NOT saying that everybody should just vote "NO" on fully-funded Reserves. I am saying that it's an important voting issue that shouldn't be ignored, and if you're hesitant about what sounds like a scary vote - "But why wouldn't we want Reserves fully-funded?!?!" - then you should contact your resort BOD and ask them to explain the specific differences between what the state considers fully-funding at your resort and what Marriott considers it.
     
    Last edited: Oct 7, 2019
    hangloose, Superchief and Fasttr like this.
  17. sjsharkie

    sjsharkie TUG Member

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    Does anyone have last year's budget.

    Even if the budget reflects fully funded reserves, I don't ever remember the budgeted increase ever being this high in years past. I also own two weeks -- this hurts.

    -ryan
     
  18. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    I have the 2019 proposed budget from last year. The proposed increase showing this year is much higher. Last year the operating fee showed a proposed increase of 5.4%, this year it is 18.6%.

    However, the proposed increase in the reserve fee was over $150, but the actual increase ended up only being about $14. This year the proposed increase in the reserve fee is almost $300, but as previously indicated, that is based on fully funding reserves.
     
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  19. SueDonJ

    SueDonJ Moderator

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    Wow. $14? I looked back through Barony and SW in the TUG MF's threads and Reserves there have always been much higher than that, even with the fully-funded mandates being voted down and minus the SA's/adjustments for recent storms damage. Think $150-$250 over a ten-year spread! Are you concerned that collecting as low as $14/Week would eventually, by necessity, require a large offset at some point?
     
  20. Fasttr

    Fasttr TUG Member

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    I think dioxide45 was talking a $14 INCREASE in the reserve amount....not a $14 reserve.
     
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  21. SueDonJ

    SueDonJ Moderator

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    DOH! Of course.

    Nevermind. :D
     
  22. Beachspace

    Beachspace Guest

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    Glad i read this! I saw a $400+ increase in my MF this year as a 3br Gold owner and almost came un-glued! Sounds like the budget is just for the fully funding reserves and when that fails, the MF will only go up $50-$100 instead of $400+.
     
  23. rickandcindy23

    rickandcindy23 TUG Review Crew: Expert TUG Member

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    Marriott just kind of does what it wants and gets those increases.

    I keep thinking how the sales' department hard-sells people on timeshare, and then when owners decided they made a mistake and walk away, Marriott is never hurt by it. It's the owners who are hurt. We pay for the people who don't pay. That is truth. And it's horrible because it's entirely the fault of the salespeople.
     
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  24. jpc763

    jpc763 TUG Member

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    I received a Notice of Budget Meeting for Imperial Palms Villas today. I don't usually pay attention to these as I cannot attend but this time I noticed a link to some documents. In the documents I saw a budget proposal.

    The budget proposal showed a 42.8% increase in maintenance fees.

    Am I missing something here?
     
  25. jpc763

    jpc763 TUG Member

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    I believe that it is due to Florida requiring fully funded reserves which I believe gets voted down every year. At least I hope that is what it is.
     

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