As details for the Cabins at Disney’s Fort Wilderness Resort have emerged, one of the big surprises were the costly annual dues. At $12.1542 per point, they are greater than the annual dues at hurricane-prone DVC resorts like Vero Beach and Hilton Head. Why are the dues the highest among all DVC resorts? Let’s take a closer look at the estimated budget in the Cabins’ public offering statement. The budget outlines the three components that comprise the annual dues: operating budget costs, capital reserves, and ad valorem taxes.
Operating Budget Costs
Operating cost components account for $8.9095 per point for dues. The three biggest line items in the operating budget are housekeeping, transportation, and administration and front desk. With the spacious cabins (and perhaps due to the pet-friendly cabins), it makes sense that housekeeping is a large expense. The high transportation costs are also expected. Transportation is a large expense for other resorts with internal bus routes like Old Key West and Saratoga Springs.
The administration and front desk line item is related to costs like resort management and front desk operations. However, it is also related to the Palmetto Trust. As noted in the Description of Cost Components, “Since The Cabins Resort Use Plan is the only trust use plan currently in the Trust, this cost component also includes costs and expenses for administering the Trust and Association at the Trust Level, including the annual trustee fee.”
Estimated Capital Reserves
Another major component of the annual dues are the funds for capital reserves that cover repairs or replacement of the cabins or common areas. More specifically, the replacement fund components include things like roof replacement or repair, interior refurbishment, external building painting, common element renovation, and pavement resurfacing. The capital reserves account for another $1.6121 per vacation point for annual dues.
Ad Valorem Taxes
The third factor in the annual dues is the ad valorem taxes. They are estimated to be $1.9811 per point. The Orange County Property Appraiser’s Office and the Central Florida Tourism Oversight District Appraiser will determine the actual amount of taxes.
Putting It All Together
Adding these three components together, we get a total of $12.5027. If you’re wondering why this is greater than the annual dues of $12.1542, it’s because dues alone are not the only revenue component. Others include member late fees and interest ($0.0493 per point), breakage income ($0.2534 per point), and pet fees ($0.0458 per point). Factoring in these additional revenue streams, we arrive at dues of $12.1542 per point for The Cabins at Disney’s Fort Wilderness Resort for 2024.
