The POASC Board of Directors met in a Working Session on Jan. 8, but the only business discussed was the draft of the 2009-2010 budget that takes effect April 1.
The Finance Committee chairman explained to the approximately 50 property owners in attendance that the draft to be discussed was the last in a line of six the Finance Committee had reviewed. He said that $1 equals $18,300 of the increased assessment revenue for 2009. Total increase in assessments for the 2009 budget is approximately $73,000.
According to the financial records, as of Nov. 30, POASC received $42,600 less in income than was budgeted. Due to cost-cutting by the staff, $16,000 in savings has been realized. The reason for the shortfall is the real estate market. Building Permits and Transfer Fees accounted for $31,000 in the 2008 operating budget. Another $75,000 was expected from Buy-In and Impact Fees which are deposited into the AR&R and Capital Improvement Funds. This year’s budget allows for $24,000 in operating budget income from real estate and building transactions and $30,000 from the other two fees. With expenses rising, an increase in assessments was recommended by the committee.
It was explained that Maintenance/Payroll accounts for 10% of the budget; Security, 10.5%; Yard Debris, 8% and Pool 6%. The Treasurer explained that the board has the responsibility to keep Spanish Cove amenities in good shape, keeping them in good repair.
Questions were asked about the golf cart path, the justification for the increase of $4 per month, security and weather-related costs and road and drainage repair. A property owner asked why $6,000 was spent on the golf cart path, but was told by the Operations Manager that it only cost $350, plus the time the maintenance personnel spent on it.
It was suggested that security patrol be cut, eliminating the daytime shift. The cost of paving some areas and repairing the drainage culverts on Buena Vista has cost the Cove $121,000 this year.
The Operations Manager explained that due to the problems caused by falling trees during Hurricane Ivan, many have had to be removed from the common areas. He said if a property owner shows that a tree may hit the home if it falls, POASC is required to remove it or be responsible for damages it causes. He said the pier was replaced twice, the fence along Highway 98 was repaired and many trees were removed, for a cost of approximately $300,000 as a result of the last major storms. Consequently a line item is included in the budget of $30,000 in this year’s budget to cover additional costs, an increase of $20,000 over last year.
Some attendees said the increase of $4 per month would be a burden on those living with Social Security as their only income. Board members said they feel the increase is justified, that every effort was made to keep the increase as low as possible. POASC Covenants allow an increase equal to the cost of living plus 5% or 10.8%. An increase of $4 per month to $52 is 8.3%.
The board will vote on the proposed budget at the Regular Meeting to be held at 10 a.m., Thursday, Jan. 15.
Tags: Budget, Finance, Increase, Real Estate
Elizabeth: And a good feature about the documents is that you can search for items. Once you open a document, you’ll see a box at the top that says “Find”. Enter the word you’re looking for – in this case ‘Assessment’ and it will find every instance of that word. You’ll want to search the Covenants and the ByLaws to find all the Assessment information. I know that won’t help your issue regarding voting on the Assessments, but you’ll be able to see the rules by which the Board operates.
The ByLaws allow the board to raise the assessments 5% plus the cost of living of 5.8% without a vote of the property owners. The $4 increase is 8.3%. You must remember this is a non-profit corporation, not a city. All the POASC documents may be accessed by clicking on “Documents” at the top of this page. If you haven’t done so previously, it might be a good idea to review them some time.
The proposed assessment increase is a proposal that affects the property owners. Why are we not allowed to vote on the proposal to raise assessment fees?
When the state or cities try to raise more money by taxes the citizens get to vote yea or no!! This does not seem appropriate to me that the BOARD has the total power to raise rates when they decide they need more money.
Thank you, Ben.
Yes, with a $50K deductible. In effect, the Pier is self-insured, due to the prohibitive cost of adding it to our policy. Tree removal(the major expense from Ivan) is not.
I have seen a number of references to the threat of catatrophic losses especially in conjunction with thr AR&R fund and the possibility of assessments. I really don’t know but does the POASC not carry insurance to cover such losses?
If not, why not?
How $1 in assessments equals $18,300.
1527 assessmentsX$1X12 months= $18,324
note: The actual # of assessments will vary throughout the year according to collections, Lots sales & purchases(combining lots), etc.
The recent assessment increase seems appropriate to me. Granted that it will cut into our individual Social Security retirement benefits but it is also true that those benefits increase this month. Spanish Cove at this point is simply trying to stay even. We’re not building new buildings, new roads, new piers or much of anything else new. We are re-newing a few things but if we don’t do that “shabby” will take over and ultimately replacement cost will be higher. I’m much in favor of a proactive maintenance and repair approach. To do otherwise is to always being in “catch-up” mode. That’s not the place to be if we sustain a catastrophic loss.
I know we’re getting the value for our Assessment money. I had to think about the $54.50, though. Seems an awful lot compared to what we recenly paid, but it goes away when I flush, and I hate to consider the alternative…
Something to consider: Sewer $54.50/month. Proposed assessment $52/month.
Which is the greater value?