Facts or Financial Foolery?

In Feb 2008 when financials were being put forth by then Council Chair Garth Rand and then Board President Goldman in a publication called South Cove: A Decision for the Future of Eastman, ECA members were told (on p. 2) of that official document, that “a report commissioned by a community similar to Eastman showed that a project such as the South Cove Activity Center can add as much as 10% to property values".

On page 13 there is an estimated Operating Cost Comparison of the old South Cove building showing a cost then of $97,000 accompanied by a “build new” cost chart showing $135,000 annually.

On page 3, there is a table titled “Projected Annual Cost per Property” that shows a total Cost per property (of South Cove) of $334 average per year-- 2008-2015. The projected cost for 2016 is shown as $95, a $239 cost reduction per property--Has anybody seen this cost reduction in their assessment?

The FY 2009 Budget approved on Feb 2008, has an annual assessment of $2125 for each condo/house for 1311 Eastman housing units. The recently authorized FY 2016 Budget contains an Annual Assessment of $3272 for 1323 condos/houses. An Assessment increase of $1147 or 54% is NOT a cost reduction.

In the past eight-year period, 12 houses in total have been built here at Eastman or slightly more than one new house per year. In that same eight-year period, 83 vacant lots have been retired shifting their entire assessment cost to the remaining owners--as well as the town tax revenue for those properties has been shifted to these remaining owners. In addition, several hundred acres of land have been acquired by our Board-- using several hundred thousand dollars of Eastman community’s monies.

Meantime, requested due diligence on the part of Eastman's General Manager and CEO has been rejected by the ECA Board. See Post Board Refuses Member's Due Diligence Request In a letter from Board President Goldman to us on 11/21/14, he stated:

 “To put it simply, the General Manager does not work for the Logans nor for any other ECA member(s)

….the GM is hired by the Board and is answerable solely to the Board.”

ECA members are thus mandated to put total faith in the financial and verbal assertions of its governance and Dave Philippy et al. Previous unaudited ECA financial statements and commitments are anonymous, erroneous, misleading and no one in governance is accountable to ECA members for their content.

Contributed by Bob Logan who is the CEO of a consulting practice since 1993 which provides expertise on improved business, financial and operational performance as well as leadership.