2013 is beyond us and here we are in 2014. To date, it seems this may be a "freeze - thaw - freeze" winter. I dislike the transitioning from warmer to colder and back again, ad perpetuum or perhaps, ad nauseum. On the other hand, that's better than -21F.
If I had my choice, I'd prefer living in a temperate climate in which the "high" winter temperatures are below freezing and above 14F. I prefer snow to ice.Hmmm, it's 68F in Yuma Arizona. Of course, in San Diego its a uniform 70F during the day. Hawaii also offers more uniform temperatures.
Extreme Cold Weather Means Higher Heating Costs
It's monday evening and as I write this I'm comfortable in my condo and the furnace is running. My most recent natural gas bill was $34 but I overpaid it as I have the past few months in anticipation of the frigid weather we usually get in January. Ta Da here it is! The conditions expected tonight through Tuesday should take a bite out of the roughly $132 I've accumulated in my account using the NiCor "budget" plan. In December 2012 I used about 64 therms of energy. In December 2013 I used 96 therms of energy. Yes indeed, I'm surely burning through that surplus.
In 2013 my average monthly natural gas bill was $50.75. That was for gas consumed for heating, hot water and cooking. That's why I never pay less than $50 a month no matter what NiCor recommends. My combined gas and electric bill averaged $113.62 each month in 2013. I do use a setback thermostat and use the oven to bake when it's really cold outside. However, with the much greater use of natural gas in December and current very low temperatures I'll have to increase that monthly payment or experience a large "spike" in my bills.
The price per therm of natural gas was $0.40 in December 2013. In December 2012 it was $0.45. That's reduced my average monthly bill by about $5.50. However, with these extreme cold temperatures across large portions of the U.S. natural gas consumption is surging and prices will increase. Those temporary monthly savings are over.
Association Comparison
My point with the weather and natural gas price fluctuations is this. A simple thing can alter my costs by $5.50 a month for my unit. These are things we really can't predict and we certainly cannot control. Yes, I can lower my thermostat by 1F and that will reduce my energy consumption. There are practical limits to this.
In our association my fees increased $3.46 over the fee a year ago. That's about 1%. This assumes the cost in 2014 will be within 1% of what they were last year. This includes electricity for utility room heat and association lighting, snow removal, maintenance, repairs, capital improvements and so on . It assumes all costs will be managed to maintain a budget within 1%. The complainers have no idea how difficult this is, or simply don't care.
Snow Plowing
It's -13F outside and 19F in the garage; I've got some wireless sensors installed to monitor these conditions.
On "Chicago Tonight" they just announced that city had completed major arteries and was working on side streets. That's at 7:10PM on Monday, January 6.
We've been luckier than that. Our streets were plowed on Sunday by our private service. Entrances and driveways were shoveled at the same time. We're a PUD and so we pay for this. Yes, we pay the same real estate taxes everyone else does. That's why cities thought PUDs would be a wonderful idea; push the services off of the city and onto the taxpayers who live in these Private Urban Developments with no reduction in tax revenues. What a wonderful scheme!
Our snow removal wasn't perfect but it was darn close. We didn't have a cul-de-sac waiting 24 hours after the complex was plowed to have that street cleared, as occurred in neighboring communities. Of course, we pay for this. There are some advantages to living in a PUD but one does have to pay via fees for these services. Today our maintenance crews were knocking icicles from above the A&B garage entrances, and the walking entrances. We do have snow in some of the dormer windows up to 1/2 the window height. When it warms there may be problems. Rain is predicted in a few days!
I understand some owners will say "The snow removal company we had last year did a better job." We haven't changed vendors nor have we changed the scope of the work. Plowing occurs at 2" of snowfall. So we xometimes get a push at 3" and then if we get another inch on top of that, we won't get a push. It's not always practical to wait until the storm is over to push and timing may also be a factor. If we get one of those long, slow snowfalls on a weekend, it might be prudent to let it accumulate to 3" rather than pushing at 2" and again at 1". There is a cost for each push.
It's darn cold outside but by Wednesday we'll be getting back to normal weather pattern for this time of year.
For the "change" aficionados, they should be thrilled by these weekly weather changes.
Keeping Warm - Condo Cooking
Staying inside when possible is the prudent thing. So what to do when inside? Cooking and baking which use the oven are to me a good way to provide supplemental heat and get something good to eat.
Baked chicken is a no brainer. A fryer from the Wheaton meat market, rubbed in olive oil, salted and peppered and with fresh sliced red potatoes and carrots added.
Here it is after baking and ready to eat. Yum! I use a foil tent but remove it after 45 minutes in the oven and allow the chicken to brown. At that point I measure the temperature with a digital probe (not provided by aliens from outer space) and then leave the chicken a bit longer if I want it crispy. The trick is to get the chicken to doneness without drying out the legs and wings. I use aluminum skewers to hold the legs against the body, or I use heavy twine. The wings I hold in place with smaller skewers or with potatoes resting against them.
Planning, Complaints and Goals
This is the time to plan for the activities that can occur when better weathe arrivesr; this is true for individuals as well as HOA's. However, before I go down that road I'll provide the board with some options in the "Architecture and Maintenance" area and we can set some priorities for 2014. It makes no sense to plan something that the board considers unnecessary. My list may include what I consider to be important items, but the board may not agree and that's appropriate. Any activity uses funds and those funds come from fees. This is a well known fact, and is an explanation for why some association boards are known as "do nothing" boards. One of the easiest ways to save money in the short term is to defer maintenance and simply take care of the "squeaky wheels."
Doing nothing or taking care of the few is not maintaining the association and eventually that deferred maintenance catches up. Then the bills roll in. Of course, individual owners have their own ideas about appropriate maintenance. At one extreme we have the investor who sees any fees to pay for maintenance as detracting from his or her revenue and the owner who sees maintenance on the building in which he or she resides as the only appropriate use of funds. The rallying cry in 2008 was "What do we get for our money?"
In the "good old days" when real estate was the rage and flipping was an everyday pastime, one could argue to keep fees low while conspiring to sell one's unit; some did. Today it is far more difficult to pass the hat to future owners because sales remain uncertain. The free ride is over and home ownership is once again the alternative to renting it was always intended to be. Real estate via one's "home" is no longer a "get rich quick" scheme, a piggy bank to be tapped via easy equity loans or a means via "liar loans" to access free money. I think it can be argued this is a good thing, but it has been a difficult and bitter pill for all of us. Some associations have experienced extreme duress because of the consequences of high delinquencies and foreclosures.
But what happened to those would-be flippers who expected to make a quick buck, or those who were holding and planned to "sell at the top" and move elsewhere? Some escaped via foreclosure and some sold before the bottom dropped out. I think some remain here, trapped by the market conditions and unable to sell at the price they anticipated. A few are now among the ranks of the chronic complainers. It's no secret that there are home owners who say "I wish I had never purchased." There is no question our hopes were dashed and most would agree that while a financial crisis was expected the impact on housing was far more severe than most of us anticipated. Some of us simply muddle through while others lash out in frustration or anger. The board is always a good target. The board is a group of sitting ducks and boards generally can't do much but take the abuse when it comes their way. However, I do think it's appropriate to "say it like it is" and I for one will not be a target or a punching bag.
I prefer to take owner complaints "head on" and defer owner complaints to the entire board. In recent years I've noticed that some of our owners seem to enjoy their complaints and relish picking fights. I'm of the opinion that if it's important, owners can attend the monthly association meetings and briefly state their opinions to the entire board. These opinions range from what's right, to what's wrong with COD. the landscaping, drainage, lighting, painting, the streets, management, snow removal, the weather or whatever.
I concluded some years ago that to do everything that individual owners request and to do it uniformly for everyone would use more funds than we have collected in the past decade. Most of our owners pay their fees in a timely manner and so I assume they have the financial acumen to figure this out. Some don't. We certainly publish sufficient information in the newsletters, etc. for people to be aware of what's going on, where and why the money is being spent, and of the issues we all face. There are frank discussions at the association meetings. But it isn't all good news and some owners then say to the board "How could
you let this happen?" Some of our owners can't understand why the board is short-staffed. Really? So how it works is a few owners volunteer to do the work on the board. In our association that's 6 out of 336, and a few other owners turn this into an "us versus them" situation. Most do understand and I appreciate that understanding.
For 2014 we'll again look at the programs that are in progress, continue them, deal with new issues and decide if the budget under current collections can handle everything. This annual planning process began with the October 2013 budget workshop. I assume priorities will be reviewed and there is always the possibility that some items will be at the bottom of the list while others will be at the top. Isn't that how most of us deal with our personal finances? Establish a budget, have an "emergency" fund and do things based on a priority schedule? Only after the most important things are completed are the "discretionary" items done. Yes, we do have a plan to continue the roofing project this year. However, exactly how many roofs we will do is a board decision. Funding is one of the considerations. Goals have been set but it is up to the owners to provide the funding for maintenance and capital projects.
One of the complaints is "Our fees are too high." Board members have to pay the same fees everyone else does. There are no perks for the board. At present every building on the cul-de-sac on which my building resides has been re-roofed. Every building that is, except the one which houses my unit.
This association and its board does not operate in a vacuum. Nor are things a constant. The current state of the fireplaces and the notification from Wheaton is an example.
In 2014 repaving a portion of Lakecliffe Blvd will be a priority project. There is the replacement work involving the stream, walks and bridge behind Thames to contend with. The roofing project, drainage improvements and driveways replacements or repairs are also to continue. There should be some direction about the "storm water system" operated and maintained by the City of Wheaton which includes several lakes including Lake 3 to the north and Lake 4 to the south. Then there is our neighbor to the East. The dam permitting process involving COD's Pond 7 and Lake 4 continues. COD seems hell bent on spending as much money as possible accompanied by continuous credit hour cost increases. Will they attempt to raise our real estate taxes to cover increased operating expenses?
Will Wheaton have a "100 year" Storm Event in 2014?
That's a good question. I have no idea of what weather we will experience. Since January 1 it has been interesting!
Near term the Farmer's Almanac predicts "Rain and Fog" for the period January 4-7 for the Midwest and the Great Lakes region. Well, at least they got the fog right. For the 8th-11th. "Southern Plains storm moves to Great Lakes; heavy rain and snow." Based on current predictions it seems we'll have frigid weather for a few days, but by January 11 and 12 there is a chance of rain.
