In the previous post, questions were asked regarding the 8.89% monthly assessment increase. Was the increase a “regular assessment” which covenants allow to be used by the current or any future board for both operational and capital expenses? Or . . . was the increase a “special assessment” which may not be used for operational expenses and which also requires property owner approval? (1)
Questions were addressed to the board . . .
These questions were later addressed to the board with the president providing a response. The assessment increase is, in fact, a regular assessment just like all previous regular assessments.
The confusion arises when we are told that the additional revenue will be “earmarked” to fund Master Plan projects, yet there is no mechanism in place to ensure that this revenue would be restricted from other uses such as operational expenses which regular assessments clearly allow.
No safeguards in this arrangement for now or the future . . .
While leadership’s expressed intent is appreciated, there are no safeguards in this arrangement for now or the future to prevent this revenue from being redirected to some other project or expense. It is puzzling why this increase was not given special assessment consideration which would have clearly defined the purpose and prevented the lack of controls.
Forgotten and commingled . . .
Instead, these assessment dollars might well be forgotten and commingled with other funds just as has been the case with the $25 assessment that was rolled into the general fund in 2017 after the land deal.
Perhaps, this additional revenue should be allocated to the underfunded restricted capital reserve fund already in place until such time that a more clearly defined and restrictive plan can be developed.
. . . . .
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Likewise, if you have questions or would like further discussion, I can be contacted at thepcrosses@gmail.com.
Patricia Cross (10438 Big Canoe)
References:
1 Covenants, March 1988, Article VI, Section 2 and Article VI, Section 4 (POAwebsite>login>POA>governingdocuments>covenants>covenants1988