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

Thursday, October 8, 2009

Everything Can Be Resolved In Communications – It’s Not Rocket Science

That was the message delivered in a course I took a few years ago. It’s not “news” either. The founding fathers of this country knew this and went to great lengths to protect freedom of speech in this country. For the same reason the Illinois General Assembly included, in the Illinois Condominium Act, a mandate for “open” HOA meetings in which all board business with only specific exceptions, are to be discussed in view of unit owners.

However, it takes a lot more than simply “free” and open speech for an HOA to work. It requires, among other things, a commitment to “workability”. For unit owners, such a commitment is optional. They vote, but they have no fiduciary responsibilities and duties. In other words, there are no requirements for unit owners, beyond those contained in the bylaws and rules & regulations of the association.

For the members of the board of managers, such a commitment is a requirement.

But what exactly is a “commitment to workability”? Workability is defined as “capable of being done with means at hand and circumstances as they are.” (Reference 1)

So exactly what are the “circumstances as they are?” Currently, this association has been accumulating reserves for ten years. Currently, this association has a prepared list of driveways which are in “serious” need of replacement. Currently, this association has a defined program which includes specifications and a roof waiting for completion this year. Currently, this association has professional managers, a professional maintenance company, and a professional landscaping company.

True, this association is a bit more complex than a 12 flat with gravel parking lot. So we have professional, licensed, bonded and insured contractors to perform the necessary work. We are not reliant upon a couple of handymen and a gardener or janitor.

All of the pieces seem to be in place. As that popular commercial states “this isn’t rocket science.” (Reference 2). So what’s the problem?

The experts tell us that we need a board which has “sound business judgment and a healthy dose of common sense” and will consistently “act as a fiduciary on behalf of ….. fellow owners.” (Reference 3).

I also think that the board needs a “commitment to workability” which transcends the perspectives which sometimes occupy the volunteer workplace. It’s necessary to overcome self defeating positions which can include “it’s not in my job description”, “I’m just a volunteer”, “I don’t have enough time”, and so on. All it takes is a team committed to performing its fiduciary duties. In the words of the experts, put the interest of the association's homeowners collectively first. Protect the fiscal and structural security of the building and the association and the well-being of its inhabitants. Uniformly uphold the rules and regulations, and look out for the interests of the unit owners as a group.

As the guy in the commercial says “it’s not rocket science”.

Reference 1:
http://www.thefreedictionary.com/workability

Reference 2:
http://www.youtube.com/watch?v=fM8puyJxL1U&feature=player_embedded

Reference 3:
http://www.hoaleader.com/public/206.cfm

2 comments:

  1. Amen brother. I love this blog.

    ReplyDelete
  2. I agree. I am learning so much on this blog. I am also heartened by the fact there are people in our complex that have the same thoughts, concerns and common goals (within our means) to make sure this remains a "livable community."

    ReplyDelete

Please leave a comment!

Note: Only a member of this blog may post a comment.