Landowners save 50% by directly paying for road maintenance
Apr 19, 2016 9:54:00 GMT -7
chris and dorothykeeler like this
Post by Admin on Apr 19, 2016 9:54:00 GMT -7
Are GLA Corporate Road Services a good buy?
Landowners can save 50% by directly paying for road maintenance
Landowners can save 50% by directly paying for road maintenance
All landowners pay assessments with the expectation that the GLA Corporation will provide road maintenance and plowing. Is the GLA Board spending assessment money wisely? Could landowners do better with a Road Maintenance Organization? The questions are complex but let us make a few simple calculations to help provide answers.
- If five neighbors pool $200.00 each to have their road plowed for $1,000.00 a year then the cost per landowner is $200.00 per year.
- If the GLA pays $1,000.00 for the same plowing then the cost per landowner is much higher. Why?
- Currently the GLA only collects 71 cents on the dollar from landowner assessments. Only 71% of the landowners are paying assessments for 2016. So the GLA bills landowners for $1,000.00 but it only collect $710.00.
- The GLA has a very high cost of administration. It spends 34 cents of every dollar collected to pay for administrative and legal costs. That is a cost of $241.40 to collect the above $710.00. Subtract this from the $710.00 and you have a balance of $468.60. Put another way, for every dollar that the GLA bills landowners for, only 46 cents is left to address road maintenance.
- Therefore the GLA must bill landowners for over $2,125.00 to get $1,000.00 for road plowing. So would you rather give your assessment money to an inefficient GLA Board, or directly to the person who actually plows your road? The cost of services will be 50% less if you chose the latter.
