Budgets

How do you work a budget for the year? Ours was put together by the treasurer and asked committees what money they would need to operate. It was recently handed to the board as a Proposed Budget. I disagree how it was put together. I made the Motion to Table. I hope our board has a special meeting to disucss the situation. Swimming pool will need work. How is it placed underneath Parks and Safety? Swimming pool should be placed underneath its own entity. There is one for the chemicals what would swimming pool be expenditures to cover pumps, resurface, and building a new pump house. The electrical is not safe. (GIFI) I have alerted the board nothing has been done. With the pool having so many problems (bad board opertions) I ask the pool to be closed. Nothng has happened. Any ideas on this matter. I was wondering if I should have a fire department do an inspection.

Sandra:

Are you on the Board?

What do you know about putting together a budget?
Have you ever done so?

And just what in your understanding is a GIFI? And what to your knowledge is the problem with them at the pool?

Not ALL items need to be or can be included in a yearly budget. Not recosting the pool or items not performed each and every year.

My sugestion you educate yourself as to the process.

Having a letter perfect budget with all the Ts crossed and Is dotted accomplsihes little in the real world.

I would worry more about the nuts and bolts of the property.

And how would the fire department become involved with a pool? And under what authority would YOU call them?

Never heard or saw reserve funds from prior boards.

I have never put together a budget that is why I was asking not sure if present board does either. But it would not be indicated underneath the Parks and Safety. Would it not be placed underneath another title (someone else state a reserve funds)

I might have put wrong initials GIFI it is grounded electrical in places were water is located. Our pool pump house is not grounded and it is a safety hazard. The pool manager was socked.

How would you propose for me to educate myself in this process.

Nuts and bolts this pool is the center focus for some. Others feel like myself improvement needed in other areas.

inspect this problem so the board members will know this is a serious problem. Last year the water in the pool was being filled and you could not flush the toilets. That clearly is a health issue.

Thanks for your help

Sandra - what are the "common areas" your HOA is responsible for? Roads? buildings? signs? entranceway, pool? etc. etc?

They need to be taken care of and a PLAN for these items for their repair or replacement must be considered over the years. So a Reserve Fund is needed, so when major repairs/replacments are needed, the $$ is there.

The Annual Budget is just what happens for one year.

Sandra,

The budget should be created based on the following:

1) Total amount of expected operational expenses (contracts, administrative expenses (based on past history))
2) Scheduled maintenance items (based on Reserve Study)
3) Amount needed to be set aside for Reserves (based on Reserve Study)
4) Expected Legal work (based on past history and/or expected projects for the year)
5) Line item amounts for expected unscheduled work (tree removal, etc.)
6) A contingency amount (determined by board and/or history) to cover budget shortfalls and unpaid assessments
7) Committee requirements (social, etc.)

Typically the Treasurer would then provide a draft budget to the Board for discussion, amendments and approval
IF required, the Board approved budget is presented to the membership for final approval

Assessments are based off of the budget divided by the number of lots or percentage of unit ownership.

Sandra:

Sounds like there is a lot to learn. Good thing is there are lots of resources.

How many units are there on your property?

Do you have a MC (management company) if so they might help you through some of this.

As to the budget best place would be looking over the financial records from the previous years. That would give you a rough idea of where and when you money was spent.

Now you also have CAI which is an organization that supports and educates HOA/condo housing associations. Their website offers information and if they have a chapter in your area you can join to attend seminars as either a member or guest. Legal issues, maintenance, financial, everything is covered.

As to the pool I wonder who told you the pool equipment was not grounded? Of course it should be. How old is the pool? Indoor or outdoor?

In our area the pool would be required to pass a yearly inspection by the Board of Health how about you? If not you could have an electrician come in and inspect the electrical system if you have good reson to believe it is faulty.

More than likely your were referring to a GFI outlet or circuit. Their use depends on the code and requirements in your area. Again an electrician or pool service contrator could inspect your pool for that. How old is the pool?

As to your toilets not be used while filling the pool. Just wonder what that means?

Did the toilets not fill? Did the toilets back up? What problem existed?

Do you have well water or are you tied in with a city supply?

And where were they taking the water from to fill the pool?

Are you on the Board? If so IMO holding a Board position requires lots of rfesearc h and education in order to do the job properly and protect your investment and the investment of others.

Learn what you are talking about before you start looking for problems. Understand what might be wrong and offer options to fix the issue.

I would head to the CAI site and look to them for an idea as to the budget process and many of the other issues commonly facing HOA/condo leadership.
No need to reinvent the wheel many properties have more than likely faced similar issues and resolved them so the answers are all out there you just have to find them not make them.

Good luck.

JOJ

Good suggestion on not reinventing the wheel. Many seem to want to especially those with little to no experience. I say learn from the pioneers. They will be the ones with arrows in them....LOL

I am currently the VP. We are a Homeowners Association with 611 residents.

It would be nice if we did have a management company. (It will not happen at present time (corrupt boardmembers)made a big mess to correct. Past board would not be examples to go by. We (homeowners) petition to remove them. We (homeowners) had our attorney vs the Homeowners Association Board attorneyinvolved to get an audit started. The past board did not even inform our Associations attorney about our Covenants, ByLaws and Articles. Our attorney did.

Put liens on homeowners and never removed after it was paid. Used a debit card, no POs, or receipts. I don't believe they even followed a budget. Just a black hole. There is so much I could not even type it all.

But who is to blame. Some homeowners would complain and it would not get them anywhere. Homeowners gave up. So these individuals ran our association almost to bankruptcy.

So this past March 2011 I started attending Board Meetings. Asking questions. I started rallying my neighbors to help get the paid Sheriff patrols back into our neighborhood. It has improved but it is not a 100 percent

I read their past meeting minutes then started to really speak to the neighbors.

What is the CAI website?

The pool is in really bad condition (old board hired an exterior wall company to patch it!?. Pump house will have to be torn down. The electrical was pointed out to me when I asked a homeowner how to operate the pumps. He had a pool of his own. He pointed out that the outlets were not GFI. I told the Pool Manager about it. She indicated she has been shocked. I do not even go in there or want too. I have told the Board but nothing has been done. The Pool Manager resigned in October 2011.

I guess this is not an importance but it is a real safety issue with me. I don't want to see anyone hurt.

The olympic size pool was built in the early 1980's. There is a diving pool and a baby pool. The baby pool has an issue pump is shut off (prior board). Two pumps for the large pool (one has some kind of problem). Diving pool pump running but is leaking.

Decking has nails popping up and boards (weathered) there have been injuries. Needs to be removed

Toilets in bath houses cannot flush or fill when pool is being filled. Water connection is right by the bath houses. Pool Manager stated they somehow connected to the fire hydrant. I did not see this. We have city water.

I am not trying to reinvent the wheel. I am new and so are others on this Board. We do not need any lawsuits.

I appreciate everyones comments.

Sandra,

Good for you for caring enough to take the time to become involved.
In addition to this site, here are some links that may be helpful:

Community Association Network Louisiana Resources page They are a sponsor of this site and have links to applicable Louisiana laws (bottom left on page).

Louisiana Nonprofit Corporation Act scroll down page to 12:201 - 12:268 applies if your Association is incorporated as a nonprofit (most are).

HOATalk thread on Reserve Studies provides some links and explains how to perform a reserve study.

CAI website Community Associations Institute. Has some good resources. Does cost money to join. However, still provide some excellent free resources.

HOA-USA Louisiana page Has a good resource center page (click on resource tab). Similar to CAI, it does cost money to join. However, still has some excellent free resources.

Hope these help.

Tim