COLUMN: Concerns gush for proposed water billing

Q. Since our development was first occupied, we have been billed for water from a master meter based on monthly meter readings for our individual homes. Last month, we were notified that to save the association money, the water would be charged by a flat rate: $15 per month for two- and three-bedroom units and $20 for four- and five-bedroom homes. This is an increase of at least 50 percent. Our bylaws and covenants do not address the billing for the water.

Because only 40 percent of the lots have been sold, our developer appoints our board of directors. The remaining lots are being developed at a snail's pace. The board tells us that we have not been able to see our association's financial statements because of our former management company's recklessness. We recently changed management companies, but no new financial statements have been provided.

Our proposed budget includes the new water fee schedule. If we ratify the budget, will we be agreeing to the flat water charge? While there is no proposed change to our monthly assessment of $65, I am concerned that with the lack of backup financial data our board may not be doing what is required to keep our association solvent. Any suggestions?

A. For many associations, water is included in the monthly fee since it is less expensive for the developer to install master water meters than meters for each unit. These master meters also monitor the water consumption used for the common areas.

As a homeowner, you have the right to ask a few questions pertaining to water usage fees. First, how much money was spent on water in 1999 and 2000? How specifically did the association determine the water bill for each unit before the recommended change?

For example, assume that you have 100 units and that the yearly bill was $15,000. If your association has a pool, spa and recreational facilities in addition to landscaping, you will see that the water bills significantly increase during a four-month period due to the common areas. A formula could be developed based on the monthly water bills that would allocate X percentage for the common areas and X percentage for the living units.

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