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

Saturday, July 28, 2012

Issues of COD - The Next Step at BLMH

Construction Seems Stalled, Waiting for a Reply
The construction on our doorstep seems to be stalled. I'm referring to the "material staging area" and the "pond 9" on the extreme western border of the college. A letter went to the Trustees of the college and we're waiting for a reply. That letter was drafted by me, reviewed by the board, management and the association attorney and has been mailed to those responsible at the college.

There's a lot to do, but as with all things at this association, a fundamental question remains "Who is going to do it?" During the May association meeting, several owners were in attendance and a portion of the "Owners Forum" was about the situation with COD and how "Someone should do something" to quote one of the owners who was in attendance.   I made the straightforward statement that I was unwilling to take on that commitment and be accountable for a result. None of the owners who were present were willing to take on the commitment to lead a committee. So we have none. Owners may or may not be pursuing this independently and they may or may not keep the board informed.

The fact is, what occurs at COD is not an association issue, although it does impact the association. The board is not responsible for the actions of the college, nor can it make up for any complacency or apathy on the part of the owners and residents of this association. Living in an community association requires responsible action on the part of the "owners." There is no entitlement or entitlements!

Our board is short handed and we have had recent boards in which individuals had no official duties and responsibilities. While we remain short handed and under staffed, each board member does have specific duties and responsibilities.


Consequences to Narrow Range of Thinking
Is there a consequence to a narrow view of thinking? Yes, there is. That's why this association had a social committee running the place for a couple of years, and there was a price, in dollars, paid for that. It is also why the College of DuPage has borrowed about $350 million and in the process built a 150 seat four star restaurant with taxpayer and student funding while simultaneously turning MY neighborhood into a "material staging area."

I do wonder how some of the fine restaurants in Glen Ellyn feel about the necessity of competing with the Waterleaf at COD. For example, there is a fine French restaurant in downtown GE. I've taken visitors to the Bistro Monet and they loved it. I wonder how Chef Michel feels about the competition? Here is how he has been described: “One lone Frenchman is keeping a long-standing suburban spot alive." Yes, it must be difficult! [Note 1].


Links of Interest
The following is a link to a COD document which provides some insights into this college. Back in 1967 this community college had 2,621 students and 87 full-time faculty. The current site was acquired in 1968. By 2008 it had increased the staff to 2,518:

Clicking will open a New Window> College of Dupage


If you want more info about the college, including the boundaries of District 502, then go to this link:

Clicking will open a New Window> College of Dupage "Factbook"



Is There a Bright Side to This?
From the tax perspective, COD is only taking 3.5% of my real estate taxes. It is also a first rate community college. But it is expensive, at $129 per credit hour and with anticipated increases to $145 per hour.


Was it a good use of my taxes to build a "cultural center" in Glen Ellyn? To be honest, I see a lot of theater and do a lot of dining in the Western Suburbs. We have hundreds of fine dining restaurants, and a lot of community theater. I am somewhat concerned by the direction of the community college. A projected $435 for a three hour course and hundreds in millions in bonds to be paid in the future raises concerns for me.


A Personal Position
My refusal to take on another commitment for our majority of uncommitted owners does not mean I refuse to do my duty. What is means is I am setting boundaries. I do intend to honor "owners" as owners and that means I expect each and every one of them to step up to the plate when the time comes. Once a month that means paying the fees to the association. At other times, it means operating as an owner and not as a entitlement. It also means joining committees and assisting the board in accomplishing its duties. Some of our owners have refused to do these things. So we have delinquencies and we have a deficit on the board. 


As a board, we'll accomplish what we do as a result of the support and assistance we are given, or the lack thereof. The association board has been provided limited support and is operating short-handed. It deals with the normal issues and also with delinquencies and foreclosures. There is a finite amount of time available and limited funds. It would be natural for accomplishments to diminish. And yet, we are forging ahead, reserves are growing and the property is being improved. As far as I'm concerned, we're doing a darn good job. Will that continue? Not necessarily.

So too with our nearby college. When the funding and borrowing stops, then what? If enrollments don't increase, then what?

A Need for Better Oversight
COD has always been under oversight of the County, via Community College District 502. For example, the County signed off on the documents accompanying the 2011A and 2011B bond issuance.

However, who is monitoring the college to see if it is truly operating in the best interests of the residents of the Community College District 502? After recent events, it seems there has been a lack of oversight or a "hands off" policy regarding COD. The Village of Glen Ellyn attempted to exercise its authority over construction and was bullied. The college decided to build a dump on the property line against our residences. In all of this, and pertaining to the County, its appropriate to ask "Who is supervising this College?'

The fact that the County now has complete oversight of the college is a win. It should now be necessary for the college to submit plans to the County for construction and alterations on its campus, before the bulldozers arrive and the construction fences go up, as occurred at our property line.

Prior to the transfer of authority from Glen Ellyn to the County, it seems that COD had taken the position that such review was unnecessary as it was perfectly capable of monitoring itself and acting unilaterally in the best interests of the community. There was no need for hearings and approvals with community involvement. In other words, the college didn't want or need the input of the neighbors or the residents of the County.

It's my opinion that strong, vocal, written and visible opposition to this approach and the nebulous "concept" of the college had influence on the County Zoning Board of Appeals.


This is Just a Beginning
But this is just a beginning. The entire process over the past three years raised some disturbing questions for which there are no easy answers.

It has raised issues about trustworthiness. In general, I've been too complacent in the past and assumed that the management, trustees and leadership of the college would always act in good faith and in the best interests of the entire community. It seems that assumption was a mistake.

It would also be a mistake to assume the college will alter its ways. The leadership of the college and that includes management and the board of trustees has made some fundamental decisions about its role in the community, and about its responsibilities to the community. What has occurred is an expression of the actual position of the college. After watching the recent drama unfold, I would suggest that this college be closely monitored. To do otherwise would be a serious mistake. 

Unfortunately, the current leadership of the college is in lock step and I don't think it is completely forthcoming about its true goals. It has also taken on a large financial burden in the pursuit of its aims. In other words, I am of the opinion that they have a self-serving agenda.That agenda elevates the needs of the college above the needs of the community. When the needs of the college and the community align, then COD will act to serve the needs of the community. In general, as a educator I do think the college operates for the community.  However, as an institution with an agenda, its purpose may not always be aligned with the needs of the community. It appears that when such intersection of college needs and community requirements does not exist the college will act for its betterment and to the detriment of the community. Of course, the college is a public trust. It is not, however, a fiduciary and I am unaware of any oath taken by management or the trustees to act as a fiduciary for the public good. Perhaps someone can enlighten  me on that. There is, however a Trustees Manual and it does state specific goals and exprresses the accomplishment of excellence in all that the college does. 

The Broader Question
There is a broader question here and that is "What type of Community College should we have, and is COD in its current vision and direction capable of satisfying these needs both today and 20 or more years into the future?"

The current tuition is $129 per hour, which is nearly the highest fee for a community college in the State. The college has published the statement that this fee is expected to increase to $145 per credit hour by 2015.

The college is in the midst of a major expansion program, and yet, it's enrollment in 2011 was projected by the college to be the same as it was in 1995. Over that same period, the tax levy has increased about 250% from about $40 million to $101 million while the district population has increased about 28%.The approved plan of the college to demolish buildings and build several new is projected to increase annual operating costs by $493,356. New buildings for the Culinary and Hospitality Center (CHC) and the Homeland Security Education Center (HEC) were built at a cost of tens of millions of dollars. How many new enrollments has each facilitated? How is that additional annual operating expense to be paid from tuition linked to these facilities?

The Next Step for the Community
The community needs improved communications with the leadership of COD. I am of the opinion the current board of trustees was not doing that. Looking at the circumstances of the past few years, its pretty apparent that the current system supported a dysfunctional relationship with the community. 


think there is a strong argument at this time that the community should reconsider its support of this college. Should the taxpayers begin a dialog to change the real estate tax bills to have the College of DuPage removed from them and determine a method to do that? The college for its part seems to prefer autonomy. It seems to enjoy the use of its borrowing power and fee structure to support that autonomy. It has demonstrated a reluctance to support the community. It has demonstrated a desire to be a bad neighbor. It has also demonstrated via 2011A and 2011B  bond issues that it prefers to raise funds on its own from the investment community, so it may accomplish its goals. 


I think a dialog should begin about COD self support. I think a mutual agreement should be considered so that this college can and does financially support itself. Perhaps it is time the taxpayers stopped facilitating this college. Is that possible?  COD's documents state the college "operating revenue is derived primarily from local property taxes and tuition and fees." According to the financial documents of the college "local support" provides an amount greater than all fees and tuition collected.


So it might not be a practical solution. However, that discussion should begin. It is our money they are spending, isn't it?


No matter the outcome, COD should remain responsible to the community and the taxpayers. We supported and paid for a large part of the 273 acres of prime real estate for a campus and we have given it hundreds of millions in dollars to support its building programs and operations. The recent renovations will cost $350 million according to the documents of the college. Much of that via bonds guaranteed by the taxpayers. 

The Next Step with the College
COD should be pressed to begin open discussions with the County and the taxpayers about how it will become a financially self-supporting entity. The college has a choice; begin a more responsible dialog with the community and re-evaluate its purpose, or become a separate and self sufficient entity.

If it chooses to become a "state" school, the it needs to be forthright and define how it can wean itself from ever increasing property taxes and ever increasing tuition fees. If it really wants complete internal control of its 273 acres, curriculum and services, then it should not expect to be underwritten via our real estate taxes.

The college has undertaken an expensive building program. In order to accomplish its internal goals it unilaterally decided to alter the neighborhood in which it resides.

COD is a part of a Community College District No. 502 which includes the majority of DuPage County and portions of  Will and Cook Counties. The district has a population of 1,091,387.   If things don't go well with the County, it would be consistent for this college to attempt to extricate itself from the neighbors of DuPage County and use the excuse that the District serves more than the residents of DuPage.  Perhaps the college would prefer to be a State school? If so, I think it should also get all funding via state taxes and tuition.


Conclusion
I see no point in putting my head in the sand and allowing this ruse to continue. COD wasn't happy with the situation with the Village of Glen Ellyn. It decided it no longer needed the green space along a large part of its perimeter to shield the residences built there, and it also has decided that the southwest corner at the wetlands and a well established residential neighborhood is the best place to build a water tower, pumping station and other "service area" facilities. In other words, it decided to build "service" facilities immediately against a completely unprotected residential community and a wetland. This was not published in the recent financial documents and financial plans the college provided to the community; nor is it in the "master plan" published by the college. The true plan of the college surfaced during the County hearings. I think it's reasonable to assume COD really isn't happy with the current situation. 


However, leadership for a community enterprise dictates that COD be forthright and open with its intentions.  This is essential considering the $millions in taxpayer contributions that are spent each year. This being the case, it's then the responsibility of the taxpayers to take charge. 



A Reality Check for BLMH- the Narrow View
That't the way it is. There is a tendency for a small group in the association to complain. The majority expects someone else to manage everything. The noisy tip of this iceberg takes the position "They can't tell us what to do." [Sigh] That's the way it is in 2012, the way it was in 2011 and so it remains a few year of "Change" in our association. Perhaps the unhappy will again borrow from the Progressives and run for the board on the slogan "Forward!" Forward to what? Over the cliff with the rest of the lemmings? 


Our association is well funded. We are in the black. We have a board which, while short-handed still gets the job done. Frankly, this association is one of those which is well managed, stable and financially solvent. Smart people are buying and the rest? 


In a large association there is always going to be a range of positions, and as this is America, it's traditional to have a "silent majority" which is largely invisible. So it was with the COD construction on our doorstep. For a few who found their pastoral view destroyed, it became a burning issue, and rightly so. But for many others, who live hundreds of feet away from the "carnage" it was no big deal. It seems it never is, until the problem is closer to "home."


One of our owners amplified this when she stated that "I don't see any problem with COD." It isn't a surprise that the individual who made that statement lives on the other end of our extensive grounds. That is the fundamental problem. If owners are primarily interested in "my view" or "my roof" or "my unit" then it is of no consequence to them if the other side of the association is under water or burned to the ground, unless their fees are increased. Then it is a problem. Their position seems to be "As long as I and my circle of friends are taken care of, then it's all good and everything works!"


Notes:

  1. I've dined at Bistro Monet and it was wonderful, and my guests agreed. I don't usually give a plug but I feel strongly about "buy local" and supporting local businesses. Here's what the Critics are saying about "Bistro Monet"... "For those who love French tradition at reasonable prices, in a room so quiet that one can rediscover the lost art of dinner conversation, Bistro Monet is your new favorite restaurant. Chef/owner Michel Saragueta has turned this into an affordable oasis of country-French charm, with laid-back and friendly service. Recommended: Chicken-liver mousse, turban of sole, skate wing, dessert souffle." By Phil Vettel, Chicago Tribune.  “Chef Michel Saragueta open[ed] this quaint French bistro named Bistro Monet. The mid-price French spot serves up elegant comfort fare, including the likes of foie gras.” by Gayot.com. “There are people who love Bistro Monet we've overheard them lavishing praise on the chef on their way out the door. .... there's no denying the appeal of his short rib ravioli. Dressed in mushroom cream sauce with a splash of Madeira and topped with a barely -there layer of melted Gruyere cheese, the al dente pasta hides ultratender strands of meat. It's retro Franco-Italian, in the best possible way.” by Dennis Ray Wheaton, Chicago Magazine.  For more information go to the website: http://bistromonet.com/








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