The Bluffs Condominium Finances

This communication from Renee Bergen was posted on the Website 2/10/03 and has been edited. Helen & Tom Collins 601/502.

2/7/03

Interest Charges On Our Insurance Premiums Cost Us $12,064.77

It upsets me when the Board elects to waste our money. For many,
many, years I have literally begged the Boards to change their system of issuing our assessment billings. The bills should go out much sooner than they do. I found out in private business that it is not prudent to send out bills for insurance premiums just a couple of weeks before they are due. Human nature being what it is, people just never seemed to face up to budgeting for quick payments and we had a lot of cancellations for non-payment of premiums. So, our office made certain bills were mailed at least one month in
advance. We found the payments were much more successful. Then,
following the lead of some of the insurance companies we represented. . . we started to send them out two months ahead. Like a miracle almost every client paid well in advance and we found we had a new source of income - our interest income escalated because we had the money in an interest bearing account and did not have to pay our companies for many months. Our Association could be earning interest if ONLY they would send out bills a little earlier!
If you will refer to "The Bluffs Condominium Finances" page of your website under "Insurance" you will find there is no mention of our paying $12,064.77 finance charge. Yet, in an advisory to Building Representatives from Don Hester, is a note from Treasurer Henry Hopkins, that states "The total premium came in at $684,718.00 plus the finance charge of $12,064.77". I adamantly oppose our paying finance charges[interest] when it could be avoided. Instead we could rearrange, possibly, the inception dates of some of the policies to stagger their due dates. We could send out our bills earlier AND charge the entire insurance premium on the first quarterly assessment.

Have a great day!
Renee

The following information was provided by the board at the annual budget meeting on Nov. 6, 2002.

WHERE YOUR CONDOMINIUM FEE DOLLARS GO

The year 2003 budget is proposed at $2,115,178. This budget covers five categories. Administration, Maintenance, Utilities, Insurance and Reserve Funds for 660 Units in 22 Buildings and associated Common Areas. The costs for the Common Areas are equal for all 660 Units; the costs for each of the twenty-two buildings have some variance because of specific differences such as valuation, structural differences and flood insurance location. The Average Quarterly Fee is $801.

ADMINISTRATION: Administration covers the following costs; banking, office and management payroll, income tax, legal and financial services, security, meetings, mailings, office costs and payroll taxes.

Cost: $210,986. Average Quarterly Fee per unit $80. 9.97% of total budget.

MAINTENANCE: Maintenance covers various supplies, equipment repair, pool maintenance and supplies, plant replacement, maintenance payroll, trash removal, contracts for landscaping work, elevators, cleaning, fire protections systems, parking lots and pest control.

Cost: $474,000. Average Quarterly Fee per unit $180. 22.42% of total budget.

UTILITIES: Utilities covers cable, common telephones, alarm monitoring, common lighting, water, sewer and storm water.

Cost: $494,243. Average Quarterly Fee per unit $187. 23.4% of total budget.

INSURANCE: Insurance covers property, flood liability, health, workers compensation, umbrella, fidelity bond and equipment.

Cost: $797,607. Average Quarterly Fee per unit $302 37.71% of total budget.

RESERVE FUNDS: Reserve funds cover painting, pavement, fire pumps, generators, elevators, roofs, parking lots, tennis courts, pools, and fire alarm system.

Cost: $138,342. Average Quarterly Fee per unit $52. 6.5% of total budget.

The 2003 Proposed Budget Total of $2,115,178. is an increase of 3.04% when compared to the current 2002 Budget Total of $2,052,772.

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