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

Saturday, December 30, 2017

We live in a 40 year old HOA - OMG, the sky is falling


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Our HOA is 40 years old. Is that a problem? It does need maintenance and for over a decade the boards have spent more than $250,000 each and every year catching up to the problems and maintenance backlog. However, there is always an opportunity for grandstanding, and some board members need to be heard. A few have lived in the past and at least one desperately needs to be heard and loves to run management and even maintenance on wild goose changes. 

In a HOA 40 years old there is some reality to face. Many aspects of our association buildings don't meet current building code standards. This is not a secret, nor is it really a big deal, unless a board member or an owner wants to make it one. "Stupid is as stupid does."

A couple of years ago it was "the water mains are failing." More recently it was "we don't have enough money and we need higher fees". That was true for a large portion of the life of this HOA, but when given the power of the presidency, not all will put it to good use. Power can take on a life of its own. Separating the big problems from the small ones is worth doing. But I think some of our board members developed some poor habits over the years. If you can't deal with the really big problems, then make a lot of noise about the small ones and then deal with those.

A 40 year old HOA is an opportunity for any grandstanding board members to make  a public statement, and to become a nuisance. It has happened before and I'm sure it will happen again in the future of this HOA. Human nature can be petty and when worry takes hold, well, we may cater to the lowest common denominator and the most fearful among us.

Here's the problem we face. With 336 units, any baloney when multiplied can result in significant financial problems for the association and our owners. It's simple math. A $1000 contrived problem in one unit can become a $336,000 burden for the entire association. Of course, if the same board member who raises these same specters is also a proponent of higher fees, as in "Our fee increases are too low" then the issues become apparent.

I for one do tire of dealing with those who are stuck in the past. I think do think it might be the time to sell my unit and move on. There is a lot of good I can do with 500 free hours per year.

I'm sure there will be dancing in the streets!

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