Expenditures

Started by StevenG9 • 3 replies • 532 views

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StevenG9 (Florida)
Posts: 14

Posted:

Hello

Our association bylaws state that any expenditure over $15,000 requires a vote of the membership. What if for example we’re buying equipment for a golf -course a golf course lawnmower. And that lawnmower cost more than $15,000 but it will be leased and we will be making payments over several years monthly payments less then the cap expenditure amount. I’m just trying to figure if we make those payments over a period of time are we clear to proceed

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Well, if the total cost of the lease is $6000 with no obligation to buy, its only a $6000 expenditure. Not a $15,000 one.

That said...... if your maximum is $15,000 there is no reason you cant have input from membership for a $6000 contract such as a lease. If you think people will get upset, total transparency is always better. If you treat things like this as a game of us vs owners, your problems will build.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

If its a $15,000 contract and that is the total cost of the lease, then yes, it requires vote of membership.

They way your looking at it.......you could get a loan for $7,199,520 and have $14,999 payments each month for 40 years WITHOUT membership approval. Ahhh....no. You cant do that.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By StevenG9 on 02/06/2020 3:48 PM
Our association bylaws state that any expenditure over $15,000 requires a vote of the membership.

Out of curiosity, how many owners are in the association, how old is the association, and when were those Bylaws written? That $15,000 number looks awful arbitrary, especially with costs going up every year by at least a couple percent.

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