Again at the 2018 AGM, the Board refused to respond to many questions and inquiries of residents regarding various issues, financial in particular. Monthly income statements are provided but why are balance sheets and Reserve Fund statements being concealed? Unit owners have overpaid far more than $1,000,000 for unapproved reserve fund expenditures in recent years plus thousands of dollars in unneccessary operating expenses. This list is long, yet the Board refuses to disclose these concealed documents. A few of the questions the Board refuses to respond to include the following:
- The notes to the financial statement presented at the 2018 AGM stated that “during the year ended June 30, 2016 the organization made a motion for a special assessment of $950,000 to be placed into the Reserve”. Why does the Board continue its refusal to provide a copy of the resulting resolution? Why was the word organization used rather than Corporation?
2. Why does the Board refuse to provide a copy of the unit owners resolution approving the recent major landscaping and signage CAPITAL expenditures or approval of the means of funding as is required by our Bylaws? Why were residents not consulted?
3. Why has the Board always and continues to adamantly refuse to provide a copy of legally required resolutions approving reserve fund expenditures for the elevators $325,000 plus, parkade surface replacement $750,000 plus, and even the boiler expenditure of $1,000,000 which failed to receive the required support as per our Bylaws and which was rejected by some 80% of residents?
4 Why has the Board refused to provide in addition to a monthly operating statement, a monthly balance sheet and reserve fund statement where residents can at least see where and when the substantial and UNAPPROVED reserve fund expenditures are being made with resident funds?
5. The 2018 AGM was advised of the last resident review of 2015 invoices which revealed numerous most shocking findings. These include amounts owing by the commercial owner to the Corporation in the amount of $11,625.85 which they refuse to pay. This amount includes costs of their own renovations paid for by the Corporation that they refuse to pay. Why does the Board not insist upon immediate payment of $11,625.85 by the commercial owner? Why has no lien been been registered?
6. During this same resident review, a further $13,000 in illicit and illegitimate expenses were paid by the Corporation. Why has the Board refused to respond to questions or provide any reasonable response as to why these expenses were paid by the Corporation?
7. During this same resident review, the Board was presented with an invoice from the commercial owner for the cost of renovating the entrance to their condo unit #1. The Board has refused to respond with evidence as to who in fact paid for this. Why does the Board continue its refusal to respond to this or any other expenditure which is questioned by resident unit owners? With some $35,000 to $40,000 of expenditures at question in just this one resident review, how much more illicit and illegitimate spending of resident money has taken place since this review?
8. At the 2018 AGM, residents requested that a further informational meeting was required relating to the proposed “permanent” roof anchor expenditure of over $100,000. Such an expenditure is capital in nature and requires a special resolution where a private polled vote ensures a confidential vote of unit owners. With no call for the requested general and informational meeting for six months following the 2018 AGM, why did the Board suddenly call for a most inappropriate “out the required general meeting vote” on the matter, refuse to consult with residents and further refuse to conduct a voting procedure that provided no resident with an opportunity to speak to the motion or request a private polled vote?
Spadina Towers is in a very precarious financial position. Illegitimate and illicit use of reserve funds has depleted our reserve fund and resulted in unnecessary cash calls for a number of years. The price of units in the property has been severely impacted to the downside as a result. Who will buy a unit in this building where the Board at their own will and often directed by the commercial owner, repeatedly spends resident funds without resident consultation and refuses to seek the legally required approval of residents as per our Bylaws and the Condominium Property Act? Who would buy with ongoing cash calls constantly lingering over residents to pay for such illicit and inappropriate conduct? Residents must demand a prompt and meaningful response from the Board to each of the above questions. Further, a resident review of invoices (2016-2019) must take place prior to preparation of the 2018-2019 year end audited report so that residents can be assured of a fully accurate and transparent report.
Any responsibly minded resident owner would agree that such a review is urgently required. As a matter of transparency and democracy, no resident Board member can possibly have any reason to disagree or object to such a review unless of course they have something to hide. A general meeting should be held as soon as possible to hear the response of the Board to the above questions and determine the date of a resident invoice review. A private polled vote with a secret ballot will be requested in response to any motion relating to this matter so that your position will be only known to you! Don’t simply sit silently and wait for the next cash call! Should you agree that a general meeting be held as soon as possible to review the above issues, please send an email message simply stating YES TO A GENERAL MEETING to spadina@shaw.ca at your earliest convenience. Thankyou!