What's Wrong with the 2024 Budget?

"We have a monumental hurdle to overcome financially. We are experiencing requests for payments for invoices that are foreign to the current board, and there is no documentation justifying these requests." - Danny Trapp, HOA President (May 2024 Summit Scoop, Page 1)

What's wrong with the 2024 Budget?

First, the 2024 Budget started with a deficit of $27,799.97. That deficit was before those previously-unknown invoices showed up. Where were they?

Secondly, the CC&Rs require the Budget to include "a capital contribution establishing a reserve fund" (Art. X, Section 2).

The amount of capital contribution in the 2024 Budget (Line 8000 Replacement Reserves) is $0. That's zero. No dollars are in the Budget for future expenses.

For reference, the 2023 Budget had $39,677 on Line 8000. The 2022 Budget had $91,610 on Line 8000. The 2021 Budget had $146,155 on Line 8000. 

Those figures are the "Budget". The Annual Audit reveals what really happened with the money.

Can you see what's happening here? Money that used to go into Reserves is now being spent on operating the HOA. How many people on the Board of Directors and the Finance Committee really understand business finances?

The management contract with CAMS provides for the Management Company to attend "twelve (12) Finance Committee meetings of the Association." Presumably, that would be so the CAMS on-site employee could guide the Finance Committee with CAMS' expertise. Read about CAMS "Trusted Guidance here:  https://www.camsmgt.com

If dues go up $1/year, that will raise $2,480. Not enough. If dues go up $10/year, that will raise $24,800. Not enough. If dues go up 10% ($51.00/year), that will raise $126,480. Getting close to being enough.

The BOD will avoid raising dues more than 10%, so that it doesn't have to ask the Voting Members to approve the increase. That choice will be necessary; however, there is only one legitimate Voting Member out of the 28 Neighborhoods. Fifteen (15) legitimate Voting Members are needed for a quorum of Voting Members to be present at a meeting to approve a dues increase.

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