Need Advice on how to get members to read and understand the budget

Our President cannot get the membership in our HOA to read or understand the budget. We have inundated them with information, the MC has shown and discussed with them the P&L, A/R, Balance sheet, etc... and they still don't get it.

We have put it into several formats which were simple, including one like a checkbook, showing what expenses are projected and what income is projected and the balances. All they do is complain about how much the dues are and the BOD has even asked several to do the budget themselves (if they thought they could do a better job) and they volunteer but never follow thru.

Dues have increased from $75.00 to $125.00 and we are trying to get another increase to pay for our private road maintenance per our reserve study.

Comments have been:

"Well, if I had know my dues where going to increase I would have never purchased in the subdivision".

"I think dues should be around $100.00, that's fair"

"If you increase dues, I'll just quit paying"

"Our dues are more than other subdivisons"

The BOD has cut and cut and cut expenses, but we have 3 homeowners who are not paying and 2 in foreclosure. That means the remaining 9 homeowners are paying for 12.

Yes, we have attempted collection, collected on one, filed liens on all 3 etc....

Bottom line is they just don't want dues to increase period, well neither does the BOD, we all pay the same dues but it is what it is.

Does anyone have an article that we could send out to our members about the "value of maintaining the subdivision?"

Thanks!

Karen,

Those comments you posted are similar to the ones I heard when we did our reserve study and brought to the membership the need to increase assessments. You will always have those comments and will never please everyone. With larger Associations, this is typically not as big of an issue to overcome. However, with only 12 lots in the Association you might not be able to overcome it with information.

You might want to get permission from the Board to approach those who are making the comments on a one to one basis. Explain the issue the best you can and take the time to answer their questions. You won't convince everyone but you might be able to sway enough members to have the issue addressed.

I was one of those members who fought against an increase proposed by a previous board. When I was elected to the Board, I then had to turn around and ask for the increase. Since I fought so hard against the earlier one I felt I needed to explain my position. Basically, I explained what was done to cut expenses and how this just wasn't enough. I've attached that article. I'm not sure if it will do you any good but perhaps it can give you ideas on how to address it with your neighbors.

Tim

Steve,

Costs have been cut to the bare bones - the only other cost that could be cut is the Mgmt Co. but no one wants to volunteer (as usual) to take over collection of the dues, paying bills, obtaining bids, etc.... they even wanted to cut costs for spring cleanup by doing the work themselves and then only 4 bothered.

Karen,

You might want to see what savings you can gain going from twice a week garbage pick-up to once a week. This could gain savings and would also impact the membership - perhaps enough for them to approve the increase.

Tim

Hi Karen:

Potentially it is not the fact they do not understand the budget, but that they are ignoring the budget issues facing the association.

An idea is use costs as an example utilizing the number of units … discuss with the homeowners the fact that if you have an emergency which costs $12,000 then the cost divided would be $1,000 per homeowner. Then double the units and state … if we had 24 units it would be $500 per homeowner, if we had 48 units the cost would be $250, etc.

I found the members then better understand that when you have fewer units the cost per unit potentially can be more expensive than other HOA’s with more units. This helps get around the statements regarding other HOA’s pay less … response is, well the other HOA has 3 times more homes to spread out the costs between each owner.