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LetA (Nevada)
Posts: 2,679
Posted:
I guess it is safe to say one of the compelling reasons why we are in the beginning process of changing PMC's is
the constant BS by our current PM I just feel we are being played.

Last year during the budget ratification we discussed in a round about way of rearranging the deck chairs on the Titanic.
We reviewed a bid proposal to go with a virtual attendant system complete with cameras, LPR's etc. Aside from the must complete
items in our reserve study that would come out of the reserves and discussed transferring less money to reserves instead of being 100% funded, float it at 90-95%, jut to keep an extra buffer pillow in the operating expense. We can always transfer to reserves anytime.

We agreed that canceling random security visits and going with the virtual attendant along with raising assessments to X amount was the way
to go.

Surprise Surprise the PM dropped a bomb on us just before the the board meeting, not only was he eager to have the vendor do the presentation
before the board meeting, he said that budget financials won't allow us to take on the new vendor without raising assessments a third year in
a row.

I thought the idea of raising assessments to the level we did would leave us with enough wiggle room to not have to raise assessments
for another five years, all according to the PM's words

We were all set to go and officially vote to accept the bid for the virtual attendant, we just feel scammed by our own PM
are they supposed to keep our financial interest at heart?

The current project with the pool replastering, the PM's words last year only the pool needs replastering. Why does the bid proposal call for the pool and spa to be replastered? it was replasteered a couple of years ago and does not need to be replastered. again the PM words only the pool
needs replastering
The PM words the heater to the spa needs to be replaced, its leaking in the back, yes there are pictures and I saw it myself.
PMS words good news all the work being completed can be included on one permit, again the PM's own words.
I look on the bid sheet, why are we being charged for two pemits? PM um duh the pool and spa each have a permit from the SNHD
me um ok yes that is the operating permit not the construction permit.

Operating permits are not that expensive from the health district.

DeanJ
Posts: 1,786
Posted:
What a novel plan. Not funding reserves at 100% to insure no fee increases for 5 years.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By DeanJ on 02/20/2025 7:48 PM
What a novel plan. Not funding reserves at 100% to insure no fee increases for 5 years.

Our previous board tried that. It worked as predicted. Visualize "shocked Pikachu faces" when owners received the 2025 budget, along with the news that we can't pay our bills at previous assessment levels, and it's either this or special assessments.

"But previous assessment increases were only $5.00 per month!"

"Yup. That's why we're in this mess. You had your fun, now it's time to pay for it."

I have nothing good to say about boards who make everybody all happy by keeping assessments too low, thus setting up future boards for tough financial decisions and pi$$ed off owners who think the good times should continue to roll.
MichaelS56 (Minnesota)
Posts: 859
Posted:
Interesting that owners fall for the idea that costs do not go up. Insurance costs are rising quickly, contractor repairs are more expensive each year, and the association gets older each and needs repairs and other basic maintenance.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By CathyA3 on 02/21/2025 5:22 AM
Posted By DeanJ on 02/20/2025 7:48 PM
What a novel plan. Not funding reserves at 100% to insure no fee increases for 5 years.


Our previous board tried that. It worked as predicted. Visualize "shocked Pikachu faces" when owners received the 2025 budget, along with the news that we can't pay our bills at previous assessment levels, and it's either this or special assessments.

"But previous assessment increases were only $5.00 per month!"

"Yup. That's why we're in this mess. You had your fun, now it's time to pay for it."

I have nothing good to say about boards who make everybody all happy by keeping assessments too low, thus setting up future boards for tough financial decisions and pi$$ed off owners who think the good times should continue to roll.

I some times wonder if the same people who believe no increases for 5 years is a great idea would also be happy if their employers or social security made the same announcement - no increases for 5 years. You will be just fine,
ElleN (Idaho)
Posts: 1,338
Posted:
Quote:
Posted By LetA on 02/20/2025 3:06 PM

Surprise Surprise the PM [snippage] said that budget financials won't allow us to take on the new vendor without raising assessments a third year in a row.

I thought the idea of raising assessments to the level we did would leave us with enough wiggle room to not have to raise assessments for another five years, all according to the PM's words
Budgeting and reserve fund planning are not an exact science and can change daily, as well as monthly and yearly. But for the sake of efficiency and sometimes, compliance with statutes re budgeting, generally the budget (only a guide) and reserve study are left untouched until the one-year mark is reached.

Reserve studies use terms like "estimated remaining useful life"; "estimated cost to replace"; and "assumed inflation rate" to make clear that the study is not an exact science.

No statute or bylaw requires rigorous adherence to the annual budget, precisely because a budget is only an estimate. But estimates (made in good faith) are far better than not estimating.

If you all are funded at 90 to 95% at this point in time, that's really good. Because of the assumptions that go into a reserve study and budgeting, I cannot say that 100% funded at this point in time is all that better.
LetA (Nevada)
Posts: 2,679
Posted:
Elle I believe the NRS 116 says we need to be 85% or greater. The biggest sticker shock is seems to
be constant rise in insurance premiums along with materials, supplies and vendor services have skyrocketed year over year
since 2020.

Trying to keep a happy medium isn't easy.

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