In the coming week, the Amenity Authority Committee (AAC) Board of Directors will have the opportunity to vote on behalf of the residents in the Center District (VCCDD) territory north of 466 by approving an Amenity Fee Rate Freeze.
LET’S START AT THE AAC BEGINNING – AAC POWERS & RESPONSIBILITIES (Collective opinion)
In recent months, the amenity rate cap proposal has sparked considerable debate. Initially, the Attorney agreed that the Interlocal Agreement, Exhibit B, (7. B. VII.) gives the AAC full authority to establish an amenity fee rate cap; however, he then indicated that, in his opinion, the listed limitations, (8.G. and 8.H.), undermine the AAC’s authority.
7. B. VII. The AAC shall be authorized to establish from time to time a maximum Amenity Fee for the Center District Service Territory such that an increase in Amenity Fees, whether due to the Consumer Price Index (CPI) resale of a home or otherwise, will not result in an Amenity Fee for a particular homesite within the Center District Service Territory having to pay in excess of such maximum amount.
(Removing the exception for PWAC in 8.G. and 8.H., which appears irrelevant to the rest of the clause, clarifies the intended meaning of those two clauses, thus negating Legal Counsel’s stated “opinion.”)
8. G. To continue to provide a seamless community, all policies, procedures, fees, and services relating to Amenity Fees and Amenity Services provided to residents by Sumter Landing Community Development District and Center District shall be identical. It is understood that the Amenity Fee rate applicable throughout the Village Center Service Territory varies and nothing contained herein shall be construed to mandate a uniform Amenity Fee.
8. H. In no event shall any action by the AAC result in residents of the Villages outside the Center District Service Territory being treated differently than residents within the Center District Service Territory . . . It is understood that the Amenity Fee rate applicable throughout the Village Center Service Territory varies and nothing contained herein shall be construed to mandate a uniform Amenity Fee.
Most people, including retired attorneys, disagree with his position.
This raises the question: What’s changed? There’s still no answer to this question.
Perhaps residents need to inquire with their respective District AAC Director. We know that CDD4 AAC Director Don Deakin understands the past, present, and future of implementing an amenity fee freeze for residents north of 466, as illustrated by the following facts, figures, and the chart below. Additionally, Carl Bell, one of the first Villages residents appointed to the newly designated CDD1 (1992), later served on the AAC and possesses extensive knowledge of establishing the Villages’ governmental processes, including CDDs and the AAC. Bell provided detailed first-hand experience and information on the previous 2010 AAC no adjustment amenity fee decision at the AAC 2025-26 budget workshop on Wednesday, March 26.
Bell shared that he originally motioned to adopt resolution 10-18 (2010), which provided for no adjustment of amenity fees for residents living north of CR 466. He indicated that the 2010 AAC Board of Directors, District manager, budget staff, and attorneys spent months discussing the deferral of amenity fees, including holding a workshop to research the potential effects of the proposed rate, ensuring they were on solid ground and would not violate any bond issue covenants. So, again, the echoing question, “What has changed?”
FACTS AND FIGURES – YESTERDAY, TODAY & TOMORROW
YESTERDAY (2010-2019):
- In 2010, the AAC conducted its due diligence and, with the support of the Staff’s Budget Director, Finance Director, Bond Director, and Legal Counsel, voted to establish a deferral rate cap of $155.00, independently of the Project Wide AREA Committee (PWAC).
- AAC’s legal counsel provided an opinion that AAC had the legal right to establish the deferral rate cap, as outlined in the powers and responsibilities of the Interlocal Agreement.
- In 2012, the Project Wide ADVISORY Committee (PWAC) voted independently to set a deferral rate cap of $155.00.
- Each year thereafter, AAC and PWAC independently reviewed their financial positions during Budget Workshops with The Villages staff’s Budget Director and Finance Director.
- The deferral rate cap remained in effect for 9 years with the AAC and 7 years with PWAC.
- In 2019, independently of each other, AAC and PWAC removed their respective rate caps of $155.00.
- In 2019, the AAC eliminated the Rate Cap, even though the Total Fund Balance was a robust $71.5 million for that year.
- AAC’s vote to remove the rate cap was 3-2, with Ann Forrester and Don Deakin opposing the motion because “the AAC is in a better financial position than PWAC.”
TODAY (2025)
- The contract agreement that every homeowner signs at closing with the Developer states that the Amenity Fee may be adjusted annually on the purchase anniversary, according to the Consumer Price Index (CPI).
- The Developer can legally adjust the “Prevailing Rate” to any amount without the AAC’s approval.
- On January 1, 2025, the Developer raised the “Prevailing Rate” on Amenity Fees to $199.99 monthly, totaling $2,400.00 annually!
- Some residents are paying over $220.00 per month! $2,600.00 per year!
- According to the Financial Report provided by staff in the agenda packet for the AAC’s May 7, 2025, meeting, annual revenues are approximately $55.8 million as of March 31, 2025.
- The AAC’s Recreation Amenity Division (RAD) “Total Fund Balance” is $128.9 million.
- Of that amount, $100.4 million is “Unassigned.”
- If the AAC establishes the Rate Cap at the current Prevailing Rate of $199.99, the Total Fund Balance will adequately meet all Fiscal Year 2025-2026 financial requirements.
- A deferral rate cap of $199.99 for one fiscal year will benefit only about 7,000 residents.
- A deferral freeze of all amenity fees for one fiscal year will benefit all 22,277 residents. (See table below)
TOMORROW (FUTURE):
- Staff projections are based on a 2.5% increase in revenue and a 4.0% rise in expenditures.
- Staff also projects that if the AAC sets the Rate Cap at the current Prevailing Rate of $199.99, the Total Fund Balance will meet all financial requirements through fiscal year 2032-2033 (8 years from now).
- The final Bond Debt will be completely paid off by November 2036.
- With the Bond Debt paid off, our fund balance could increase by
$25 million or more per year!
So, Let’s RALLY! – Ya’ll come!
Don Deakin, a resident of District 4 in The Villages for over 23 years, is hosting his monthly Q&A meeting and has graciously invited me, a District 1 resident, to be the guest speaker on this hot topic regarding “Amenity Fee rate caps and Freezes.” For more information, call or text Don Deakin at (352) 445-0181 or email him at [email protected].
We will share our collective knowledge with residents at Mulberry Recreation Center on May 5th, from 7-9 pm. Some of the questions we will address include:
- What is an Amenity Fee “Rate Cap” vs a “FREEZE”?
- How was it done successfully before?
- How will it work for YOU now?
- How does it affect YOU?
- What comes next?
- How can you support this proposal?
In closing…
Both the POA in their March 2025 Issue and the VHA April Opinion recognize the importance of the Amenity Fee Freeze or Non-adjustment for every resident north of 466. Although they may not fully agree on the legality, their discussions on the topic indicate that much is at stake.
So, please recognize that if there is this much discussion and debate, it’s time to pay attention.
If you’re new to The Villages or this topic, here is some background and historical information:
February 16, 2025 editorial, The AAC needs to take back its power,
April 22, 2025 editorial It’s time for the AAC to act
April 26th editorial, Updated website more accurately reflects powers and responsibilities of AAC
As residents, you have various ways to communicate with your elected representatives. You can call them to discuss your concerns, request a meeting, email them individually or collectively as a Board, and attend meetings to share your thoughts at the podium for the 2 or 3 minutes they allow. I recommend that if you participate in the meetings and share your thoughts, you first write out your ideas and take them with you, providing them as a handout to ensure that your views are recorded as a permanent record. You elected your AAC Board of Directors to protect and maintain the affordability of these amenities. The Board members are there to support you!
https://www.districtgov.org/districts/committees/amenity-authority/
If you use the group email at the top of the page, this distribution includes all major District staff. Click on the email + to expand it and see who is included. You can also email your district’s AAC director through the email listed on the AAC website.
The AAC is planning to implement video recordings of meetings. If you find this helpful, please inform your AAC Board of Directors.
The next AAC meeting is scheduled for Wednesday, May 7th, at 9 a.m. at the Savannah Center. Unfortunately, the topic may appear later in the agenda, which could irritate the attending residents. A resident can always request the Chair to move the agenda item earlier in the schedule to respect the time of attending residents. Should the AAC Amenity Fee Freeze fail to secure a positive vote at the May meeting, it can still be approved at the June 11th meeting. June is the last 2025 meeting that can facilitate a positive vote for implementation in the 2025-26 FY. The residents’ presence is always a supportive signal if you can attend.
If you want to join my mailing list, please email me your name, village, address, email, and phone number at [email protected].
Patsy Oburn is a Community Development District 1 resident.
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Recreation Amenity Authority Committee |
|
|
|
|
Amenity Fee Rates |
|
|
|
|
Per January-25 Report |
|
Deferral Residents Benefitting |
Deferral Residents Benefitting |
|
Rate Ranges |
FY2024-25 Rooftops |
FY2025-26 Above $199 |
FY2025-26 w/FREEZE |
|
$40-49.99 |
0 |
0 |
0 |
|
$50-59.99 |
1 |
0 |
1 |
|
$60-69.99 |
0 |
0 |
0 |
|
$70-79.99 |
1 |
0 |
1 |
|
$80-89.99 |
0 |
0 |
0 |
|
$90-99.99 |
1 |
0 |
1 |
|
$100-109.99 |
0 |
0 |
0 |
|
$110-119.99 |
0 |
0 |
0 |
|
$120-129.99 |
0 |
0 |
0 |
|
$130-139.99 |
1 |
0 |
1 |
|
$140-149.99 |
7 |
0 |
7 |
|
$150-159.99 |
12 |
0 |
12 |
|
$160-169.99 |
34 |
0 |
34 |
|
$170-179.99 |
222 |
0 |
222 |
|
$180-189.99 |
4,996 |
0 |
4,996 |
|
$190-199.99 * |
10,127 |
88 |
10,127 |
|
$200-209.99 |
6,170 |
6,170 |
6,170 |
|
$210-219.99 |
602 |
602 |
602 |
|
$220-229.99 |
103 |
103 |
103 |
|
$230-239.99 |
0 |
0 |
0 |
|
$240-249.99 |
0 |
0 |
0 |
|
$250-259.99 |
0 |
0 |
0 |
|
$260 & above |
0 |
0 |
0 |
|
* Prevailing Rate |
22,277 |
6,963 |
22,277 |