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, August 21, 2017

Another Newsletter


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Our HOA publishes six newsletters a year. There are a range of opinions about this. At one extreme is the board member who is of the opinion it is a total waste of time.

The newsletters have morphed several times. At one time articles were very short. Even so, that was the primary source of information for owners, unless you were one of the few who had special access or connections to the board. In fact, very few owners have attended monthly meeting for most of the 15 years I've been an owner here. Then in 2009 the newsletter became more of a social thing with lengthy articles about such mundane topics as the architecture in England, the "Owner of the Month" and so on. That was all befitting a social club organization.

By 2011 it shifted again and the newsletter became more business like. A pie chart was one of the things published which indicated where the money went. Of course, owners do get annual financials, but it can be difficult to grasp the magnitude of some of these expenses and to compare them.

However, some board members have been reluctant to participate in the newsletter. Some months we have two authors. The most recent newsletter had everyone participating, although reluctantly. First time in many months.  It is a time for elections and so putting one's name out to the voters is important.

What's been the problem? In recent years board members have made these comments about the newsletter to support their positions about it:

  1. No one reads the newsletter, anyway.
  2. If owners want to know what is going on, they should come to meetings.
  3. It isn't part of the official duties. 
I suspect there are other factors at work here:
  1. Writing for the newsletter is yet another task for a board member.
  2. Board members are volunteers. They have other things to do with their time. 
  3. Writing can be difficult if one doesn't have computer access at home or work.
  4. Expressing oneself through writing can be difficult.
  5. Communications skills are not a prerequisite for a board member and neither is access to technology. In fact, there is no requirement to have a telephone. 
My position has been consistent about the newsletter:
  1. Owners are shareholders and are to be kept informed. 
  2. There is no rule or regulation that stipulates that owners must attend meetings.
  3. The responsibility for communications rests with the board. 
  4. It should be considered part of one's fiduciary duties. 
  5. At a minimum management and the president are to write for each newsletter.
  6. We have a lot of new owners each year. How best to inform them about issues, problems, rules that are frequently violated, projects, etc.?
  7. Owners are to be treated equally. That means the same communications to all. Attending social clubs is not a requirement for ownership.
  8. There should not be any special, private pipelines to the board for a few.
  9. Everything can be resolved in communications.  
I've done a few things to stimulate and extract articles from board members:
  1. I've asked, asked, asked. I will continue to do so. 
  2. I've told board members "Simply pick a topic from the monthly meeting." We have two 2-hour meeting for every newsletter and about 180 pages of documents. Lots to pick from. 
  3. I've written articles for other board members.
  4. I've converted longhand to typed articles. 
  5. I've filled the blank spaces with "Insights" for residents and owners.
  6. A "contributors" section has been added, naming the contributors.  
  7. I did most of the work putting it together for about 4 years. Collecting articles, assembling them, getting it to the printers and with help including my spouse distributing it on the property.
Currently another board member is spearheading the newsletter and I only assist. In fact, I no longer deliver them. (There was a time when some of the board members walked the grounds to pick up trash; I think board time is better spent working on the newsletter).

I do wonder what the newsletter would be like if I weren't here. Possibly better and perhaps not. There is also the possibility that the stubborn among us would get the gospel and take this on. Some people like to be the boss but some can't lead. It's been made abundantly clear to me that board members are volunteers. We pick and choose the tasks and priorities and no one can make a volunteer do what they refuse to do.

What will the future bring? We'll know, soon enough.



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