Updated Surplus Numbers

Updated Surplus Numbers
Updated Surplus Numbers: Actual surplus 2018 per audit was $85,163.
Boards 2011-2018 implemented policies and procedures with specific goals:
stabilize owner fees, achieve maintenance objectives and achieve annual budget surpluses.
Any surplus was retained by the association.
The board elected in fall 2018 decided to increase owner fees, even in view of a large potential surplus

Average fees prior to 2019

Average fees prior to 2019
Average fees per owner prior to 2019:
RED indicates the consequences had boards continued the fee policies prior to 2010,
BLUE indicates actual fees. These moderated when better policies and financial controls were put in place by boards

Better budgeting could have resulted in lower fees

Better budgeting could have resulted in lower fees
Better budgeting could have resulted in lower fees:
RED line = actual fees enacted by boards,
BLUE line = alternate, fees, ultimately lower with same association income lower had
boards used better financial controls and focused on long term fee stability

Monday, August 9, 2010

Update Prior to the Forthcoming Association Meeting

Reserve Study is Due
We are all "breathlessly" awaiting the Reserve Study which is, I believe, due or past due at this point. This was to be completed, reviewed and released to unit owners prior to the next budget planning meeting. The board has chosen not to agree with the study prepared with our professional managers, and chose to find and fund an outside firm. As stated by our CD, the firm she evaluated and promoted was "very willing to work with us". That means, I presume, willing to edit the study before the final copy is released to unit owners. We'll never see the copies preceding the editing by the board.


This does, I suppose, provide political cover should the board find it necessary to have a fee increase this year. As you will recall, the board voted for a 0% increase this past year, which means, we didn't fund to match inflation. The implication is that our expenses are decreasing. However, my numbers indicate we are spending more in day-to-day expenses.


I did my own study several years ago and revise it annually. I have discussed aspects with involved and concerned unit owners. I have used it to make statements to the board. These are ignored or disputed. I have not released all aspects of my findings here because these duties and responsibilities fall on the board. That's why they were elected. I also have concerns about releasing certain information "to the world at large". I see no advantage to the association by releasing possibly sensitive information to the public. Would you like your "home budget" published on the internet? I think not. How would this possibly support or hinder unit sales?


I have repeatedly stated my concerns and misgivings to this and previous boards. Most recently, I sent this email to our board president:
Hi [Madam President]:

I read the 2008 audit which per the newsletter was posted at BLMH.org per board decision.

Is this wise? I realize this info should be available to unit owners and other interested parties. However, some of the information might be detrimental. Receivables, which is according to the accountant, are fees due from unit owners, is an example of information that might not be good to distribute all over the globe.   

Unit Sales
I sent this email to our board president and communications director:
[President] and Select Board Members:

During the May meeting, [our communications director] made the statement that “someone had suggested” that the association; i.e. the board, prepare a sales or marketing brochure to aid unit owners who are selling their property. [our CD] said that “sounds like a good idea”. The board concurred.

I’m curious. What’s happened? Were there any assignments made? Has there been any progress, and if so, specifically what? Is anyone working on this? If not, why not?

How about a progress report to the unit owners during the forthcoming association meeting?

For an article dated April 21 on this subject, see:
http://tinyurl.com/28gfclg


I have not attended the most recent association meetings, but those that have tell me that there has been no further discussion of this by the board. Of course, any and all discussion is supposed to be made public. 

Association Meeting Agenda has been Revised
I protested the revised agenda order at a recent association meeting. This was not the first meeting attended by unit owners in which this was protested. The issue was scheduling the "homeowners forum" prior to the completion of all sections of the meeting and specifically prior to the "New Business" discussion by the board. Scheduling board business after the homeowners forum effectively prevents comment by unit owners. 


Earlier in 2010 after similar unit owner complaints, the Communications Director was directed by the President to schedule the "Homeowners Forum" after all business with the exception being the closed door "Executive Session". However, in May the order was again revised. Our President wasn't attending. I stood up during the meeting and protested to the CD about this unauthorized change. Of course, the CD, who ran the meeting in the President's absence, could have simply changed the order of business, then and there. But she didn't and preferred to argue with me. 


I wrote a note to our President:
I have protested to [the communications director] the manipulation of the schedule and agenda for the association meetings. I did so recently during the month you were absent; I have the entire interchange on video.

The “homeowners forum” as the majority of the board prefers to call it, has been moved ahead of “new business”, thereby cutting off unit owner comment or query during the meetings.

[Our communications director], the “power behind the throne” as she prefers to call herself, seems to act oblivious and doesn’t understand the problem.

I am growing impatient with all of this stupidity.

Where are you in this matter?

I received this email response from our board president:
Nobody is trying to "manipulate" the agenda. I have zero interest in doing so, and I don't believe any other board member has any interest in doing so, either. Wouldn't it be super if senseless animosity could be put aside, and people chose to start working together like the fellow owners we are? What a great step forward that would be. All I can do is try to model that approach and hope that others will see its value and want to join in.

At the July meeting, [another unit owner] asked that the homeowner's forum come before any voting. For the August agenda, you will see this order:

Old business
New business
Homeowner's forum
Motions and voting  

I trust this addresses your concerns.



This was my email this morning to the board president:
Now that was easy, wasn’t it? However, that identical “change” was directed by you, earlier this year, when unit owners including myself brought the agenda order up during an earlier association meeting. So forgive my doubts.

It’s amazing what happens when or if:

  1. The board listens.
  2. The board responds.
  3. The board acts in accordance with agreements.
  4. The board does what it said it will do.
One of the aspects of being on the board is “leadership by example”. I have concluded that this concept is considered trite.

There is nothing “senseless” about stupidity or failing to do what was agreed. That is the basis of my disagreements. I have told everyone who has a capacity to listen that I have drawn a “line in the sand” in 2010 and I resolved not to allow stupidity to rule.  What you do and how you act as board president is, within certain limits, your business and your choice. 


Projects and Landscaping
Various projects have been languishing. 

Roofing
The roofing project for 2010 has been moving slowly forward. Our new Landscaping Director has been arguing to revise the specifications. As stated during the association meetings, he wants the re-roofing to be brought up to his opinions on "new construction" standards, and offered to re-write the specifications. Even the Treasurer was caught by that one and argued the position that "this is a simple and straighforwar re-roofng project!" I assume that there has been more arguing going on behind the scenes. I am very concerned. First, there is absolutely no grounds for such a position. Second, to do so will add to the cost of the project. Third, this will delay the project. It is now August. I understand the bids were reviewed and a roofer selected. There were project impediments last year and as a result the board action was delayed. The roofing schedule for 2009 was jeopardized by various board members. Here we go again?


Driveways
The driveway project for 2009 were delayed. This is part due to board action and then, at the last minute, a delay of a week or two by the city for code review. Of course, the board "officially" stated that the entire delay  was due to the city. The arguments on the board and the unwillingness of the communications director to support the project, even going so far as to cast a NO vote, that had no bearing on the outcome?

So, where do we stand with the driveways in 2010? We are still waiting. The driveways projects for 2009 are in the same state of partial completion they were last year. A labor strike lasting several weeks is the culprit this year. So, why didn't the project begin in June? [Ask] the board. 

Landscaping
Overall the landscaping is gorgeous, as usual. The landscaping is now in late summer flora.

The landscaping included a mis-mulching this year. The wrong area was mulched. There has also been quite a bit of unit owner discussion about lack of progress in some areas. This has reached the point where unit owners are planting their own grass seed and installing stone outside their patios in the common areas to eliminate muddy areas. 

Having turnover in the position of Landscaping Director doesn't help. Neither does the appointment of an LD by the board who seems more interested in the Architectural Directors work than his own. Non-landscaping interests include reducing the wattage of bulbs to save electricity, re-writing roofing specifications, promoting porous asphalt driveways, etc. I'm sure I don't know the half of it. 

The swamp behind Harrow Court is worse this year; we've had a wet summer. I've made a video and I'll be posting it. This area was discussed by the former Architectural Director in 2008. It was put on the "back burner" by the board. Turnover in positions doesn't help and there seems to be no one on the board who is able to promote consistency. Most of the current board members never or seldom attended meetings prior to their election or appointment. So what should we, the unit owners expect?

The mulch is now being washed into driveways and in some ways impedes the flow of water. I've made a few videos and I'll be posting those, as time permits. I consider mulch to be inferior to ground cover and I also consider mulching when sculpting of the soil beneath does not promote drainage, to be a complete waste of money. This association spends many thousands of dollars on mulch each and every year. The overall board seems not to be interested in this and the Landscaping Director is pre-occupied with architectural projects.   I'm unsure of what progress or plans are in the works for the "gardens" he has been promoting. As I stated earlier, this concept seems to have morphed into a concept of "personal gardens" by some unit owners. 



Comments, Corrections, Omissions, References
================================

1. This is scheduled for automated posting.

2. I'll revise this to include a chart of unit sales in recent years. 
3. Minor typo corrections made August 15; thanks to an observant reader!

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