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, March 29, 2014

Where Does the Money Go in Our HOA?

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The subject of this post is a popular one in our HOA. It is prompted by the comments of owners who fail to do the arithmetic.

Here is the content of an email to the Architectural Director of this HOA on February 10, 2010. The information was public information and was not only posted on this blog but also openly discussed in HOA meetings. The information remains on this blog and the links were in that email and are also contained here:

"Hi [Mr. Architectural Director]:

Here are links which provide some information on the accumulation of reserves here at BLMH or at one time, the lack of reserves. This is provided as we discussed this morning. I think a historical perspective may assist you when discussing this with your fellow unit owners.

I think it is useful to have this number handy: In September of 1998 the total reserves for BLMH was $86,321. That’s about $257 per unit. I realize that there has been inflation in the intervening years so here is the same value in 2010 dollars: $343.26!  Obviously, this association had a financial problem, and it has been resolved to the extent that it has by gradually and continuously raising the fees. However, it appears that there are people who are very unhappy with this increase in fees.

So here is my first link which provides a summary of our fees and how, over a period of years we got where we were in 1998 and were we [presently] are. It also provides an alternative method for roughly determining fee increases based on readily available COLA index. That index is not perfect, but it does provide a compass to compare where we are and where government economists expect we will be in one year:

New Window> http://tinyurl.com/yb5re8f 


This link provides a history of our fees:
This is an update October 2009:

New Window> http://tinyurl.com/ykbn9wh 


This link provided a comparison of a unit owner personal budget to the association budget:


New Window> http://tinyurl.com/yd7osjl 


Finally, here is a link which provides insights into our fees in the fall of 2008:




If you have any questions or comments, please advise me."




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