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, May 30, 2015

Water Main Replacement - Observations. One, two, three!

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One of three mains that were replaced

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Three water main replacements are in, of which two are complete. One remains to be pressurized. All in all, the project has gone well. I had some concerns; this type of project has a real potential for breakdowns and problems. While it is useful to be aware of the potential for problems, it isn't useful to obsess or worry others needlessly. Owners who have "issues" with these types of projects should come to HOA meetings and learn  more about their association, and express their opinions to the entire board in a public forum. Owners or residents who simply cannot tolerate these types of problems shouldn't be living here, period.

I took 100+ photos over a period of three days. I'll present some to the board during a HOA meeting.

Digging up existing water mains does pose a problem. For example, we did not know where the building services are tied-in to the water mains. The contractor did not know precisely what would be uncovered after the digging began. We knew this relatively small project would directly impact 28 units (8.3 percent) and could require water interruption for more. Of course, trenching across the main road of this HOA at three locations meant that a majority of our units and residents would encounter traffic delays or would be re-routed at various times as the work progressed. This required additional communications with residents, although residents on Briarcliffe or Harrow Court and even the North-West end of Lakecliffe would not be impacted, or aware of what was going on. In fact, one resident at Dover/Plymouth, on encountering a workman directing that she turn left and "go the other way" on Lakecliffe asked "Can I get out that way?"

That is one of the challenges; residents who don't read the notices that are posted, or the newsletters, who don't know the arrangement of the streets, who don't use "Google maps" or "Bing maps" or the HOA website, or read this blog, and so they are generally unawares. Now, it is beyond the scope of this post to go into the issues faced by an HOA with oblivious owners and unawares residents. Combine this with the fact that 97% of the owners in this HOA don't attend monthly meetings (excluding board members).  You may get the idea that we have a communications problem. But the board can't make people communicate responsibly and reading and attending is part of owner responsibility. Yet, I was told by one owner who had a problem with the water interruption that "he" was "too busy" to read the notices, or newsletter and was unaware of the HOA website. Enough said!

Of course, there are anticipated, tangible benefits to this project. Those benefits are part of the "cost benefit analysis" but I would also say that the potential for "disruption" to residents is also a board consideration. What occurred was what I call "interruptions." I would prefer our residents and owners experience interruptions over "disruptions." Is there a difference? Yes, there is. An interruption is a temporary lack of water. By temporary I mean an interruption during daytime hours, after many have had their morning shower and breakfast and before everyone prepares dinner. A "disruption" is a water outage that lasts overnight, or for days.

An interruption is having to use the other entrance to the complex, or the requirement to move my automobile before 8:00am and then through the day, walk 100 feet because "my" cul-de-sac is closed and my automobile is parked on Lakecliffe. A disruption is closing the street for days.

An interruption is a water main break which occurs and requires that residents use a 5 minute longer driving route, or a requirement to drive to a less convenient parking spot because the road is blocked by workers. A disruption is a water main break in the winter, which freezes, and/or shuts off water for days, and costs the HOA many tens of thousands of dollars to repair, closes streets, and so on.

A disruption to one's personal finances is a special assessment.

An interruption is another three days lost performing my duties as a board member, closely monitoring this project instead of doing my work.

I had legitimate concerns about the potential for interruption and disruption to residents, both because of temporarily closed roads and water interruptions. I expressed these concerns by asking questions about sequence, schedule, duration and shutoff, traffic patterns and control, etc. In other words, I wanted to establish as much certainty as possible, and in asking those questions, determine potential for problems and uncover any hidden flaws in the plan. In doing so, the plan might be improved. This is one of the duties and responsibilities of a board member.

One outcome was revising the official association website to make the "home" page a bulletin board for important notices. The board had discussed this several times, and this was the opportunity for action.

This was also a trial run for the communications and logistics for the replacement and repaving of Lakecliffe from Salisbury/Thames past Gloucester, Dover/Plymouth and to Briarcliffe Blvd. That project is imminent and will occur this year. It will require the use of temporary traffic patterns, interrupt street parking while curbs are being replaced, will close Lakecliffe at various times and will require daily changes to traffic patterns as workmen progress from one end of the street (Thames/Salisbury) to the other. Nor will this be done in "one pass." We'll be dealing with stripping, base and asphalt. Three passes? It will have the potential for disruption.

Doing the street project in 2015 was not part of the "plan" and should not have occurred until 2022. But the condition of the street "is what it is" and owners who complained about a "minefield" on the other end should be pleased; we're averting another minefield.

But I expect the complaints will come rolling in.

Wednesday, May 27, 2015

Lakecliffe Paving Update - Water Main Replacement Underway

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Replacements Underway - two locations
Water main replacement work began today, as posted and per the "official" association website.

Work is proceeding well, but there is a schedule adjustment. Valves have been installed at Dover/Plymouth and Gloucester and the water is 'on.'  There should be no further water interruptions at those two locations. Actual installation of the new water mains at Dover/Plymouth and Gloucester should be completed tomorrow (May 28).

Work at Salisbury may not begin until later in the day on May 28 and may not be completed until Friday May 29. That is a schedule change. 

Plymouth/Dover

Wednesday, May 20, 2015

Lakecliffe Paving Update

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This post will be updated frequently with current information.


May 27, 2015, 3:33pm. aWork began this morning at about 7:00am. I posted a seperate update at 3:33pm. The schedule has changed. Anyone who wants current official information should click on the following link:
www.BLMH.org


May 22, 2015, 9:00pm. Management has provided additional information at the official association website. Anyone who wants current official information should click on the following link:
www.BLMH.org


May 20, 2015, 1:00pm. While management works on getting some certainty, the weather for next week is deteriorating. Currently there is a 50% chance of thunderstorms commencing Sunday and continuing through Friday. Sooooo, weather will be a factor and will complicate this project and prevent 100% accurate communications.

Want better weather forecasting? Watch Tom Skilling, who reputedly makes $2 million a year, has a staff of about 12, and seems to have great difficulty getting it right. When the highly paid "experts" can't provide reliable information, what is one to do?

May 20, 2015, 11:00am. We have been informed that the work cannot begin until May 26 or 27. The contractor will then begin working on water mains on the property. Refer to the aerial view and diagram in this post; the red lines are the locations of the mains where they cross Lakecliffe. One main will be replaced at a time. We are awaiting verification of precisely where  the water main work will begin, so that residents are aware of precisely where Lakecliffe will be closed on the first day. With this information residents will know if the South entrance is open and will also know the shortest route in and out of the property.

Hopefully, management will get timely updates out so residents know which entrance to leave from in the morning and how to get back to their residence during the day and at the end of their work day. That's my goal, anyway. Keep your fingers crossed. "Everything can be resolved in communications." But getting firm commitments out of contractors when Wheaton permitting and weather is involved can be a problem. Of course, I've been told by a very few residents that "We don't read your blog" and "We don't read the newsletter." I assume some also won't read the notices posted in their building entrance, either. Here's a reality check. The responsibility to communicate, and communicating responsibility is a two-way street.





Monday, May 18, 2015

Lakecliffe Paving Preparations to Begin

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South Lakecliffe Paving
This is an aerial view of the section of Lakecliffe which will be repaved. It also shows the crossing of water mains in this section of Lakecliffe.  If all goes according to plan, then Salisbury Court will also be repaved in a few weeks.

On Thursday May 14 the board approved the contracts and work will begin with preparation this week. Preparation will include water mains crossing beneath Lakecliffe as shown above. This will result in closures of Lakecliffe while digging is underway.  The precise schedule and sequence was unknown as of Friday. The plumbing contractor has advised management that the work will begin this week.

Notices were distributed and posted by management on Friday.

Updated information will be relayed as it becomes available. The exact paving schedule has not yet been determined, but could begin in June. Prior to the actual paving there will be a lot of curb work and staking and that will require moving vehicles off of Lakecliffe so the curbs and storm water inlet work can be done.

This will be similar to the project last year and so, residents should be aware of how this will work; after all, we did a similar project last year.

This project is larger is scope than the street project last year. This section of Lakecliffe is longer, more curbing will be replaced and so on.

Sorry for any inconvenience. However, we'll try to get this work done as quickly as possible to minimize disruption. This section was patched last year and we want to avoid another minefield and endless patching. I would think owners would agree, after the experience with the North section of Lakecliffe.

There will be additional information as soon as it is available.

Saturday, May 16, 2015

Wheaton Flood Study Planning Session

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Watershed Map
Wheaton's City Council held a planning session on May 11. That session included the "Briarcliffe Lakes Flood Study."  This study is dated March, 2015 and is CBBEL project 13-0480.  The title is interesting but it was noted that there are 17 flood prone areas in Wheaton.

The study indicates that flow of this area is generally from north to south. In other words, storm water flows from an area north of Roosevelt Road and including Wheaton and Glen Ellyn. The flow is collected and migrates via a series of small lakes to end at Lake 4. At that point, flow is restricted (see the earlier study and the earlier City of Wheaton solution).

The session title might be simply a political appeasement, as the most recent over topping occurred at the two southern most lakes of the five in the study. Based on my interactions, I can state that many of the residents south of Lake 4 were oblivious to the conditions at Lake 3 and northward, and it's my opinion that they remain so to this day.

The southernmost lakes are in the Briarcliffe subdivision. The actual name of the study is the "Briarcliffe Lakes System Flood Study." Adding the word "system" is a significant addition to the study name. Note: Both Lakes 3 and 4 over topped in April, 2013. When Lake 3 over topped, the flow traveled overland to Lake 4. Simultaneously there were also overland flows from the College of DuPage, over topping of COD's "Hoddinott Wildlife Sanctuary" which includes a large pond and also COD's Pond 7. These flows were all into Lake 4 until the Hoddinott Sanctuary pond overtopped . It has been stated repeatedly and documented that the COD's Hoddinott pond over topped first. A resident on Brentwood stated so again during the council meeting.

In fact, the study extends from north of Roosevelt Road southward to Butterfield Road. About one-third of the area of the watershed is in neighboring Glen Ellyn. The remaining two-thirds is in Wheaton.  It is significant that neither the Village of Glen Ellyn nor the College of DuPage are participating in the study.

The notes of the city's Stormwater Engineer were included with the study presentation. Those notes state "During the storm the system of Lakes north of Brentwood Lane all filled to capacity and then floodwaters poured over the southern berm of Lake Four flooding a large residential area, disrupting residents lives, and causing property damage and loss. The flooding that occurred is not an isolated incidence." The study and the engineers notes ignored the over topping of COD's Hoddinott Marsh area and Pond 7. This was not by choice. It was because both the College of DuPage and the Village of Glen Ellyn are not participating in the study. I would add my opinion that they have exhibited no interest in doing so. In fact, COD president Robert Breuder stated in writing that the flooding of April 17, 2013 was "primarily... because of bypass flows" and the College Board did not respond to my letter at the time, preferring to have a law firm retained by the college respond to me.

The problem with the Briarcliffe Lakes System is the capacity. I also suspect that the previous decision of the city to restrict the outflow of Lake 4 has aggravated the situation, as have significant modifications on the College of DuPage campus.

Placing a restriction on the outflow of Lake 4 placed a cork on the bottle. If upstream flows are not similarly restricted or reduced, then the problem becomes worse. This was not addressed in the current study. Nor were the changes on the COD campus in the south and south-west areas of the college campus. It is known that the college has removed significant, lower elevation grassy areas along its perimeter, has added substantial asphalt for parking in that same area with storm sewers which direct flow to the Hoddinott Wildlife Area, pond and marsh, and to the new COD Pond 7.  It also added a large maintenance building. Ultimately runoff from all of these flows go to Lake 4, which has the only below grade discharge into the storm sewer system. After the one, below grade discharge is filled to capacity, then this lake system overflows.  There is no system in Glen Ellyn to alleviate this problem. The village and the "community" College of DuPage directs all flow into Lake 4.

Because of a total lack of cooperation from the college, and the lack of involvement by the Village of Glen Ellyn, what cannot be known is the impact of changes within the one-third watershed area of the Village of Glen Ellyn. In other words, it's reasonable to surmise that under the best circumstances one-third of the flow to Lake 4 comes from the watershed sourced from  Glen Ellyn. Furthermore, any changes on the COD campus will either reduce or increase the flow to Lake 4. Adding storm sewers, asphalt and structures in what were lower retention areas would imply an increase in flows to Lake 4 from the campus. That is what the college has done.

According to the study the "Briarcliffe Lakes System" includes Lakes A, 1, 2, 3 and 4. The watershed that drains into these lakes covers 1.9 square miles. The study states "The Briarcliffe Lakes System generally drains from north to south through a series of storm sewers and online ponds (Lake A and Briarcliffe Lakes No. 1 through No. 4.) The outflow from Lake No. 4 is conveyed via storm sewer, ultimately outletting into Windsor Channel via a 72inch sewer prior to discharging under Butterfield Road to Rice Lake."

This post begins with a map of the watershed, which is contained in the study.  As the study recognized that all flows lead to Lake 4, any restriction of that lake or increase in flows to that lake would increase or aggravate flooding, wouldn't it?

The study looks at the following:
  • Street flooding between Lake No. 1 and Lake No.2
  • Street flooding between Lake No.2 and Lake No.3
  • Overland flow between Lake No.3 and Lake No.4
  • Briarcliffe Lake No. 4 overtopping and downstream structures flooding
  • Street flooding along the overland flow route or the storm sewer route downstream of Lake No.4
It was stated that "The primary focus of this study was to document the existing drainage system and identify alternatives that would reduce the risk of future flooding. The study area contains Zone A floodplain over Lakes No.3 and No.4, over two isolated street flooding areas along the overflow route of Lake No.4, and also over the downstream open-channel."

Bottom Line
Wheaton has identified several potential solutions. But it is making assumptions and going it alone, with no help or interest from the neighboring community of Glen Elly and the College of DuPage. The most practical solution "uncorks" the system and directs flow to the Rice Lake system, south of Butterfield Road. This will alleviate the problems created earlier and which includes those within the one-third of the watershed in the Village of Glen Ellyn and the College of DuPage.

The problem is straightforward. Solving it is not. It will take $millions to solve this. The city didn't find the wherewithal to do this years ago, prior to a time the State of Illinois was not the "State of Debt." The Village of Glen Ellyn pefers to spend it's money elswhere, and the "community" College of DuPage employs a large public relations staff to promote it's agenda and the French Restaurant and Hotel built with taxpayer money, while deflecting criticisms with high priced lawyers.

With the coming cash crunch, I would guess that this will be a difficult thing for the city to do.

Video of the Meeting
Here is the video transcript of the meeting. I included links to the engineering memo and the study in an earlier post.

Note that to run the video requires "Silverlight" software. This is free and distributed by Microsoft. Anyone who runs Netflix on their PC already has this installed. Otherwise, the city link directs the user to a download.

Clicking will open a  New Window> Briarcliffe Lakes System Flood Study


Wheaton faces another funding cut as the State Crisis trickles down

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At the most recent City Council meeting (May 4) the council passed a resolution. As we all know, the financial crisis in Illinois has "trickled down" to municipalities. As a consequence the State has reduced funding to municipalities during several recent years.

The state has a spending problem. A recent Pew study stated the following: Tax revenues in Illinois are up 22.5 percent over pre-recession highs, while 30 other states are collecting less tax revenue today than they were before the recession began. Pew’s study revealed that during the recession era, Illinois increased state tax revenue more than any state but one. Yet, Illinois is in even worse financial condition today. Think about that! It's clear to me that the legislature has been wasting our tax money.

The income tax increase of 2011 did not improve the situation because the State Legislature under Madigan and the "leadership" of former Governor Quinn and recent predecessors did nothing to alleviate it. A substantial portion of the income tax increase of 2011 was used for a variety of purposes which did nothing to reduce the problem. Here is what the politicians said in 2011, when they raised the personal income tax from 3% to 5%, and the corporate tax rate from 4.8% to 7%:

Governor Pat Quinn: "We have some temporary tax increases that are designed to pay our bills, get Illinois back on fiscal sound footing and make sure that our state has a strong economy."

House Majority Leader Barbara Flynn Currie: "…the point of this income tax increase is not to expand programs, not to do brand new things in Illinois state government, it is only intended to pay our old bills and deal with the structural deficit."

Senate President John Cullerton: "The purpose of this bill is to raise enough money so that we can continue to pay our pensions without borrowing the money, to pay off our debt, to have enough money to pay the interest on that debt......:"

But the above didn't happen. In fact, for the fiscal years 2011 -2014 the state actually collected nearly $26 Billion addditional from this tax hike, and the politicians spent it all. And yet, the pension problem is as bad, or worse than it was in 2010. Yet, this is what  House Deputy Majority Leader Lou Lang said about the problem in 2014: "I don’t think there’s anyone in this building who doesn't believe we need to extend the income tax increase." So he and many others in the legislature preferred, and continue to prefer to raise taxes rather than control spending. The recent State Supreme Court ruling on public pensions merely underscores what many have assumed to be true.

Some have said that Illinois didn't have a tax problem. It had a spending problem. Sadly, that is true. Funds were collected and poorly spent. Pension obligations were ignored, with the expectation that future politicians would simply raise taxes on the residents to cover the tab. That day is coming. How bad is it? Truth in Accounting says that the tax burden on each taxpayer in Illinois for unfunded pensions is $45,000. Yes, you got that right. Each taxpayer in Illinois is on the hook for $45,000! Yet, the politicians have been driving people out of the state. Illinois lost 3.5% of the population in recent years and most did not die here.

I suggest Illinois residents use reality, not the promises and baloney of the legislature when we think about what's coming. Back in 1989 the state hiked income tax rates with the assurance the increase was "temporary" and only necessary to get the state through a financial problem. But tax rates never came down and were made permanent in 1993. Ever since 1989 the politicians have preferred to spend your money, and that includes the revenue of the Illinois Lottery which has been used to help cover certain expenses. There is no question in my mind that the legislature will spend every dollar of the middle class if they get the opportunity. Yet, many of these politicians are rich. Madigan, for example. One would think it should be difficult for public servants who are acting as fiduciaries on the behalf of all of us to get rich and run their side businesses, but not in Illinois. Thanks in part to cronyism, nepotism and very generous retirement benefits which allow double and triple dipping.

While Illinois politicians have prospered, the rest of us have not. The state has the worst job creation record in the Midwest since the 2011 income-tax increase. The population has decreased about 3.5%. In other words, fewer of us are paying to cover those taxes. Simultaneously, local property-tax rates have increased. The legislature now has a plan to transfer suburban and other public school costs to local communities, further increasing tax rates. Of course, with a diminishing population, those costs will continue to be shared by fewer and fewer of us. The Chicago Tribune recent cautioned that Illinois could become a "ghost state."

Wheaton's Resolution
"Resolution Supports Preservation of Local Funds The Council unanimously backed a resolution expressing the City’s support in retaining the local distribution of the State of Illinois’s Local Government Distribution Fund (LGDF). Governor Rauner has proposed reducing the amount of funding the City receives by 50%, which would result in a $2.6 million reduction in General Fund revenues. This is the equivalent of a 7% reduction in overall revenue to the City’s General Fund. This sizable reduction could require the City to significantly reduce City staffing levels or capital improvement projects in the City. Through this resolution, the City expressed its opposition to the state’s proposed reduction in revenue distribution."

Wheaton's resolution is all well and good, but Wheaton will need to find ways to replace an overall 7% revenue decrease. That will probably require both  higher taxes and service cuts. When the pain comes, I hope Wheaton residents remember who it is that created this financial crises.

Saturday, May 9, 2015

Wheaton's Flood Study Website

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Monday's City Council Meeting is a planning session. One of the topics will be the Briarcliffe Lakes System Flood Study. This study is a partial one. There are seventeen flood prone areas in Wheaton (according to the documents) and it will require two years to complete all studies. According to the engineering consultant "The study also went one step further in comparison to the two previous studies (Cherry Street & Williston Basin) and also provided a mitigation alternative analysis." A major problem will be determination of how to fund any improvements. Knowing what to do is only a part of the problem. Determining a source of funding is also a major hurdle.

Anyone who has kept current with the dire financial straits of Illinois should be aware that the State has reduced funding to municipalities several times in recent years. This represents many millions of dollars of funding which the City of Wheaton must now make up from other sources, including resident taxes.

The engineering department has put flood study documents on the City's website. Here is the website information and links to the pdf documents. There are two documents:
  1. Summary.
  2. Complete Study.

"Briarcliffe Lakes System Flood Study

On April 18, 2013, a major storm event occurred in the City of Wheaton. Many areas throughout the city were flooded, including the flood-prone area Brentwood Lane east of Briarcliffe Boulevard. During the storm, the system of lakes north of Brentwood Lane all filled to capacity. Then, flood waters poured over the southern berm of Lake Four, flooding a large residential area, disrupting residents' lives, and causing property damage and loss.
The flooding that occurred is not an isolated incidence. Based on the City’s records and best available information, the berm has overtopped seven times in the last 45 years. In response to the flooding and in conjunction with Strategic Goal 3D, the City Council approved the Briarcliffe Lakes System Flood Study to analyze and document the flooding conditions of this flood-prone area as well as propose possible mitigation options.

Flood Study Summary

The Briarcliffe Lakes System Flood Study was finalized in March 2015 and has been summarized in the following memorandum:

Complete Flood Study

The complete Briarcliffe Lakes System Flood Study is also available:

That's all, folks!

Wednesday, May 6, 2015

Waterfall Awakens

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The waterfall and stream systems have been surveyed and inspected a week ago, they have been cleaned and some repairs are underway. This post includes a video of one of the streams in operation.

On May 4 maintenance began starting the streams. BLMH has three such systems. They are in various states and one is excellent, one is good, and one is "fair" but with some good sections. Stream repairs were restarted in 2011 and pump pits have been replaced and some concrete sections replaced. A large, collapsing deck and walk system was removed and a new bridge installed.

I am of the opinion the current condition is is a consequence of the decision to install high end architectural roofs. That project began in 2001-2002 at a time the HOA lacked the reserves for this $2 million + project. Nevertheless, the boards prior to 2010 decided to proceed and increased reserve contributions dramatically. That diverted substantial funds to this project.

However, our streams are functional and with the completion of the third pump pit replacement they will all be restarted as the board agrees.

The current masthead photo and the thumbnail for the following video show a replaced section of this stream. That concrete work was done in 2014. More remains to do.


Monday, May 4, 2015

Why our Landscaping is important

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About 46% of our residents live on or within view of a waterfall, stream or pond.

Our owners didn't buy here because of the ambience of our 1978 units. Yes, many have been updated and there are a lot of benefits to owning a condo in a HOA such as ours. However, it's the landscaping that really makes the difference.

Here is a brief video I made at dusk on May 3 from my deck. I didn't enhance it at all. The sounds of the wildlife is exactly what I hear, although the volume might be a bit higher. My video camera has auto audio, so it sometimes emphasizes what one would hear.

I've sent this to the entire board of the HOA.  I think we all know why people live here.