A PLACE TO BE
Thursday, July 16, 2015
WHICH MIGHT IT BE, L.I.V. or ASSESSMENT CITY?
With 2015 expected budget revenues at well over $3.6 million, one might wonder why some Directors are singing the “no money blues”? Is the ditty over knowing there's a near empty Infrastructure Fund which now needs somewhere north of $2 million or is this melody all about that parking lot restoration which went $90,000 over budget and strangled the
Profit Center incomes? Did somebody point out that our attorney fees have doubled
and Aramark seeks the same for their management fees or might all the trill be about learning we have costly new lawsuits coming while the old ones seem to be never-ending? Could it be the rising insurance and utility costs or the Major
Improvement Fund being half of what it once was?
Whatever the reason there's one thing for sure, this sing the money woes song is abound. What's really surprising though, there’s nothing new here.
Whatever the reason there's one thing for sure, this sing the money woes song is abound. What's really surprising though, there’s nothing new here.
“THE NO MONEY CYCLE”
In fact money
problems for our Park seem to be right on time. Nearly every three years since 1998 the Minutes show these "no money chants", with all having an apparent shrug of shoulders, a sorry, and ending with a condo fee increase. Annual fees have went up $307,200 in 2001,
$184,320 in 2004, $245,760 in 2007, $245,760 in 2010, and the early bird special in 2012 of $245,760. Five raises averaging $20 per lot per month per raise and to date we have heard of no
plan to curb the repetitiveness of this which has so far increased the Association's condo fees by $1.2
million per year.
What's worse is that this gets worse.
What's worse is that this gets worse.
“RESERVE FUND”
The Reserve Fund was
formed to pay for improvements and infrastructure upkeep. The rationale behind such being that a fully capitalized Reserve Fund equates to having a financially secured Association.
On 1/28/1998 the Minutes show our Board knew this and passed a motion mandating that 3.3% of L.I.V's gross condo fee revenues forever be put into our Reserve Fund. The Board later on 12/13/2000 added $15 per unit per month more to this 3.3% and stated a Board majority must approve any use elsewhere of this $15. To date the Minutes show no such approval. Then another $10 per unit per month was added on 3/17/2004 having no stipulations.
So by Board approval our Park should have $408,576 going into its Reserve Fund a.k.a. the Major Project Improvement Fund. Instead as the 2015 Budget clearly shows, this fund gets just budget money leftovers. So after over a decade of leftovers and the 6th "three year cycle" arriving, coming home to roost is this perfect financial storm for the members of L.I.V.
So by Board approval our Park should have $408,576 going into its Reserve Fund a.k.a. the Major Project Improvement Fund. Instead as the 2015 Budget clearly shows, this fund gets just budget money leftovers. So after over a decade of leftovers and the 6th "three year cycle" arriving, coming home to roost is this perfect financial storm for the members of L.I.V.
Now it's easy to point out problems, even easier to point fingers at those who might be causing them, but coming up with a simple plan to solve and keep problems from reoccurring is hard. I'm not shy at sharing my ideas and expect many won’t like the plan I've outline below, but if there's a better one, bring it on.
“LONG ISLAND PENNY STRATEGY”
This is a 5 year plan that
consists of 5 simple steps.
“STEP 1”
Impose a 5 year mandate on our Board and Aramark to
reduce each expense dollar shown in 2015 Budget ($3,663,543) by 1 penny the
first year, 2 pennies the 2nd year, 3 pennies the third year, 4 pennies the 4th
year, and 5 pennies the 5th year.
Directors shall be allowed
to unequally decrease an expense category so long as when all categories are combined they average the mandated decrease. For instance, in the first year the
Restaurant expenses may forgo the "1" penny decrease because the golf course decreased “2” pennies.
“STEP 2”
Each unit owner will forever have to increase each of their condo fee dollar by 1 penny per year.
Each unit owner for five years will have to pay an Infrastructure Assessment of $250 per year.
“STEP 3”
Allocation of $250 Infrastructure Assessment is 60% towards Dredging projects and 40% towards Water/Sewage/Road projects.
Each penny saved from this 5 yr. penny expense reduction shall be added to the 2015 Budget Major Improvement Fund’s figure that's currently $65,500.
Each penny for 5 years collected from this penny increase to condo fees shall be added to the 2015 Budget Infrastructure Fund’s figure that's currently $35,000.
“STEP 4”
Except as mandated in STEPS 1, 2, and 3, the
2015 Budget will be frozen throughout this 5 year period. Any fiscal change
made by the Board must be budget neutral. For example if Board approves to pay
for a contract or utility increase, they must adjust other expenditures to
cover that increased.
“STEP 5”
Starting on the 6th year there will forever be a mandatory $200,000 allocation in the Budget for the Major
Improvement Fund, with all leftover monies from that allocation to be deposited into the
Contingency Fund.
Starting on the 6th year there will forever be a mandatory $200,000 allocation in the Budget for the
Infrastructure Fund. This allocation will increase each year by $10,000.
“THE UPSIDE”
Last month I never would have agreed to a the condo fee raise and especially not one which would perpetually rise, but after putting a pencil to this, I find it actually makes sense. When records
show there’s been 5 condo fee raises the last seventeen years averaging $20 and that this will reduce that average to $7.50, plus that after this 5 year plan I will know that my condo fees will increase only $25 every ten years and never be troubled with an infrastructure assessment, I'm interested. But when you combine these raises with smart expense spending policies I say to myself, I'm in.
To those who say over the next 5 years they can’t afford a $1000 assessment, I would remind them that this is to cover the same dredging, water, sewage, and road repairs that is currently calling for over a $2,000 assessment.
To those who say over the next 5 years they can’t afford a $1000 assessment, I would remind them that this is to cover the same dredging, water, sewage, and road repairs that is currently calling for over a $2,000 assessment.
Then we will have those
who will say there’s nowhere to cut the budget. To that I say nonsense. There’s
plenty, like the recent $1,700 approval to renew a magazine ad, like in 2016 work a
better cable contract with Time Warner, like work better wording in Aramark’s contract on its fees, on and on. One can always find a way
if one really wants to and remember, this is just for 5 years but the effects from it should last forever at keeping our Village in a solvent financial position.
In the 6th year we should have created at least $336,000 in additional revenues to add to the Major Improvement and
Infrastructure Funds each year. The Infrastructure will always
receive 33% of the yearly condo fee increases while the other 67% will go towards covering costs of living increases in our operating expenses. After these five years there should never again be a reason to have a special assessment for our Park's upkeep or infrastructure needs.
In 20 years our condominium fees will still be lower than any association that's this
close to the Gulf and this place will be an investor’s dream because of the financial security it promotes.
COMMENTS
COMMENTS
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12 comments:
Wow, you are one smart man! It is evident that you have spent a lot of time on this issue. Thank you for that. It is sad that there will always be those that will not agree. They are the ones that always want things done their way. Not for the sake of the Village, but for making a name for themselves. Good luck on this Joey! I hope that there will be a lot of others behind you....
We are with you Joe Thank you. From WI.
I agree this is a great plan that could work. Thank you for your insight. I will add it to my agenda items for August. Janette Holdeman
We are with you Joe this could be a great plan.
Thanks Joe great plan thank you for the time you put in this .We would not know what is going on in the park if you didn't let us know. Donna from Iowa
To the BOD Geniuses,
1) Who of the Directors called KRGV?(R.V?) and invited them and gave them ACCESS and Authorize them to shoot video and expose our nasty filthy shallow canals? what on earth... great for our property valuations..sheeesh!
2)Why is the 2 month old new canal LAWSUIT hasn't been made public? exact same claim/issue than Berry's, Guess who is going to win? and this second guy that is suing is the same guy you ignored and made fun of at a Board meeting, great going! now rumor has it there is 2 more coming on the same issue...
3) To the Director (K.W) that took it upon himself to knock down Etterman's wall (your own competitor... talk about conflict of interest), you singled out this guy when there is a ton of people in the same violation... you used your own crappy equipment (there is photos and video), you destroyed the street with your old stone age machinery, left oil spilled all over and dangerous pebbles laying around, I hope the affected person sues you directly and individually and NOT LIV and I hope the rumor that you got paid $1000 is untrue
4) How many thousands of dollars is the restaurant going to lose this year, hope the golfers and directors that participate in the BBQ parties courtesy of LIV restaurant enjoyed, hey next time you need to invite ALL of the owners and not just your drinking buddies ...
AUDIT now?
5) New BOD members really? is the same OLD enchilada..a lady that claims to be a lawyer and already gave terrible advice (Berry Lawsuit) careful there the Texas Bar Assoc takes false claims seriously... And to the other Directors trying to take control of everything as the newsletter (to keep people in the dark), the facebooks page, you and or your friends seating in all committees...and now are jockeying to gain control of the rental pool... no lesson learned from the IRS inquiry? Renting for friends for no profit...really?.
6)to the Director (R.CH) that hand picked a contractor$ even after the parking lot debacle (no competitive bidding) to fix the activities center roof ..guess what? all those thousand of dollars (30,000?) down the drain, roof still leaks...no warranty? uh?
No leadership is what you have, when your leader expertise is to check on bus tires and schedules... and now can't wait to get out of his seat
BOD having their own private meetings 'against the rules' at a certain ex -Director SC? really...
AT LIV you either are in the click or you are not...
Good Luck convincing returning winter Texan owners to pay up any upcoming assessments... Rudy's loss already swept under the rug? Sexual Harrasmment complaint by an Aramark Manager/employee also swept under the rug? what else?...
Good luck explaining people why you kept Aramark and the incompetent managers that are never in the premises (Your drinking buddies? does they know to much?)
To the people that have a legal claim against LIV please sue personally the Directors and not LIV as you are only suing yourself...think about it.
we need to invite the IRS to do an audit.... we also need New Lawyers and New Auditors....
LEt people talk at the meetings.. what are you afraid of?
https://www.osha.gov/pls/imis/establishment.inspection_detail?id=1056386.015
hush hush
the lobbying already started they are going door to door...same little group
anon please explain what the little group is lobbying for or against and whom they are?
Joey: On the OSHA link, why was Aramark fined for? is not clear on the document, funny their contract was still renewed...
This happened in April...why none from the BOD notified the owners of the details and violations 'it does concerns us we own the park' not the BOD nor ARAMARK... 38,000 USD it assumes they were serious violations...good grief!
And to President Guerra shame on you for using Aramark employees to work in your property even if after hours they still using our resources and equipment, have you ever heard o 'conflict of interest'? abuse and corruption? of course not... are these perks available to ALL owners
Also shame to Director Vasquez for telling others Senator Erie Lucio will fix our pending and upcoming LIV lawsuits... what?
dirty dirty...RICO Racketerring
Thanks Joey for keeping the blog alive is the only place we can get information... any news on the Canals assessment?
My husband read all the citations and He said that Aramarks poor employees were exposed to numerous safety and hazard violations for years and years hence they were fined $39,000 by the Federal gov but is not clear exactly what were the violations (rumor says it was chemical exposure to Bug killers and pesticides and noise problems, and we agree with the comment above this happened in April why the owners were not notified?
Is LIVOA liable for any lawsuits is OSHA Assessing fines to us?...
Joe Long (please run for a Board seat), thank you for all you do, lastly people: is there a blog or place were owners can read about the current lawsuits? Hard to believe we are kept in the dark
As far as the Directors keeping uus in the dark I say: PoppyCock
Also Just find out same people that got us in trouble are back as Directors.. What? Who elected them? No more secrecy
Where is the info on aramark fines?
thank you to Joe for keeping this going
Dont yield to pressure
there you go Anon:
Inspection: 1056386.015 - Aramark Services Inc.
Inspection Information - Office: Corpus Christi
Nr: 1056386.015 Report ID: 0626000 Open Date: 04/16/2015
Aramark Services Inc.
33840 South Garcia
Port Isabel, TX 78578 Union Status: NonUnion
SIC:
NAICS: 561210/Facilities Support Services
Mailing: P.O. Box 695, Port Isabel, TX 78578
Inspection Type: Referral
Scope: Partial Advanced Notice: N
Ownership: Private
Safety/Health: Health Close Conference: 04/17/2015
Emphasis: L:Noise Close Case:
Related Activity: Type ID Safety Health
Complaint 973047 Yes
Complaint 973047 Yes
Referral 976580 Yes
Referral 976580 Yes
Case Status: PENDING ABATEMENT OF VIOLATIONS, PENDING PENALTY PAYMENT
Violation Summary
Serious Willful Repeat Other Unclass Total
Initial Violations 8 2 10
Current Violations 6 4 10
Initial Penalty $38,000 $38,000
Current Penalty $15,500 $1,500 $17,000
FTA Amount
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