Will Inflation Affect the HOA?

When you look at the 2022 approved Budget for The Summit HOA, you will know that the runaway inflation affecting the rest of the country is  NOT expected to apply to the expenses of The Summit. That's good to know. Right?

Maybe the directors could call The White House and provide some advice. Inflation in the U.S. is somewhere around 8% now, and an inflationary rate was not unknown during the planning time of the Budget last fall and all the way up to March 1, 2022, when the Treasurer of the HOA finally submitted the Budget to the Board of Directors for approval.

The Minutes of the March 1, 2022 Board Meeting reveal that the Treasurer, Vernell Butler, informed the Board that the budget increased by approximately $3,500. That's pretty good for a budget with total expenses of $1,317,550 in 2021. That's rock-solid management by a Board that has its pencils sharpened and fresh batteries in its calculator. Right? That increase is only 0.266%; that's ¼ of 1%. 

But is there more to know?

EXCEPT landscaping contracts went up $67,280 (17%).
And a few other line items went up, totaling $8,725.

But the Treasurer told them that the "budget" only went up by $3,500. It wasn't "approximately" $3,500. It was exactly $2,500 ($1,320,050-$1,317,550) Maybe the calculator batteries weren't so fresh, after all.

Did your car insurance increase in the past 12 months? Did your homeowner's insurance policy premium increase?

The insurance costs for the HOA are estimated not to increase from 2021 to 2022. Maybe we all should be dealing with the agent for the HOA!

Not sure where the production, printing and delivery costs of the Scoop are buried. Maybe The Scoop is history? None was delivered in March, although the images of the March Scoop are on the HOA's website. Will any homeowner know to look there for it?

How many employees does the HOA have? Do you know? The approved budget shows $230,570 for Salaries. So, how many employees are there for that $230,570? Put your guess in the Comment box below.

Number of Employees? 7 - 6 - 5 - 4 - 3 - 2 - 1 - 0?
 
For the correct answer, you might show up at the May 3, 2022 board meetng and ask that question. Don't accept explanations or excuses or reasons. Just ask for the number. How many employees does the HOA have?

Watch for the Audit this year. It ought to be a zinger. I hear there is a new Auditor.

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