Quote:
Posted By TimH5 on 02/09/2011 3:17 PM
I found out by accident that the hoa is charging $18.00 more than the trash service contract is....cost is $40.00 the board is charging $58.00....can they do that. the yard contract also droped by a $1000.00 per month but there is no reduction in the dues.....any ideas on this.
Tim:
Do you serve on the Board? If not have you seen financials that detail what you have stated here? Or is this second hand information?
Do you pay a separate charge for garbage removal? Are you billed for this service alone? And the lawn service contract you have that was reduced by $1000 I don't understand why you would assume that should be reflected in your CCs.
If your property passed along exactly the amount of each service onto the property owners at the end of each year it would result in a zero balance in their accounts. Do you have a reserve account? Do you understand the purpose of such an account? How then would the property build up such an account if they run a zero balance budget?
With inflation, and constant increases in costs it would seem the property would be running behind in covering costs each year.
Speaking for my property we do not set CCs simply to cover routine services there is a built-in amount above and beyond that cost to provide the ability to cover unexpected costs or build up a reserve account to fund future repairs and improvements.
Hopefully this might help to explain the situation in your property but it certainly is good to ask for financials and examine them for yourself and hopefully get to understand why the HOA does what they do and if their decisions are proper or not.
Hope this helps.