In case you needed another reason to attend the MCA Board meeting on Thursday May 9 @ 2pm, here it is.
MCA Homeowners often ask how much of our assessments are due to TMCC, and “it’s complicated” is an accurate but very unsatisfying answer.
A good way to look at this is from an overall level. We know what we were paying in 2017-18 for MCA Assessments to cover “traditional” MCA expenses. We’ve estimated what our MCA Assessments would still be, after taking inflation into account, if we didn’t need to purchase the assets of TMCC and continue to subsidize TMCC. And then we compare that to what Our MCA Assessments are for the current year (2024-25). Short story: Our MCA Assessments are MORE THAN DOUBLE what they would be if TMCC wasn’t a consistent money losing operation.
As always, if you think anything is inaccurate, please let us know at ForTheMeadows@SarasotaMeadows.com
Here are the calculations:
| Total MCA Assessments | Average MCA Homeowner | Highest MCA Assessment | |
| 2017-18 Total MCA Assessments (A) | $1,795,000 | $513 | $3,179 |
| Estimated 2024-25 MCA Assessments without TMCC (A + 3.65% inflation/year = B) (see notes) | $2,307,011 | $659 | $4,086 |
| Actual 2024-25 MCA Assessments (per budget) (C) | $4,953,000 | $1,415 | $8,773 |
| Increase attributable to TMCC (C – B = D) | $2,645,989 | $756 | $4,687 |
| Percentage increase due to TMCC (D / B) | 115% | 115% | 115% |
Whatever your MCA Assessment is for the current year, it is MORE THAN DOUBLE what it likely would have been without TMCC bailout and ongoing subsidization. Put another way, more than half of your current MCA assessment is due to TMCC’s long standing inability to be self-sustaining.
What about the impact of the new Lifestyle and Wellness Facility?
The new fitness building was a planned by TMCC to replace the Dickens fitness area and was going to be funded by TMCC’s sale of unutilized land (per March 2017 Meadoword page 19). After TMCC’s plans fell through and MCA Homeowners purchased their assets, the MCA decided to build the Meadows Community Lifestyle and Wellness Facility (MCLWF) so TMCC could have a fitness center. Approximately half is a fitness area leased to TMCC (for free) and half is MCA meeting rooms. For the sake of discussion we’ll assume that half of the $4 million MCLWF was to build a fitness center for TMCC and half was for building meeting rooms for MCA. On a loan of $2 million, at 4.25%, over 10 years, our annual payment for the meeting room half of the building would be $250,000 or $70 for the average MCA Homeowner ($434 for the Highest MCA Assessment).
| Average MCA Assessment | Highest MCA Assessment | |
| Previously calculated increase in MCA Fees increase due to TMCC (D) | $756 | $4,687 |
| Less Increase attributed to the meeting rooms half of MCLWF (E) | -70 | -434 |
| Remaining Increase in MCA Fees increase due to TMCC (D – E = F) | $686 | $4,253 |
| Percentage increase due to TMCC (F / B) | +104% | +104% |
Taking this into account, our MCA assessment increase due to TMCC is still more than DOUBLE what it would have been without MCA having to buy the assets from TMCC, give them back to TMCC for free, and then still subsidize TMCC annually (those words seem too crazy to type but they are true).
As we noted in our April 11 MCA Board Meeting Recap post, assessments will go up 3.5% in the next couple of years just due to interest rate increases on our TMCC related debt. So it is going to get worse before it gets better.
And what do MCA Homeowners get out of it? The minor Renaissance Access Plan “benefits” and we get to keep paying for ongoing capital investments in the assets that TMCC receives all the benefits from. It has been a CRAZY bad deal for MCA Homeowners and will continue to be as long as the MCA Board leases the assets to TMCC and subsidizes them.
So when the MCA Board tries to tell you that it only costs each MCA Homeowner “only $4.50 per month” DO NOT BELIEVE THEM.
IT IS LONG PAST TIME TO STOP BAILING OUT TMCC.
START USING MCA HOMEOWNER ASSETS TO THE BEST USE
FOR MCA HOMEOWNERS.
It is possible to get back on the track we were on? YES IT IS. About 40% of the increase can be eliminated by bringing the annual TMCC subsidies to an end. The other 60% will only end when we pay off the debt from purchasing the assets from TMCC. And the MCA has to actually reduce our assessments when the funds are no longer needed to repay the debt.
If you haven’t already, please read our “Legal Demand Letter Sent to MCA” post to understand many of problems with the current lease and the Board’s clear deficiencies in meeting their legal fiduciary duties to MCA Homeowners (to the benefit of TMCC). Then let the board know that you support the “Diaz Demand Letter” by emailing the MCA GM at francesrippcondi@meadowsca.com, and copying us at ForTheMeadows@SarasotaMeadows.com.
Contact us at ForTheMeadows@SarasotaMeadows.com
Note on average inflation of 3.65%: Based on data from HERE., the average annual inflation rate (compounded) from 2018 to 2024 (projected) is 3.65%.
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