The Board passes an annual budget, observes fiscal controls, and engages an outside auditor to examine its financial reports.
Delinquent Maintenance Assessments and Other Fees; Order of Application of Funds Collected
In order to discourage excessively late payment of assessments and fees due the Association, policies have been adopted which prescribe penalties. See the details here. This also covers the order in which funds received by the Association are applied to categories of funds due.
The Association may also suspend parking privileges under certain circumstances involving failure to make timely payment or violation of Association regulations. See details on towing of vehicles and related delinquency matters here.
The Annual Budget
Over 95% of the Association's revenues derive from maintenance fees imposed on each unit. For 2012, these are set at $543 per quarter, which compares very well with other associations. You may view the budget in PDF form here. Each year, detailed information about the budget is mailed to unit owners. For additional information, owners may contact the office. Here's where the money goes:
The Association has had to levy additional special assessments only several times in its history, to meet extraordinary snow costs, and makes every effort not to have to do so in the future. Should this be necessary, owners are advised in writing, and background information is also included in the Association Newsletter.
Capital Replacement Fund
The Board periodically engages a professional engineer to review the condition and age of its physical assets. Based on that, a plan is devised to set aside funds to be used for expensive major repairs and replacements. The objective is for funds to be available when needed without having to resort to borrowing or unexpected assessments. We observe legal obligations and conservative planning. The latest such study was completed in 2010, and our annual contributions to the Fund are adjusted to account for inflation and projected prices. This plan is generally updated every three years.
The Board observes an investment policy to derive earnings on funds not immediately needed, and utilizes a major financial firm to handle these investments, subject to the Board's direction. As a general policy, funds are placed in instruments such as CDs whose principal is secure.