What a difference a year makes.
Flashback to December 2013: As we all too painfully recall, that was the month the previous Board of Directors approved the 2014 budget that raised our maintenance fees 7 percent, saying the increase was needed despite the previous year’s 18.5 percent maintenance hike and $1.3 million special assessment. When some of us proposed finding savings to avoid digging deeper into owners’ pockets, the old Board told us it couldn't be done, because there supposedly wasn't an ounce of fat in the budget to cut.
Well, they weren't just wrong – they were dead wrong. As Board President Marcio Jaspan and I announced at our last regular Board meeting on Sept. 23 (see 9/23/14 video here), the association is now coming in $30,000 under budget every month. That means we're spending $30,000 LESS in operating and administrative expenses per month than what the old board said we needed to get by on. And best of all, we've done it without cutting back on maintenance and other services, but by simply operating more efficiently, eliminating waste, and avoiding dishonest contractors and rip-off artists. Since the beginning of the year, we've already achieved a whopping $200,000 in operational savings compared to the spending projections that were built into the budget. That’s on top of the $220,000 we saved on the 40-year certification for our three oldest buildings by getting a second opinion from an honest engineer – Murat Kizikli P.E. of Ace Flood & Inspections. (See my last blog post titled “40-year certification success story.”) When you add those two figures, you’re looking at almost half a million dollars in savings so far in 2014, and the year isn't even over yet!
As Treasurer, I’m quite hopeful these very significant savings will allow us to actually cut maintenance fees when budget time comes around again at the end of the year. But we must first await the results of the second round of building inspections. Last month, the city notified the association that seven more buildings are now due for the 40-year certification. At our last regular meeting, the Board again engaged Ace Flood & Inspections to conduct the inspections to determine if any safety-related repairs are needed, and once we get the results, we'll be in a much better position to start planning next year's budget.
In another action on Sept. 23, the Board appointed unit owner Hayden Joseph to fill the seat vacated by former board member Marc Richman. Mr. Joseph, who also serves as Chairman of the Sales & Leasing Committee, is a Certified Public Accountant and holds a Community Association Manger’s license. His financial expertise and in-depth knowledge will prove a tremendous asset to the association as we continue to explore further ways to save money and achieve even greater operational efficiencies. Please help me welcome him to the Board.
