The HOA Board Quarterly Winter 2019 Issue #20 | Page 4

hoa assessments and the “whys” Continued from Page 3 Operating Budget – Monthly Expenses: 1) Reserve Allocation - Common Areas 2) Management 3) Stationery and office supply 4) Printing and Copies 5) Postage 6) Supplies: Misc. 7) Collections Delinquent HOA Assessments 8) Meter Reading Meter Net and Sub Meter Fees 9) Professional fees (C.A. lawyers...) 10) Insurance 11) Reserve Study 12) Licenses and Permits 13) CPA Services 14) Internet Services 15) Keys, Fobs, Parking Permits, etc. 16) Water, Sewer and Irrigation 17) Electricity and Gas - Common Area 18) Lighting Inspection Monthly 19) Lighting Materials and Labor 20) Janitor (salary or contract) 21) Janitorial Extras 22) Janitorial Supplies 23) Repairs and Maintenance 24) Maintenance Supplies 25) Property Patrol and Pool Duty 26) Landscaping 27) Landscape Extras 28) Pool Cleaning 29) Pool Extras 30) Pool Supplies 31) Pest Control 32) Pest Control Extras 33) Plumbing Common Area 34) Backflows 35) Street Sweeping 36) Website Hosting 37) Signage 38) Trash Savings/Reserves – Major Component Repairs/Replacements: 1) Asphalt & Concrete Surfaces 2) Asphalt Reseal, Stripe 3) Fencing, Gates, & Rails 4) Block Wall Repairs 5) Planters/wall around ramp at pool 6) Gate Entry System 7) Wood Fencing 8) Wrought Iron Fencing 9) Wrought Iron Pedestrian Gates 10) Landscaping 11) Irrigation Upgrade I - Minor 12) Slope Maintenance 13) Tree Trimming 14) Lighting 15) Bollard Fixtures For more details, and to attend a complimentary, and very enlightening class that includes a list of expenses specific to your community, suggestions where costs may be reduced, areas where revenues may be increased, etc., and Q&A, feedback, etc., please contact Brian Blackwell at West Coast Management Firm, Inc. 4 | The HOA Board Quarterly | Issue #20 | Winter 2019 16) Pool Area Fixtures 17) Street Fixtures 18) Entry Monument 19) Mailboxes 20) Tot-Lot 21) Painting 22) Metal Handrails Now, to figure-out how much the monthly assessments will costs, the following formula is key: 1) 2) List of all Community Expenses (noted above) Total Expenses, divided by the number of Owners, equals the exact amount of necessary Revenues each Owner/Member will need to pay for the Expenses. Setting Expectations: It’s excellent when owners are interested in the details related to their monthly assessments, and how the monies are spent. A Financial Committee of volunteer homeowners can be a huge asset to the Board of Directors. Appointing savvy owners in this capacity, where all the expenses can be reviewed by an invested group of owners, and ideas brain-stormed on where costs can be reduced, can prove to be financially beneficial. Special Note: A lot of costs comes from the expectations and “demands” of owners, wanting the community to look like a “Rolls Royce”, on a “Lincoln” budget. Bottom Line: as we all know, “we get what we pay for”. Some community’s pay upwards of $500 to $2000 a month in assessments - because they want a “Rolls Royce” community. While other communities pay less and adjust expectations to fit with less revenues. Really, much of the battle is about setting the expectations for the community and sticking to it. And, it can be done – with consistent communication and education. Newsletters and websites are great vehicles for this. Contributed by Brian Blackwell, CCAM, CEO / CFO West Coast Management Firm, Inc. 619.704.7393 [email protected] or visit them at www.westcoastmanagement.com