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, May 7, 2012

On the Importance of Communications

Communications and budgeting are reoccurring themes on the blog. I'm going to revisit communications in this post. I would suggest that a significant portion of the work of the board is communications and budgeting.

If you have regularly attended association meetings over the years, then you would be aware of owner complaints about "communications."  I'm not certain of the precise meaning. For example, are such complaints merely complaints, or are they requests?  These complaints may also be an excuse for a lack of action on the part of the owner, as in "I didn't know!"

The fact is, I don't know what people are thinking nor can I fathom their motivation. I do know that communications can resolve differences. I also know that formal communications, such as an association newsletter, is a powerful means to keep all owners on an equal footing and aware of what's going on. A well prepared newsletter can communicate what owners can expect from the association and just as importantly, what is expected of them. In the absence of formal communications there is a tendency in human beings to sometimes make up things, or form gripe groups. So I prefer to put something into place. If not, then someone else will develop a fiction and put it out there. It's a variation of that old saying "Nature abhors a vacuum."

I also prefer to avoid damage control. So it's a choice of being pro-active or being re-active. Some owners prefer to sit back and when things go wrong, complain "How could this happen?" I suggest they look in the mirror and ask themselves the serious questions.

Nor do I know the answer to the question "How much communications is adequate?" I've experienced different approaches, different methods, different critiques and listened to different arguments in recent years. I've seen newsletters with information and I've seen newsletters with filler, and a combination. Over the years in doing things such as work on or for an association board and various volunteer groups, I have listened to points of view that "no one is interested in that stuff" and I've been given the opinion "that's too much information." I've also been told "there isn't enough information."

It was once suggested that my A&M reports to the board should all be published on the web, which could put 5-10 pages of my notes up each month.  Some of these same people has said that my blog posts are too long. I'll let the reader figure this out!

I do have concerns about publishing my notes. They are, after all "my" notes. They include my opinion and are designed to stimulate conversation among the board members. They are intended to promote a dialog to formulate action plans. I do give an excellent summary at each board meeting and all owners can come to the meetings and listen to the presentation. An owner can take notes and share it with their friends who cannot attend.


The Requirements of Owners
In summary, owners have presented quite a wide and diverse set of possible requirements. As my departed father was fond of saying "talk is cheap."  However, I do discuss the newsletter with various board members and I do question how lengthy should the newsletters be. It takes time and money to prepare the articles and to print it. It's a board decision about what goes into the newsletter, how lengthy the articles are, and ultimately how many pages are provided.

The website is a follow through to decisions made by earlier boards (ca 2008) and the current board is maintaining it.

What's the criteria for information to be? It is important to keep the goal of upholding fiduciary responsibility. That means doing what is best for the entire association and following the Illinois Condominium Act guidelines, in particular, avoiding groups or sub-groups. Improved information is a means of empowering all owners. Of course, different boards have different opinions about what type of information empowers owners. My perspective is simple. This is a business and the board makes all kinds of decisions about collecting and spending money. Some of that information is presented in the newsletter.

What owners do with that information is a personal matter.


The Newsletter
There are only two means of universal communications to all owners. One is the official association newsletter which is mailed to offsite owners and distributed to all on-site residents. The other is special mailings by the association to all owners.

The newsletter provides insights into the association for owner and for non-owners and because it is published on the WWW it may be of assistance to potential owners. I view the newsletter as the primary communications means for Briarcliffe Lakes Manor Homes. I have therefore championed it and done my best to expand the content.

This began several years ago, when I decided to promote expanded information at BLMH. This was not simply about form; it was and is about substance. This blog was one result. This blog  began as a diary of personal observations. A step change in this association and poor board communications changed this blog. At the time, I saw this blog as a means of promoting a dialog and more information for owners.

I have led by example and written a lot of stuff for this blog and more recently for the newsletter. Some is published and some is not. There have been about 281 posts and there are another 60 in draft! I've also been an advocate for expanded articles on all subjects in the newsletter. This is not easy because it is work for all those involved. It is also difficult to make declarations in the newsletter. Boards have the right to change programs as circumstances warrant. New boards do not necessarily have to follow or complete existing programs. Of course, they are required to maintain the association. Some of that is subject to personal interpretation.

I attempt to write for new owners as well as long time owners. I think some things benefit from repeating. I base this on the perspective that it seems some owners and some residents are unawares of the governing documents, and that includes the "Rules and Regulations." The newsletter is a means of providing a continuous stream of that information, and repeating it if necessary.

Preparing documentation is time consuming. Anyone who uses software has noticed that some of the accompanying manuals are horrible. There is a reason for this. Many programmers enjoy the "coding," but hate to do the documentation. Worse, taking an expensive programmer and having her write user manuals could be considered to be a terrible waste of talent. Our association is somewhat like that. Our board works hard to accomplish all of the tasks put before it. Writing articles for a newsletter, etc. is more work for the board. So what should be done? Meet with the roofer, or write a piece on garage floors for inclusion in the newsletter?

Some owners like to think that the board has nothing better to do than cater to them. Some owners think that seven people can ride herd on 336 owners. Some owners think that an understaffed board is perfectly acceptable, or that board members who have no specific duties and assignments make up a fully staffed board. I disagree. The caliber of the board, the number of board members and their committees, and the carrying out of specific duties and assignments all contribute to a well run association. The opposite is also true.



Reality of Meeting Attendance
 It could be argued that if owners came to the meetings, then the newsletter wouldn't be a necessity for owners. However, we have offsite owners and that's a reality. It is also a fact that the newsletter is not a substitute for two 2-1/2 hour association meetings. Owners who come to the association meeting can attend the owner's forum and can also hear the entire business meeting. They will get a lot of information.

Conclusion
I've made a personal decision to provide sufficient information about Architecture & Maintenance for publishing by the board to keep all owners in the loop. Enough to bring new owners up to speed. Enough to fulfill an obligation as a fiduciary under the Illinois Condominium Act to treat all owners equally and to avoid sub-groups. I also decided to promote the publishing of more information. This blog became one personal source, and I've promoted the public dissemination of information ever since.

I'll continue to promote the newsletter and encourage the entire board to provide articles of substance and relevance. I hope my writings are equal to that.

Notes:
  1. Coming soon; a post on "Community Living." 






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