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, April 16, 2011

Why I Ask All of Those "Dumb" Questions

"In school they give you a question and ask you to find an answer. In the real world the answers are everywhere -- the Internet, calculators, history books, reference manuals. The trick is asking the right questions."
--Adapted from speech by Conrad Wolfram

When contemplating a difficult decision, I frequently ask myself several questions. These I have found are useful when attempting to select the "best" solution:
  1. What am I truly committed to; that is, what outcome am I attempting to achieve?
  2. If this is a human factors decision, then who am I empowering and who am I dis-empowering?
  3. How can I say that by picking a specific solution, that I can achieve the desired result?
  4. What am I overlooking?
  5. What is the downside risk if I select that specific solution? That is to say, what is the "worst case" possibility that might occur. What is the likely outcome of that worst case possibility?  
  6. If this is something I am doing in my capacity as a member of the board of BLMH, and a fiduciary, there is one more question to ask: In doing this, and in making this specific decision, am I serving the association? Or is it possible I am instead, serving a small group of owners, the members of the board, or myself?
  7. In making this decision and selecting the solution, is it possible that I am creating "winners" and "losers?" If so, is that appropriate? Can I alter the solution and create only "winners?"
  8. Is there anything that can support and validate my answers to the preceding questions, or am I simply operating out of my beliefs, judgments, and opinions?
Comments, Corrections, Omissions, References
Note 1.  This post was prompted by recent association events, including Thursday's association meeting.  

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