Trading one asset for another may not be in a community's best interest. Increasing maintenance costs also increases dues.
If you spend cash; a community asset to build something as simple as a raised planter is just trading one asset for another. Cash as an assets has no maintenance costs associated with it. But, spending that cash to build a raised planter has now become an asset and has to be maintained. Just as with any structure built it will have to be maintained and to do so costs money. Plus, you have increased the monthly maintenance cost to take care of the plants in the planter plus replace them as needed.
Once any kind of structure is added to the community the job isn't done. You now have to get a whole new reserve study done not just an update, but a new study. Because you added an asset which has to be maintained on a periodic basis. This effects the amount of money needed to be fully funded in the reserves.
Making additions to a community isn't as simple as making an addition to your home. What seems to be a relatively small addition is actually a decision that knowingly and intentionally increases operating costs and reserve expenses. This kind of decision cannot be taken lightly or done based only on the cost of the project. It isn't just a question of do we have the money or is it in the budget. It's a question of how does the addition effect the community today and 20 years from now. The board should consult the tax accountant and a consultant in the reserve industry to show they made an educated decision.
A cash strapped community that is deferring reserve expenses and is under funded cannot afford to build anything that will increase maintenance costs and dues. It's poor business judgement to do so and is undermining the ownership's goal of keeping dues low.
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