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Thinking about Spring? Introducing Whispering Pines Landscaping!

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Since 1993 they have been creating and maintaining exceptional landscapes through the Spring and Summer months AND ensuring safe properties through the snowy Winter seasons. Read-on for some tips from Whispering Pines Landscaping.

The lawn furniture is tucked away and the snow contractors are doing their best to meet winter’s rigorous demands; now is the best time to put plans in place for the coming “green season” of 2022!

Here are some important considerations to add to your next Board meeting agenda to ensure your condo property will provide enjoyment and pleasure for unit owners:

1. Audit of your Garden Care program.  Are your gardens looking their best?  Are your shrubs being pruned at a horticulturally appropriate time of the year?  Do you remember the last time the gardens in your community brought joy? Chances are that you could not answer “yes” to each of those questions.  

  • Solution: consider adding a specific line in your budget to allocate funds to the maintenance of gardens.  Corporation budgets commonly combine grass cutting and garden care under one line: Maintenance.  Perhaps your property could benefit from a dedicated gardening crew that makes regular visits with gardens and shrub care as their only priority. Ask your landscape contractor if they offer this service.

2. Schedule a mulch application to your garden beds and tree circles. You have likely seen the positive impact that is immediately visible following an application of fresh mulch. Not only does mulch provide a barrier for weed growth, mulch also helps your garden retain the needed moisture allowing plants and shrubs to thrive.  Mulch will also help prevent rainwater from washing away your soil.  Furthermore, when an organic shredded pine mulch is applied, it will release valuable nutrients in the soil as it naturally decomposes.  

3. Fix lingering outdoor drainage problems. Spring run-off and melting accentuates the wet, soggy areas of condo properties; we all know where the wet spots are on our properties!  Given the high density of the building projects in recent years combined with extreme rain events, there is less surface area for spring runoff and rainwater to be absorbed into the ground.  Pooling of water can also occur in areas where the ground has been saturated. 

  • Solution: a corrective measure, such as a French drain will solve an annual nuisance and provide enjoyment for years to come. Consider contacting your landscape contractor to get on the schedule for a 2022 project. 

Whispering Pines Landscaping is a full-service landscape company with experts in the areas of landscape design & construction, garden care, lawn maintenance and snow services.  Their service area includes Guelph, Elora, Fergus and Orangeville.

Andrew Westrik
Sales, Whispering Pines Landscaping
wpn.ca

Conference Sponsorship, annual conference, annual golf tournament, Grand River Chapter, Canadian Condominium Institute, Become a Member

Budgeting: Should Last Year’s Surplus Be Used to Fund a Pet Sanctuary?

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It’s that time of year again for the Annual General Meeting and the process of forming next year’s budget. The auditor happily noted that the condominium had a growing surplus in both accounts. A golden retriever with a goofy grin ran onto the stage. His owner read a flyer that showed the benefits of having a pet sanctuary.

Budgeting: Should last year’s surplus be used to fund a pet sanctuary? 

It’s that time of year again for the Annual General Meeting (AGM) and then comes the process of forming next year’s budget. 

AGM Meeting

The AGM began with the auditor taking the stage to present the audited statements. The auditor happily noted that the condominium had a growing surplus in both the general account and the reserve account. After the auditor had left the meeting, the president of the board opened the floor and asked the unit owners what they would like to do with the surplus funds. 

Unit Owner Discussion 

The serious accountant, fiddling with her laptop, informed the other unit owners that they could put the surplus into a GIC, but the interest rates had fallen since the pandemic started in 2020, so the benefit was minimal. She then suggested that they could decrease their monthly common element assessment fees for the next fiscal year or keep their fees locked at the same rate for the next few years.

The active triathlete piped up, suggesting that the condominium should install an Olympic-sized pool and gym with stationary bikes for spin classes. He went on and on about the health benefits of exercise until a golden retriever with a goofy grin ran into the room and escorted him back to his seat by tugging on his pant legs. 

The owner of the dog, a unit owner and humanitarian, took the stage. He read a flyer that showed the health benefits of having a pet sanctuary.

Pet Sanctuary

The room was abuzz with excitement, as many unit owners in that community loved pets. The board took this to a vote, knowing that they would need 66.67% of the owners to approve any change to the common elements. The vote was unanimous in favour of purchasing the pet sanctuary. 

Budgeting with a Surplus Balance 

At the next board meeting, the directors discussed how to form next year’s budget to plan for the coming year, as a budget is required by the Condominium Act to be included in the audited financial statements. The board followed these steps:​

  1. They looked at the auditor’s financial statements. The auditor had let the board know that the corporation had one year’s worth of expenses as a surplus in the general fund. (Typically, accountants like to see ½ month to 3 months’ worth of spending as a surplus in the general fund). 
  2. When forming the budget, they were told to work backwards. 
  3. What were the known expenses? The landscaping contract was $35,520. Property management fees were $25,100. Insurance premiums were quoted at $9,000. 
  4. What were the trends of increasing/decreasing expenses over the last five years? They saw a trend of water expenses increasing by $1,000 every year. Waste removal was also increasing by $2,000 each year.
  5. The treasurer of the board added up the total expenses they were anticipating for the next fiscal year. 
  6. The board member in charge of the pet sanctuary project had researched the costs of constructing the pet sanctuary and added the project, as a one-time expense line item to the budget. The board member had also researched the costs of maintaining the pet sanctuary and added another $1,000 to their budgeted utility expenses. The board debated decreasing security costs due to the additional security the pets provided. They decided to wait another year to get a more accurate measure of how the sanctuary impacted security costs. 
  7. The treasurer observed the reserve fund study to see if there were any upcoming major repairs that they needed to consider. The corporation had been transferring the required amount to the reserve fund. There was appropriate funding for their reserve expenses and the treasurer saw no additional transfers required in the reserve fund study within the next three years. 

After doing this exercise to figure out their total expenses, the treasurer noticed that their budgeted expenses were higher than the total amount of fees that they collected in the prior year by $20,000. As a group they decided that they were comfortable keeping their monthly fees consistent with the prior year, resulting in a planned shortfall of $20,000 for the current year. After the initial construction of the pet sanctuary, they would have fewer costs in the subsequent fiscal year. Their plan allowed them to continue with a surplus of $80,000, which gave them enough cash flow to cover the costs of the year, paying all of their vendors on time.

Now that the board had the financial plan for the year, the pet sanctuary committee could start selecting which pets they would like to save. 

… If I was on the committee, I would definitely have chosen the monkeys first!

Jennie Buerkle CPA, CGA

Senior Accountant at RLB LLP

https://www.rlb.ca/

Smooth Transitions: Making the Move Between Management Companies Seamless

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As condominium managers, we have all been there – your relationship with a condominium community comes to an end.  This can happen for any number of reasons – financial difficulties, personality conflicts, board unrest or lack of trust, to name a few – but no matter the reason, you will find yourself in the position of having to hand over a (preferably neat and organized) package of information to the incoming management company. 

On the flip side, you may be the incoming condominium manager who is taking over a contract.  Do you know what to ask for in advance?  What to ask for at the deadline?  How do you make the transition as seamless as possible for the residents?  

As per the Condominium Management Services Act, 2015 (CMSA), all relevant documents and records must be transferred to the condominium 15 days after the date of termination, with a few exceptions.  Of course, it is reasonable to request/hand over some documentation in advance of the turnover date (registered documents, for example), and in this digital age, it’s quick and easy to pass along copies via email.    

Aside from handing over documents, there are dozens of tiny practical details to consider, such as banking (keeping former accounts or opening new ones?), address for service (make sure this is updated!), the status of PO’s (work completed vs. work in progress), etc.  Each firm will have its own processes for these, but generally, remember to stick to the following:

1. COMMUNICATION – As soon as you know you are either terminating or taking over a contract, designate a point of contact to handle the transition.  The point of contact may be anyone in your office – if they are prepared to amicably discuss the details of the transition and keep an open dialogue with the other party.  

2. CHECKLISTS – There are just too many items to remember, so eliminate some of the stress and put it all in a list.  Checking off items one by one will help you keep track and ensure that nothing is missed.   

3. COOPERATION – It is imperative that both companies (and the Board) work together to ensure the least amount of disruption to residents, no matter the circumstances.  Cooperation will set up the board, and therefore the community, for success.    

4. PATIENCE – There are many moving parts to transitions and often residual items to wrap up, even months later.  This is not necessarily anyone’s ‘fault’, but it’s important to remember that these things take time.  Don’t expect the transition to be wrapped up by Day 1 – it’s a marathon, not a sprint. 

Even when you follow these guidelines, you will likely run into a situation at some point where things are not progressing as smoothly as you would like.  Maybe pertinent documents are being withheld, or maybe false information is being passed along.  These types of issues can stem from the other management company, the owners, or even the board.  In these situations, it’s important to remain professional and to carry on in the best interests of the community.  

If despite your best efforts, you have reached a roadblock (perhaps you have been unsuccessful in obtaining documents, or there are financial red flags), you may need to involve the corporation’s lawyer and/or the Condominium Management Regulatory Authority of Ontario (CMRAO).  This is the last resort, but a necessary step to protect the Board of Directors and condominium corporation.  

The Grand River condominium community is a small one.  While we all strive for fulfilling and long-lasting relationships with our clients, it is not always possible.  We have all experienced both ends of a transition and know how difficult they can be – so the bottom line is to remain respectful and courteous while keeping the best interests of the client in mind. 

 

 

Jamie Poodry, B.Sc.H., RCM, OLCM

Vice-President, MF Property Management Ltd.

CONTACT CCI GRC

The Canadian Condominium Institute is an independent, non-profit organization formed in 1982.

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