Quote:
Originally Posted by Laker14
How would that work? As costs go up, you either have to raise amenity fees, or reduce amenities. What is the plan?
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If costs continue to go up then eventually the cap would need to raise or something would need to be cut.
Today, there are two things (that I can think of) that make a cap possible:
1. Expenses might not be increasing at the rate of inflation. There are a lot of items in the RAD budget that may not increase at the rate of inflation. Principal and interest make up a quarter of the budget but those may not increase at all. Services (pay) make up a lot of the budget but those don't automatically increase with inflation.
2. Not everyone is at the cap. Increases for those that are not at the cap may be sufficient to cover the increase in expenses.
The accounting for the different rates and different dates of increases must be a nightmare. Perhaps this could be used as a start of a different process. Set a cap and let everyone slowly rise to that cap. Once there, calculate a budget in June/September and then set everyone's amenity fee to what is needed to fund the budget. One fee for everyone, annual increases for everyone, same increase date for everyone.