Summit Village

Summit Village Unit Services Billing Policy

I.          PURPOSE: To establish the method for billing one or more owners for services performed by the Association that are not a part of the common area maintenance that is funded by Member dues and/or special assessments. Snow removal on stairs and walkways is one such service. Others may be added in the future.

II.        AUTHORITY: Declaration of Covenants, Conditions & Restrictions for Summit Village.

III.       SCOPE: This policy covers the process for compiling the direct costs of any activity performed for the benefit of a single lot or unit or a combination of lots or units, computing the administrative overhead costs, and allocating the total among the affected lot/unit owners.

IV.       PROCEDURE:

A.        Records are kept for each service project. The snow removal service performed on the stairs/walkways that serve 10 dwelling units on Tina court is a good example of a service project.

B.        Monthly direct charges for the project (i.e., the contractor's invoices for clearing these stairs/walkways) are totaled at the end of the month. The management service charge and the accounting service charge are then added to the total, along with $1.00 per unit postage & supplies charge.

C.        The total is divided according to the agreed upon cost allocation formula (usually allocated evenly among all units or lots). These pro-rated charges are then added to the owners' accounts and statements mailed.

Example:         The snow removal contractor submits a bill for $100.00 for shoveling the common steps located on Tina Court. There are ten units to be billed. Kingsbury Bookkeeping charges $15.00 for time spent doing the invoicing, and Summit Village, Inc. charges $15.00 for management costs. Then, each unit is billed $1.00 for postage, etc. To sum up:

$100.00
 - Charge for Shoveling Snow
15.00
 - Kingsbury Bookkeeping Charge
15.00
 - Summit Village Administration Charge
10.00
 - Postage, etc. Charge
$140.00
 - Total Charge

This policy was adopted by unanimous vote at the regularly scheduled Summit Village Board of Directors Meeting on October 21, 1991.