The Battle of the Budget

The Battle of the Budget

The budget proposal passed at yesterday's delegate assembly may have looked good on it's face due to the reduction in fees charged to unit owners. Closer examination of the facts surrounding the handling of finances  reveals some disturbing issues .

The Century Village Messenger Club derive satisfaction that their efforts in exposing the flaws in the proposed budget led to the treasurer rearranging the figures to realize a decrease in monthly fees charged to unit owners .

The first Budget proposal asked for an increase of approx $16.00 per month. This was quickly revised on the defeat of the WIFI proposal.

The proposal voted down at the January delegates assembly included an increase of approximately $2.00+ per month to be assessed for the coming year .

The subsequent proposal passed at the February meeting proposed a decrease of around $5.00 per month per unit.

Some say that the acceptance of the budget proposal by the delegates was a defeat for the Messenger Club who opposed it . We do not see it that way. The revised budget reflecting a decrease in fees instead of an increase is a victory for all.

Getting approval for the budget proposal may seem like a win for the treasurer who is undoubtedly greatly relieved that it was accepted. However the issues ignored in the rush to accept a proposal that saved everyone a bit of cash leaves residents exposed to liabilities that outweigh the reduced rates .

The revised budget was largely a result of the efforts of The Century Village Messenger Club who despite withering criticism went to great lengths to inform everyone of the pitfalls contained in the proposals.

The unilateral change in accounting practices adopted by the Budget and Finance committee without approval of the delegate assembly is an issue that should not be ignored. Co-mingling of reserve funds is a perilous practice that can and does lead to unrestricted spending. With no way to verify or approve expenditures residents are left with lingering doubts and unresolved questions regarding the disposition of their hard earned cash.

The needless exposure of residents to tax liabilities on approximately $680,00.00 is perhaps the most troubling of all. This should be returned to residents thus avoiding the tax liability and giving residents a further reduction in fees. Alternatively , as proposed by the committee, what's left of the 680K after Uncle Sam gets his share will be tossed into a pooled fund to be disbursed at their pleasure

Then there's the evasive and obstructionist denial of access to financial records . For the latest evasion see Ed Grossman's article : “ Delegates Dissed”. Couple that with the refusal to accept the offer of assistance in formulating a budget proposal by former treasurers and presidents of UCO, we are left with the uneasy feeling that the committee is not acting in a transparent manner .

Our efforts to defeat  the WIFI proposal contributed to the reduction in fees charged to residents. This pie in the sky project was heartily denounced by The Messenger Club and soundly defeated by the delegates, who are listening to our message. Experience has shown that these projects with their accompanying financial projections do not live up to the hype or the projections , they usually end up with enormous cost over runs that require participants to satisfy them with infusions of cash. The botched paving job in the village  is a glaring example of that.

We feared that the benefits of WIFI so loudly proclaimed to be leading Century Village into the 21st century would quickly become a disappointment and an unnecessary expense, our efforts to reject the WIFI proposal were seen as a success for The Century Village Messenger Club and the residents when it was voted down . Despite the obvious disapproval of the majority this proposal is currently being resurrected under a new name by the minority who are determined to have it their way .

There are  other concerns that are presently being tackled by the Messenger Club . The recent elimination of term limits , the rewriting of the bylaws and the up and coming elections are high on the agenda.

Mr Israel recently posted a scorecard on his blog : I added the results from the latest inning. Click here to view

Answer... A reduction in condo fees and avoidance of further increases due to WIFI rejection is accomplished.

We are encouraged by our success and  are confident that our efforts are making  a difference .

Neil J Moore