Perhaps you did not have the opportunity to listen to the Mayor's speech on the "State of the City" which was delivered on January 15, 2009.
A link to the text of that speech is included at the end of this post. However, here are some budgeting statements excerpted from the speech. I have highlighted several parts that apply directly to our budgeting:
"In terms of the City’s finances, these are quite challenging times for us nationally and locally, and Wheaton is not immune to the effects of the nation’s economic crisis. Since the Council passed the 2008-2009 budget in April, the City has been working to eliminate an estimated $4.2 million difference between expenditures and revenue in the General Fund. This is being achieved through expenditure reductions and also a planned increase in revenues.
The reasons for differential include dramatic increases in costs for materials necessary to provide basic services that we have in town. The products include asphalt, fuel and road salt. The cost of asphalt rose 30 percent in one year. The price of road salt skyrocketed 300 percent in that period. There’s also increased costs for personnel, including union contracts and unfunded mandates that we get from the state of Illinois.
There’s also been a decrease in revenue due to downturn in the economy. The City received less revenue from sales tax, less revenue from utility tax and less revenue from the real estate transfer tax. Taxes make up 84% of the City’s General Fund revenues.
The $4.2 million differential in the 2009-2010 budget will be addressed by reducing spending, such as the following. We will reduce spending for the annual road program, sidewalks, legislative services, employee recognition, vehicles and fuel consumption. There are personnel reductions. The City has a relatively small workforce, and a fewer employee-per-resident ratio than most communities our size. However, about 69% of General Fund expenditures relate directly to personnel costs. The reductions include eliminating open positions, also. "
Link to: State of the City Speech, January 2009
Above: Intermittently, for a time, boards informed owners of association finances
Newsletter 2008 excerpt is an example of earlier board willingness to communicate with owners.
The boards of 2019-2021 prefer not to do so.
https://tinyurl.com/BLMH2021
Life and observations in a HOA in the Briarcliffe Subdivision of Wheaton Illinois
Best if viewed on a PC
"Briarcliffe Lakes Manor Homes" and "Briarcliffe Lakes Homeowners Association"
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 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:
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
Wow, I was assuming they would just take the typical/easy route and just raise taxes.
ReplyDeleteRaising taxes in this environment is difficult. The City did raise the sales tax by 1/2 percent. However, there are limits to what can be done. A significant portion of the real estate taxes collected fund the school systems.
ReplyDeleteThis recession is following a typical pattern and that includes a decrease in sales tax collections because of reduced spending by the "consumer".
I suggest shifting to local merchants, including local gasoline stations to increase local sales tax revenue and to bolster up the city services.
I've also increased my tipping in the last 18 months to help the wait staffs. As restaurant business has fallen off, so too has the income of those dependent upon tips or sales commissions.