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

Tuesday, September 27, 2016

Another Association Election



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The election results are in and again we won't have a full board. I now tell owners when they complain that the person responsible for their issue, or a lack of performance, or whatever, sits in that vacant seat.

Oddly, the owners expect the board, which is fewer than 2 percent of the owners, to overcome the problems caused by the 10% who are behind in their fees. Meanwhile the 98% sit back and some complain.

At the annual meeting we completed early and so I asked owners to state any issues. What was the major issue? Apparently, one of our streams has trapped some ducklings. So an owner complained about that. Yes, it must be wonderful if that is the most significant issue we face here.

When I am asked what is the single greatest problem facing our association, I point to owner apathy. If history is correct, there will be a severe upheaval in the near future. What do I mean by "near"? Well, as a board member I routinely create 10 years plans, based upon our 30 year plans. Far too many of our owners apparently have no plan beyond next year. That is one explanation for the foreclosures, delinquencies and so on that occur and reoccur. It is also an explanation for the "sit on our duffs" mentality of far, far too many owners.

On the other hand, there is a real need for affordable and nice housing in the area, so perhaps we'll one day have a majority of owners who live elsewhere and rent their units to others.


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