How do we lower monthly dues?

Since our reserve study from 2006, monthly dues have gone from $200 to $370 per month. Unfortunately, our 25 year old building (63 units) offers free heat/AC and hot water to each unit. Owners are demanding a lowering of dues, but will not cut back expenses. How have other HOAs dealt with this?

i agree with Gerald... we used to simply prepare a line item budget for the year, with expenses that we pay: insurance, landscaping, utilities, postage stamps, etc.

then, we divided that by the number of owners, got about $230, and explained that we set the dues slightly higher to cover unexpected increases, repairs, etc. (ie, $240/year).

If someone wanted to lower dues, we would ask: What item from the budget do we cut? If it was a required item, we explained that was non-negotiable, required by law, etc. If they proposed getting a service cheaper, we asked them if they would get us the information on the cheaper alternatives, cheaper landscapers, insurance, etc.. rarely could they find anything cheaper. But, it kept them busy and gave them an insight into the actual costs out there (as opposed to "I used to mow a lawn three times that size for 40 cents when I was a kid..."). Often, they would turn out to be the best supporters of the budget for the next couple years.

Since your dues were increased, people probabably just want to know where their money is going.

You need to show them an Annual Expenditure Budget and also the Reserve Fund Plan. As a not-for-profit, all revenue coming in should be designated out as expenses. If it it not used or designated for the reserve fund, then it is "excess" - and should be returned to the members. That's why it's called a not-for-profit.

Do you have a clump of money not being used (besides what is required for the Reserve Fund?)