Dear Dickens Street Gardens Board of Directors,
Thank you for your response letter dated December 8, 2004 regarding the 2005-operating budget. I have a copy of ?“The Condominium Bluebook?” that lists all of the California Civil codes, which confirms everything in your letter however; there is no mention of the Board of Directors right to approve the annual budget. California Civil Code 1365 lists the Financial Documents to be mailed but refers to the pro forma operating budget as just that. In the H.O.A mailing the budget is referred to as approved, implying that it is final and closed for the fiscal year. The Board does have the right to approve the budget and raise dues up to 20% per year, however the budget is only approved by them and still open for discussion, possible changes (removal of budget items that don?’t belong), recalculation, and then voted on by the general membership (51% or more to implement). Once the 2005 budget is voted and passed by the general membership, its final and close for that fiscal year (this is clearly stated in our bylaws).
I would like to list items in the budget that have come up at previous annual membership meeting that we all agreed upon Should be removed from the operating budget:
ID#
PAINT
Stucco 0301 $16,150 The stucco is a color coat that requires no maintenance, no
Painting required, similar to a cinder block wall.
PLUMBING $8,785 How many times have we discussed this issue and agreed
Gas shut-off 0403 that the earthquake valve is the owner of the units
Valves responsibility not the HOA.. These valves are being installed
when units are sold and some owners have put them in
at their own expense. Heck, if the HOA doesn?’t take this
out of the budget, I will be asking them to installed one on
my unit. I?’m paying for it.
ELECTRICAL
garage elect.
upgrade 0502 $13,515 This item came up at the last two annual meetings and it was
decided that individuals are responsible for the wiring for the
garage door openers. The wiring must be done to code and
no lights to be installed independent of the opener.
POOL
plaster/coping $5,000 The pool?’s plaster and coping is in great condition.
0701 & 0703
0709
furniture - replace $3,200 Sounds awfully high
0710
furniture - refurbish $1,300 Sounds awfully high
What I don?’t get is we are being charged for replacement
and refurbishment at the same time??
If the Board removes from the budget the first three items and corrects others, maybe we will have a more reasonable, less aggressive HOA dues increase needed to run our Homeowners Association.
Sincerely,
John Lewis
Thank you for your response letter dated December 8, 2004 regarding the 2005-operating budget. I have a copy of ?“The Condominium Bluebook?” that lists all of the California Civil codes, which confirms everything in your letter however; there is no mention of the Board of Directors right to approve the annual budget. California Civil Code 1365 lists the Financial Documents to be mailed but refers to the pro forma operating budget as just that. In the H.O.A mailing the budget is referred to as approved, implying that it is final and closed for the fiscal year. The Board does have the right to approve the budget and raise dues up to 20% per year, however the budget is only approved by them and still open for discussion, possible changes (removal of budget items that don?’t belong), recalculation, and then voted on by the general membership (51% or more to implement). Once the 2005 budget is voted and passed by the general membership, its final and close for that fiscal year (this is clearly stated in our bylaws).
I would like to list items in the budget that have come up at previous annual membership meeting that we all agreed upon Should be removed from the operating budget:
ID#
PAINT
Stucco 0301 $16,150 The stucco is a color coat that requires no maintenance, no
Painting required, similar to a cinder block wall.
PLUMBING $8,785 How many times have we discussed this issue and agreed
Gas shut-off 0403 that the earthquake valve is the owner of the units
Valves responsibility not the HOA.. These valves are being installed
when units are sold and some owners have put them in
at their own expense. Heck, if the HOA doesn?’t take this
out of the budget, I will be asking them to installed one on
my unit. I?’m paying for it.
ELECTRICAL
garage elect.
upgrade 0502 $13,515 This item came up at the last two annual meetings and it was
decided that individuals are responsible for the wiring for the
garage door openers. The wiring must be done to code and
no lights to be installed independent of the opener.
POOL
plaster/coping $5,000 The pool?’s plaster and coping is in great condition.
0701 & 0703
0709
furniture - replace $3,200 Sounds awfully high
0710
furniture - refurbish $1,300 Sounds awfully high
What I don?’t get is we are being charged for replacement
and refurbishment at the same time??
If the Board removes from the budget the first three items and corrects others, maybe we will have a more reasonable, less aggressive HOA dues increase needed to run our Homeowners Association.
Sincerely,
John Lewis
