Bill

As for my motions for the November meeting, you quote one which is just housekeeping so to speak; bringing the policy into compliance with the practice in place for two or three years.

This is a very poor reason for a motion. You should make sure bylaws are followed by OPA - not ignored.

The practice of reporting depreciation by departments was stopped in FY 2005. It was in place much longer than it has been discontinued. Art Carmine did not inform anyone on the B&FAC that he was doing so. He did it because he felt it is not a necessary disclosure.

Quite the contrary, Bill. As I hope you are aware, there are only four major costs types relative to each department - Operating Costs - Maintenance Costs - Taxes  - AND CAPITAL COSTS = DEPRECIATION!

It is not a coincidence that OPA stopped the practice of disclosing depreciation by departments in FY 2005. That was the very first year OPA recorded a decline in its NET ASSET position. As you recall, at the the Audting Meeting which you chaired in August, every panel member - including Art Carmine and TGM - admitted upon my questioning them that OPA's NET ASSET position is the single most important number to watch for gauging OPA's health. Two of the major factors in calculating that number are Depreciation Expense and Accumulated Depreciation.

To propose that the capital cost component of a department should not be disclosed to property owners is irresponsible. You should be insisting that OPA provide more full disclosure - not less. I had a resolution passed at the annual meeting for more disclosures of capital costs. Your motion is diametrically opposite of the intent of this motion passed by THE PROPERTY OWNERS i.e. more disclosures.

Finally, you know as well as I that OPA's greatest financial weakness is its capital management. Yet, your motion makes it likely that these weaknesses will be not even be disclosed - must less addressed.

For these reasons, I urge you as Treasurer to withdraw your motion in favor of one directing OPA to comply with the by laws and disclose the capital cost of each department as well as the other cost types.  

Thank you,

Gene