HOA Finances Weakening?

Who altered the Budget? (See below)

When was it first known that the finances of the HOA were weakening?

That was a year ago, back in October-November 2024.

At the November 12, 2024 Board Meeting the 2025 Budget was approved without discussion. The then-Treasurer, Linda Potter, announced, "We have a budget."

There was no mention that, at the pre-board meeting, at least one officer of the board rejected a dues increase for 2026 of $50.00 per property. The Finance Committee then had to quickly re-work the proposed budget and take out at least $124,000. After that, the proposed budget still wasn't balanced*, as required by the Procedures Reference Manual (Art. III, §C, ¶4(l).

At the November 12, 2024 Board Meeting the 2025 Proposed Budget should have been presented by the Finance Committee and a dues increases should have been requested. Then the Board should have discussed the Budget, rejected it, and directed the Finance Committee to re-work it and produce a budget without a dues increase.

The Board did not do that!

The Minutes of the November 12, 2024 Board Meeting read, in part, "Linda Potter discussed the balanced 2025 Budget that is for everyday expenses not projects. The regime fees will not be increasing in 2025."

The problems with that statement?

• The budget wasn't balanced.
• The budget was not discussed. 
• An oral statement at the meeting was that regime fees would need to be increased.
• Under the guidelines in the PRM, the Expense Budget is supposed to be developed first; then the Income Budget is determined.

In the July 2025 Summit Scoop Board President Danny Trapp announced that "it will be necessary to raise our regime fees by $25.00 each six month period, for a total of $50 annually."

That meant $25.00 increase on January 1, 2026 and a $25.00 increase on July 1, 2026.

The September 2025 Summit Scoop reported that, under "August Committee Reports", the Finance Committee reported that "Brenda Bryant made a motion for the HOA dues to increase by $50 in 2026, [sic] Danny Trapp seconded the motion, and all approved."

That was actually a Motion by Brenda at the August 5, 2025 Board Meeting, not in a Finance Committee meeting on August 19, 2025.

I did not attend those meetings, but did anyone question the difference between Danny Trapp's statement in the July Scoop ($25 increase on 1/1/26 and $25 increase on 7/1/26) and the Motion made at the August 5th Board Meeting ($50 increase on 1/1/26)?

I predict that even a $50 increase on 1/1/26 is insufficient. Costs have continued to increase. 

The HOA didn't budget $30,-50,000 for its lawsuit against Gus Philpott. In fact, the Board did not even approve the lawsuit. Yet the HOA has been paying the legal fees! Those are illegal disbursements of HOA funds!

The $3,000 contribution to Reserves for 2025 was woefully insufficient, especially after a Zero-dollar contribution in the previous year. The ongoing Variances every month must be paid, but out of what funds?

Will the Board approve a Proposed 2026 Budget on November 18, 2025? How many homeowners (Members) from "a wide cross-section of community members" (PRM, Art. III, §C ¶4(c)) were included in budget preparation? Any? None?

* The Irrigation Contract (Line 5111) is $50,000 annually (see August 2025 Monthly Financial Statements), but the monthly payment is $10,140 ($121,860/year).

NOTE: The July 2025 Financial Reporting Statement shows $75,000 as the Annual Budget for Line 5111.

But the August 2025 Financial Reporting Statement shows $50,000 as the Annual Budget for Line 5111.

WHO AUTHORIZED THAT CHANGE???

Will the CPA who does the Annual Audit catch that?

Is this why Danny Trapp doesn't like Gus Philpott nosing through the financial statements? After all, Philpott is just a "mere resident", according to one filing by the HOA in the lawsuit. The HOA's lawyer keeps making a big deal about how Philpott doesn't have "standing" to complain about anything.