Dues based on county tax appraisal

JanM: check your official documents, CC&Rs/Declaration, for any statement that would dictate...common expenses, including reserves, are to be divided equally among unit owners/residents, etc. ...and paid monthly....

JanM - The amount to collect in dues should be based upon the costs to cover the repair and replaement of budget line items that are shared equally among all owners in the Association (common elements). The fact that you haven't had an increase since the late 1980's could be troubling. Common elements deteriorate and the cost of repair and replacement increase over time, inflation must be accounted for. Sounds like your Association could be way behind the 8-ball. Freezing dues for those at age 65 will pass costs off to everyone else. Nice for those 65 and older but discriminatory to everyone else.

How often do you have tax re-assessments? Not too often I bet.

How many Board members are 65 and older?

Your Property Tax appraisals have NOTHING to do with the amount of dues your HOA collects. It's apples and oranges. Matter of fact, the taxes are probably another part of what the HOA is responsible for paying for anyways.

A HOA is typically, a NON-Profit CORPORATION. It must spend as much money as it recieves in on operational and maintenance costs. (Can include a reserves account limited). The HOA's budget must be based on dividing the number of members (homeowners in the association) and the operational costs of maintaining the entire HOA. Everyone must pay an equal share. (In most cases).

So if your HOA has routine bills of $5K a month (landscaping, maintenance, pool care etc...) and has 10 members. The members should be paying their share of $500 as a minimum a month. However, there should also be a "fudge factor" of accounting for atleast worst case scenerio 25% members not paying and some money for an reserve fund. So your HOA may want to charge $525 a month to each member instead. That would provide some "cushion". That would be an extra possible $250 a month to cover overruns or emergencies. Your HOA doesn't need too much of a "cushion" because it can be considered a tax liability. If your books don't equal out at the end of the year, there could be tax considerations.

Budgets are hard to understand in a HOA. It sounds like your HOA may need some outside help. We were self-managed but had a Bookkeeper/accountant. Alot of HOA's have Management companies. All of which are sub-contractors to the HOA and their pay comes from the HOA's budget. So that is another factor to figure in and divide equally.

JanM - Unless a "Board decided" increase in dues exceeds a monetary threshold prohibited in your by-laws, a vote of owners is unwise. The Board members are fiduciaries which have to budget for the maintenance and replacement of the common elements, and operating expenses whether the owners like it or not. I fail to see why a $5.00 increase is a ballot question. Please explain.

There is no dollar amount mentioned in the by-laws, just "current maximum" which is a paultry $240 yr. It states, "The current annual assessments(which constitutes the current maximum) may be increased by a majority vote of a quorum present, or represented by absentee ballot, at a meeting of the members of the corporation; and if an increase is approved and so voted, in writing, the new amount becomes the current maximum". Amounts set for permit fees, fines, and safety tickets are determined the board w/o a vote. But assessments have always been voted on.
To answer the second question of how we still operate and maintain our amenities...by the skin of our teeth.