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

Saturday, October 2, 2010

BLMH Election Meeting 2010

The election meeting was attended by about 20% of the ownership, I understand.

Each candidate was given one or two minutes to address their fellow unit owners and make a statement. I did not video the meeting. I wanted no diversions, I wanted to be fully and completely present to the owners; nor did I want to burden my spouse, who was also in attendance, with the requirement to run the technology.

I stated at the previous election, in my 60 seconds before the ownership, that I find this process somewhat deficient. For example, our rules prohibit the posting of political notices, statements or endorsements. So, in honoring the BLMH rules, I and several other candidates prepared and mailed a brief  letter to the unit owners on September 13th. The cost of postage was shared among us and by several concerned, and supportive unit owners. However, a board member prepared an endorsement statement for another candidate. This was taped by persons unknown on each mail box of each building on September 20, in violation of the BLMH rules, and apparently also of Post Office regulations.

I would have liked to have had about 10 minutes to address the group, and I had prepared a longer statement, from which I drew for my short time before the unit owners.


Owner Question and Answer Session prior to the Election


Immediately prior to the election, owners were given a few minutes to address the current board and management and ask questions. I was gratified to see that these questions were included:

  1. What fee increase did management recommend?
  2. How much are we spending on roofs and driveways?
  3. What percentage of units are rentals?
  4. How much are unit owners in arrears for fees? (See Note 1).
  5. Will the association resume sealcoating the new driveways?

Short Statement Made to the Attending Unit Owners:

The candidates were give a minute or two to address the owners.  In my brief statement I attempted to make the following key points:
  1.  Thank you for attending the annual meeting!
  2.  I will use my short time to ask some questions, provide answers and make statements so you know where I am coming from and who I am.
  3.  I care very much for this association and I do my best to keep the rules. I have attended most of the association meetings for the past 3 years and my spouse and I have been unit owners for 9 years. We live on the property.
  4.  I’m 64, employed in my own business, and I am one of two partners who own a commercial office building.
  5.  This is the worst recession since WWII. As far as I am concerned, we are all on “fixed incomes”. No Social Security COLA increase in 2010 and probably 2011. Working people can’t just ask for a raise to cover fee increases. So how are unit owners to pay for fee increases?
  6. We need some urgency on the board. Money spent is gone forever. Time wasted can never be recovered. 
  7. We are spending money we don’t have. Question: How to fund all of our projects in a timely manner, meet expenses AND slow or temporarily halt the fee increases?
  8. We URGENTLY need an austerity program.
  9. We need to promote sales and protect our property values.
  10. Are rising fees contributing to foreclosures? About $450 billion in home mortgages will recast in 2010, 2011, 2012. Interest rates are low, but a subscription service I belong to sent me a notice of a foreclosure on Lakecliffe several weeks ago!
  11. We need different and balanced viewpoints on the board.
  12. We need more unit owner involvement. The association needs to effectively deal with owner Apathy and Resignation.
Election Results 
I was elected, as were two others. This was posted here on September 24th.

Response of a Unit Owners in Attendance
A unit owner and his spouse asked to make a statement. They took the opportunity to complain that they were very unhappy that renters were prohibited from attending association meetings. The president indicated this could be the topic in the future. I asked for and was granted the floor.

I addressed the couple. "Our bylaws state "Meetings of the Board shall be open to any Unit Owner...". The board cannot do what it is being asked to do. It does not have the power to change the bylaws and grant what you are asking. However, there are procedures to change the bylaws and you are free to organize the ownership to do so." One of the couple stated "what you are asking us to do is impossible" and his spouse argued that it was "unfair" to exclude renters.

The conversation ended at that point. I disagree this is an impossible task. The board arbitrarily and illegally changing the bylaws is not possible, or at the very least, it should be impossible. However, organizing unit owners to change the bylaws is legal and is certainly possible, but difficult.

Immediately after the meeting. I was congratulated by several unit owners and some members of the board. I was ignored by others. I was also accosted by one owner who made it a point of telling me "You are full of s**t." Another, who wanted renters to attend board meetings, made it a point of repeatedly insulting me.

General Observations
Frankly, I don't take this personally. True, I don't like the insults, but "it is what it is". I do understand that I am dealing with some very unhappy people here at BLMH. I view that as not of our, as in "this association's" making, but as a consequence of the social and economic forces that created this particular group of people. We are powerless to do what would be required to make these people happy.

We now have a few owners who intended to get on the "make money through real estate" bandwagon. They find that they purchased at, or near, the top of the market and cannot sell at what they feel is a reasonable price. Others purchased 25 or 30 years ago, and would love to sell and move to somewhere else in retirement. They too cannot sell at what they believe is a reasonable price. Others purchased what they perceived to be a reasonably priced piece of real estate and intend to "move up" to a house or something better in a few years. For them, BLMH is a stop along the way. And others purchased to have a place to live, have no immediate plans to move on, and are reasonably contented.

For those with no immediate plans, living at BLMH is probably a pleasant experience. For those who want to sell but cannot because they are asking a price that the market will not meet, this is an unpleasant experience. I suspect some feel trapped here. Those are the ones to be watchful of. They may be angry, spiteful and disruptive.

Comments, Corrections, Omissions, References, Miscellaneous News
Note 1. In the original post, I omitted the question by a unit owner regarding the amount of money owed by unit owners to the association. the president answered the question and confirmed the statement made in our mailing to the unit owners. These fees are important because money uncollected is money that cannot be spent, because it is unavailable. Recent boards have not adjusted our budgets for this reality. With the combination of last year's 0 percent increase, it would seem they are spending money we don't have. The question I have is "How long can this continue?" I suspect it isn't very long at all, but perhaps long enough to make it through the next election!

2 comments:

  1. Renters attending the board meetings, for what purpose. They do not have a vested interest in the property and therefore should not be allowed to attend. I witnessed a few renters, who were not very neighborly and adding to the parking problem while the driveways were being repaired.One in particular had three cars and didn't park a single one in the garage. All were parked on the street, sure, lets have renters attend and disrupt our meetings.

    ReplyDelete
  2. People can talk until they are blue in the face, but the fact remains, THERE IS ABSOLUTELY NO VALID REASON FOR RENTERS TO BE INCLUDED IN ASSOCIATION MEETINGS. These people that raise their voices the loudest for renters are doing so just to hear themselves talk and for attention. My suggestion - get involved with issues and/or causes that are important and integral for the good of BLMH.

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