"You don't achieve harmony by everyone singing the same note" - Doug Loyd

Monday, October 10, 2011

Rules to Live By

Rules every community board member and officer should live by.

1.  Keep it simple.  It's easy to complicate things.  It's the genius that keeps things simple.

2.  Use forms to make decision making easy.

3.  At every annual meeting have every owner send in a list of priorities for the board.  Things like replacing shrubs that have been missing for 5 plus years, installing white, red, or black rocks in the planters, or any other ideas that create curb appeal (occurs only in front of the individual homes) and increase home values, including completing reserve projects as scheduled, etc.  Then announcing the top five issues the ownership wants addressed and the volunteers and committee heads can also be created.  This gives the new board direction and the committees needed for the year.

4.  If someone says what is the board doing about blah blah.  Don't assume you know what it is about blah blah that they are unhappy with.  Ask them to tell you specifically what it is about it they don't like then go from there.

5.  Be considerate of others.  If there is going to be digging and creating dust consider how that will and can effect other peoples health.  Take allergens into account when planting trees, shrubs, and pollen.  You would be surprised the number of desert plants that are known to cause allergies.  Ask owners if they have allergies to any of the plants being installed.  Watch landscapers wet the ground before digging to ensure they are doing it. 

6.  Don't be selfish!  If something planned is going to have negative effects on someone, don't do it.  Put the entire ownership before yourself. 

7.  When an idea is in it's infancy and before it's approved set a dollar value.  If you know the cost to maintain the pool including water is going to be less than budgeted.  Then the difference is the amount that can be spent on improvements.  If they cannot be done with the amount of money set then don't do it.

8.  Do the math and resolve that any reductions in costs are intended to reduce the dues or prevent an increase in dues.  It is not for projects (unless the majority of the ownership wants it) nor is it to increase one areas budget the following year.  If a project has to be saved for a couple of years then subtract that amount out of the expected income before preparing the budget.  The purpose of reducing costs are to reduce the dues, prevent an increase in dues, or make up for short falls in the reserve fund!  For example if you have separate meters installed for water and electricity for the pool and spa and landscaping you can determine if any reductions in usage are the result of improvements or not watering to kill of the summer grass, etc..  Otherwise, it's impossible to know if changes had a real impact. 

Let's do the math.   If you take $40,000.00 / 174 homes / 12 months = $19.15.  Then if you consider that about 60% (and rising) of the budget goes to landscaping that comes to $11.49 per month per home is used for watering the landscaping.  Leaving $7.66 per month per home used in water at the pool.  If landscaping maintains 60% of the budget then it really doesn't matter what measures to save water is used because 60% of the cost (which is rising) will always be for landscaping.  Reducing the bill by $5,000.00 to $35,000 / 174 homes / 12 months = $16.76.  The difference is $2.39 per month or $28.68 per year per home.  $5,000.00 is a lot to an individual homeowner, but is superficial when you look at the big picture.  It's not worth getting excited about.  Reduce it by $20 or $30K to reduce the dues then we will praise the board for the job they are doing.

Which is why I hope you will excuse my next comment that is a bit off topic.  However, I'm sure you will understand why.  I'm sure you would feel the same way.

To reduce the dues by $10.00 per month with 174 homes, the board has to shave $20,880.00 of the entire budget.   So, when Indian Bend Village aka Suntree owners do not see a reduction in dues  when last year a $30,000.00 + surplus after $40,000 was contributed to the reserves is realized the board needs to be removed.   Times are still tough and to be able to reduce the dues and not too is just inconsiderate and selfish behavior on the part of the board.  They should step down before they are removed.

9.  Know the governing documents and follow board policies.  Some governing documents say the ownership acting by and through the board is responsible for day to day operations.  Projects are not normal maintenance or day to day operations.   Policies are created by the board for the board to follow not the owners.  If your board created a policy to do as the owners wish provided that at least a specific percentage of the ownership requests it.  Then that percentage must be met for all projects or anything over and above normal maintenance or day to day operations, period. 

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