The meeting was opened by Andy Habe at 3:00 P.M.
Members of the board present: Andy Habe, Tom Fermi, Roger Lange, Romeo Berthiaume, Marianne Williams
March Budget Review- The cash flow and the bill approval forms were discussed and approved and signed. Marianne pointed out that the bills for the month of March were greater than the income for that same period. The board was concerned because this has been occurring more and more in the last several months. Marianne pointed out that many of the unit owners are not sending in their fees by the first, but rather waiting until the 15th, or the end of the grace period, to pay their condo fees. This means the condo fees are not considered late and therefore not late fine is assessed. A $15 late fee is assessed if the unit owner is late more than once. This put stress on the paying the bills because most of the bills are due before the 15th. Several of the board members made recommendations to shorten the grace and increase the late fee to $20 with no exception, that is, all late fees will be assessed the extra $20. After much discussion, the board voted to change the grace period to end on the 5th of the month and all late payers, that is any check received after the 5th, would be fined a $20 late fee. This new policy will become effective July 1, 2011. The actual due date of the condo fee is the first of each month.
Andy was concerned that the reserve fund money is not being utilized to pay bills that are extraordinary. Marianne pointed out that the reserve fund must have a minimum amount in as mandated by HUD. This means that 10% of the budget must be maintained in the reserve fund. Because of this, we re mandated to put $1600 in the reserve fund each month. This fund is allocated for major repairs such as reroofing which must be done in about 12 years. Since we have a number of buildings to reroof, the cost of this project would be over $500,000. At the present time, we have less than $100,000 in reserve funds. Tom then said he had a suggestion to increase this underfunded reserve fund. He proposed several different scenarios. One suggestion would increase condo fees in 2012 $15.00 per unit which would be added to the reserve, Marianne suggested an increase of the condo fee to $20, of which $5.00 would be to offset expenses and $15.00 would be applied to the reserve fund. Tom's suggestion would increase the reserve fund to $464,233 by 2023. Interest applied through the years would also increase the amount of money in fund. All proposals were tabled until Tom is able to get a projected estimate of actual costs for the reroofing. Tom mentioned that the cost of replacing the roofs in 2023 would cost about $515,000, however we would do it, piecemeal or at one time. His presentation was based on "pay a little now, not a lot later."
Meeting adjourned at 5:40 P.M.Respectively submitted by Marianne William