A PLACE TO BE
Sunday, November 30, 2014
WHEN IS ENOUGH, ENOUGH?
At a testy November Meeting, Treasurer Steffensen outlined this 2015 monetary problem with the recommendation a condo fee increase is the fix. The Treasurer cited three spending categories as the specific causes for these financial woes and those will be appraised individually with appropriate pushback on anything ambiguous or outright incorrect?
Major Improvement Fund is one spending category that was purportedly “trimmed to the max” but still saddled with a $127,950 repair list. The list includes upgrading three water meters (cost $42,000), two lift station repair completions (cost $26,000), repair Activity Center roof (cost $50,000), repair pro shop roof leaks, patch canal H sea wall cap, and complete letter lots drainage ditch (cost $9,950?).
Pushback When focusing on the MIF by itself, we see every year our Board painfully prioritizes and schedules improvements like those mentioned above and every year our condo fees provide the MIF somewhere around $13,000 a month ($156,000+ annually).
So is it wrong to say the Major Improvement Fund will be doing just fine in 2015 so long as the repair needs don’t exceed $150,000?
As to this MIF repair list, does anyone other than Director Waller think $42,000 is a high figure for three water meters?
How can the Board seriously use a $50,000 roof repair guesstimate? Don’t owners deserve valid figures from several roof contractor bids, especially when figures like these are being used to help validate a condo fee increase and the fact that the Minutes show this Activity Center roof was part of a repaired/replaced expenditure just six short years ago thanks to Hurricane Dolly?
Infrastructure Fund, the second spending category supposedly stricken by what was described as a “chunk of repairs” costing $148,000.
Pushback This is nebulous at best. No list, just a chunk of whatever? It can’t be the Welcome Center parking lot, road patching, Activity Center east windows, or lift stations #1and #4 because they’ve all been completed and paid for.
These chunks can’t be the non-priority or cancelled items like the pool area solar panels, (3) street lights, or the letter lot fence?
We see owners are currently being assessed for the swing bridge repair, no chunks there. Owners were told the Infrastructure Fund has $44,000 more than it needs to pay for the Rec. Hall parking lot, so no chunks here either. Owners were told they would be assessed for the dredging and the infrastructure fund would help where it could? Chunk-less!!!!
Yes we do have a new fire hydrant plumbing problem, but that shouldn’t have hit the chunk list yet because nobody has a clue to its exact cost.
So what are these “chunks of repairs”? There’s a definite need for clarity here.
“More or Less Fixed Increases” amounting to $138,345 is the last category. This seems to involve areas of the 2015 payroll and operating expenses. Included are the swing bridge (4%-$21,505 wage increase, no reason given), cable (5%-$8,259.88 annual contract max increase), legal fees (Doubled-$25,000, appeals, attorney failures), flood insurance (25%-$6,378.75, FEMA allowed premium increases), common area insurance (15%-$17,403.68, wind and liability increases), security (9.2%-$20,030.40, Obamacare), Aramark salary and wages (2.5%-$24,776.13, it’s that time), and Aramark management fee/other (2.3%-$20,094.00 per quarter, LIV increased revenues).
Pushback Though this category may be where our true woes exist, when does a “margin of revenue” solely justify giving Aramark $80,376 more in management fees per year? What really does this margin of revenue increase even mean? Is it that Aramark will have to print larger amounts on their checks to pay the Village’s bills?
This Board needs to answer the question Director Waller recently asked, what is Aramark giving LIV for management fees costing $184,000 a year?
This 2.5% employee wage hike is in dire need of some solid explanations also, because saying “it’s just that time” to me is unacceptable. We see our employees working less due to the fewer days the restaurant is open, eliminating them from bartending at special events, and the weekly chicken nights have now becoming every other week.
Is there a good reason why we should ignore why virtually every business in the private sector has frozen or cut their employee wages and hours since 2009? When was the last comparison involving LIV’s manager salaries and LIV’s hourly workers to their Valley counterparts?
When was the last time we’ve had real in-depth review where management could cut hours, wages, or positions? After all, in 1996 Aramark found no problem with cutting six employees to cover their $72,000 management fee so as to get a foothold in LIV.
Speaking of Aramark, when was the last time our Board seriously explored a life without them? Entertaining two quotes from supposed Aramark competitors in 2010 was ludicrous because most owners knew the majority on the board had already decided to keep Aramark.
The Board seriously needs to immediately cut this 2015 financial increase by half with not accepting these management fee and wage increases. Then work on the insurance agent to provide intelligent alternatives to minimizes this $24,000 insurance increase which then might make the 2015 problems become somewhat manageable or at the very least, sensible.
Our Board needs to approach this thing more as a spending problem instead of a revenue problem. In the last 14 years owners have spent $11.5 million more from five revenue increases, isn’t time to look at a spending decrease?
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4 comments:
Amen, Joey! You have certainly done your research, and I, for one, appreciate it! The question is: How do we get this Board to really understand the issues?
Enough is enough NOW!! Great work Joe, please bring this to the BUDGET MEETING SAT. DEC 13 AT 9AM- HOPE EVERYONE WILL ATTEND AND PRESENT THEIR COST SAVING IDEAS.
Does anyone know if BOD members have to disclose any interest they have in our management company or contractors? Another thing to add to our possible income to LIV is the potential rental $ when we get back what was by LAW-ours! Just think of the resources we would have if the rules were followed by ALL! Instead of increasing dues and adding assessments to owners how about fixing the black holes that suck up our $. The Profit/Loss Snapshot Jan-Sept shows 3 areas that have lost $: Golf Course-7,167; Rental Office-8,948;Laundry-3,769=19, 884 add 6600 through end of year and there is another $26,000 + in our accounts.
Here you go Joe, please put it to good use!
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