Amenity Fees Opinion

An important consideration is underway regarding capping the amount residents pay for the monthly Amenity Fees paid by residents living north of CR 466. The Amenity Authority Committee is responsible for amenity services north of 466. The amenity fees are used to pay for the following items:

• Landscaping (Recreation and Common Areas)
• Water Retention Areas
• Community Watch
• Recreation Centers and Activities
• Gates and Postal Facility Maintenance
• Executive Golf Courses

Per the Declaration of Restrictions, each homeowner agrees to pay an amenity fee as part of the purchase of their home. The fee is discussed in the deed restrictions part of the home purchase contract. The specific amount of the fee varies for each homeowner depending on the date they purchase their home. After the purchase date, the contract signed by the resident allows for the amenity fee to be adjusted annually based upon the Consumer Price Index (CPI).

Some residents are suggesting that the AAC amenity fees be frozen at their current rates with a deferral of any increase until a future date. They feel that there is more than enough in the current reserves to cover all current expenses and that there will be a significant reduction in need for revenue once the amenity acquisition bonds are paid off which will occur in 2036.

There is a difference of opinion as to whether the AAC can unilaterally decide to defer any amenity fee increase without the agreement of other parties that would be affected by this decision. The legal representative for the AAC has advised that it is his professional opinion that they cannot. At least one member of the AAC disagrees with this opinion and feels that the AAC can defer any increase based upon a majority vote of the AAC.

The VHA’s position is to urge the AAC to continue its comprehensive examination of the issue. We feel residents should not pay more than necessary for their amenity fee. Like everything else we pay (utilities, taxes, groceries) amenity fees have continued to increase. The contracts and bills that the AAC are responsible for are also increasing just as they are for us in our own homes. Landscape contracts, service contracts, utility charges and more continue to increase for the AAC just as they are across the country.

That being said, the AAC has a responsibility to maintain all of its facilities and services to the standards that all of us in the community enjoy and expect. This includes maintaining current facilities, properly planning and budgeting for repair and replacement of all AAC owned assets and having adequate reserves for unexpected events/issues such as sinkholes, storm damage, equipment failures, etc. An example of this was the sinkhole at Moyer Recreation Center in 2021 that resulted in a $500,000 unplanned expense. While this event was not under the purview of the AAC, it could happen anywhere in its jurisdiction.

Consideration should also be given for the replacement of aging facilities. The replacement of the Paradise Recreation Center is projected to cost approximately 20 million dollars. The new center is going to be a wonderful facility and is significantly different than the facility it is replacing to meet the demands of current residents. Based on feedback from Golfers all over The Villages, the AAC provided additional funds to get the courses back up to our standards. Two courses are being fully renovated this year, in addition to numerous other smaller projects. That is what the amenity funds are for, to keep our golf courses and other facilities top notch.

As part of the lawsuit settlement that created the AAC, initial funding of $40 million to the AAC was provided by the Developer to provide for future expenses. These funds have been used for the maintenance and refurbishment of AAC facilities. As of this date, all but $6 million of that funding has been spent.

IF it is legally possible and if the amenity fee rate revenue will fully fund all planned and projected expenses including replacement of aging infrastructure while also maintaining the quality of services and facilities then we agree that a deferral of the current amenity fee should be considered. This deferral should be examined every budget year. We do not believe it is fiscally prudent to guarantee a freeze of the amenity rate for more than one budget year at a time.