Moving forward at 900 Biscayne... the right way

In a community as diverse as ours, with 550 residential units and varying income levels, finding consensus on spending priorities can be challenging. We understand the spectrum of perspectives, from those prioritizing minimal association fees regardless of consequences, to those advocating for extravagant amenities at any cost. Our responsibility as the board is to navigate a middle ground that ensures fiscal responsibility while enhancing the quality of life for all residents. Our philosophy is straightforward: we invest in services that improve residents' quality of life while ensuring a return on investment that enhances property values. We meticulously analyze each dollar spent to ensure it generates a positive impact. Additionally, we benchmark our association fees per square foot against similar buildings in our downtown and Brickell to maintain competitiveness. (see chart below) Despite facing challenges such as significant insurance market hikes this past year, we have managed to propose a budget that keeps fee increases controlled. By prioritizing efficiency measures like limiting third-party payrolls, negotiating with vendors, and maintaining a healthy reserve fund, we've been able to minimize the impact on residents. We are particularly proud of our ability to keep building services costs, including management, amenities, security, and valet, to less than a 2.6% increase in this budget – well below the interest rate we are earning in our cash. That is a stark contrast to the 10.5% increase observed in the 2022-2023 budget. Furthermore, we've tackled long-needed repairs without resorting to special assessments, demonstrating our commitment to responsible financial management. While we believe our results stand on their own, we must also address what the “Fix 900” slate appears to be promising. Their unrealistic claims of "five-star amenities" with no fee increases are simply not feasible and demonstrate a lack of understanding of condo finances. Even worse is fact this other slate is being supported by the same ousted directors from 2022 that allowed double digit increase in costs, approved a 30% association fee hike in their last year in office, and demonstrated no interest in instituting financial policies or managing cash in an effective manner. We urge you not to be swayed by false promises and to remain steadfast in supporting the path of financial prudence. Our community deserves leaders who respect every single dollar, prioritize transparency, fiscal responsibility, and the long-term well-being of all residents. As we seek your support, we pledge to continue serving with integrity and diligence, always striving to "Do It The Right Way" for the benefit of our community.

As we approach the election for our condo Board of Directors, we want to take a moment to reflect on the progress we, as the majority of the incumbent Board, made together over the past year. When the current Board stepped in as members, we thought we had inherited a stable financial situation. However, as the year progressed, it became obvious that – in spite of the 30% association fee increase that the prior board had approved – the condo’s expenses and capital requirements would be a big issue in the future. We rolled up our sleeves and got to work – both controlling costs and creating new streams of revenue. With your support and our collective dedication, we've been able to make significant strides towards building a more stable financial future for our community. One of our primary focuses from the outset was to address the financial deficits and lack of prudent management policies that we inherited. We recognized the importance of establishing sound financial practices to safeguard the financial health of our condo association. One key initiative was the implementation of policies aimed at maintaining a minimum cash balance equivalent to two months of our accounts payables. This proactive approach ensures that we have a buffer in place to weather any unforeseen financial challenges that may arise. This is basic household financial management, which was non-existent before our current Board took over. Additionally, we took steps to optimize our financial resources by investing idle cash (as well as other maturing investments) in short-term U.S. Treasury mutual funds. This allowed us to create a new revenue stream. Another area of focus was streamlining the frequency of our payment to suppliers, which not only improved free cash flow generation, but also enabled us to allocate funds towards essential services. This strategic allocation of resources ensured that we had enough to pay for needed services like the owner’s rep that is helping major projects move forward. Adding to the financial policies meant to optimize the capital position of our financial reserves, we have developed a 26-week cash flow forecast, which will enable the association to optimize its interest income and benefit from the high rate environment still available to us in 2024 (see chart below). Furthermore, we conducted a thorough review of our valet services financials and processes to align costs with our budget for 2024. By identifying areas where cost efficiencies could be achieved, we were able to optimize our operational expenses without compromising on the quality of services provided to residents. In the face of a challenging insurance market, we also embarked on a comprehensive evaluation of our insurance policies to minimize expenses while maintaining adequate coverage. Through diligent negotiation and research, we were able to identify cost-saving opportunities without sacrificing the level of protection afforded to our community. Overall, our efforts over the past year have yielded tangible results, including the creation of key financial policies which should serve us well into the future, new revenue streams, cost savings, and a commitment to financial prudence. We remain steadfast in our dedication to serving the best interests of our community and ensuring the long-term financial sustainability of 900 Biscayne Bay Condo. As we seek your vote, we humbly ask for your continued support and trust in our vision to "continue improving 900, finish the job, and do it the right way." Together, we can build upon the progress we've made and propel our community towards an even brighter future.