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.