How to Determine Dues and Fees

I wonder how your HOA determines the amount of dues and fees to charge members. I am asking the question because I recently attended a special assessment meeting and the financial well-being of our association is pretty dismal. The account is in the negative and two members gave an interest free loan to the association of $5,000 payable in December. A special assessment fee of $700 was approved, an increase of $25 to the annual membership fee and $100 a year increase in annual sewer user fees was approved. I voted for these increases and even suggested $50 more. I am doubtful that everyone will pay the special assessment and there may be members who have paid in the past who will not now pay. Membership is not mandatory.

If everyone pays as we hope, the Association will barely break even. There will be no cushion for any unexpected expenses and with an aging sewer system, you never what will happen. My neighbor is now occupying his residence with a port-a-potty on his property. It was there all Winter, removed, since supposedly the clogged sewer line was repaired, but now it is back. I don't know what is going on there.

I have been losing sleep over this. If the system fails, we have no more money to fix it. Then what. Sorry if I have bored you all to death with this ongoing problem but any suggestions would be greatly appreciated.

If you have a successful HOA, you are to "break even". A HOA is a non-profit corporation. It is to spend as much as it collects on it's operation. If your lucky, you may find room for a reserve fund. So don't think you all need to run your HOA like your own budget. It does NOT work that way.

Plus your assessments are to be split equally amongst ALL the members. Special assessments and unpaid dues are subject to being liened for non-payment.

Banks

You say membership is not mandatory but how can this be for a sewage system? Does one not need to have a sewage system?

Sorry I should clarify. The development has not been built out as a result of a bankruptcy years back in the 70s. There are many vacant lots. Those owners are not required to be members. Only owners with homes connected to the sewer are members and whether they have to be is a question. Regardless they have to pay sewer fees.

Historically, the Association has kept the dues and fees too low and now it is catching up to us. I had real concerns last year when some of the bills couldn't get paid until the dues and fees had been collected. I should have spoken up then but I didn't. I don't know that it would have made any difference.

I don't expect you to remember all of the particulars of my situation but I believe I have stated on this forum multiple times that I understand the need for some entity to manage the sewer but I am not a fan of HOAs in the traditional sense. I would be overjoyed if some government agency stepped in and took over the management of it. I'm a realist. I know ultimately that would cost more money but I'm not terribly excited about trotting out to an outhouse.