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

Sunday, April 18, 2010

BLMH Blog Mailbox

Here are excerpts from a few posts. These have passed my "filter". That filter includes my perspective on comments which are on topic, and adhere to the etiquette rules for the blog. For that reason I am including them here. I am also including these excerpts because these comments do "further the action" and contribute to the discussion, or provide some insights. Of course, these may or may not be BLMH residents.


Posted April 15, 2010:
  • "Really Norm, "let's dance." You should know what that terminology means before you use it......"
My Response: "Let's Dance" is a disambiguous phrase which has several possible meanings, and therefore several different interpretations. Using such phrases are useful, because they provide me insight into the viewpoint, bias and perspective of those who comment on this blog.


Posted April 15, 2010:
  • "......So you wasted taxpayers money by calling the police for a nail in the tire..Interesting, and do you think they would call you a liar. No, they will agree with you, that is what they are supposed to do....."
My Response: It would seem that the person who posted this comment has a very narrow viewpoint of what the Wheaton Police are supposed to do for residents. It seems it is their opinion that Police support is a waste of "taxpayer money" and the police always agree with callers. Our association encourages unit owners to report suspicious activity to the police.  This has been published in our "Manor Briefs" newsletter. 



Posted April 16, 2010:
  • "I like the daffodils. I like the trimming of the grassy areas out front of the community. ......I also think the roofs need to be fixed. I am worried. Who can I go to see which roofs will be fixed and when they will be fixed? ......I had a friend in another community of condos where everyone got a one time fee of over $5,000 to fix the roofs because there wasn't enough money in the kitty....."
My Response:
Yes, the flowers are lovely. 


As for the roofs, our association has substantial reserves for replacement of roofs. The precise amount is published as part of the accounting and budget information provided to unit owners at the annual meeting. Our association reserves for roofing had a balance increase of greater than $150,000 for 12 month period ending October 31, 2008 (this public information is on our official BLMH.org website). Our roofs are aging. That means that their appearance is beginning to show it. There is some staining, which is not an indicator of imminent or pending failure. Staining may be caused by environmental factors, proximity of trees, organic debris, chimneys, rusty flashing, roof algae, etc. Or by inadequate under roof venting. Believe it or not, there are products which can be applied to shingles to remove some stains! Our former AD seemed satisfied with the condition of most of our roofs, which seem to be holding up well, and are performing their primary task of protecting us from the weather.  I'm looking for problems such as this, which I reported in 2009. Clicking will open a  New Window> 2009 Roofing Damage . The 2010 schedule of roofing replacement has not been announced; this has not yet been discussed by the board. It's my understanding that our roofs are currently inspected on an annual schedule; the AD is surveying our roofs with the assistance of a contractor or contractors. That is per his most recent architectural and maintenance report, presented during the April meeting. Time permitting, I'll be posting meeting highlights here, and that will include such announcements. However, I would expect that the roofs selected for 2010 will be announced at association meetings and published in our "Manor Briefs" newsletter. If you have specific concerns, I suggest you mail a note to management at FUPM and in the body of your letter; ask them to pass it to the Board of Managers, which should therefor be included in the packet the board receives each month. If you want a conversation about your concerns, come to the next association meeting and during the "homeowners forum" address the board with your questions or concerns.


I do appreciate your concern about "special assessments". However, at present I am not concerned, but I am watchful. Our treasurer has repeatedly stated he is opposed to special assessments, there has been no public discussion by the board or by last years' board about the possible need, anticipation or plans to implement a special assessment. During the April association meeting the Board passed a motion to discuss whether or not to proceed with a reserve study to supplement that provided by FUPM last year. A reserve study will provide additional insights into our financial condition. Until that time, I suggest you support and encourage board efforts to build our reserves, and accumulate funds for roofs. 


I assume your friend experienced a special assessment because 1) Reserves at her association were not adequate because of a lack of planning, or 2) An emergency occurred which exceeded the capacity of the reserves of your friend's association. You might find the following post, dated February 13, 2010 to be interesting. Clicking will open a  New Window>Why Special Assessments Are Not An Option In that post, I quoted Robert Nordlund, P.E. of Reserve Associates who said:  "In most cases, special assessments as an ongoing way of conducting business at an association should not even be an option. Governing Documents of most associations specifically require an "adequate" amount of Reserves to be set aside on an ongoing basis to offset anticipated Reserve expenses. Special assessments are designed as the solution for emergencies, not regular common area expenses."  

Posted April 16, 2010:
  • "Why can't people focus on what needs to be done? I've read posted comments before about Norm. Are some people focusing on finger pointing or on what needs to get done?"
My Response: Good question. I think that what you are seeing here are differences of opinions about "what needs to be done". This is normal. I always consider the perspective of the person commenting. Most anonymous comments don't state that, but a few do.  As I have said several times, we all have a personal bias. Anyone who is currently selling a unit probably has only one focus and that is to sell their unit. If they were forthright they would probably admit that they will oppose anything which they think would interfere with their sale. It does point to the problem if our Board of Managers attempts to operate in accordance with the perceived will of the majority, or move this association in the direction advocated by those "squeaky wheels", which is to say, to move in accordance with those few of us who show up at association meetings and voice our complaints.  However, if you are addressing the general complaints and comments like "we like Norm", "we don't like Norm" or "I think I have a hygiene problem", I agree. Those opinions are irrelevant. That is one of the reasons I now moderate the comments. To keep those comment "on track". 


Posted April 16, 2010:
  • Norm, take heart. You sound a little beaten down in your latest posting........I almost never comment on your blog at all, but I try to take the time to read each posting. I agree with most, disagree with some. But trust me...there are many of us out here that read this thing and nod our heads in agreement. Keep up the good work. Most of us appreciate it. And if we didn't have you around, we'd only be left with half the story."
My Response: Thank you for your kind comments. I sometimes have difficulty separating the "wheat from the chaff" when I see volleys of comments. Your post helps. Without comments, I have no idea if I am "in my head" or in the real world, and I am therefor just doing finger exercises which are wearing out this keyboard.  I do really believe this is a unique property. I think those on our boards who spent 30 years getting us to where we are today are to be commended. Some things work and financially, we nearly lost it about 20 years ago. But in 1998 we began our recovery.  I intend to support our current and future boards in "staying the course" and in so doing, get us through the future years. This association has another good 50 to 70 years ahead. Longer if we continue for each of those years to choose to make the proper decisions and if the unit owners today. next year and each year thereafter choose to continue on this path. I think as time progresses, the unique benefits of this association may become very, very apparent.  There are architects and city and community planners who are again promoting the advantages of "higher density" housing. We have the best of all worlds; "Manor Homes", low density and lots of green space. I don't want this "step change" or "reset" in our economy to do us in "psychologically speaking". We are way ahead in energy efficiency, ambiance, green space and many other metrics. We could do more if we began to think about it and discuss it. But to do so will take some leadership and the will to look beyond what some perceive as "survival". I routinely talk to home owners in the greater Chicago area who have similar square footage and they are shocked when I give them my monthly energy and utility costs. I am paying 1/3 of what they are; in some cases, on a square footage basis, even less. My utility bills plus monthly fees are about what they pay for utilities alone, and they have to do all of their own maintenance and exterior repairs. They have difficulty believing it, so I direct them to some of the info I have put here. I would like to shift many of the internal conversations at BLMH. With respect to fees, I am going to emphasize my perspective on "total cost of ownership". 

Posted April 15, 2010. I'm including this because it asks a technical question, the answer to which may be of interest to those who wonder how it is that these posts appear when they do:
  • "Interesting post........What kind of job do you have to where you can make a blog post on a Thursday morning and where can I sign up?"
My Response: I create most of these posts in the evening, but sometimes in the wee hours or very early in the morning. They are stored and are ready for posting at some future time and/or date. Currently I have ten such posts "stored" and ready for posting, including this one. I use two means of actually posting, or putting these "out there" in the "blogosphere". The first is to schedule an automated posting at some time in the future. The post will appear at the appointed date and time with no further action on my part. I have scheduled this post for publishing at 11:42PM this evening.  The second method is to go to my blog and manually publish the selected post. I sometimes do that. Including "log on" time, it takes about 45 seconds. I can do this during scheduled breaks, lunch, or whatever. I sometimes go back after a posting and notice something ambiguous or a typo and if I can, I'll fix it, or save a draft copy and as soon as practical, publish the edited post. As to what my normal hours are, since about 1981 I have designed all of my businesses to include "flex time". As long as certain hours each day are covered by all employees, so that work and communications is coordinated, employees have been allowed to choose the time of their arrival and departure. There are a few restrictions, but in the past, some employees chose to start their work day at 6:00am, others ended theirs at 7:00pm.  There are other possible approaches. I have a client who shifts their normal department hours during the summer months. During the summer, their normal "work" day begins 6:00am. This permits all employees of that department to leave for the day at 3:00pm.  What is "normal" is really a result of one's perspective of what is possible.  Here at BLMH I see both opportunity and possibility!

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