"Pay Me Now or Pay Me Later"
"This budget is for every day [sic] expenses and not projects."
Why isn't the Finance Committee reporting on the need for money to be spent on Projects?
"We have a balanced budget and we are not raising regeme [sic] fees this year."
It was not reported to Members on November 12 that the Finance Committee had recommended a 10% increase in dues. The board either decided against it or indicated its disapproval. The presentation should have been in a public meeting, not in a private, closed meeting.
At the November 12th board meeting the Treasurer should have made a Motion to raise the dues. That would have been in the best interests of the HOA. That would have forced the board to vote in public and to explain its position.
"We worked hard to keep the budget as low as possible."
That's not what the Budget Sub-Committee or the Finance Committee is supposed to do. They are to work from the bottom up; i.e., calculate the reasonable operating expenses of the HOA first. Then they are to figure out where the money will come from.
The clear and only answer is an increase in dues and the much-increased amount of interest on money in banks and at Edward Jones.
No one wants to pay more in dues. But that's like not changing the oil in your car. Remember the poster? "Pay me now or pay me later." Those guys at Fram Oil were pretty smart back in 1982.
What necessary expenses did they cut out of the 2025 budget or minimize?
Didn't they learn anything from the Variances shown every month in the Financial Statements? They certainly never talked about those variances at any monthly board meeting.
The variances are just listed, but without a total. Does anyone pay attention to the growing over-spending status of accounts? The fifth-largest over-spending variance is not even included in the monthly report. Who told the office to leave out Line 6500 - Legal / Professional? That Line is, as of 10/31/2024, over-spent by $8,903.62 (71%). The HOA has spent $21,403.62 in ten months, against a pro-rated budget of $12,500.
What caused the extra $8,903.62 in Legal / Professional Expenses? Was the board aware of that in advance? Did it authorize exceeding the budget? Is it the result of the President's claiming the sole authority to be in contact with the attorney?
For example, did the board authorize Danny to tell the attorney to send Gus Philpott a Cease and Desist Letter that threatened legal action?
"We only put in $3,000 for Reserves..." That's for 2025. Money going into Reserves has dwindled over the past four years, and in 2024 Nothing went into Reserves. Previous boards did the Members no favors by spending the money on Operating expenses, instead of setting money aside for future expenses.
The 2021 Budget allocated $146,155 to Reserves.
The 2024 Budget allocated $0 to Reserves.
The 2025 Budget allocates $3,000 to Reserves.
How is collection of unpaid dues coming along?
No mention whatsoever!
I attended part of the December 2023 Finance Committee meeting, until I was asked to leave. Did I ask too many questions that they didn't want to hear.
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