[bragones]

Amenity fee adjustments are made annually based off of a CPI index which is calculated monthly. Amenity fee adjustments occur on the month that the home was originally transferred from the developer to the owner. Since amenity adjustments vary because they are based of the CPI index which changes monthly, two homeowners with otherwise identical situations could have vastly different amenity fees over the years simply because their anniversary date landed on months that happened to have lower (or higher) CPI adjustments. Seems like it would make more sense to base the adjustment on a CPI annual average rather than the monthly change percentage so that all homeowners would get approximately the same percentage increase. I placed a call to the utilities office and they confirmed that it works as I described and it is true that over the years, amenity fees can differ notably for identical homes, especially since there is no cap.

[Bill14564]

While the CPI is calculated monthly, I believe the amenity adjustment is based on the year-over-year change in the CPI. The fee isn't adjust by the 0.6% that the CPI increased since last month and it isn't adjusted by the average of the last 12 individual months (about 0.7%). Instead, the amenity is adjusted by the 8.3% (approx) total increase in the CPI over the last year. Essentially, this adjusts the fee to "catch up" to current prices.

Are there winners and losers? Somewhat, but that will happen regardless of the system used. In this case, if there is a period of inflation then adjustments towards the beginning of the period will be less than adjustments towards the end; I would prefer that my adjustment occur six months ago rather than today. But if inflation continues for another six months then it will be higher then than it is today and my adjustment would catch up again. If we had six months of inflation followed by six months of deflation then the fee that gets adjusted in the valley would make out much better than the fee that gets adjusted at the peak but that isn't a likely scenario.

[bragones]

Originally Posted by Bill14564

While the CPI is calculated monthly, I believe the amenity adjustment is based on the year-over-year change in the CPI. The fee isn't adjust by the 0.6% that the CPI increased since last month and it isn't adjusted by the average of the last 12 individual months (about 0.7%). Instead, the amenity is adjusted by the 8.3% (approx) total increase in the CPI over the last year. Essentially, this adjusts the fee to "catch up" to current prices.

Are there winners and losers? Somewhat, but that will happen regardless of the system used. In this case, if there is a period of inflation then adjustments towards the beginning of the period will be less than adjustments towards the end; I would prefer that my adjustment occur six months ago rather than today. But if inflation continues for another six months then it will be higher then than it is today and my adjustment would catch up again. If we had six months of inflation followed by six months of deflation then the fee that gets adjusted in the valley would make out much better than the fee that gets adjusted at the peak but that isn't a likely scenario.

If you are correct in that the fee is adjusted on year-over-year change in the CPI rather than the CPI change for the month, then I agree that amenity fee differences over time would be minor but the Utilities rep said the adjustment is made off of the monthly index change, no mention of a year-over-year change, and agreed that amenity fees for similar homeowners could vary notaby over time.

[Bill14564]

Originally Posted by bragones

If you are correct in that the fee is adjusted on year-over-year change in the CPI rather than the CPI change for the month, then I agree that amenity fee differences over time would be minor but the Utilities rep said the adjustment is made off of the monthly index change, no mention of a year-over-year change, and agreed that amenity fees for similar homeowners could vary notaby over time.

In March my amenity fee increased by about 7%. I do not believe prices increase 7% from February into March while I can believe prices increased 7% from March 2021 to March 2022.

7% and 8% increases have been reported in other amenity fee threads as well.

[bragones]

Originally Posted by Bill14564

In March my amenity fee increased by about 7%. I do not believe prices increase 7% from February into March while I can believe prices increased 7% from March 2021 to March 2022.

7% and 8% increases have been reported in other amenity fee threads as well.

That makes sense. Seems the CPI calc is adjusted monthly but is a year over year calculation. Thank you for your response.

[tophcfa]

Originally Posted by Bill14564

In March my amenity fee increased by about 7%. I do not believe prices increase 7% from February into March while I can believe prices increased 7% from March 2021 to March 2022.

7% and 8% increases have been reported in other amenity fee threads as well.

Ours increased by the same amount in March as well. I was under the assumption that the increase would coincide with the month we closed on our home, which was December, but apparently I was wrong.

[Bill14564]

Originally Posted by tophcfa

Ours increased by the same amount in March as well. I was under the assumption that the increase would coincide with the month we closed on our home, which was December, but apparently I was wrong.

I believe the timing is related to when the home was originally turned over from the developer; maybe the month it was first sold or the month it was first available for sale. This would make a bit of sense since the month would be stored in a database once and not need to be modified each time a home changed hands.

[Bogie Shooter]

Much ado about nothing…………..

[Bill14564]

Originally Posted by Bogie Shooter

Much ado about nothing…………..

Nothing wrong with trying to figure out how things work around here.

[davem4616]

no matter how you calculate it...we can be sure that it'll be going up...just part of living the life in TV and keeping the place looking nice

[Bogie Shooter]

Originally Posted by Bill14564

Nothing wrong with trying to figure out how things work around here.

Start here,
Village Community Development Districts

[Bogie Shooter]

Originally Posted by Bill14564

Nothing wrong with trying to figure out how things work around here.

Start here,
Village Community Development Districts

[Bill14564]

Originally Posted by Bogie Shooter

Start here,
Village Community Development Districts

Certainly a good resource but you can also ask a question of your neighbors that have been around a while. Some of them will politely provide an answer, others.....

[Nucky]

Originally Posted by Bogie Shooter

Much ado about nothing…………..

Wrong Thread!

[bragones]

Originally Posted by Bogie Shooter

Start here,
Village Community Development Districts

The problem is that nowhere in the Village Community Development Districts link does it explain that multiple people in identical situations can/will end up with different rates that could vary notably over the years. I had discussed this with several of my friends and no one knew that situation could exist. So, I volunteered to delve a little further and see if I could get some answers. My thanks to Bill14564 for helpful responses.