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

Tuesday, June 19, 2012

Committee Members

Recent newsletters have included a short statement about committees and a request for owners to join. This is not an accident.

Our association has been operating "short handed" and I've concluded that is exactly what the owners want.  The board could ignore this, and that too is what I have been told some of our owners prefer. "Please, don't bore me with details and just give me the good news." Another position taken is "It's the board's problem." As I stated to an owner recently, we can't very well force people to join, can we? Believe me, if the board could find able bodied, qualified "workers" who were willing to work, we would use them. Observing recent boards, it's included what I would call baskets of mixed fruit. That includes bonafide workers. It has also included those who have a personal agenda, those who will only do those tasks they are willing to do, and the occasional member who does nothing and is apparently there to stack the vote or to act as a pipeline to their friends. I've also been told by "professionals" that this is not all that unusual in associations.

A Brief Segue into "Retirement"
I am opposed to forms of deceit which include  "sugar coating" and political pandering. That's not a good way to be with a group in a popularity contest! In such a group, we are expected to say what people would prefer to hear. Sorry, that's not me!

A few owners actually believe and promote their personal position that this is "primarily a retirement community!" We don't meet the qualifications and I've seen no statistics to support that statement. The opinion of those individuals might simply be a result of the company they keep. For example, membership in the "Club" of their choice of "like minded" thinkers. Or perhaps its based on the observations of those they meet walking our grounds at 10AM and 2PM. Of course, the rest of us are at work or school, because that's what most of those who are not retired or homemakers are doing during the day.

Hmmm, that makes me wonder if there might be another group here which believes "We're an association comprised mostly of moms and stay at home dads?" There may be other groups! It boggles the mind! A possibility that there is actually more than one way of thinking! A while back a person who is now a former board member made the forceful statement to me that for the board "It's most important that we all get along." I was concerned that might be code for "We don't want anyone who doesn't think as we do." So I attempted a dialogue about "diversity" with the perspective of the advantages of a group having "different points of view." That didn't go over very well. Eventually, I was branded as "dangerous" and it required my attorney to handle some of the fall out.


The Definition of Retirement
To avoid confusion, the definition of "retirement" that I am using is "the point where a person stops work entirely." Working people include those who work 40 hours a week, or more and those who are in "phased" retirement or others working part time. Those over the age of 18 who are attending college or other post- high schools are also not retirees. So this is not about age.

If some of our owners are correct in their assumption that we have "a lot of retirees" whatever "a lot" is, then we also have "a lot of" people in this association who can work on committees, attend COD Zoning Board meetings, etc.

What are the U.S. Statistics About Retirement?
Recent polls indicate that approximately 40% of current workers plan on retiring after 65.

"Early retirement" in the U.S. is the age of 62. So what are some of the statistics about retirement? According to the OECD, this is the percent retired per age group:
  • Ages 55-59 33% are retired. 
  • Ages 60-64 57% are retired.
  • Ages 65-69 80% are retired.
  • Ages 70+ 95% are retired. 
Sub-Populations of the Elderly
There is no single group of retirees. Some experts use these sub-groups:
  • Ages 65-74 "The Young Old."
  • Ages 74-84 "The Old."
  • Ages 85+ "The Oldest Old."
Changing Characteristics of the Elderly
Those same experts also say that the next wave of retirees, the "boomers" will be very different than the current retirees. Some boomers are in the youngest group of elderly called "the young old." The boomers exercise twice as much as previous generations. Among other things, they bike, swim, hike, sail and ski!

These same individuals also like to live near colleges, beaches and the mountains; and places where the "physical and intellectual" action is.


Conclusion
We have a vacancy on the board and the association routinely asks owners to join committees. According to some owners, we have "a lot of" people at BLMH who are "retired," and I assume that means they have free time.

So why do we have these governance vacancies? There are a number of possibilities, and perhaps all of the following:
  1. Things are going so well in the association that there is no perceived need to make a contribution.
  2. Many of our owners are younger with children, jobs, extensive duties and responsibilities.
  3. Owners who are available feel they don't have the necessary skills.
  4. It's socially unacceptable to work with the current board.
  5. Owners are apathetic and simply don't care. 
  6. Owners would rather complain. 
  7. If I'm going to do work, I expect to be paid and this is a non-paying job. 
Notes:
1. This association does not keep statistics about the age of the population. An earlier board felt that even knowing age information was an "invasion of privacy." In fact, we don't know how many units are available for rent. Why is that? Our Bylaws require owners who rent to provide a copy of their lease to management. However, family members are not considered tenants. So if I 'rent' to my son or daughter, that is not considered to be a rental unit. An empty unit which is available for rent is not considered a rental because there is no lease.

2. If statistics are correct and boomers prefer intellectual stimulation, exercise and "action" then BLMH should have a lot of available people for committees. If the opinion of certain owners is correct and we have a "lot of retirees" then we also have a lot of people in the association with a lot of free time on their hands. Do they spend it "making a contribution?" Not for this association. Perhaps for their favorite causes and for their friends.

3.  I'm a "boomer" which is one of those who in terms of age is between the older generation, which some call the "greatest generation" and the younger generations, some of whom have been called the "whining generation." Boomers are a diverse lot. We've experienced multiple economic recessions, we put men on the moon  and the shuttle into orbit, defeated communism, fought a number of hot wars, endured the draft, and many of us scrimped and saved so we could buy homes or condos before there was "free money" available for this purpose. Many boomers are savers and doers. Many have spent a lifetime of work and continuous improvement and education.  Many boomers do not expect to go into full retirement until the age of 70, and a few expect to work at 70+. How is that possible in the current economic situation? It is a matter of employment skills, work ethic, and perhaps some luck. For example, currently there are a reported 600,000 jobs that cannot be filled in manufacturing. These are in many different areas of the country, and the Chicago area has a diverse small manufacturing community. That is but one example. It is true that certain jobs have few vacancies and in the end finding employment today is dependent upon one's skills and work history.


1 comment:

  1. Dear Sir,

    I, too, am a resident of BLMH - over 8 years now. I find the attitude exhibited by COD in this current controversy to be outrageous!! Homeowners throughout the country are under water on their mortgages or, sadly, no longer homeowners at all now. Our unit, for example, is worth less than what was paid to purchase it in 1999!! Nevertheless, the College of DuPage, funded by our property taxes as you pointed out so well, is using our own money to diminish our property values even further!! Their cavalier attitude toward our property values and the labor required to acquire and maintain them beggars description.

    I was surprised to learn that the City of Wheaton has chosen to take a "hands off" approach to this very serious issue. I did some checking and here is some contact info for Wheaton City government:

    Mayor Gresk: mgresk@wheaton.il.us

    Council Woman At-Large Ives: jives@wheaton.il.us

    Council Woman At-Large Sanguinetti: erps@wheaton.il.us

    Also, we are in the East District of Wheaton. Our city councilman is Tom Mouhelis. His email address is: tmouhelis@wheaton.il.us. Perhaps we can get the Wheaton city government to get off the sidelines.

    You are to be highly, highly complimented for the service you are providing on this excellent blog!! It is extremely well thought out and presented. Keep up the good work!!

    ReplyDelete

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