The short version
- The fee pays for next year only. It does not repay money already spent in past years.
- A special assessment may still be needed. EPM, the management company, has proposed about $600,000. The author's own estimate is lower and is not verified.
- Owners may vote on reserves. Paying less now lowers the monthly fee, but it can mean bigger bills later.
- The board needs volunteers. It is down to 3 members, and anyone who wants to run must say so by November 5.
This summary is meant to help owners ask good questions. It does not accuse anyone of wrongdoing, and some items may have explanations not yet seen.
Your monthly fee in 2027
The draft adds about $149 a month, or about $1,784 a year, for each unit. Most of it goes to the reserve fund, not to day-to-day costs.
| What changed | Monthly effect |
|---|---|
| More money saved for big repairs (reserves) | +$164 |
| Everything else, like repairs, legal, landscaping and cable | +$64 |
| Insurance, if the lower price holds | −$80 |
| Rounding | +$1 |
| Total increase | +$149 |
The fee could end up higher. The draft assumes building insurance will cost 25% less than this year. That is an early estimate, not a final price. If insurance stays at today's price, it would add about $84 a month for each unit.
The draft also sets aside $20,000 for termite treatment. Proposals discussed so far were about $40,000 to $100,000.
Where the money goes
Insurance, utilities and reserves make up about 75% of the draft budget. Insurance alone takes about $1 of every $3.
Total yearly budget: $1,615,184. Source: 2027 Draft Budget dated October 15, 2026, grouped by category and rounded.
Cable TV is the largest utility at about $160,358, followed by water and sewer at about $130,453. The largest single line is building insurance, at about $388,392, not counting flood.
Reserves and your vote
Owners may be able to vote to put less into reserves, which would lower the fee but leave less saved for big repairs. Reserves are the association's savings for large future projects, like roofs, paving and painting. The draft puts $332,389 into reserves, up from about $80,423 this year.
| Draft budget | Example: 16% reserves | |
|---|---|---|
| Yearly reserve funding | $332,389 | $244,342 |
| Monthly fee per unit | $1,046.70 | $989.38 |
| Increase from $898 | $148.70 | $91.38 |
What you save now: $57.32 a month, or about $688 a year.
What it costs later: the 16% example is about $30,000 below what the 2024 reserve study calls for in 2027. It also does nothing to close the shortage in the fund. If a big repair comes up with too little saved, owners may have to pay through another special assessment.
- Votes needed: Florida law requires a majority of all voting interests, not just of those who vote. That is about 65 of 128 units, assuming one vote per unit.
- Selling or buying: the budget notes recommend at least 15% in reserves to meet Fannie Mae requirements, which can affect mortgages for buyers.
- Timing: the reserve study is from 2024, and EPM still needs to get an updated one.
What the budget does not fix
Even at $1,046.70 a month, past shortfalls appear to remain, so in the author's view Riverwood will likely need a special assessment. Think of the fee as next year's household budget. It pays next year's bills, but it does not pay off money already borrowed from other accounts.
The author's rough estimate
The regular account is short. The books show it owing money to other funds, though those numbers are still being reviewed. These estimates use the books as of August 31, 2026, and have not been audited.
| What needs refilling | Estimated amount |
|---|---|
| Money the regular account owes the reserve fund | $213,784 |
| Money the regular account owes the 2025 special assessment fund | $145,000 to $186,000 |
| Expected shortfall for September to December 2026 | About $76,000 |
| Less cash in the regular account | −$83,773 |
| Estimated amount needed | About $350,000 to $390,000 |
That works out to about $2,750 to $3,050 per unit, or about $152 to $170 a month for 18 months. It would use up all the cash in the regular account, leaving no cushion.
EPM's proposal
EPM's latest figure, presented October 30, is $600,471, or about $4,691 per unit over 18 months. That is down from $811,463 after a clubhouse project was removed. As of this writing, the author has not seen EPM's calculation.
| Part of EPM's proposal | Amount | What to know |
|---|---|---|
| Refill the regular account | $460,000 | About $120,000 is for 2027, even though the 2027 budget is presented as balanced |
| Existing assessment and loan | $235,000 | May be avoidable if the loan can be paid down |
| Contingency and coupon charges | $59,008 | Needs explaining |
| Money held in reserves | −$153,537 | EPM says this is frozen at the bank's request, but bank records need to be matched |
The bank loan
The loan payment is $14,926 a month. The 88 owners still paying the 2025 assessment bring in about $11,758. That leaves about $38,000 a year uncovered, and the 2027 budget has no line for it.
Based on the numbers available, the 88 owners appear to be paying the amount set for them. Each unit's share was about $11,768, so their combined share is about $1,036,000. The association borrowed about $1,315,000, which is about $279,000 more. The prepaid money did not reduce the loan. EPM says it went to insurance, interest and loan payments.
A one-time payment of about $270,000 could lower the loan payment to what those owners pay in. The unused loan money and prepaid funds may total about $302,000. Using them would need an owner vote and the bank's agreement.
Who should pay? In the author's view, leftover money should be used first, because that could close most of the gap without charging anyone more. Any amount still left should follow what the money was spent on. Costs that helped all 128 units are harder to charge to only 88. Florida condo assessments generally follow the shares set in the declaration, so an attorney should confirm what is allowed.
If you paid the 2025 assessment in full, EPM's proposal charges all 128 units. That means you could be asked to pay toward the same loan again. This needs a clear answer before any vote.
The roof overrun is a separate issue. About $443,607 of roof costs came from reserves. The reserve calculation already accounts for the new roof, so in the author's view that amount should not be charged to owners again.
An option: adopt a full budget, then review it in the spring
This is the author's suggestion only, and the board has not approved it. A true 3-month budget does not appear to be allowed, because Florida's budget rule calls for an annual budget. That rule does allow an approved budget to be changed later.
- Hold the budget meeting later. If Riverwood's fiscal year starts January 1, the budget must be adopted by December 18. Notice would need to go out by about December 4.
- Adopt a full-year budget. The board could use the firm insurance price from the November 14 renewal.
- Review it in the spring. If the numbers change, the board could amend the budget. Owners would get the revised budget at least 14 days before the meeting.
This depends on the association's attorney confirming that Riverwood's bylaws and Florida law allow it, a firm insurance price, the outside accountant's review of the books, an updated reserve study, owners approving any lower reserve funding, and the board agreeing to a new meeting date.
Could the increase wait 3 months? Keeping the fee at $898 from January to March would collect about $57,100 less. If the lower insurance price holds, $898 would still cover 2027 day-to-day costs. The difference would come out of reserve funding, so it would likely need the owner vote.
This option would give owners better numbers, but it would not fix past shortfalls. The special assessment would remain a separate question.
Key dates
The most important date for owners is November 5, the deadline to run for the board.
- Budget workshop, 6:00 PM
- Deadline to run for the board, in writing
- Budget mailing goes to EPM
- Insurance renews
- Meeting notices must be mailed
- Budget meeting
- Annual meeting and any vote. Estimated date, to be confirmed in the election notice
What you can do now
- Join the conversation: come to the workshop if it is open to owners, and bring your questions.
- Watch your mail: read the budget package and the reserve vote carefully when they arrive.
- Think about running: or encourage a neighbor who would do a good job.
- Plan ahead: if money is tight, start setting some aside, and ask EPM whether payment plans will be offered.
- See the records: Florida law lets owners ask in writing to see the association's official records.
The board election
Owners who want to join the board must say so in writing by November 5. The vote comes later, and the election notice will give the exact date. If there are more candidates than open seats, owners vote. If there are the same number or fewer, those candidates join the board at the annual meeting, with no vote needed.
The state does not appear to take over condo associations. That has been mentioned, but the author found nothing in Florida's condo laws that says so. If too few people serve for the board to make decisions, the process works like this:
- An owner gives everyone 30 days' written notice.
- If the seats are still empty, that owner can ask a court to appoint a receiver.
- The receiver runs the association with the full powers of a board, until enough seats are filled.
A receiver is a private person, not a state worker. The association pays the receiver's salary, court costs and attorney's fees, so that cost falls on owners. Attorneys also warn that it can scare off buyers and lenders.
Thinking about running? Check the election notice for the form and the rules. Hand in your notice early and keep proof it was received.
Questions to ask on Monday
- What is the firm insurance price, and is the coverage the same as this year?
- How was the $600,471 calculated, line by line?
- Why is 2027 money in a special assessment if the 2027 budget balances?
- What exactly does the regular account owe the other funds?
- Will owners who paid the 2025 assessment in full be charged again?
- Can unused loan money and prepaid funds pay down the loan?
- How much must reserves get in 2027, and when will we have an updated reserve study?
- Will termite work cost more than the $20,000 in the budget?
Words to know
- Budget workshop
- A working meeting to discuss the budget before it is adopted
- Monthly fee
- The regular amount each unit pays, also called the HOA fee or assessment
- Reserves
- Savings for big repairs, like roofs and paving
- Reserve study
- A professional report on what big repairs will cost and when
- Special assessment
- A one-time charge to owners on top of the monthly fee
- Deficit
- When more money goes out than comes in
- Receiver
- A person appointed by a court to run the association when there is no working board
- Soft quote
- An early price estimate, not a final offer
Where these numbers come from
The numbers come from the draft 2027 budget dated October 15, 2026, EPM's October 30 response, bank statements and the association's ledger. Amounts are rounded, and some may change after the outside accountant's review. Estimates and views are the author's opinions, based on information available on November 1, 2026.
Legal points come from Florida law: 718.1124 on board vacancies, 718.112 on elections and reserves and a Florida attorneys' Q&A on empty board seats. Riverwood's own bylaws can change some of these rules, so ask the association's attorney to confirm them.
Reminder: this is one resident's unofficial work. It is not an audit, legal, financial or accounting advice, or a statement from the association. Official figures come from the association and its professionals, and corrections are welcome.