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Community to keep closer eye on finances

A recent fees increase - and the outcry it caused - prompts scrutiny.

By SAUNDRA AMRHEIN
Published January 12, 2007

Community association leaders in Sun City Center are promising closer scrutiny of the budget this year on the heels of a controversial dues increase and rising expenses.

Last month, association members narrowly approved an increase in annual dues from $194 to $237 per resident, the first hike in several years.

While some residents protested the increase for a population on fixed incomes, others were more concerned about a perceived lack of oversight regarding community finances.

"These people are like me and retired, they volunteered for a job, but I think many of them don't have any idea what the job will entail in terms of time," said Roger Harker, an unsuccessful candidate for the board of directors in December's election.

The association board was caught off guard last fall when it received electric bills that were much higher than what had been budgeted.

"It scared the hell out of us because of the electric bill we got," board member Bruce Arnold said. The monthly electric bill jumped from $12,000 to $16,000, he said.

The association cut back on expenses, including heating the swimming pool and electric use in the Atrium Building, and managed to finish the year without a deficit, he said.

Arnold suggested that the board consider tying future dues increases to annual cost-of-living hikes to help cover rising expenses.

Paul Wheat, elected by the board as its new president, said he and the board agreed that a task force is needed to explore the idea, along with how it would be presented to and voted on by residents.

Also, the board's budget committee will review finances every quarter, starting in February, and prepare a full report for the board. In the past, the board started reviewing the budget in July, he said.

But the community continues to face the challenge of rising expenses, including insurance. For instance, based on multiple bids, the association and its broker initially estimated that insurance would cost $186,000 this year, he said. This week, he learned the price tag is really $199,000.

"This is an example of what the board faced last year and faces this year," he said.

Saundra Amrhein can be reached at 661-2441 or amrhein@sptimes.com.

[Last modified January 11, 2007, 07:55:54]