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

Wednesday, August 27, 2014

Response of Management to My Letter of February 14, 2007


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From my archives. On February 14, 2007 I wrote a letter to management with separate copies mailed to each board member. That letter is the previous post. This is the mailed response by the Director of Management at our HOA management firm:

"March 12, 2007

Dear Mr. [My name]

On behalf of the Board of Directors and management, 1 would like to thank you for your correspondence pertaining lo the financial condition of the Briarcliffe Lakes Manor Homes Condominium Association. Since your correspondence arrived shortly after the February meeting of the Board of Directors, it was placed on the agenda of the March meeting. All of the members of the Board expressed their comments and certainly recognized the thoughtful approach that you have taken.

Your comments are and were echoed by the Board members. Sometimes it is a very close balance between structuring the assessment level while still providing the necessary funding to not only maintain the day-to-day operations of the Association; and, still be able to the fund the long-term needs of the Association for capital repairs. These decisions are always difficult. But you, like the Board of Directors, are concerned about maintaining the value of the properly. They would prefer paying a little more each month than being faced with the much more difficult financial task of paying for a special assessment.

Again, thank you for your thoughtful approach to your correspondence.

[Signed, The Director of Management, with copies to the manager and the board]"


Note:
In 2007 the board was clearly struggling with finances. I find this letter of response somewhat ironic. About 18 months later, when some owners arrived at HOA board meetings in 2008 and assailed the board and management, they said the board was not responsive, controlled communications and was unfair and uncaring.  The above letter is one of the reasons I challenged those owners and that 2008 replacement board.

1 comment:

  1. Hey Norm,

    Any comment on the letters sent out to unit owners from the city of Wheaton basically saying 'fix your fireplace by January 2016 or you and the HoA will be sued'? This seems like it answers the years long question 'what is the city going to do'?

    This is going to be a sh!tstorm.

    ReplyDelete

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