Budget Debate

At last night’s BOD meeting there was considerable debate about the 2009 budget, how the numbers were calculated, and what should be the 2009 assessment.

The treasurer stated he calculated the budget based on the guidelines given him at the October 21, 2008 BOD meeting which included adjustments for inflation. When determining the 2009 assessment Mr. Duffy stated we should use the formula dictated in the bylaws (if there is one). Our 1st VP was adamant that there is no requirement to calculate the assessments based on a formula in the bylaws. Both of our VP’s were unwavering on the position that the 2009 assessment should be $275.00.

Mr. Duffy is correct. Article VII, Section 1, of our bylaws specifically mandate that the budget be calculated based on the following – start with the estimated cost of taxes, wages, materials, insurance, services, and supplies which will be required in the ensuing year. To this amount the BOD has the authority to add a “reasonable amount” for “a reserve for contingencies and replacements”. The BOD is also required to take into account any estimated net cash income. That final figure becomes the “estimated cash requirement” which “shall be assessed equally to the lot owners of the Estate of Millbrook”.

Whereas Mr. Duffy calculated the budget based on the guidelines given him at the October 21 BOD meeting and calculated in accordance with the bylaws it seems only logical to adjust the assessments accordingly.

Unfortunately the VP’s motioned and passed a budget proposal which includes a $275.00 assessment. This assessment is based on previous years assessments without any consideration for projected expenses. This method of calculation is an absolute violation of our bylaws. The Treasurer voted against the motion.

I have no problem with a $275.00 assessment provided it is calculated according to our bylaws. Our BOD needs to adjust the budgeted expense numbers to justify the $275.00 assessment or they need to accept the lower assessments dictated by the budget developed in accordance with the guidelines they set up at the October 21 BOD meeting.

Or they could just ignore the bylaws.