Legal fees continue...Spending exceeds budget...
One of the most important functions of the Board is the oversight of the spending of member funds.
Two thirds of the budget year has passed. This represents 67% 33% remains. These are important numbers to watch with 4 months remaining. To be on budget, the amount spent should be around the 67% and show 33% remaining to be spent. If the remaining to be spent is less than 33%, it should be a red flag. The 4 remaining months are the time to make spending adjustments. With September ending, there really are only 3 months remaining.
The projected spending budget is based on 100% member payments. This never happens. All figures stated below are based on September month end figures. $52,021.46 remains to be collected. A portion of this will be collected.
% Amounts of budget spent by department:
Business Office 72.6%
Administration 87.3%
Water Department 69.9%
Common Property 79.7%
Patrol 65.3%
Compactor 69.6%
RV storage 45.9%
Activities 73.3%
Discussion:
At the current wage spending in the Business Office, the wages will exceed the budget by at least 15,000 dollars.
In the Administration Department, legal fees continue with 10,459.31 spent in August, for a yearly total to date of 53,059.70 which is 70.7% of budget of 75,000 A new item of "Accounting Consulting" for August is 3,865.00 Insurance stays at 10,000 over budget.
Compactor can be expected to end the year, close to budget. Use should fall now that Summer has passed. Patrol looks fine. We can expect RV storage to increase with a study and God only knows what, thanks to Mr. Clancy. Common property should level out with the Summer maintenance ending.
% amounts in the Water Department equate to large dollar amounts. . This needs to be watched closely and adjustments made to stay within budget.
Note:
Fines and legal fees could sky rocket before the budget year ends in December 31. At this point, over all, the budget is manageable, but should be watched closely and be a priority for the Board.
5 comments:
Will the employees and staff also get a Christmas bonus for operating in the red?
The employees and staff don't create the budget. If it's unrealistic is that their fault? If unexpected events happen is that their fault?
Uh, department heads/employees submit budgets to bot. Dept heads/employees are also responsible for controlling their budgets. Anything other than dept submitted budgets are just bot legacy/wish list, and paying for their mistakes.
Notice how legal spending is never clearly outlined. It would be interesting to break it down to what is at issue, and to see clearly just exactly how much is being spent on enforcement of Tree restrictions. The community as a whole does not benefit from this spending.
We know the HOA attorney said there has been a big increase in legal spending on Tree enforcement, and shortening the timeline to comply will resort in big fines, more paperwork, lawsuits, and unnecessary conflict. While destroying the landscape in Surfside, we can also try and bankrupt our members ! Sweet !
There are over $52,000 in unpaid dues and assessments as of this month, with over $24,000 in late fees outstanding. When owners are going deeper in debt on their annual payments, and in greater numbers, enforcement is defeating its' purpose. Increasing enforcement pressure through fines that compound, is not resulting in greater compliance, but is burying some owners in fees.
The objective is just compliance, and very few compliance matters are of an urgent nature. Small claims decisions do not assure that overdue fees will be paid, but cost the membership because the BOT is unwilling to resolve issues through mediation or compromise.
Two cases were pursued to Superior Court that we know of last year, that were withdrawn at great expense. Mediation could have been done for about $100. Try and track the money spent folks. No information that the HOA has provided clearly designates such spending.
Once again, another violation of State law, as not for profits require full disclosure.
How long will this crap go on?
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