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Share holders are very upset by these increases, we have 3 ways of raising money but the controlling board are mostly in the garage which they say the co op is subsidizing the renting fees. The garage has been raised only once the cost is now $80.00. The going price for enclosed garages are $350.00 in our area. Also last year the board voted on assessment by charging an extra maintenance by not trying to cut budget spending and raising bike storage fees from $7.50 a month to $10.00 a month and keeping the garage rentals to $80.00 a month. Our co op has excellent financials, well over 2 million. So the share holders are holding private meetings to question the boards personal agenda and the managing agent not guiding the board to look closely to cut expenses. We all plan to vote out the president and two other board members who have garage rentals. But how do we handle the board from not charging us another extra month maintenance and increase the low rental fees.
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What type of expenses are you looking to cut? Are they "nickel and dime" expenses or big items like the roof?
You say the co-op has excellent financials, but the Board still voted a maintenance increase and an assessment. That doesn't seem to make sense.
What is the Board's personal agenda?
You don't provide any info about the size, location, budget of the coop, size of the garage, other amenities. Are you saying that the coop has $2mm in reserves? Or is that the value of the assets on the financials? What condition is the building in? Are there major projects needed, such as to repair roofs, brick work?
I don't agree with the other comment that the bike and garage rentals should be increased at the same % as maintenance. It depends on the building, supply and demand of the amenities. Do you have storage available, or laundry facilities? They are also sources of income to the coop.
In our building, we charge $24/yr ($2/mo) for bike storage. The space is not usable for much else and it keeps the bikes out of the hallways and elevators, reducing damage and dirt, and the space has easy access to the service entrance. Storage lockers pay for themselves in about a year, we charge $1.50 per sq. foot, and have access within the building. Are all the garage spaces filled by building occupants, is there a waiting list? If 2 of the board members have spaces, out of maybe 50 spaces, 48 others are benefiting too. Are there any costs associated with maintaining the garage?
Cutting the budget is not an easy task. Most of the budget goes to water and sewer charges, property taxes, staff salaries and benefits, building underlying mortgage, professional fees/management, repairs and those necessary utilities - gas/electric/oil/heat/hot water. Most budgets have very little discretionary spending.
The prices being charged for the parking spots and bike storage appear to be excessively low. The Board has the right to raise prices for each, but should do so gradually until you reach a reasonable dollar amount. If your reserve fund is $2MM, that is a very nice number to have - perhaps it's high because there is little spending done on maintenance projects.
The only time that you can vote out any Board member, is during the annual board meeting held with shareholders. And if you succeed, should have available shareholders ready to fill in the open spots.
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Just like your raise at work, all increases (maintenance, bike, storage and parking) should increase at the same percentage .. it takes the drama out of the conversation. Run for the Board yourself, it sounds like you'd do a great job !!!
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