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

Friday, July 1, 2011

Responsible - What Does It Mean?

"Responsible" is a word that we use from time to time. I use it, for example, when I say "responsible finances." But what does that mean? A couple of years ago, I used that and my statements got twisted. When I advocate "responsible finances" it seems some decided this meant that  "Norm is in favor of high fees." How did they get to that conclusion? By what leap of faith? I think certain statements are rubbish and pure politics.

Free Speech
This country prides itself on free speech. So it's possible to say just about anything.  "Norm is in favor of high fees" is a perfectly legal thing to say. It is untrue and inaccurate, but you can say it. Why do people say these things? Perhaps they have a secret agenda. Perhaps they simply don't like "Norm." That's fine.  I may not like someone and I may not understand someone. So I can say whatever I wish? Let's use another example, is it responsible to tell people that "Norm is dangerous?" This word means "able or likely to inflict injury or harm” on others. But it's a free country, you say? So I can say that? What are the consequences for the listener, the person I say that to?

If you were told that a certain someone living down the street was "threatening" or "dangerous" or "hostile" how would you react? If you were a woman living alone and you were told that about your neighbor, how would you feel? Would you think you are safe and that you live in a nurturing, comfortable environment, or might you experience apprehension and fear?

Another example. How would you feel if you were told that there were suspicions of financial wrongdoings on the part of management or by the board. Lets add to that. How would you feel if you were told the money in this association is poorly spent, or frivolously spent? Or that the board was trying to raise fees "as high as possible!"

The Possible Consequences
After months (years?) of exposure to some of the previous examples, I think some people would begin to experience concern about their financial well being, and the health of this association. I think some people would worry more about the perceived and gossiped "special assessment" or "terrible fee increase" that is rumored to be coming. Would you feel better and sleep better at night after being told these rumors and gossip not just once, but many times? Would you be more trusting of your management or the board?

I say that after hearing this stuff, and hearing it repeatedly, most normal, sane, competent people wouldn't feel very well. They might notice there is a small knot in their stomach, they might find they are worrying more about money. Financial or political news on the TV might seem more ominous.

Responsible Finances
To me "responsible finances" means on a personal level, living below my means. Same for the association. It means being careful with the collection and with the spending of money. It means providing for the present and saving for the future.

For example, if someone owes you a debt and refuses to pay, what do you do? If you are "living on fixed income" and that annuity check doesn't arrive, do you just sit there, or do you get on the phone and call to collect? Remember, if you don't you won't be able to pay for that Nicor bill or groceries. So you call. Are you being fair? Of course you are. How would you feel if the insurance company on the other end of the phone said "You're not being fair.  We're going to call someone. We're going to call the state's attorney!" or said "You're picking on me" or "that's repression." No it isn't. It's an agreement and a debt, and if you are unable to get that annuity check, then you won't be able to pay your bills.

Well, this association is also "living on fixed income." Your board and management are attempting to maintain the standards in this association and by that I mean, responsibly maintain the property.  That means, save money to replace roofs in a timely and fair manner. That means replace driveways and repair garage floors. That means keep the streams running, the lights lit, the water on, the garages and hallways cleaned. The budget to do that in 2011 was determined 10 months ago. This association lives on the timely fees graciously paid by 336 owners each and every month. We're living on "fixed income." Our CDs are getting less income than yours. Why? Because this association is a business, whether owners here want to believe that or not. But the banks do. So they offer this association much lower interest on Money Markets, CDs and so on.

If people tell you otherwise, I say they are feeding you rubbish, and they are tearing you and this association down. If you engage in these types of conversations, then you are contributing, too!

Responsible Ownership
Think of it this way. You own a piece of this association and each of your owner neighbors also own a piece. It isn't "your view" and it isn't "your building". Your neighbors own a piece of your building! You and your neighbors each own a piece of every building, tree and shrub on this property. You also each own a small piece of every sidewalk and all of the lawns and streets. If you think your "piece" is the building you live in, the stream outside your window, the street you are on, or the driveway outside the garage, you are missing the big picture. You "own" a small piece of each and every other throughout the association. What you can say is truly "yours" is your unit. That's it. Anyone who tells you otherwise doesn't know what they are talking about.

The association is responsible for the maintenance of all of those shared, or "common" elements. You are responsible for the maintenance of your unit. What you also own are "your" heating and air conditioning, windows, garage door, gas line, water and waste lines, and the electrical system from the meter all the way to your outlets. Those are yours and you are free to spend as much or as little of your money as you want, to keep them spotless and painted and in 100% working order. What you do is your business, as long as you keep the rules in the process.

So when you pay "your" fees and maintain your unit, you are being a responsible owner, and your neighbors are grateful. Paying your fee each month means that their view will be maintained, too. It also means that some of your neighbors on the other side of the association will get a new roof, or a new driveway. That will happen because you paid your fees.

When that water main breaks on your street, or a tree falls in a storm, that will be repaired and cleaned up because of your neighbors financial contribution to the association.

So everyone contributes and everyone wins. That's the way it should be with "neighbors."


Comments, Corrections, Omissions, References
Note 1.  I've read a few wonderful articles on the subject of "Your Castle is Part of Everyone's Castle" and the point of those articles is what I'm attempting to convey here.

Note 2.  I've decided that being a reaction to malicious stuff and that includes gossip is not a good thing. I've decided to take the high road. Honest and responsible communication is one way. 

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