2023 Budget is Disaster!

Unfortunately, since the 2023 budget is too low, there will be cost overruns impacting both Condos. However, with Condo 1 bleeding out about $10K per month, by the end of March, Condo 1 will probably have a cash balance around -$90K until the maintenance fees for April 1 come in. Condo 1 owners should thank Condo 1A owners for the loan the board is forcing them to make.

In my opinion, the budget was set by the board to win reelection rather than be realistic.

Even if we are lucky enough to get the $96K income tax refund this year, it won't come close to covering the insurance shortfall of about $250K (without premium increase - about $350K with increase) plus about $140K in required elevator upgrades not in the budget. Also, the $23K AMR costs must be covered in the special assessment. All of these expenses were known to board members before the budget was complete or could have been projected for the budget to be realistic. However, that would have meant raising quarterly fees even higher than they are now just before a board election.

That means we will be getting a special assessment this year too! Expect it right after the Board Election. You should expect the average special assessment to be about $1.5K per unit (adjust up or down depending on your percent ownership). If the budget were done realistically, owners would know where they stand for the year and would not be burdened with a special assessment. They cost owners extra money due to costs of mailing, wreak havoc on personal budgets, and are inconvenient to pay - especially for snowbirds - which can cause late fees too. We need realistic budgets that let owners plan their personal finances without the burden of "surprise" expenses that should not be surprises for competent, honest board members.

Having either special assessments or continuing deficits are indicators of a board that does not competently budget and manage finances well.

Here are the numbers for the insurance based on the January 2023 financial statement available on Front Steps: Insurance Shortfall Spreadsheet

PDF Version: Insurance Shortfall


Comments

Post a Comment

Popular posts from this blog

Board Critique

 Huntington Lakes Section 1 Association has been badly mismanaged. This is evidenced by deficits in Condo 1 and special assessments. Both indicate bad budgeting and poor financial planning. The purpose of this blog is to inform you of what is going on in your association based on verifiable facts instead of stories told by people who want to be on the board because they like running things their way. That is, without regard for the law, our by-laws, good accounting practices, good financial management, and respect for their fiduciary responsibility to owners. The deficit budgets we've had are illegal and against our by-laws. However, most board members don't care - they literally don't care even when informed of this. Instead of following the law, they seek questionable professional opinions to avoid following the law. These rules are designed to protect owners from boards financially ruining them. Breaking the law may seem like a good approach in the short run, but it lead...
Read more

Howard Laufer

  Howard Laufer (Building 7) Candidate for Huntington Lakes Section 1 Board of Directors Thank you for taking the time to read this short Bio about me and why I am asking for your vote to become your representative as a Board Member.   I used to live up north in Whitestone Queens NY.   I moved to Huntington Lakes several years ago mostly to look after my parents who live in Section 5.   It seems every day there is another doctor that they need to go to and I am glad that I am here and able to help them. Why Choose me: I believe my background in Construction and Building Maintenance will be an asset to both you and our Condo Board.   I have owned and operated several businesses throughout my career including a Burglar Alarm & Fire Alarm company, and Building Construction Companies.    I have had many employees and clients and I have learned how to treat people with respect.   I have extensive knowledge using computer programs like Word,...
Read more

Condo 1 was Borrowing about $60K from Condo 1A at end of 2022

 The cash balance for Condo 1 at the end of December 2022 was about -$60K. Yes, negative $60K. Thank you to the owners in Condo 1A for supplying money for Condo 1 operating expenses. The details can be found in this Excel file that shows separate balance sheets for the two condos calculated from the monthly financial report. Here is the cash summary: Total Condo 1 Condo 1A Current Assets Valley Account $ 351,426.35 $ (59,474.59) $ 410,900.94 Southstate Account $ 127.54 $ 127.54 $ - Total Current Assets $ 351,553.89 $ (59,347.05) $ 410,900.94 After the January 2023 maintenance payments, Condo 1 will have a positive balance again until March. The cash deficit will be even higher then since the 2023 budget was done poorly and doesn't cover expenses. Of course, we won't see the March 2023 financial report until April 20,2023 which is well after the board election. Then the current board members who voted for the budget will, if reelected, probably be shocked and surprised at the u...
Read more