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

Monday, January 9, 2017

It's a New Year


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We're into January and in Wheaton that means winter cold. Snow is optional.


What do we do in the winter? That varies. Boards generally don't have too much to worry about. Yes, there will be rules violations, and there may be breakdowns to deal with. However, for many of us the real issue is simply to keep warm and avoid automobile or other accidents. 

But accidents do happen. Of course, the consequences of speeding in unsafe conditions isn't an accident is it? A slip and a fall may be an accident, or blacking out may result in a fall. Health isn't something to be taken for granted. Even a simple break can require eight weeks of convalescence. 


Meanwhile, the budget has been completed and put into motion. What will happen this year? In the "planning and preparation" department there will be surveys to do when the weather improves. There will be some project work and there will be the usual exterior repairs and painting of 1/6 of the buildings on the property. Other repairs will be done, the gazebo is looking a bit shabby, and the deck behind Thames isn't there, yet. There are a few driveways which require attention (we have a total of 84). 

Some street repaving will be a necessity. Optional items for 2017 include that deck behind Thames, certain stream repairs, limestone sills to replace some 40 year old brick sills, adding protection to the newest streets, and so on. Scarifying of some walks is a possibility, as is some tuckpointing. Other items will only occur after the surveys. Surveys too are "optional" and so it is to be determined if garage floors will be surveyed, or even the driveways. Of course, the landscaping improvements which are really repairs created by dead and dying trees will continue in 2017.

What is important to point out is what specifically happens will be determined by the board. Our board is understaffed and there is the usual disparity of duties. In fact, board members ultimately decide what they should do or what they could do. There will be opposing views about nearly everything, and "doing" requires spending money. It would be easier to talk and do nothing. Which has been the modus operandi of some earlier boards. 

What should occur in 2017? In addition to working on any breakdowns which occur, the board should conduct a Reserve Study update; work for this purpose was completed by three board members in 2015 and presented to the entire board. We can look into long term water main replacement planning and so on. This is all in addition to the items in the previous paragraphs. However, boards are comprised of volunteers. Those volunteers determine what will be done and what won't. It will be easier, less work and less time consuming to do nothing. Of course, there will be budget concerns and that too will be a reason to tread carefully when spending association money. 

To anyone who will listen I have stated repeatedly that boards will spend every dollar they collect. Our association has nearly 40 years of financial history to substantiate my opinion. The board has a great deal of discretion about how soon and how magnificent certain projects are to be. While it can always be argued that the owners benefit from all projects and maintenance, it can also be argued that benefits are sometimes in the eyes of the beholder. 

Of course, it is necessary to avoid kicking the can down the road. Our HOA has been here for nearly 40 years and owners have seen it all. I've kept this blog as a means of documenting the recent history of this association. It may help to avoid repeating past mistakes. The substantially expanded newsletter is also a resource. But of course, that is like saying we have rules, regulations and bylaws to help our community. Some past and current board members have argued no one reads them. If so, why should I ever expect anyone will read this blog? 

Nevertheless this blog is here. What people do is their personal decision and their responsibility. 

2017 will be an interesting year, there will be ups and downs, some owners will be unhappy for a variety of reasons and in the fall there will be an election. Will I be here? Who knows. According to the SS Administration mortality tables for anyone of the age of 70 there is a 2% chance of dying in the year. Women have a better life expectancy than men. 


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