September 2004

• Pay Up or (Egads!) We're in big trouble!
  
  
  "Chicago ain't ready for reform," bawled alderman Paddy Bauler in the
  1950s in reaction to proposed good-government changes there.
  
  Similarly, maybe Aquia Harbour ain't ready for reform today--at least, not
  the kind now proposed by the AHPOA directors for fixing all that ails us.
  
  Don't get me wrong. What they are prescribing for us to vote upon in
  October comes straight from Good Money Management 101.
  
  They have had a reputable accounting firm evaluate our financial and
  physical reserves, and sure enough it says we need to make lots of
  changes.
  
  But, in looking through its report, I'm reminded of a fancy proposal a life
  insurance salesman once outlined for my family. We could, for sure, guard
  against lots of eventualities if we'd simply pay a premium he assumed we
  could afford. We opted for a much cheaper policy and ain't dead yet.
  
  As AHPOA president Bob Hunt noted in a recent letter to residents, we
  have some pressing concerns especially since the marina and the Harbour
  Inn swimming pool are on old-age life support.
  
  Yet, he also noted we have only 20 more months before the burdensome
  CIP debt is paid off. That would free up some $330,000 a year that we could
  apply to the needed repairs and replacements.
  
  Why not just tread softly until then and reconsider our situation then--as
  Hunt listed as alternative 3? Well, I would opt for that except for one
  thing: The cost of borrowing money now is still very low. And interest rates
  may well rise a great deal in the next year or so. Perhaps.
  
  Moreover, his other two alternatives, which would yield either a one-time
  charge of $1,200 on each home or a $300 hike in annual dues, seem much
  too onerous to me. Either of those alternatives, if I read the materials
  correctly, would achieve what the reserves study proposes--some $3
  million in added investment.
  
  That seems too rich. It's OK as a worthy goal, but I can't see us sitting still
  for much over half that amount anytime soon.
  
  But who am I to judge? After all, even a dues levy of $1,000 feels pretty
  substantial to me, especially since my first bill was only $250 a quarter-century
  ago. But I didn't pay over $300 thousand for my home here either. Many
  newcomers today have, so just another $300 or so in annual dues may not
  matter much to them. We'll see.
  
  In any event, the housing market here continues to cook. Look at the Free
  Lance-Star's monthly listings of home sales. For June it lists 26 Aquia
  homes sold in June for an average price of $336 thousand. That's not the
  most homes sold in a month. In 2002, June saw 29 and July 35.
  
  The average price, though, set a record. Talk about inflation: Consider that
  in June 2002, the average was $236 thousand. In June 2003 it was $270
  thousand. Further, few homes had ever sold for over $350 thousand. In
  June this summer, eight did.?