Dear Homeowners:
Please take a good look of last year?’s Income & Expense Statement. Did you notice the ?“contribution to the Reserve Fund?” is $0?
Did you also notice that the total expenses of 2003 was more than the total income, and thus created a net loss of ($35,586.25)?
For years I have noticed that the expenses seemed to be increased (or to be inflated) to match with the amount of the income we received. In other words, the Net Profit (RESERVE) would always remain low. According to the Convenants, the Association may not accumulate a surplus at the end of any year which is more than two times the maximum permissible annual assessment for that year. The Convenants also states that if an excess surplus exists at the end of any year, the Board of Directors should reduce the next total annual assessment by an amount at least equal to said excess surplus. In other words, by inflating the expenses, the Board was able to maximize the assessment year after year and also allow it to increase the assessment by 5% annually.
Our OLD Directors of the Board are very cunning, same as most of the white-collar criminals.
Sincerely,
Lisa Sun
http://www.BeatGreedyBoard.com
