As a president of the resort I am deeply concerned for our future.
The budget is an enormous problem for the resort, we simply do not have any money yet they seem to be happy to ignore this fact. For the past six months we have been restructuring the budget to bring it in line with the HPA and the statutes which clearing define the services that each level is responsible for, this was all done in partnership with Juan Carlos and Agustin, they are now trying to scrap this and go back to their old method. La Isla has always handled it's budget differently to the rest of the resort. It keeps all its money in it's own level 2 account and only pays a set amount to level 1. This is exactly the way all level 2's should be working. Level 2, 1 and the entity provide set services which each level 2 should pay for. With a correctly structured budget the quarterly amount and be easierly calculated and a schedule transfer made. Currently random amounts are being taken from the level 2 accounts and money is being shuffled without any logical reason.
So, we have real problems, the bank balance of the community is less than €100k and with over €700k of debtors something needs to be done. The first act that Mileniun performed as administrators was to cut the reserve fund from 20% to 5%, and this was for a community that was already overdrawn at the banks and in debt!!! Does this make sense???? We don't even have the 5% reserve fund that we are expected to maintain at a that level by law. With the debtors that never pay running at around 3% the reserve fund needs increasing to simply cover debt and annual cost rises.
If the resort is to progress and improvements are to be made then the only way to achieve this would be to increase the fees. Unfortunately this is not a view shared by the presidents now in control of level 2, a few months ago Victoria has stated ;-
"Long ago we talked about the possibility of lowering the monthly payments of the community, years perhaps, and we are always answered that it would be possible if we had made up the entity. Now it is constituted, and in any conversation I have heard the possibility of lowering the amounts of these fees .... and we have forgotten?"
So all she what's is for the community fees to be reduced.
Another of the presidents has stated :-
"Do not want to get into this, but how you ask me to express my opinion publicly about how to save, give some touches:
. - For about 8/9 months a year Resort is occupied by approx. 5% of its capacity, certainly reviewing all expenses (Gardeners, Administrators, cleaning, electricity, services in general) could obtain significant savings, since we may have over-paid for all services for a minimum occupancy.
. - There are costs that can be avoided? Football field? and inexplicably presented as use of savings. The cost savings are lower budget and point
I think some to live there all year, you have lost the objectivity and do not realize that the 80/90% of owners use the Resort just 2/3 weeks a year and if we asked them, probably respond mostly want security, and that in the summer the resort is careful and able, but in the winter will be less concern."
So his answer to the problem is not to do maintenance all year around, only for the three months a year when ( he ) people come for the summer holidays?
Given this situation I can no longer accept the role of level 2 whilst Mileniun remain as our administrators and continue to ride roughshod over the presidents and ignore and manipulate the law and the statutes to suit their own ends.
Over the past 10 months Mick Parson and I had more contact with Mileniun than anyone else, having meetings with them at least once a week. Over this period is become clearer and clearer that Mileniun were not performing the tasks that we employ them for correctly. Yes, many people may be happy with the service they are getting form the staff in the office, but most of their work is selling insurance, key holding, organising repairs or managing fiestas etc. This is NOT what we employ them for, as administrators their main remit is to administrate the finances of the community, something that they are incapable of doing. This lead to a written warning being issued to them in May, signed by ALL level 2 presidents, then in June we raised the possibility or employing an independent resort manager as Mileniun were not carrying out this role resulting in problems being left uncorrected for months. The Spanish presidents now in charge seem to of forgotten all of this!
So what is the answer?
This message was last edited by ptan on 19/11/2012.