ANOTHER POINT OF VIEW

Another point of view:

Many of us were recently mailed a “clubs” documents that clearly show the true agenda of a candidate seeking your vote.

We all probably remember recent news stories of some acting as bullies picking on someone for the “fun” of it. This document seems to fit that mold as the details reflect very little factual information, rather opinion of issues by someone who desires to remain anonymous to all.

This critic seems to have all the answers about everything, even though the writer wants to remain unknown. Could it be a result of never volunteering at UCO and therefore knowing absolutely nothing of the expertise of the vast numbers of volunteers that spend their retirement helping UCO remain a volunteer organization? The volunteers are rarely thanked, rather brutalized for being “ninnies” (or worse) simply because the writer has an axe to grind over some things that the writer would have done better. Many critics just want to complain and insert their view how “you people” should do or should have done but not with their participation, they are RETIRED.

If this seems familiar – it is. Congress is plagued with similar critics who just want time to speak their criticisms while not developing any solutions or joining the team to help resolve any either.

Let us compare what UCO does with that of your Management Company. Most management companies have one checking account for paying all of your Association bills, and another “Money Market account” for designated reserves and surplus cash.

You might think “Surplus cash” is a dirty word reading this unknown writer, but it is cash that is not really needed for any current bills or next months bills either, and is therefore cash that could be used to cover something even the best of intended reserve schedules may have omitted. When any unexpected expense arises, this may well be the solution so your Association would not have to access your Unit Owners for needed money, without having to spend reserves and therefore increase repayment in future budget years.

When we were young we learned how to manage money, sometimes borrowing from “Peter to pay Paul”. As we have matured we learned to see the benefit of allowing some surplus cash to remain available for just such unexpected events as may crop into our lives. Even the term Bankruptcy is incorrect, as anyone nearing or having to file will quickly understand. When nearing Bankruptcy payments become late to everyone with whom we do business and we chose who gets paid on a cash available basis, selecting each to avoid late fees or threats of discontinued services. UCO NEVER HAD SUCH A problem – so let us compare how bad it really was or not! A former Officer spoke at one Assembly meeting that we need three months surplus cash in each of our 7 checking accounts as a safety issue.

 

Most Associations complain that the payments keep going up, not just because we require increases but to establish a cash hoard that may very well be unnecessary. Our Buildings are 40 years old; many have aluminum wiring and need attention to rusting steps, spindles, painting every 7 years that requires Associations to fully fund Reserves. We are increasingly more attentive to the 40-year look-back from Miami Dade County that could require major improvements and UCO’s cash hoard belongs in the hands of Associations so they may amply respond to the issues confronting them and their Owners. During many previous budget processes cash surpluses were used to offset either part or all of the increase, not so this year even though we ended the 2012 budget year with more than $ 1,012,000.00 CASH on Hand – nowhere near BANKRUPTCY!

 This year’s budget (2013) has a requirement for nearly $ 6,000,000.00 annual revenue to pay all of its budget items. (I did try to simplify this explanation by making adjustments in the numbers to make it clear.) Dividing the $ 6,000,000.00 by 4 (payment is received four (4) times annually from the Management Companies). I’ve rounded to make this a simple exercise, but that clearly shows we receive $ 1,500,000.00 In January, April, July, October. If we maintain the three months surplus of

$ 1,500,000.00 as of December 31^st, Then in January we have $ 3,000,000.00 to pay $ 500,000.00 – leaving $ 2,500,000.00 CASH. In February we pay $ 500,000 leaving $ 2,000,000.00 and in March another $ 500,000.00 leaving $ 1,500,000.00 UNTIL APRIL when we receive another $ 1,500,000.00 leaving us $ 3,000,000.00! WHY does UCO require so much CASH when we receive ZERO income for the vast cash hoard and exceed the FDIC Regulations of a Maximum of $ 250,000.00 Coverage for all money deposited in the same named account????

   

Ed Black