Bill Coleman writes to Eugenia Volcheck – October 18, 2021

Bill Coleman writes to Eugenia Volcheck – Octuber 18, 2021

 

William (Bill) J. Coleman is the Director of Condominium Operations of Atlantic Pacific Co. Atlantic Pacific is the management firm for the Aquarius Condominium Association. Mr. Coleman supervises about one hundred Associations similar to Aquarius. This note came to this blog via an Administrative Assistant of the Aquarius Management Office.
This blog is open to post any communication relevant to the life of the community. Offensive, divisive content will not be posted. All material should be sent directly to ceciliob@gmail.com by the author.

Good afternoon,

I appreciate your communication.

Your overview is inaccurate. You are commingling revenue (assessments), expense (cost of projects and projected cost of projects), and liability (loans).

Revenue (assessments) directly/indirectly pays for expenses.

  • Directly: cash on hand utilized to pay an expense for a
  • Indirectly: assessments collected/charged to pay for a liability (loan) that is utilized to pay an expense for a project today when the cash on hand is not available

Expenses are the cost, or projected cost, of projects.

Liability (loans) are taken to fund expenses for projects that are being completed today, but the assessment is not charged/collected in full today. It is charged and collected based on a repayment schedule (amortization schedule) that allows the association to spread the expense to the owner over many months for an expense that is incurred today for a project being completed today.

In your breakdown, you recognize the following:

  1. Year 2017 – $ 15,000,000 Special Assessment adopted by the board
  2. Year 2018 – $  1,194,000 Insurance deductible was collected
  3. Year 2019 – $  2,500,000 New Line of Credit was opened
  4. Year 2020 – $  1,314,562 Proceeds for IRMA hurricane claim received
  5. Year 2021 – $  7,632,237 Special Assessment adopted again by the board

Total                     $ 27,640,799. 

Here are the actual numbers broken down:

Expenses:

Expense Sum of Balance
40 Year ($14,665,268.28)
Claim ($1,284,574.07)
Elevator ($1,846,090.70)
Interest ($167,126.26)
Professional ($1,896,036.84)
Hallways ($2,385,708.94)
Contingency ($207,682.57)
Interest ($60,278.44)

 

Expense Sum of Balance
40 Year ($14,665,268.28)
Claim ($1,284,574.07)
Elevator ($1,846,090.70)
Interest ($167,126.26)
Professional ($1,896,036.84)
Hallways ($2,385,708.94)
Contingency ($207,682.57)
Interest ($60,278.44)
LOC Credit Cost ($19,758.97)
Grand Total ($22,532,525.07)
Revenue :
2017 SA $15,000,000.00
SA Irma Deductible $1,119,000.00
Insurance Claim Proceeds $1,314,562.09
Total Revenue $17,433,562.09
Net Deficit: $5,098,962.98
Loans to cover deficit:
2017 SA (original $15m) $2,603,000.09
$2.5m LOC $2,500,000
Total Outstanding Loans $5,103,000.09
2022 SA:

Loans to cover deficit

$5,103,000.09
Additional projects $2,500,080.00
Total 2022 SA $7,603,080.09

 

I hope this covers all your questions and concerns.

Sincerely,

William Coleman

.o0o.


Grandfather: a pretty good description

 

“A grandfather is a man who doesn’t have small children, that’s why he likes other people’s children.

Grandparents have nothing to do but just to be there.

When they take us for a walk, they walk slowly and don’t step on the pretty flowers or caterpillars.

They never say: Get away from here! Will sleep! Not now! Go to your room and think about you have just done!

They’re usually fat, but they still manage to button up our shoes.

They always know what we want. Only they know the food we want to eat like no one else in this world.

Grandfathers  wear glasses and sometimes even manage to remove their teeth.

Grandfathers do not need to go to the hairdresser, as they are bald or always

have their hair neatly combed.

When they tell us stories, they never skip parts and they don’t mind telling the same story over and over again.

Grandparents are the only grownups who always have time for us.

They are not as weak as they say, although they die more often than we do.

Everyone should do their best to have a grandfather, even more if they don’t have a television set.”

 

Ana Paula,
8 Years old, Florianópolis, Santa Catarina, Brazil.

.o0o.

 

About Cecilio Augusto Berndsen

Information Technology, Management, Project Management and Public Administration are areas I am familiar with. I am also interested in photography, wine, sailing, politics, economics, and economic development.
This entry was posted in Construction & 40 Year Inspection, Finance and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s