Quick update on HMA’s financial position mid-year. We are waiting for more current Financial Information, but for some reason, it’s like pulling teeth to obtain it from the board and Lordon, despite clear legal requirements to do so. There are however a few interesting points to observe in the information available so far.
Budget Surplus:
As of 5/31/2016, our Year-to-Date surplus is now over $45,500.
This represents 25% OF THE BUDGET TO-DATE. Projected over the entire year, this surplus will exceed $100,000!
Remember, when there is too much money, someone will find a way to spend it, more likely than not for no good reason, but because “it’s there”.
What is rather interesting is that the surplus comes almost entirely from savings on maintenance costs (both labor and, strangely enough, supplies as well) due a reduced crew. We have spent 52% less on labor and 85% less in supplies. Yet, the complex looks as good as it ever did, don’t you agree? Makes you wonder… In any case, kudos to the current crew, only two of them but they work miracles.
We have kept accruing our Reserves according to the 30 years plan, so we are still properly funding for the future. In my opinion, it is time to think about reducing the dues starting next year! Based upon this year’s numbers, we could reduce the dues by as much as $80-90/month and still stay within budget!
Legal Fees:
Current YTD legal fees are close to $8,000, that’s 600% over budget! Projected over a year, this represent nearly $20,000! Why do we spend so much money on legal fees? There are no pending lawsuits that we have been told of. It would be nice to have a bit more information and transparency about what’s going on…