Making the oweners approve the budget SFL NC

Last election, 2/3 of owners said yes to this question:SHOULD HOA DUES BE ONLY USED FOR ESSENTIAL SPENDING (ADMIN, LAWN CARE, UTILITIES, INSURANCE, TAXES, POSTAGE) They approved this barebones budget of $9,000 by 93%. Since then We’ve reduced costs to $7,000. For 25 years, the management company set the budget, and the board never disputed it.

As president, I created the first-ever barebones budget, but other board members want to fund a $6,000 dog park fence despite 2/3 of members rejecting it. The VP added it to the agenda again, even after discussion. They want to have social events and other NON IRS approved expendatures that are over 10% of the budget which would disqualify us from filing IRS form 1120H, and force the HOA to pay 20% tax on dues. Well, I'm sure they dont' want that, but they don't understand the consequences of their actions.

I’m considering offering 2-3 budget options for members to vote on. I also want a CCR amendment stating budgets need to be passed at a member meeting with quorum, or the previous year’s budget applies. The whole idea that a handful of board members decide how much money is spent is silly. That's why the budgets were $25K or more when we had mgt. We have enough funds to run for 10 years without dues.

I'm frustrated with board members who reject ideas without proposing solutions. I’ve told them to get quotes before voting on spending, but nothing has happened. Any suggestions for a fair budget process? Every bylaws I've read has a screwed up budget approval process that favors the board. Ours requries 75% of the membership to reject the budget within 30 days. Rigged.

I hope your bare bone budget also included a deposit to reserves.

I also disagree with having the membership vote on budgets. In my opinion, this is how issues arise. The board may see the need to increase funding the reserves but without membership approval, the board can't do it, and most members like to keep they amount they pay as low as possible.

Membership wanting to kick the can down the road (so to speak) is the reason I would only present one budget to the membership.

That said, I agree with you that bids on many things should be obtained before spending. I also think bids should be obtained prior to renewing any contract.

Personally, I disagree correcting bad board behavior by transferring issues to members to vote on. The fix is to get members, like yourself, to step up and do the work. I know, easier said than done.

WendyM5, it sounds to me like owners are mostly happy with the status quo. If owners were not, then they would kick some of these alleged bums off the board, wouldn't they?

would you be happy knowing the following:
Our front entrance sign was insured for $25K (its worth $5K max) and we didn't have any property or liability insurance for our playground and picnic area for at least 20 to 25 years?

Meanwhile in bizzaro world people are worried about trash cans being out a day late and the HOA is no longer cutting a football field area of grass that no one walks on or sees from the street and planted trees their to rewild it.

Prior to the revised CCR's it was virtually impossible to remove a board member. It's still not easy but doable.

I'm Not really throwing it out the window. From my perspective I introduce changes to CCR's and the membership throws them out the window. Cause the membership is sick of not having a say in how their money is spent.