LisaS11 (California)
Posts: 38
Posts: 38
Posted:
Hello all,
Forgive me for what I am about to ask because I'll bet you've heard this question asked six ways to Sunday, but I did some searching on old threads and haven't found exactly what I'm looking for.
I'm a Director, and the Board and the Budget & Finance Committee are meeting a couple of weeks before our deadline to approve the budget. Last year, the Board insisted we did not raise dues, and fought tooth and nail to get our way. We did not raise dues EXCEPT for about .26 cents per household per month which the staff/B&F committee said we HAD to charge "by law" to maintain our reserve funds.
As we approach the end of our fiscal year, we have about $7.5 million total liabilities and equity/total assets, and we have about $3.6 million total in reserves. It looks like we'll have about $95 k left over in operating funds.
Last year, the board got a lot of heat for refusing to raise dues the recommended $3.00 per month per household, from the B&F people. I think we did OK without that dues hike...(insert smug smile here).
So, here's my question to fellow California Directors...
Do we really by law HAVE to raise the dues every year for the sole purpose of reserve funding REGARDLESS of how well funded our reserves are?
Do we REALLY have to raise dues at all? Do we? I'm no expert, but I am an expert at tightening my family's budget belt and feeling the pinch.
I don't want to offend or insult these fellow volunteers who work hard to make our HOA run smoothly....BUT....on the other hand, I cannot help but wonder why last year when we gave them plenty of advanced warning that we didn't want to raise dues they still came back and pretty much rubber-stamped the staff's budget recommendations and got mad at the board for being such tight-wads. They predicted disaster if we did a no-dues increase, but the sky didn't fall, and everything that needed replacing or improving got funded, the staff still got raises and their fabulous health insurance...nothing changed as far as the quality of service or benefits that our homeowners deserve as members, so what's the big deal?
It feels sometimes as if the Budget and Finance guys have an attitude of "Why do you have to be such tight-wads? What's a buck or two increase per month?" Well, maybe they are personally well-funded in their personal reserves, but I happen to be a stay at home mother to two young children and the wife of a very brave man who works his tail off to pay our mortgage and hope and pray we have money left over to buy our prescriptions and not have to tell our kids they can't have another glass of milk or there won't be enough to put in their cereal tomorrow...
I know my family can't be the only ones in our HOA who don't have personal "reserves". I know we can't be the only family scared to death about the economy. Considering that as an HOA in California, and not knowing what kind of shennanigans our Governator and our house full of drunken sailor representatives will pull on us, I think raising our HOA dues ONE RED CENT more than we absolutely have to is a slap in the face to my neighbors.
Well, I don't post on this site often, but when I do, it's a novel...if you read all the way through, thanks, and thank you in advance for your help!
Lisa
Forgive me for what I am about to ask because I'll bet you've heard this question asked six ways to Sunday, but I did some searching on old threads and haven't found exactly what I'm looking for.
I'm a Director, and the Board and the Budget & Finance Committee are meeting a couple of weeks before our deadline to approve the budget. Last year, the Board insisted we did not raise dues, and fought tooth and nail to get our way. We did not raise dues EXCEPT for about .26 cents per household per month which the staff/B&F committee said we HAD to charge "by law" to maintain our reserve funds.
As we approach the end of our fiscal year, we have about $7.5 million total liabilities and equity/total assets, and we have about $3.6 million total in reserves. It looks like we'll have about $95 k left over in operating funds.
Last year, the board got a lot of heat for refusing to raise dues the recommended $3.00 per month per household, from the B&F people. I think we did OK without that dues hike...(insert smug smile here).
So, here's my question to fellow California Directors...
Do we really by law HAVE to raise the dues every year for the sole purpose of reserve funding REGARDLESS of how well funded our reserves are?
Do we REALLY have to raise dues at all? Do we? I'm no expert, but I am an expert at tightening my family's budget belt and feeling the pinch.
I don't want to offend or insult these fellow volunteers who work hard to make our HOA run smoothly....BUT....on the other hand, I cannot help but wonder why last year when we gave them plenty of advanced warning that we didn't want to raise dues they still came back and pretty much rubber-stamped the staff's budget recommendations and got mad at the board for being such tight-wads. They predicted disaster if we did a no-dues increase, but the sky didn't fall, and everything that needed replacing or improving got funded, the staff still got raises and their fabulous health insurance...nothing changed as far as the quality of service or benefits that our homeowners deserve as members, so what's the big deal?
It feels sometimes as if the Budget and Finance guys have an attitude of "Why do you have to be such tight-wads? What's a buck or two increase per month?" Well, maybe they are personally well-funded in their personal reserves, but I happen to be a stay at home mother to two young children and the wife of a very brave man who works his tail off to pay our mortgage and hope and pray we have money left over to buy our prescriptions and not have to tell our kids they can't have another glass of milk or there won't be enough to put in their cereal tomorrow...
I know my family can't be the only ones in our HOA who don't have personal "reserves". I know we can't be the only family scared to death about the economy. Considering that as an HOA in California, and not knowing what kind of shennanigans our Governator and our house full of drunken sailor representatives will pull on us, I think raising our HOA dues ONE RED CENT more than we absolutely have to is a slap in the face to my neighbors.
Well, I don't post on this site often, but when I do, it's a novel...if you read all the way through, thanks, and thank you in advance for your help!
Lisa