Yearly Dues

My very small SFH HOA collects fees yearly. We have no common areas to maintain, no street maintenance, everyone is responsible for their own home and yard. What we do have is an entrance and a sign which the HOA pays about $80 a month to maintain. So after years of collecting dues (everyone in the HOA is current) we have a balance over $10k. Just about every homeowner is in compliance with the bylaws and the HOA is not collecting fines.

Some members have suggested lowering dues about $20 per year. I wondering how long it will take before a homeowner suggests that a portion of the dues be refunded. We have an interest bearing acct which doesn't make too much in interest and no other investments.

The present BMs want the money saved for any future legal advice or if one of us are sued by a homeowner over a violation dispute.

Any suggestions if a homeowner brings up this subject in the future? Thanks for any replies.

I notice you are in Florida. Do you have an irrigation system that waters the entrance plantings?

JimD,

You might want to check your state laws. I'm not familiar with Florida laws, but here in Connecticut associations are required to refund any excess, either by check or by reducing the following year's assessments.

You should have adequate reserves to fund future capital expenses. Other than that, you should have a balanced budget: assessments = expenses.

As the OP provided very little in the way of real numbers, tough for me to comment as to whether reductions are in order.

How many units do they have? Is their an MC? Do you carry insurance or hold a Master policy? Are you familiar with the operating budget? If so where does that stand in terms fo covering annual costs? How old is the property? How do you plan to cover costs IF some unit fail to pay their CC's?

IMO in 2012 $10,000 is not a whole lot of money.