The Need For Disciplined Finances
Poor Budget Practices From The Current Board
4 min read




The only way to control the spending is to replace every board member
On Tuesday, October 28, 2025, the board approved the 2026 budget, which was exactly like the proposed and inflated budget that Jean Legrys prepared and the board reviewed the week prior. The 2026 budget is detrimental to the homeowners as it is approximately $160,000 more than it should be, and contains many flaws and inflated expenses, as well as double-billing and charging the homeowners the Bluestream 'door fee' of $78,600.00. Let’s put a stop to the mistreatment before it worsens.
During the same board meeting, the board appointed Bernie Pedowitz (their good friend) to the board during a board meeting because Mike Doormat resigned two weeks prior. Their secretive selection to appoint their good friend demonstrates a further lack of transparency and the growth of their "Good Ol' Boys Club". Appointing their friend highlights that they only want their friends to be part of the board and decision-making. This does not allow for diverse opinions. It only enables their agendas to get what they want, which is contrary to the homeowner's wishes. This created more of a disconnect between what the homeowners want and what the board wants. It should be noted that Bernie fully supports, and has mentioned during many board meetings, that SPECIAL ASSESSMENTS are his preferred method to boost the Reserves and to finance projects even though the projects are not necessary or impending. Bernie also wants to go full-bore on remodeling the bathrooms, which would cost over $400,000.00, which is more than what is in the Reserves.
In today's economy, the importance of a well-qualified board cannot be overstated, especially when it comes to business and financial management. With HOA coffers being near and especially exceeding $1 million dollars, HOAs increasingly need qualified and educated board members who bring not only relevant experience and education, but also a deep understanding of complex financial principles and strategic business practices. Appointing unqualified friends to the board is not advisable because that is how corruption is prone to start. Funds are also prone to being abused and spent unwisely when these unqualified people are suddenly handling more money than they've ever had in their lives.
To create an effective board, it is essential to identify candidates who possess a strong background in finance and business management. This includes individuals who have held senior positions in finance, such as Chief Financial Officers (CFOs) or finance directors, as well as those with experience in strategic planning and operational management (MBA). These professionals have the ability to navigate intricate financial landscapes, understand key performance indicators, and make informed decisions that foster sustainable growth.
Unfortunately, there is no standard for board members in HOA communities, and our community has been suffering for many years because of that. Favoritism, unethical behavior, and poor decisions have prevailed for a long time. Our board has formed a "good ol' boys club" amongst themselves over the years and has based their decisions on themselves and their friends. They looked the other way for each other and their friends while sending violations to others they didn't know or like.
We need qualified and unbiased board members who can make innovative solutions and adaptable strategies that are in the best interest of all the homeowners, and follow the rules of law. A board that wants to do good for the community is better equipped to understand and respond to the needs of the community rather than their friends.
Financial literacy is another critical criterion for board composition. Board members should possess the ability to analyze financial statements, assess risk-management practices, and comprehend regulatory requirements. This knowledge enables them to provide insightful oversight and guidance, ensuring the organization remains financially healthy and compliant with relevant regulations.
Furthermore, the so-called education webinars offered by many HOA lawyers and property management companies are no substitute for a formal college degree in business or finance. Those webinars give false confidence to inept board members and gives them no understanding of how much damage that little information can cause a community. They leave those webinars with just enough information to be dangerous. It's no substitute for an MBA. No one can learn in an hour what took years to accomplish for an MBA.
Our current board is very dismissive of Jim Young's education, knowledge, and degrees in business and finance. They go on with the little information they have and cause one financial problem after another, all the while oblivious to what is going on with our Reserves. Having Jim Young, Mary Young, and Danette Nanez on the board will only enhance the overall effectiveness of the board.
Finally, transparency and ethical governance are paramount. A qualified board must operate with integrity and uphold the highest standards of accountability. This fosters trust among the homeowners and supports the long-term success of the community.
In conclusion, assembling a board qualified in business and financial management is vital for organizations seeking to thrive in today’s competitive environment. By focusing on diverse experiences, financial acumen, continuous learning, and ethical standards, a board can effectively guide an organization towards achieving its strategic goals.
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