News

Since 1986, SAMLARC has cultivated a premier community that blends welcoming amenities, high-quality services, and recreational experiences. The volunteer Board of Directors is committed to guiding SAMLARC in a manner that protects the Corporation’s value, relevance, and viability. The Board oversees SAMLARC’s operations as a whole, including its financial practices, in accordance with SAMLARC’s governing documents and Civil Code Section 5600(a). 

Under the guidance of the Budget and Cash Flow Committee, the annual budget is built to address the costs associated with managing the Corporation, anticipated expenses, insurance requirements, high-quality services, and long-term success. These factors shape the annual assessment rate. As approved at the October 8, 2024, Budget Workshop, the 2025 assessment rate will be $87.00 per month, effective January 1, 2025. 

Key drivers of the 2025 assessment rate include impacts from the following sectors: 

Landscape Maintenance 

SAMLARC’s largest asset is its landscape footprint, which requires careful maintenance including meeting defensible space standards, removal of non-functional turf for a more drought-resistant, palette, and the maintenance of the nearly 10,000 trees within the community. In addition, the landscape industry battles labor shortages that impact wage and contract rates. SAMLARC must realistically budget for landscape management in order to protect the health of the overall landscape. 

Defensible Space 

Portions of SAMLARC’s property border wildland. To mitigate the risk of wildfire and remain in compliance with mandates from the State and Orange County Fire Authority, SAMLARC continues to proactively modify landscapes in high-risk areas. 

Utility Rates and Supplies 

As California’s water supply fluctuates, water service providers are raising rates, implementing restrictions, and cutting back on rebate programs. Santa Margarita Water District (SMWD) has not yet released its 2025 rates but has indicated that as much as 10% increase could be levied. Furthermore, rates charged by Southern California Edison and Southern California Gas are also increasing; based on guidance from SAMLARC’s third-party utility auditor, rates are expected to rise for both SCE (7%) and SCG (5%). Additionally, SAMLARC pool and lagoon chemical expenses have been outpacing inflation for several years due to nationwide shortages and supply chain issues. Chlorine expenses are anticipated to rise by 25% in 2025. 

Insurance 

Maintaining appropriate insurance coverage for the Corporation is imperative. Since mid-2022, the insurance market has experienced never-before-seen premium increases for umbrella policies such as SAMLARC’s. Based on professional forecasting of market dynamics, SAMLARC has budgeted additional funding for insurance coverage in 2025. 

Labor Impacts 

SAMLARC partners with reputable vendors for common area maintenance and facility maintenance, as they have the resources to accomplish scopes of work for larger footprints. These companies face several headwinds, such as general economic inflation, supply shortages, minimum wage increases, rising insurance premiums, and expenses necessary to retain qualified staff members amid a highly competitive market. 

Reserve Funds 

A critical component of SAMLARC’s management is reserve funding. This savings program sets aside funds to replace or enhance various assets throughout the Corporation, from parking lots to pool furniture. Thanks to proactive maintenance, vendor relationships, and strategic project execution, SAMLARC’s reserve funds are within a healthy range for a community of this size. However, continued contributions to reserves are critical to SAMLARC’s stewardship. 

The Board has a fiduciary duty to the Membership to create and publish a budget that accurately portrays SAMLARC’s forecasted and contracted operational costs. Realistically examining the budget each year allows the Board to make informed decisions in guiding the community forward. 

Per California Civil Code 1365, SAMLARC’s annual Member documents, including budget documents, are available for Member review online as well as at the Business Office and Beach Club Office. Complimentary physical copies may be requested by emailing info@samlarc.org Please visit SAMLARC.org/homeowners for more information.