Years fly by, but association to-do list remains the same

I was recently reminded that I have just passed my 11th anniversary of writing this column. Ah, the more things change, the more they stay the same.

In 1996, as in 2007, associations never have enough money, assessments are too high, the boards are all stupid and power-hungry and everyone that lives in an association is crazy ... well, not quite, but it seems like that is what you hear over and over.

Actually, most board members are conscientious and hard-working, the residents by and large enjoy association living and just want to be left alone and no one ever has enough money.

As the year winds down, there is almost a checklist-like series of items that need to be completed or started for next year. In most instances, they just kind of happen, such as shoveling the snow which just fell, but some things require careful thought and planning to start the new year off on the right foot.

Here are some things that boards of directors, mangers and owners should be looking at;

• Tax planning. If your association, is on a calendar year, which most are, you need to consider securing the services of a qualified accountant to prepare your 2007 tax return and review the year-end financial statement which must be sent to all owners. Even though the Association is a not-for-profit corporation, it still must file a Federal tax return. Just because you are not for profit, does not mean that you are tax exempt. Chances are you have income, such as investment interest or laundry room receipts.

• Budget. By now the budget should have been put to bed, or is close to it. A copy of the proposed budget should have already gone out to the owners and a meeting is then scheduled to review the numbers. Then the board of directors will vote to adopt it so it goes into effect Jan. 1.

The owners who choose to review the numbers should keep in mind that most of the expenses are fixed, such as insurance, maintenance, utilities etc, and that repairs and maintenance are not capital improvements.

Adequate funds should be set aside for contingencies and to fund the reserve, and if the budget does increase by more than 15 percent from the previous year, the owners do have the right to petition the board to put it to a vote of all of the members.

Note: Increasing the budget to address legally defined "emergencies" does not count toward the 15 percent.

• Contracts. At this point, the board should have all of its spring contracts in place such as landscaping, pool maintenance and so on, and if not, it should be the first order of business after the holidays.

• Next year's goals. Ideally, the board should sit down and set goals and objectives for the coming year. This is a good opportunity to review existing policies and procedures to see if they are working, do an employee and contractor performance review and establish what the board would like to accomplish in the coming year. Sometimes projects have to be phased in over a period of time and this is when those time-lines are established, i.e. three-year paint cycle.

• Social. Have a year-end get together. Whether you have 8 units or 800, it is a good idea to invite everyone to a social event where no business is conducted and you get to meet and greet your neighbors over punch and cookies. With all the business that boards and managers have to address throughout the year, sometimes more can be accomplished by putting a face with a name rather than sending out an anonymous nasty letter.

• Legal check-up. Is everything working the way it is supposed to? Are the association documents up-to-date? Are meetings running smoothly? These and other issues should be reviewed by counsel for just the mere prospect of running more efficiently and in some instances, economically.

• Communication. What good is it for the board to do a good job, if nobody knows it? Crow about your accomplishments from the past year and let the owners know what is planned for the coming year. consider how technology such as e-mails and association Web sites can get the message out quickly and economically. It makes for a more harmonious community.

And most importantly, have a safe and happy holiday season and a healthy and prosperous 2008. Peace to you all.