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, August 25, 2018

My final year on the board - Part III - "Guidance"


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Board members are fiduciaries. But many are unprepared to perform their duties and responsibilities. In my final newsletter articles I included an insert called "Guidance" which is consistent with my board duties and responsibilities. This was published with sufficient time to advise all owners, remaining board members and any candidates. Our board election is September 27. Here' the content of that insert:

“Guidance” Newsletter Insert - Posted by board member Norman Retzke, August 16, 2018
This newsletter includes some tips and guidance. This is information for owners, candidates and future boards. A working board provides real advantages for the association including firsthand, extensive knowledge of the property, its condition, current problems and solutions.  Working boards are also more familiar with the finances, rules and regulations.  A working board is how everything has been accomplished since 2010.
Our 40 year old association has extensive infrastructure, grounds and mature trees. Every dollar collected as fees will be spent. It is challenging to spend your money well.  Boards may choose to deal with highly visible issues while ignoring or deferring more substantial, difficult or less visible problems. That should never be a long term strategy, but at times this may occur. When this occurs the board should inform owners, but may not. Be watchful!   
Trees, shrubs and landscaping. These are major architectural features. Some of our trees have specific problems. It seems ornamentals may be nearing end of useful life and others are mature. We seldom water trees. We had a very wet spring this year followed by 6+ weeks of drought. This stresses our trees. We do things to deal with specific insect pests, etc. Nevertheless we have removed hundreds of trees since 2010 and our viburnum shrubs are dying. I am of the opinion we could benefit from additional help in making the difficult decisions we face with our landscaping. Would there be a benefit if an independent professional with extensive landscaping and tree knowledge reviewed the plants in our proposals to be sure our boards are completely aware of the maintenance, watering requirements and other implications? Should we get alerts to water specific trees if we are in a mild drought, etc.? Which trees?
Our many Viburnum shrubs are under attack by a voracious beetle. We trim these shrubs to 3 feet, which weakens them and makes them more susceptible to the consequences of insect attacks.  However, because these shrubs are adjacent to buildings there are good reasons for trimming. The board has a proposal to replace about ¼ of these dead shrubs on the property. It will take several years to replace all at a significant expense. I have concerns about the care required by the proposed plants which include hydrangeas. Some of these new plants will require watering if we want them to provide years of trouble free life to the association.
Boards face conflicting financial demands. We spend many dollars for water on the property. To keep water bills “as low as possible” boards may be inclined to underwater our trees and plants, even when stressed. This contributes to their demise. Our large trees are extremely valuable. For which of these should we be taking extra steps to preserve? This goes beyond spraying for pests. When our ash trees succumbed to a drought and the emerald ash borer I realized “Could timely watering of these ash trees have delayed or prevented this?” In recent years we have spent several hundred thousand dollars removing dead and dying trees, grinding stumps, then grading mounds, adding soil, and topping with sod or plants. We’ve had areas which were a tangle of trees; some have been dealt with. In 2018 we’ve identified about 20 dead trees, some large like a mature silver maple, some small like hawthorns.  These are being removed. Long term residents have noticed the thinning of our trees. 

Surveys and “projects”: 
  •  Boards should vigorously pursue the water main replacement negotiations with the city and do the things necessary to make this happen.
  • Streams, driveways and garages need to be surveyed annually or every other year.
  •  The grounds should be inspected multiple times each year. Also review drainage.
  •  To continue current initiatives the following should occur each year: We need 1, 2 or more garage floor replacements, 3 or more driveway replacements.
  • Seal coating and crack/seam filling will extend the life of driveways.
  • In 2019 the board should consider applying an asphalt preservative (GSB-88) to Lakecliffe.
  • From 2019-2022, the viburnum shrubbery should be replaced.
  •  In 2020 the board should consider a reserve study update.
  • From 2019 to 2021 one of our three remaining cul-de-sacs should be repaved each year. This will include storm water basin work and curb work. Patching in other areas may be necessary. Less frequently we need patios, common decks and walks inspected.
  •  Unit decks are usually inspected by our maintenance contractor as part of the annual painting cycle. That occurs once every 6 years.
  •  Other:  Begin “staircase” mortar repairs (epoxy grout) following behind the painting cycle. Ditto for foundation repairs.  Evaluate kynar aluminum flashing to cover remaining brick window. Scarify our walks to remove high areas, and replace sections as necessary. Continue an informative newsletter and the website.                                        


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