Master Management Strained by Market Forces as Budget Work Continues

EXCLUSIVE

CVE Master Management is still finalizing its budget for the coming year, but already the organization is fighting uphill against market forces beyond its control. As the largest provider of services within Century Village East, CVE Master Management is dealing with higher costs in nearly every area it oversees, and those costs are dictated by outside forces.

From transportation and security to cable television and utilities such as water and electricity, CVE Master Management is responsible for ensuring vital services continue uninterrupted. Butnearly all these expenses are rising due to forces out of CVE Master Management’s control. The result is that CVE Master Management is often forced to pass along these increases to residents. These increases account for the majority of CVE Master Management’s budget.

Even in cases where CVE Master Management negotiates contracts, such as security or bus service, its bargaining power is limited. Contracts must remain competitive with those elsewhere in the region to retain quality personnel. If CVE Master Management drives costs down too far, it loses quality drivers and security officers to other locations.

The challenge of retaining high-quality guards and drivers is not new for CVE Master Management. Each community that contracts with a security or bus company decides how much it wants to pay those workers.  The result is often different wages in different communities for the same jobs in the same company.  In the past, security guards have asked to be reassigned away from Century Village East because other communities were offering higher pay. CVE Master Management lost its most qualified personnel to competing contracts. There has always been a balance between holding down costs and keeping experienced staff in CVE. If wages at Century Village East are not competitive, CVE Master Management deals with constant turnover, which not only disrupts service but drives up costs due to the need to repeatedly train new guards and drivers.

Cable television is another example of the financial pressures CVE Master Management is facing. The organization pays for basic cable service to every unit in the Village, and to do so it pays roughly $3 million a year to Comcast. As the cable company raises its rates, CVE Master Management has no choice but to pay the increase.

The same is true with utilities. CVE Master Management pays the water bill for every single condo unit in the village.  It also pays sewer and storm water fees for every single unit. In addition, it pays for trash collection for each of the 253 buildings. The costs for all these services are set by the City of Deerfield Beach, and they all are rising. Electricity adds even more pressure, as Florida Power & Light has proposed significant rate hikes that are expected to ripple directly into CVE Master Management’s upcoming budget.

Almost all the dollars paid by residents in the monthly coupon are paid out by CVE Master Management as soon as they are collected.

As the budget process continues, CVE Master Management says it is trying to find a way to balance service quality with affordability — all while being squeezed by market forces it cannot control.

The final CVE Master Management budget is expected to be voted on by the board of directors at its October meeting.