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, March 18, 2010

Is our Board Adhering to the Requirements of the Illinois Condominium Act?

Section 18.4 (h) of the Act which pertains to the “Powers and Duties of Board of Managers” states that the powers of the Board of Managers include:

“To adopt and amend rules and regulations covering the details of the operation and use of the property, after a meeting of the unit owners called for the specific purpose of discussing the proposed rules and regulations."

The Act goes on to state that:

"Notice of the meeting shall contain the full text of the proposed rules and regulations, and the meeting shall conform to the requirements of Section 18(b) of this Act, except that no quorum is required at the meeting of the unit owners unless the declaration, bylaws or other condominium instrument expressly provides to the contrary."

This section of the Act has certain guidance regarding such rule changes:

"However, no rule or regulation may impair any rights guaranteed by the First Amendment to the Constitution of the United States or Section 4 of Article I of the Illinois Constitution including, but not limited to, the free exercise of religion, nor may any rules or regulations conflict with the provisions of this Act or the condominium instruments. No rule or regulation shall prohibit any reasonable accommodation for religious practices, including the attachment of religiously mandated objects to the front-door area of a condominium unit."

In other words, no rule changes can be discussed or voted, unless previously posted or mailed to all of the unit owners. The Act has specific guidelines for the method and proper allowance of time for unit owner notification.

Members of the Board of Managers are required, as part of their fiduciary duties, to be aware of the Act. Asking other members of the board to check on the accuracy of board action is not in accordance with the duties and obligations. Each board member needs to be informed and aware, and follow the rules. Just as we unit owners are to follow the rules.


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References, Comments, Errors and Omissions:
1. Highlights above are mine. 

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