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
Showing posts with label It's Not in My Job Description. Show all posts
Showing posts with label It's Not in My Job Description. Show all posts

Monday, April 5, 2010

Unresolved Street Problems Erupt

11 comments
Last year, our former AD continued his efforts to move this association in a certain direction. That included driveway repairs, new roofs and Lakecliffe repairs. He was stopped and removed from the board. Others, most notably our CD, have a better idea. Others on the board seem to think that repairs and what not, occur "automatically" here at BLMH. They don't. The only thing "automatic" is the collection of fees. The board decides exactly how every dollar is spent here at BLMH. Did you see "Lakecliffe Repairs" as a line item on the budget this year? It wasn't. The board will again deliberate and will probably, as discussed briefly during the most recent association meeting, have the original contractor survey this street and make recommendations, possibly including "warranty repairs". Good luck!

So "How did the new direction for Lakecliffe turn out"?

As requested, last year I provided information to our previous AD regarding issues with this street and possible corrective measures. Why last year? Because the red lights were flashing and the alarm bells were chiming. That's why! Cores were taken. Some of the issues were debated among the board during association meetings, it turned into finger pointing and repairs were never implemented. I guess protecting those out of compliance, parties, more tulips, lots of mulch and so on were much more important. Recommended repairs, and the widening and sealing of cracks, to save this street, were not done. Ah well, we have more important things to do and to spend our fees on, here at BLMH.

This year, people look at the street and say "How could this happen?" Why wasn't this corrected, how was the street allowed to get into this condition, "what do we get for our fees" etc., etc., etc.  I view it as the "Katrina Effect". Unit owners are comfortable and when the street began crumbling beneath us, still seemed to be okay. So everyone puts their attention on other, "more important" things.  However, water does enter the widening cracks, and does damage the sub-base. The few cracks begin to spread and checkering takes place, as heavy trucks and cars drive over the weakened street. The condition worsens and the damage spreads to larger areas. Holes begin to pop-up as the "mortally wounded" sub-base and "bituminous concrete" shift, crack and splinter. Ever larger areas of the street begin to pop out and holes, once a few, now begin to form throughout. You can see this in the following photos. Last year and the year before, the issues were only visible to the discerning eye. But no longer!

Eventually these problems become obvious to all, but by then it is simply too late. Ah well, it's like watching a slow motion train wreck again, and again and again.

My concern about Lakecliffe, then and now? Protecting the sub-base of this street and halting its expensive destruction. As the cracks form, water enters, the cracks widen and the sub-base erodes, accelerating the destruction. As predicted, at some point, the street will simply disintegrate. How are we doing? Well, here are some of the consequences to Lakecliffe due to the lack of action. It isn't simply a warranty issue. Some of this may have begun as a warranty issue, but if damage is not speedily corrected, this is what happens:

Note: the object in the photo is a yardstick. Clicking on the photos will enlarge them (1).















But, we can all feel great because our fees didn't go up this year. Whoopee! 

The question is, what is more important to the unit owners? Reducing fees or proper maintenance and repairs?  Lakecliffe is one of the "billboards" that advertises our association to potential buyers. Our "official" website shows beautiful streets lined with trees in fall colors. But enter the community and the above is what greets you. Walk the site and view the trash at the shore of the northerly lake, etc. Somehow, the reality that greets the home buyer hasn't made it to our communications department. Buyers in this discriminating market aren't going to buy our color brochures. They'll walk the site, kick the tires and put the propaganda in the circular file.  Ah well!

I suppose, the new board members will simply blame the former board members. Blame is certainly easier than taking appropriate action or taking responsibility. Certain unit owners will attend the association meetings and spread the party line, and certain board members will sit there, expressionless and smug, while the tar and feathering goes on. 

We don't anticipate, we react. We don't manage, we administer. We don't lead, we rule. We don't plan, we party. We don't prepare, we complain!  We don't enforce the rules, we promote chaos. We don't spend money pro-actively, we spend money on damage control. Welcome to the new and improved BLMH! Question to the board of managers: Do you REALLY think this is what current and prospective unit owners want here at BLMH?  Feel free to publish a multi-colored response in the font of your choice in the next issue of the newsletter. 

==================================
References, Errors, Omissions, Comments:

(1) Added note elaborating on the presence of a yardstick in the photos, per a question posed by a unit owner. 

Monday, March 15, 2010

It's Not in My Job Description

9 comments
That was the response of our "Rules and Regulations" Director to a Unit Owner request to inspect an alleged violation to the rules. This is a direct quote from our Association meeting of March 11.

Sounds like "open season" for rules. Oh, but our CD and the R&R Directors are so concerned about making our "renters" welcome here at BLMH! To put it bluntly, they seem to have a problem with determining what they are supposed to be doing, as members of the "Board of Managers".  Or perhaps we should rename this the "Board of Social Directors"? For example, let's make the renters and our friends feel warm and fuzzy while vandals run loose in the streets, water sprouts destroy our trees and the streets disintegrate. But we have funds for "coffee and donuts" for our friends to come visit us at the IHOP!! Gee, just like the city of  Wheaton. Makes one feel simply wonderful, like the Mayor, doesn't it? Well, this will continue for as long as each unit owner sends that check each month for $300. That will fund a lot of "discretionary items" even if they aren't in the budget, and even if the reserves are underfunded. But these are "good things", or so they believe, and so they tell us, and so it will be. And that is the only critiria. What they "believe" is reality.

I have a few questions for our most illustrious and beneficent board. Do our renters send that money to the lock box each month? No, they don't. Do our renters have perhaps $190,000 invested here? No, they don't. And when our renters are behind in their payments, who "eats" this? And who is held accountable for payment of that association fee and the real estate taxes? Certainly not the renter or "occupant". It is the Unit Owner, who is a Member of the Association, who pays his or her association fees, the taxes and the mortgage. That's who. So why the emphasis of our CD for our "poor" renters? It seems that to be a renter at BLMH  is to be "the flavor of the month". Perhaps our CD, R&R Director and others on the board are merely fully committed to flushing the money of the unit owners, and at the unit owners expense. Who knows? Her official position is that this is "a good thing". Really? and for whom? And why should I or anyone else who has a vested interest at BLMH ever believe this individual?

Frankly, where in anyone's job description does it say anything about this kind of behavior?  Oh, I forgot, here at BLMH our board members are allowed to create their job titles, and to pick and choose their job responsibilities and duties. So the person who makes the Newsletter becomes our "Communications Director", our R&R Director states to unit owners that inspections or rule enforcements "Isn't in my job description", etc. One member of the board doesn't have even have any specific duties. Obviously, even without a "Landscaping Director" we have more than enough people on the board to carry out all of the ephemeral duties of the board.

Apparently, if the member of the board doesn't want or like a task or if there are tasks that we consider as "unpalatable", or difficult, those duties are simply "dropped out" or pushed over to the board president or some other responsible member of the board to do. As members of the Board of Managers, we'll pick our jobs and do that which works "for me". Part of what works "for me" is making the people I choose to champion feel welcome here; by shirking our duties, ignoring our responsibilities and just as the little children we are, by not doing the things we don't like to do, simply because "I'm not going to and you can't make me - so there."

So the person who decided to be "responsible" for the newsletter selected the title "Communications Director." Based on her actions and my observations, I really do think that "Social Director" would be far more appropriate. Too bad this isn't a retirement home. However, with the latest change in direction, perhaps "Director of Rentals" would be more appropriate. It probably doesn't matter, as long as the title is "Director" of something. How about "Grand Poobah"; yes, that sounds simply "grand".

It truly is amazing how capable some of our directors are, why, they can do anything! Anything that is, that has absolutely nothing to do with "fiduciary duties" or any of the other aspects of running this business. Administrators simply "administer", they hire and fire and let the minions or lesser members of the board "do the work" and "do the heavy lifting". Isn't that wonderful!

Returning to the subject of this post, I can understand that people take on responsibilities they aren't equipped to fulfill, particularly if they are sold a bill of goods by their "friend" on the board.  When the going gets tough, or uncomfortable, or I simply don't feel like it, all one has to do is turn to the unit owners and say "It's not in my job description".