Would You Like a $10 Monthly Fee Reduction?

In my ongoing struggle to shift the conversation here at BLMH, I'm going to broach another subject.

Would you like to see a $10 monthly fee reduction? It is possible. However, it will require that our entire board change it's focus from Rule changes, garage and flea markets, coffees, expanded newsletters and so on, to something called "finances".

Some on the board, including our treasurer are already there. Others seem to be clueless.

What would it take to reverse the trend in escalating and increasing fees? What would it take to REDUCE fees?  Would that help to increase unit sales? So why aren't we looking at that?  It will take a lot more than talk; it will take action. We don't seem up to the task of real change.

Our new board members, and the one existing board member made a 'shoot from the hip' decision to hold fees constant this year. Unfortunately, this was not accompanied by an equal decision to hold the line on the budget. Simply publishing a budget which is a statement that "the budget for 2010 will be essentially identical to that of 2009" won't get the job done. As I recall, 2010's budget is based upon the published budget of 2009, not the ACTUAL expenditures. In other words, it wasn't based on the amounts actually spent in 2009!

How to reduce our fees by $10 a month? It's easy. Just cut expenditures by $40,000 this year. But to do that, the board will have to begin a serious discussion which goes beyond lip service about "scrutinizing" every bill - that was a campaign slogan in 2008. It will have to begin serious discussion about reducing expenditures. And ACTION. However, currently, those on the board who ran on "scrutinizing" have now shifted to "it's only a little bit of money." New items are proposed and discussed, but discussion of costs and impact on budget are avoided by saying things like "wouldn't this be good" and "it's only a little bit of money", etc. Supporters are readily available to make supporting statements to the board and to any unit owners who attend meetings. No one says "this will cost more" except our treasurer. Last year's treasurer objected to some of these conversations for the same reason, and stated so at association meetings.

Yes, talk is really cheap, especially when it is someone else's money.

Do we want to get serious about unit sales? Do we want to do something for all UNIT OWNERS here at BLMH?   Good luck, it will be necessary to get the ENTIRE board aligned and on track!

Instead, we now have people telling me that "wouldn't it be good if we had an on-site custodian?" etc. Seems somebody is committed to spending money here. The management tells me we are too small an association for a full time custodian. A unit owner who seems well connected, tells me that we, the association, could purchase a unit or pay the monthly fees of a custodian. Great. Let's reduce the income of the association by about $4,000 each year (that's the custodian's fees we won't collect) AND increase expenditures. Of course, we would have to pay "insurance" for the custodian, his Social Security, taxes, tools, etc. Or, should we just subsidize the business of some "out of work" contractor?  Yes, there is a lot of money here at BLMH, and I'm sure there are a lot of under- or un- employed handymen and contractors who would love to land the contact here at BLMH. Perhaps that was the idea behind all of the talk by new board members in 2008 about how we didn't need a professional maintenance company. We could do it with a few "handymen".

Where there is smoke, there is fire, it is said. Seems someone is planning the next "change" here at BLMH.

Comments, Corrections, Omissions, References
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1. We have large reserves. It seems that some money will be shifted from that to cover operating expenses. How can that be? The board added "coffee and donuts with the board" this year. We still have a glossy and larger newsletter. We have a new website. There was no vote to increase budgeting for these items, or above 2009 levels. In fact, our budget this year was voted to be EXACTLY as it was to be in 2009 as published in Fall 2008. So how can we spend more and yet not collect more? So where will the money come from?  The only possible method is taking it from reserves. I'm still waiting for the details of 2009's actual expenditures, in which some money was spent on landscaping, etc. as part of driveway and roofing (relocated downspouts), etc. I still have no idea exactly how much was spent in 2009. Some work performed in 2009 was possibly billed and paid for in 2010.

2. Our treasurer is an appointee who is experienced from previous boards. One board member ran in 2008 and was elected that year. All others are new for 2010 and have no prior HOA board experience. We have a new appointee who was voted and passed in April's meeting. The open discussion by the board stated he was an employed contractor. That statement also said he would be the Landscaping Director. On that basis the board voted unanimously to appoint. The new Landscaping Director made no statement nor addressed the unit owners who were present. So we can only trust that the statements made by those on the board who promoted him, which includes our CD, were factual in this matter.

3. I'm not proposing an "across the board" or declaration to reduce our fees by $10 per month. What I am proposing is:

• Evaluate all expenditures with the purpose of holding all current spending at or below ACTUAL spending in 2008.
• Eliminate board member "pet projects". Nothing is sacred, except critical services, roofing and driveway projects. If this association is not maintained then property values will decrease. 
• Do absolutely nothing to spend additional moneys.
• Create a true contingency fund.
• If this board can demonstrate the will to accomplish the above, then begin a serious undertaking to reduce expenditures and fees.