RA's Draft 2027 Assessment Hits $937 as Insurance Costs Outpace Budget

Reston Association members face a proposed 5.2% assessment increase for 2027, and RA staff have flagged that the final number could go higher once insurance renewals settle.

The draft 2027 rate is $937, up from $890, according to the May 27 joint Board/Finance Committee budget kick-off materials. An RA staff memo from that session warned that "the 2027 budget may need to be adjusted to reflect changes" following the July insurance renewal cycle. That would mark the second consecutive year of increases above 5%, after the jump from $848 in 2025 to $890 in 2026. The 10-year average from 2016 to 2026 was 2.9%.

The Finance Committee met in a special session in June, chaired by David Kerr with Acting CEO Peter Lusk and CFO Ed Vroom present via Zoom, to review insurance renewals, year-to-date finances, a proposed capital reserve policy and the 2025 audit.

Insurance Pressures Building

At the committee's May 20 meeting, insurance broker John Redeker of Gallagher reported that sexual abuse and molestation coverage costs rose 37%, about $1,500. Overall camp insurance renewals came in roughly 10% higher, about $3,600 above prior-year premiums. The committee revisited those figures at its June 24 special session, according to the meeting packet.

The increases reflect broader market pressures, according to the May 20 minutes. Philadelphia Insurance Company will replace Markel as lead carrier after Markel declined to renew excess liability coverage.

RA's 2025 insurance expense hit $1.039 million, exceeding its $984,000 budget by $55,000 and running $84,000 above 2024 levels, according to the March 18 Fiscal Committee review.

The committee discussed alternatives including higher deductibles, captive insurance structures, and self-insurance. Gallagher outlined a strategy to develop an underwriting narrative emphasizing proactive maintenance, particularly around dam infrastructure, to attract additional carriers.

May Finances: Spending Well Below Budget

Through May, RA's revenue tracked $3,000 above budget at $21.714 million, while expenses ran $647,000 below budget at $7.586 million, driven primarily by staffing vacancies, CFO Ed Vroom reported in the June 24 agenda materials. Total cash stood at $25.321 million.

Camps revenue lagged at $526,000 versus $657,000 budgeted, though it ran $34,000 ahead of the same period in 2025.

The committee also reviewed the 2025 audit by Forvis Mazars, led by auditor Tamara Vineyard. Post-meeting results have not been published. Unaudited figures from March showed RA closed 2025 with a $62,000 deficit, reversing a forecasted $50,000 surplus, with $1.9 million in capital spending below plan due to delays at Lake Newport Pool and dredging projects.

Capital Reserve Policy Overhaul

The committee reviewed Assessment & Finance Resolution #3, which would establish a capital reserve target of 100% to 150% of annual capital spending over a 10-year planning horizon. If reserves drop below 100%, the Board would be required to restore them within three years.

Finance Committee Chair David Kerr has described the 10-year capital schedule as "a forecasting tool rather than a fixed budget," stressing the importance of flexibility for unforeseen needs, according to the April 22 meeting minutes. If adopted, the resolution would take effect January 1, 2027, replacing policies dating to 2006 and 2012.