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

Monday, October 26, 2009

The Newsletter Has Arrived!

Got my copy of the October/November newsletter today. Here are my initial observations.

The newsletter was further expanded and uses the same "upgraded" glossy paper. Photos are dark and I assume that this is because the original documents are being sent to the printer in color. Hint: conversion to "gray scale" and tweaking for contrast prior to submission would significantly improve the quality of the photos. Now that the "old" board has been removed, there are no longer any excuses about the newsletter, website, etc.

Did you notice that our CD is now our "Secretary, Recording Secretary and Communications Director?" I'll use the title "Communications Director" so as to provide continuity in this blog. For those who are interested, the "Secretary" is the named representative on legal documents for the association. According to the Society of Corporate Secretaries and Governance Professionals, the "Secretary" of a corporation has a "key responsibility to ensure the the board has the proper advice and resources for discharging its fiduciary duty under state law, and to ensure that the records of the Board's actions reflect that the Board has done so." Reference 5.

The newsletter stated that for the present we don't have a treasurer. However, as stated the board is planning to fill a vacant position, unless unit owners create a petition as specified in the newsletter.

The newsletter confirmed that our former Architectural Director "declined to fill the one-year term." Reference 1.

The new president made a statement encouraging unit owners to attend association meetings. The president stated that "the more engaged each homeowner is in the association's affairs, the better the board will be able to understand and address our community's needs." I underscore this. In a statement pertaining to the 2010 budget, the president stated that the board expects "there to be no increase to your 2010 assessment." That underscores the information and statements made by management at previous association meetings. So the new board concurs. That should make people happy, or not? There was no mention of the "reserve study". I am very interested in seeing the details of the study and the budget. But the study has been one of those "secrets" I guess.

The association website is coming "soon".  One of our unit owners has volunteered to do this. I am not certain if that is the same gentleman who was acknowledged during the annual meeting.

In the "Director Reports" our outgoing Architecture Director stated that driveway replacements were approved during the September association meeting for 1600T, 1601T, 1604T, 1706L, 1725L, 1733H and 1774G. I had written to management in the first week of October pertaining to the apparent delays to this work as well as to the roofing project at 1730-1732H.  My letter stated,  in part "...the board has authorized the driveway work and the roof...The Communications Director was the only board member who voted "NO" regarding the driveway repairs. However, it would be an inadequate excuse for the board to forego [sic] its responsibilities, and it would seem necessary for the board to act in compliance with the wishes of the vote." etc. I closed with the comment "I am very concerned about the current state of affairs at BLMH."

In the "Management Report" section of the newsletter, the statement was made that "There are several projects underway and scheduled for completion yet this year."  The newsletter went on to state that "The asphalt replacements and drainage improvements will be an ongoing project for the next several years until all of the driveways are completed." One aspect stood out. That was the statement that several projects are "scheduled" for completion this year. A careful observer will note that the languaging was "scheduled" and not "will". So perhaps we should keep our fingers crossed, and hope the work is completed. As a unit owner who gets a bill each and every month for the payment of my fees, I don't think our board and management would accept my statement that "I am "scheduled" to send you a payment each month." What is expected each and every month is that I "will" send my payment. For those who are about to quibble, the difference is significant and is one of "commitment".

I found it interesting that the new "Rules and Regulations" Director made the statement that "I suggest that instead of regarding our R&Rs as annoying restrictions, we think of them more as responsibilities that we share with our neighbors." Gee, I thought that is what the "old" board kept telling us. Now it was not only stated, but it was actually PRINTED in the newsletter. How did that get past the censor?

Pertaining to the "resetting of storm drains" you can see photos at Reference 2.

It was stated that the maintenance company will be "coming around in the next few weeks to break up the garage salt buckets and fill them for the beginning of the winter season." I thought that was performed by our snow removal contractor. But then, I am a relative "newbie", so perhaps I am mistaken. My building has a 50 gallon plastic container. Perhaps I am lucky and the rest of the unit owners have "buckets" in their garages. There is an explanation, of course. I have a large container because this is "another perk for the favored few." Oops, sorry for blowing it for the other three unit owners who share the garage. Perhaps we'll be demoted or whatever to a "bucket" this winter.

The newsletter stated that "Monthly assessments can be paid automatically". That's attractive, but would filling out a debit form also provide for "automatic" collection of fines, etc.? No explanation was given in the newsletter. I'd be unwilling to have fines automatically debited from my bank account. I'll explore this further with a letter to management.

The newsletter contained a reprint of the "Rights and Responsibilities for Better Communities" as made by the CAI, which is online at caionline.org. These are "Principles for Homeowners and Community Leaders."  There was no statement accompanying this document. On its website, the CAI states that "By encouraging community associations to adopt Rights and Responsibilities for Better Communities, CAI strives to promote harmony, community, responsible citizenship and effective leadership.

The CAI website makes the following recommendations for adopting the "Rights and Responsibilities":

"Adopting Rights and Responsibilities for Better Communities is easy!

  • Download the Rights and Responsibilities document.
  • Distribute the document throughout your community, announcing and publicizing where and when adoption will be considered.
  • Explain why this is important to your community and the benefits it can create.
  • Review and discuss the merits of the principles at an open meeting of your board.
  • Solicit input from homeowners.
  • Have your board vote to adopt a resolution endorsing Rights and Responsibilities for Better Communities. The principles will be more meaningful to homeowners and community leaders if they are formally adopted."
The newsletter does not indicate this is to be a process, with unit owner input. There are several possible explanations:
  1. There is no intention for formal adoption at BLMH on the part of the board. The "R&R for BC" is merely a suggestion.
  2. Our board intends to adopt the "R&R for BC" by decree.
  3. Input is being solicited, but only from specific unit owners.
  4. This will be posted as part of the agenda for the next association meeting, thereby continuing a bias in favor of unit owners living on the property.
I'll be providing more on the CAI "R&RforBC" in a later post. You are encouraged to go to the CAI website and review their statements about the use of this document and recommendations for boards, unit owners and professional managers. Reference 3.

The newsletter did not provide a statement about the oaths for our Board of Managers. It is unclear if the newly elected members of the board signed the oath. Reference 4.

The Communications Director provided a "Meet Your Neighbor" page and the following statement at the bottom of the page: "NOMINATIONS: If you'd like to nominate someone you know for the "Meet Your Neighbor" column, send the name and address of your nominee to: [our Communications Director] or email __________. Nominees will be contacted and asked if they wish to be interviewed." From this, am I to conclude that my earlier request to the "Communications Director" regarding the interview of current and former board members did not occur because they declined the interview? Or perhaps my request was simply ignored??? Nah, that wouldn't happen here, would it? I'll resubmit my nominations with addresses, but I won't be holding my breath.

In the "Meet Your Neighbor" interview for the month, the selected nominee stated that her personal motto is "What doesn't kill you makes you stronger".  Choosing to paraphrase Friedrich Wilhelm Nietzsche was interesting and I can only say, "you have come to the right association, lady."

The "red stuff on my shoes" article does "officially" answer the question brought up by a unit owner at an earlier association meeting.

No mention of the "vandalism" or recent theft brought up by a unit owner was made in the newsletter. If you want to be informed of some of these items, you will have to attend association meetings, or be fortunate to spot a piece in the local paper. Of course, you may also use one of the rumor mills in operation at BLMH, including the "official" and board member sponsored and "unofficial". However, in so doing you will possibly not get accurate information and you may also be spreading gossip. I appreciate that in the absence of published statements, unit owners have few choices.

Did you notice the statistics for unit owners who cast their votes? The statement is on page 1 in the second paragraph.   I'll state this "positively": 57.14% of the unit owners at BLMH aren't apathetical about their association, and did vote. The remaining 42.86% just don't give a hoot. Gee, and it was only a year ago that "a majority of us" were up in arms, according to the Communications Director. Amazing what a difference a year can make. Now nearly 40% are simply going about their daily business. I guess things aren't that bad here, are they? I state that because in my limited experience, most people go about their day to day business unless something personally significant intervenes in their lives.

The newsletter does not provide a current list of contractors. At several association meetings, unit owners have asked about "Ron's TV" which has left the downtown area. Their replacement is used for work on TV and coaxial cabling in units, maintaining the rooftop and in-attic antennas, etc. The new information for contacting "Ron's TV" was promised to be included in the newsletter. I suggest that unit owners contact the professional management for this information.

Sorry, but I've got to go. Despite what my critics say, I do have a full time job and I have spent the last 40+ years improving American industry, "committed to the elimination of all preventable industrial accidents in my lifetime", etc. Besides, I've got a  "quick banana bread" to remove from the oven. I prefer the recipes in a January 1967 version of the Rombauer-Becker "Joy of Cooking", you know, the version prior to the time they took butter out of the recipies and became "politically correct". So this bread was made with honest to goodness real "shortening". As we are approaching winter, I'll soon be making home-made cinnamon rolls. However, as I am currently working on a project about 650 miles distant, that may interfere with my baking schedule. Blogging however, can be accomplished from anywhere. From personal experience, I have been able to "carry on" from 7,000 miles away "as the crow flies."

Reference 1:   http://briarcliffelakes.blogspot.com/2009/09/post-election-2009.html
Reference 2:   http://briarcliffelakes.blogspot.com/2009/10/somebody-is-on-job.html
Reference 3:   http://www.caionline.org/info/help/Pages/RightsandResponsibilities.aspx
Reference 4:   http://briarcliffelakes.blogspot.com/2009/05/board-of-managers-part-2.html
Reference 5:   http://tinyurl.com/ygodh6n

9 comments:

  1. Norm, you have way to much time on your hands. Anyone who spends this much time looking at the newsletter has some mental issues.

    You might want to see a shrink.

    Or, just enjoy the smaller things in live and stop this blatant, grade school-ish grudge that you have with the CD. I don't know why you do or what the reasoning is behind it, but life is too short for this kind of nonsense.

    ReplyDelete
  2. Who is being grade school-ish? Oh dear, someone has the audacity to critize the CD and her followers. It is what it is - deal with it.

    ReplyDelete
  3. I always find it amazing that somebody who tells the 'blogger' that they need a life took the time to read the 'blog' and respond with 'get a life.'

    Really?

    So, if, in your opinion, the author needs to 'get a life,' why do you spend the time reading his opinion? Shall we call a spade a spade and ask you to 'get a life' as well?

    And don't worry about childish insults with me. I'm not a part of the ROC, so I must be a souless godless moron who blindly follows Norm off of a cliff. Oh, and I'm not 'neighborly', I support higher association fees, I live in a cave, and I'm fully of inaccuracies and negativity.

    Does that cover all of your bases, or did I leave any of your insults out?

    ReplyDelete
  4. You support higher association fees? What kind of dumbass would actually say such a statement? You are either probably on welfare or collecting social security to not care about money like that. Not all of us like throwing money down a black hole.

    ReplyDelete
  5. I think the last comment shows the mentality of a certain group of people. Which would I rather have - no special assessment and money to take care of the necessary things to keep my propery value intact - or have no money left for repairs and a special assessment? I think it is a no brainer, however, is that too hard for you to figure out? Money spent on keeping this complex in good condition and avoid a complex in disrepair, is a paramount necessity - not anywhere in tune with throwing money down a black hole. That statement alone makes you the dumb.......... Then you wonder why so many of us are concerned residents. It is about time more people became concerned residents. If you do not, you will certainly rue the day. Enough for you to feed on???????

    ReplyDelete
  6. Which would I rather have - no special assessment and money to take care of the necessary things to keep my propery value intact - or have no money left for repairs and a special assessment?

    But prices haven't gone up this year. Since the economic crisis, deflation sat around ~ -2% or so. The main reason for raising assessments, inflation, wasn't there this year, thus there is no reasoning for raising assessments. Most employers are using similar reasoning for not giving salary increases this year.

    Disposable income of American's has gone down this year, thus an increase in other expenses (like condo assessments) makes them relatively poorer than the year before. Unless that is the type of thing that you are in favor of, I can't see why you would want raised assessments.

    ReplyDelete
  7. Ah, Anon 4:51...I see sarcasm is lost on you, as, apparently, so very many other things. Your group continuously accuses Norm of 'supporting higher assessments.' As you can read by my posting, if of course you CAN read, I am only pointing out the same tired and used insults that you and your group hurl at the author of this blog.

    My 2.5 Cents certainly says it best by saying NONE of us WANT fees to go up. However, that does seem to be the party line at the ROC. 'Don't vote for them! They support higher fees!'

    Ah well...such is life Anon 4:51. I should have known after reading your previous postings that you would say something THAT stupid. Thank goodness my children are all grown up and don't trick or treat in your neighborhood. I wouldn't want have them stop by your house on Halloween...I'd be too afraid they would come home with a nail in their shoe. Or worse yet...they would have picked up some of your 'stupid' goo that you spout every time you open your mouth or use your keyboard.

    ReplyDelete
  8. And for the record, I think My 2.5 Cents should be a guest author on this blog. I enjoy reading your postings 2.5. It makes me happy to know there are some people around here with some common sense.

    ReplyDelete
  9. And, "The Doctor is In," yes, that sums is up perfectly. I don't think the ROC could have said it any better from their own mouths.

    ReplyDelete

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