Have you examined the 2023 Budget yet?

All Summit HOA homeowners should examine the 2023 Budget. One of the glaring errors in the 2021 and 2022 Budgets has been fixed - sort of. But it's still not right. Can you spot it? Here goes:

Total Assessment Income is $1,262,250. The same as in 2022 and 2021. At first glance, that is as it should be. Dues have not gone up. BUT the number of homes has changed. On April 8, 2022 I learned from the CAMS office that there are 2,480 homes in The Summit. (I had asked because Treasurer Vernell Butler had told the board that there were 2,800 homes.)

How much should the dues income be? 2,480 x $510 = $1,264,800.

$1,262,250 / $510 = 2,475 homes. Is income from five homes missing?

The HOA receives money from fines for Violations. Why are fines in 2023 expected to increase 121%? Line Item 4600 was increased from $28,000 to $62,000! Grab your wallets, folks!

Last year Line Item 6500, $140,000, was under Salaries. I complained that the HOA can't list anything under Salaries, because it doesn't have any employees! Now Line Item 6500 is labeled "On-Site Maintenance". But it is NOT "Maintenance". That $140,000 is what the HOA pays CAMS to provide staff for the office. Why is there a deceptive label for that amount?

Line Item 6247 is $7,000 for Copies. A decent allowance for photocopies is $0.05-$0.10. Let's use $0.10. $7,000 will provide 70,000 copies! Does that seem a lot to anyone else?

Line 5028 is CC&R violations (Expense). Last year there was $3,000 in the budget, This year there is $9,000 in the budget, a 200% increase. Why?

The biggest concern for homeowners should be why the budget is presented as "balanced", when the amount going into Reserves was drawn down last year and again this year. In 2021 the Approved Budget was to put $146,155 into Reserves. 

In 2022 that amount was $91,610, a reduction of $54,545 (37%).

In 2023 that amount is $39,677, a reduction of $51,933 (43%).

In two years the amount going into Reserves for future expenses has gone down $106,478 ($146,155 - 39,677).

NO ONE on the board asked any questions before approving the budget! And the Treasurer did not explain how the budget became "balanced".

Putting money into Reserves is vital to the long-term, economic health of the HOA. If the amount going into Reserves is so sharply reduced, it should be with the awareness, understanding and approval of the board.

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