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, August 15, 2014

Lakecliffe - Conclusion


Bookmark and Share


The Source of Empowerment
What if we each decided that we really, really live here because we choose to, instead of because we have to? That's the source of my personal power. I do what I do because i can, because I choose to and because I want this place, wherever I am, to be a better place and a reflection of choice, rather than something else. It appears this is not the will of the majority. So it is what it is. They will pay the commensurate fees.

I made a choice in 2008 and I decided to make it a demonstration. I have succeeded. What others make of this, or where they take it, that's entirely their personal business. Life is both a choice and an opportunity. What little I have accomplished is a gift. Use it well.

Status
The portion of the street that was repaved is about 99% complete. Signs and equipment have been removed, and there is a section of curb to be replaced, some additional landscaping and that's it. Currently the board is awaiting a review of the material quantities used and so on. This is all "backoffice" stuff and so most of the owners or other residents are unawares, or have no interest.

Problems
One of the problems encountered during the project was the unwillingness of a few residents to comply with notices that were posted, "ROAD CLOSED" signs and so on. To deal with this the construction crews had to dodge vehicles, there was one accident, and I spent numerous hours moving barricades back into position after some @ssholes moved them aside so he/she could drive in.

Bad News
The portion of the street that was replaced represents about 17.5% of the streets in BLMH. In other words, within 5 years the remaining streets will have to be replaced, at a major expense. Some of the base will have to be removed and that would not be required if the streets were properly installed in 2002-2004.

Can street replacement be avoided? No, but it can be delayed. There are two methods available. The most recent, by that infamous board of 2008-2010 was to put their head in the sand and attempt to cut fees, passing the problems and the costs to us, here in the present. The other approach, which I advocate, is to perform preventative maintenance, thereby extending the life of the current streets in a responsible way. That approach will result in the lowest possible annual maintenance costs.

Am I confident the second approach will occur? Not at all. Last night, during an association meeting, while discussing establishing a schedule for carpet replacement, a board member actually made this statement in defense of not establishing a schedule: "In the past, we only replaced carpeting when it became a trip hazard." My retort was "Yes, exactly like Lakecliffe."  That's the really bad news for this HOA. That attitude remains a prevalent one for some owners and some board members. So we will persist in pushing the problems down the road until they become unavoidable and until the costs escalate. Then we can deal with them as "emergencies" and make the really costly decisions. "Penny wise and pound foolish."

The Good News
This is a preliminary estimate, but it seems that the amount of material used was less than that budgeted, and so the cost for that portion of the street replacement should also be lower than that budgeted. However, on ripping up the street it became obvious that the grates for the basins were in poor condition and so all were replaced. That will be at additional cost. On the other hand, we could rip these up one at a time using our maintenance contractor. This would embed the costs in our annual fees, create more seams to allow water in to erode the base and probably cost more in the long run. So what would you have done?

We also got some other good news. If we were today to make the decision to get this street replacement done in 2014, the costs would be about $30,000 more than we are spending. That's about $90 out of the pocket of each owner. In other words, there is a benefit to planning and preparing.

Looking Ahead
The new portion of the street, with preventative maintenance, primarily crack filling, will be here and in good service for 20 years. When it is necessary to replace it, only the asphalt will be stripped, reducing the replacement cost by 50%.

The Really Bad News
This is comprised of two items. The first is, it appears there will always be owners and board members who resist the facts, numbers and so on. They will persist in their ways and the consequence will be money spent needlessly and in amounts higher than necessary. This will also result in higher fees for current owners, both today and in the future, which is when the tab will come due. The second part is about me. I really, really don't have to live here and my spouse and I have done so only because we choose to. I can move any time I wish which is an option not available to everyone here at BLMH. The work I have done for the past  years was a gift. My services will not necessarily continue to be available. Yesterday, when asked if I would continue on the board, I told those present during the association meeting that "I had received a better offer from a HOA in Hawaii." I am undecided. What would you do?

The Future
I look forward to visiting BLMH in 2034 to see the condition of the streets. I'll wager that the north section of Lakecliffe will be showing its age, but will continue to provide good service. Of course, most of those who argue against planning, preparation, programmed maintenance and cycles, or preventative maintenance and so on are also not planning in being here in 5 or 10 years. They most certainly won't be here in 20 years.

In 2034, there will be others living at BLMH and they will probably notice the condition of the streets. Some may notice the condition of the north section of Lakecliffe and compare it to the condition of other, newer portions of the streets of BLMH. They will wonder why it seems in better condition. You and I will know why that is so.

2 comments:

  1. "I do what I do because i can, because I choose to and because I want this place, wherever I am, to be a better place and a reflection of choice, rather than something else."

    I get that you live here because you choose to. I also realize that you will leave Briarcliffe Lakes Manor Homes when you decide to.

    I suspect that you have already made that decision. You posted that the paving of Lakecliffe Drive was a demonstration. I assume your demonstration is over.

    You have also stated that you don't want to live in an apartment complex, which is what you imply most of your fellow owners consider "BLMH" to be.

    I'd like to know the major issues you see at "BLMH". You have written about owner apathy, dysfunctional boards, boards which don't operate as fiduciaries, delinquencies, foreclosures, a senior group which pretends your HOA is a retirement community, an entitlement mentality, political intrigue, infrastructure problems and so on.

    ReplyDelete
  2. It used to be a lot worse. The major issues Norm had were with the old 2008-2010 board. They ran on a hope and change platform.

    Our fees are a titch higher than average, although we have very adequately funded reserves, so much so that a 250,000 road required no special assessment. Nor do the new roofs that are done each year or the driveways.

    BLMH is a lot better than it used to be, and I think there's a bright future ahead for this association. Not all associations are perfect, all of them have their issues. As for my own experiences, these past few years have been a lot smoother than the 'hope and change' board from 2008. I can only imagine how the fireplace issue, lakecliffe repaving, roofing projects etc. would have gone with that board in place.

    ReplyDelete

Please leave a comment!

Note: Only a member of this blog may post a comment.