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

Sunday, January 14, 2018

What's the Perfect Age?

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"Researchers are studying when we feel our best and why—giving new relevance to the question of the ideal age." to quote an article at the WSJ.

This question applies equally to individuals and to HOA boards. Looking at the tasks faced by the board of BLMH, there are two areas that are essential: The ability to make financial decisions and the ability to cover the property and do the physical tasks.   It has been well documented that as we age our cognitive (mental) and physical abilities decline. It is also true that as we age our decision making improves for a time, before cognitive decline sets in.

So what is the gist of the article for these areas?

Making financial decisions: peak around 50 To measure financial literacy, researchers at Texas Tech University in a study published in 2016 asked 16 questions about borrowing, investing and insurance. They found the average scores increased within each year up to roughly age 50. After 60, financial literacy begins to fall.


Bodybuilding: 25 Physical strength peaks at around 25 years of age, about when muscle mass peaks, too, according to an article on the website sportsci.org. Strength plateaus from 35-40, then falls, with a 25% loss of peak force by the age of 65.

"Bodybuilding" implies sufficient health to do these physical things.


Where does this leave me, and the board? 
At my age, I'm well beyond the age at which financial literacy falls. As for "bodybuilding" I'm also well beyond the age at which a peak force decline of 25% occurs.

What does this mean? Well as I am approaching 25 years beyond peak financial literacy I'd say owners should be concerned about my ability to successfully complete my tasks. Ditto for the physical requirements.  In practical terms it may mean that I am not able to successfully complete all of the tasks required of me. If so, the association isn't getting the best volunteer service. Nor am I the oldest board member.

Of course, the mental and physical requirements of my chosen occupation and my age is why I no longer am employed full time. But I suppose the demands of being a board member are less taxing and so I can do that?



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Friday, January 12, 2018

January HOA Meeting Cancelled

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January 11, 2019:

"The National Weather Service has also issued a Winter Weather Advisory starting at 6 p.m. Thursday until midnight. The advisory is for the counties of Kane, DuPage, Cook, Will, Kendall, Lake and Grundy. According to the NWS, "the brief period of freezing rain, along with crashing temperatures and wet roadways, will likely create hazardous travel conditions on untreated roads this evening." "The best advice is stay home," Meteorologist Edward Fenelon told the Herald-News. Local police were also warning drivers to use caution as temperatures plummeted."

Some local activities were cancelled. The Theosophical Society cancelled all events for the evening. The BLMH association meeting scheduled for 7-9pm was also cancelled.

The weather was to worsen from 6pm with freezing rain and a combination of rain and ice pellets and ice pellets. Snow was predicted after 9pm.