Is This Prudent, Responsible Management?

As a homeowner in The Summit, you know that your dues have not gone up; right?

But you also know that expenses have gone up; right?

So, where did the HOA get that money to pay those increasing expenses?

Should the Board know? Should the Finance Committee know? Should you know?

Here's the answer.

The Board got it out of your dues by quietly reducing the required contribution into Reserves (CC&Rs, Art. X, §6 Page 17) and spending that money on Operating Expenses. We all know what happens when you rob Peter to pay Paul.

Why didn't they tell you??? Who have the past Treasurers been?

George Reynolds, Jan 2016*-April 2021 (deceased)
Paul Hill, May 2021-April 2022 (deceased)
Vernell Butler, May 2022-November 2023
Linda Potter, November 2023-November 2024

LaToya Adams has been Treasurer since November 2024. Is she telling you?

If the Treasurer doesn't tell you about the weakening financial position of the HOA, isn't it the responsibility of the HOA President to inform you? 

In 2020 $163,965 was budgeted for Reserves. Each year less was to be set aside.

In 2021 $146,155 was budgeted for Reserves. (Down $17,810)

In 2022 $91,610 was budgeted for Reserves. (Down $54,545)

In 2023 $39,677 was budgeted for Reserves. (Down $51,933)

In 2024 ZERO was budgeted for Reserves. (Down $39,677)

In 2025 only $3,000 is budgeted for Reserves. (Up $3,000)

Is it time to begin asking the Board of Directors some hard questions, starting with, "Why didn't you raise the dues last November?"

Plus, consider this - The 2025 Budget for Line 5111 Irrigation Contract is $75,000. However, the Irrigation Contract is for $10,140/month, which is $121,680 yearly. Irrigation is under-budgeted by $46,680!

Where does the HOA plan to get that $46,680?

* Reynolds was listed as Treasurer January 2016. (Source: Summit Scoop (oldest edition online)


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