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

Wednesday, April 8, 2015

COD Election Results

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As reported by the Chicago Tribune and with 813 of 817 precincts reporting, this is the tally:

For College of DuPage District 502 Board Member:

Candidate Votes Percent
Svoboda 20632 8.04%
Pihos 30147 11.74%
Gambs 15309 5.96%
Savage 16039 6.25%
Ball 11945 4.65%
Bernstein 32075 12.50%
Napolitano 38789 15.11%
Mazzochi 48281 18.81%
Kempa 5397 2.10%
Wozniak 13602 5.30%
Carlin 8085 3.15%
Bailey 16401 6.39%
Total Votes = 256702





Tuesday, April 7, 2015

COD - My $2.05 worth

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The comment was made to my previous post "Why $2.05? Most provide their two cents!" I chose that number because that's how much the board of trustees over at COD took from my pocket via taxes and gave to president Robert Breuder to fund his "golden parachute."

There are 371,252 households in School District 502. School District 502 is comprised entirely of the "Community" College of DuPage.  We each "donated" $2.05 to Breuder's exit fund.

A sarcastic thanks to those board members who spent my money for no tangible purpose and did so prior to the election for the sole purpose of circumventing the will of the electorate and the community. Those people are:

Erin Blair of Wheaton, who is Board Chair
Joseph C. Wozniak of Naperville
Allison O'Donnell of Winfield
Dianne McGuire of Naperville
Kim Savage of Darien
Nancy Svoboda of Downers Grove

A sarcastic "well done" to each of you for pushing through Breuder's "golden parachute" prior to the election. You proved where your allegiance was and it certainly wasn't to higher public education via a "community" college and the taxpayers and residents of DuPage county and those others in the district.


To Omar Escamilla, who was Student Trustee during the recent machinations, I offer my sympathy. However, I am sure you learned some things about dysfunctional boards, CEOs from hell,  and a lack of fiduciary responsibility during your tenure. I hope you put your education to good use. I and the other 371,251 households supporting the College of DuPage have paid a very high price for your education.  Those hundreds of millions of dollars of bonds we allowed the college to borrow for your education, to build a "fine dining" restaurant to compete with local establishments and a hotel? We'll be paying for those for decades. After all, they were a loan and must be repaid.


Monday, April 6, 2015

COD - Clean Slate Election - My $2.05

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Tomorrow, Tuesday April 7 is a general election which will include three trustees for the "Community" College of DuPage.

There has been a lot written elsewhere but let me say this. It is my opinion this election is important to get our community college back on track and to clean up the mess. We desperately need new, accountable people on the board. One individual stated the problem this way "Unless we change the Leadership at College of DuPage, we are destined to be saddled with an expensive physical trophy that drifts further and further from its core mission of public education."

First and foremost, I think we need new board members and this election is the opportunity. I am aware of two groups which have been endorsed.

Clean Slate Group
Trustee Kathy Hamilton, who was the only board trustee to vote against president Robert Breuder's $762,000 golden parachute (paid via taxpayer money) was censured by the remaining trustees. Ms. Hamilton is backing a "clean slate" which she says will provide greater transparency and financial oversight. These candidates are:
  • Deanne Mazzochi
  • Charles Bernstein
  • Frank Napolitano
Electing these three implies four on the board including Hamilton who would be aligned.

The Daily Herald
The Daily Herald has endorsed three candidates in an article updated March 23, 2015. These candidates include:

  • Matt Gambs
  • Deanne Mazzochi
  • former state Rep. Sandra Pihos

The Herald has been criticized for "laying low" and avoiding printing early news about the problems at the college, It has been implied that the newspaper was taking money from the college and there may have been a conflict of interest. I assume this is about advertising and related COD provided materials to be published.

Oddest Candidate
It was reported at the Illinois Review on April 1 that Dan Bailey's supporters have hit the phone lines to back him. The phone message that they are allegedly leaving is this: "Vote in Dan Bailey College of DuPage trustee. Vote out the Tea Party backed Clean Slate. I'll be a common sense watchdog for transparency and taxpayers. Early voting ends April 4th. Election day is April 7. Paid for by Citizens for Dan Bailey." I've included an audio file of the message at the end of this post.

That is to me the oddest thing I have yet heard about a candidate in this election. One wonders whose side Mr. Bailey is really on.

Clicking will open a  New Window> Dan Bailey's Phone Message

A Ms. Hamilton Video
Ms. Hamilton at COD "Let's leave it to the voters to decide" about Robert Breuder's $762,000 severance award:




Additional COD Videos

Clicking will open a  New Window> You Tube COD Videos



Sunday, April 5, 2015

Winter and Winter Complaints Recede

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Winter has officially passed and with it the cold and snow. Yes, it is possible to get a snowfall in the next few weeks. In fact, several years ago we got a 12 inch snowfall on April 1st. However, it is unlikely and currently the temperature is about 68F. Looking at the 10 day forecast over at Weatherunderground, this is the prediction:


As snow recedes so have some of the complaints of residents. These complaints will morph into problems about mosquitoes and other things related to warmer weather. If 2015 is typical, I'll soon get complaints related to the warmer weather. Standing water, mosquitoes, flying ants, critters (simply follow the sunflower seeds or trail of crackers to see who is feeding them) and so on.

Lest we forget the reality of living in Northern Illinois and what that means, I'm posting a few winter photos taken in recent years. Yes, we do get ice, snow and sleet. This is normal and it does make life difficult and unpleasant. However, I would like to remind everyone that living in this climate is a choice. No one is forcing anyone to live in Northern Illinois and to my knowledge everyone either purchased in my HOA voluntarily, or has avoided the opportunity to sell. So this is the decision made of free will. With that decision, as with all decisions, there are consequences.

Of course, there are other opportunities. A home can be wherever we choose it to be. It could be in the place depicted in the following photo, in which case there might be rain in the winter and heat in the summer. That could be preferable to dealing with snow and ice in the winter:


To deal with winter this HOA spends $tens of thousands dealing with the snow and the ice. Residents get to share in the joy of winter and are provided with large buckets of snow melt (calcium chloride) to use as a supplement on "their" driveways and building entrances. They are also provided with "winter tips." Yes, living in Northern Illinois can have challenges. Nothing new here; it's been this way since the end of the last ice age about 12,000 years ago. Winters haven't changed in recent years, and not at all since 1974 when construction of BLMH began.

This is not news. How this HOA deals with winter has been constant for decades. The only change I am aware of is that the HOA no longer passes the hat to collect money when financial shortfalls in winter occur. Yes, there was a time this HOA lacked the funds to plow the snow. That's what happens when fees are kept "as low as possible."

Some residents are pragmatic. "Ho Hum, another winter; bear up and it may get ugly but thing will improve by April 1." Some residents play dumb or stupid and pretend this is the first year they have ever experienced winter. Some residents follow the winter tips and successfully deal with the weather. Some don't. Some then complain because there is ice, snow, heaving driveways or concrete and their garage doors freeze to the concrete. Ah, the joys of winter climates. Here at BLMH, winter is not all that difficult, unless one demands the amenities of warmer weather and concierge service. We don't and never did have a concierge. But who knows? This may now be one of the expectations of some residents. For those who now say this HOA is primarily a "retirement community" I must wonder what their expectations are.

As I am fond of saying, we can have anything, we simply have to pay for it. Most don't want to pay for such service, most don't want it, but a few do and will complain unceasingly to get it. The following photos were taken in recent years, some to document complaints by residents.

Gee, how is it my garage door froze shut last night?
Yep, it does look like winter out there!
Ice May Sometimes Come Inside
It's Everywhere!
How Will I Drive?
My View is Lousy!
No kidding!

Ice heaves the driveway
There remains some snow at the entry walk

They Plowed the Streets

I drove out of BLMH, but how am I supposed to get into that parking lot?





Thursday, April 2, 2015

What would you suggest?

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As a comment to my March 13 post "Can a HOA do that?" Docia posed the question "What is it you would have us do?"



That's a good question and there are two groups of "us" in the HOA. One is the board, which is bound by it's fiduciary duties and must act in the best interests of the association. "Must" is of course a relative term and is subject to interpretation. The other group is the owners, who are not so bound and can act solely in their best personal interests.

Docia's question requires two answers, because we have board members and owners. While it is true that all board members are owners, 98% of our owners are not board members and are not fiduciaries. So the vast majority of owners are not bound by any agreements but those which work for their personal interests. Of course there are rules and regulations, but some owners ignore them. It's important to keep these perspectives in place.

I would add that boards aren't perfect, but they aren't operating solely for their own benefit as some (many?) owners are. However, board members can be swayed by owners. When firm pressure doesn't work, personal attacks are the preferred method to deal with difficult board members. I'm speaking from personal experience and I did hire an attorney a few years ago at personal expense to put a few people in their place and remind them of slander and libel laws.

I do recommend participation by owners as their best line of defense. In other words, I suggest that owners be involved. But many owners think this HOA is a retirement community or an apartment complex. As this HOA ages there are difficult choices to be made. Some will come as surprises over time unless owners are informed and prepared.

What should we do?
I suggest that owners closely monitor the formal activities of other owners and boards with regards the HOA. The best way is to attend HOA meetings and thoroughly read anything produced by the HOA. I also suggest owners ask the difficult questions and get an education. There is a lot of money at stake here and it will be spent. Some owners will demand their wants and needs be accommodated; after all the HOA has a cash stash. Here at BLMH it is about $1.6 million. Just think what a owner could do with that? It's an unfortunate truth that 336 owners share in the benefits of that pot of gold. In other words, we each have a share of the pot which is about $4,761. Not a fortune when it is shared equally. Some owners have decided the best course of action is to share this money unequally. "Take care of me," Or perhaps take care of me and my friends.

Who is it that is the line of defense for equal sharing? It's the board and a really involved owner body. At BLMH we've had a few owners rally for their personal agenda. We've also had a few observe for altruistic reasons. It's my opinion  that the best board is one comprised of a balance of age and demographic groups in the HOA. It is also one with some skill and integrity. Such a board can fairly represent all owners in the HOA, not merely those in similar situations, or who have similar wants, needs and desires.

No one is perfect
Boards will be inclined to kick the can down the road. Owners need to be watchful for this. A former president made the statement at a board meeting that "we don't replace hallway carpeting until it becomes a trip hazard." In other words, the preferred method is to only replace things after they break. This is why our buildings have 39 year old mailboxes and my mail is currently dumped on the floor in the lobby; it's because the mailbox is broken. I'm sure within a few weeks it will be fixed.

The Difficult Question
Each HOA is different. It's important to ask the question "Why did owners purchase in my HOA?" The answer will provide some insights into what is expected. For example, at BLMH we have about 40 acres and had about 800 trees. We also have walking paths, streams and waterfalls. The manor style homes had simple interiors when built about 39 years ago. Masonite kitchen cabinets, carpeting, asphalt tile, minimalistic bathrooms, basic lighting. In fact, when I and my spouse inspected our unit prior to purchase, in 2001 she said "no way" upon viewing the kitchen. However, I promised her I could fix it. She was skeptical. But I did keep my promise and that made our unit bearable. However, there are many things in this HOA I cannot fix. There is no will on the part of the owner body to do so.

We didn't purchase here because of the upscale unit. Quite the contrary. But today, if the goal is to sequester and wait for God, then this is really a nice place to live and to die. Cheap, too! Consider the alternatives.

So what is special about this HOA? I'd guess it's the overall property and not the units. So should this HOA maintain that "ambiance" and replace trees, patch the sores where some were removed, fix the deteriorating streams, walks and so on so as to maintain that outdoor ambiance? Should the HOA do so pro-actively or wait until owners are up in arms? Or until things break? These seem to be difficult questions.

Owners need to choose. For those who want fees to remain constant, or plan to live here for their entire lives it might be unnecessary to do anything that doesn't directly benefit themselves. In other words, mow the lawn outside my unit, fix the stream outside my unit, fix my driveway, garage and my street. And to hell with everyone else. Remember, owners have no obligation but to act on their own behalf. Currently, one of the ongoing complaints is the weather. There is snow and ice in the winter. This poses inconvenience. For those who are unsteady walking on icy streets or walks might pose a hazard. So another expectation is snow and ice free entrances, walks, driveways and streets. Last year (winter of 2013-2014) this HOA spent several tens of thousands of dollars above the normal amount dealing with snow and ice. Yet some owners demand more, and lower fees.

The HOA added eighty-four knox boxes at significant expense. Yes, there is a benefit to each owner who uses those boxes. Yet we can't put in place a program to maintain mailboxes. It's a matter of priorities, in my opinion.

I suggest owners attend meetings and see who and what is attempting to strong arm the board. And ask questions. I have seen board members hide behind executive privilege. Yes, it is true that boards shouldn't publish a list of names of delinquent owners. But we can provide statistics. For many years this HOA didn't. HOAs can also provide basic information about foreclosures, legal matters and so on. But  most don't. With an absence of information is it not surprising that some owners thought everything is rosy, and that we had more than enough money?

The newsletter is the tip of the iceberg of information in this HOA. Owners can and should attend meetings. Anyone who attended the October 2014 budget session got a forthright and honest assessment from me of what I see as a future at BLMH. They also got a earful about what I think works and why I live here. They were also told on no uncertain terms the reasons I will move elsewhere and it has nothing to do with personal health or my personal finances. It is all about choosing one's abode and I have specific expectations of BLMH,

Attend the meetings, listen and ask the difficult or uncomfortable questions and you will get an education. Or, if you prefer, stick your head in the sand, pretend you own an apartment and simply expect things to work. After all, we live in the entitlement society.


Tuesday, March 17, 2015

IRS Scam

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Last week, I received a call from someone who stated they were from the IRS and this was "a very serious matter."

I hung up, because it was a ruse to extort money from me. How did I know this? It's because the IRS always initiates contact via U.S, Mail and never by telephone, email or text message.

So if you are badgered over the telephone to pay "taxes" via your debit card or whatever, it is a scam and hang up. Ignore their fake "badge numbers" and credentials.

It is recommended that you contact any IRS impersonation to the "Treasury Inspector General for Tax Administration" or Tigta at 1-800-366-4484 or www.tigta.gov. You can also contact the Federal Trade Commission through the FTC Complaint Assistant at FTC.gov, and add “IRS Telephone Scam” to the complaint comments.

Good luck!