Posted:
Read your documents - there should be language that addresses how assessment increases are to be handled. Then again, some documents lack even fundamental information like that because the developer cut and pasted the things without taking a closer look at what was in them.
You'll also want to recheck the board meeting minutes - I would think there had been discussions on the $10K balance and increased costs in garbage and other expenses. As Michael noted, master insurance policies are going up everywhere, and the increases have to be covered by something. Assessments are the only income the association has, so if some things are really expensive, but necessary, the board has to make tough decisions on spending. Just like you have to do when the light bill, car insurance or something else goes up in your home budget.
You also say assessments went up a year ago because the board decided to put an extra $15K into reserves. It may see simple to you that this could have covered the garbage collection increase, but reserves are there to pay for future replacements to the common areas like roofing or street repaving (if your association owns the streets). Many HOAs have problems with underfunded reserves because people hate assessment increases - and then no one can figure out why they're hit with a special assessment or the association has to get a loan, which increases assessments because you now have to fund reserves, pay routine monthly expense and loan payments (remember, those come with interest).
This sounds like your assessments haven't kept up with inflation and increasing costs. I don't know what previous boards did, but this one may have found they have no choice. The garbage fees have to be paid because you need that service - what do you suggest be done if the new fee isn't paid and the garbage collection ends?
And that $10K balance is also a factor - I assume you're talking about delinquencies. When some homeowners can't or refuse to pay, those of you who do indirectly subsidize them because the services still have to be provided. We've had several recent conversations on delinquency issues like homeowners who file bankruptcy over and over to avoid foreclosure by the association (the nuclear option after lawsuits and liens haven't worked). If that didn't exist, perhaps the money would have been there to cover increased costs and we wouldn't be having this conversation.
Then there's the pond issues - you don't say what those are, but not addressing it can lead to other problems that would take more time and money to fix, and it may be the association has put that off for too long and now you have to addrss it. That costs money too.
Your board should have kept homeowners informed about all of this whether they attended board meetings and those discussions should be held in an open board meeting where you can listen to the proceedings and see why the votes went the way they did. You might not agree with it, but at least you'd see the thinking behind it and you could request copies of the bills and the association's income/expense reports to see for yourself what's going on.
Attend the next board meeting and ask your questions. If they start mumbling, look away or get downright hostile, that's a problem and perhaps the homeowners should request a special meeting to consider if this board is as transparent as it should be and if not, replacing them might be appropriate. However, that would also mean you need people ready to step up to take over, and you may need to be one of them. Even with a new board, you'll still have the money issues to address and unless you can come up with better ideas, you may have to make the same decisions they did.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius