FINANCE & LEGAL COMMITTEE
Monday, June 7, 2010
“Responsible for the annual operating and capital budgets, determination of fees and assessments, definition of member and guest privileges, and all related legal, taxes, insurance, zoning, and organizational matters affecting the Association.”
PRESENT: Jere Kovach-Chairman & Member Board of Directors
ABSENT: Kirk Sessions- GM-Ex Officio
ALSO IN ATTENDANCE: None
The meeting was called to order @ 3:00 P. M.
The minutes of the May 17 meeting were approved. The outstanding 2009 unpaid assessments remain at 30. The 2010 unpaid assessments have declined from 300 to 202. In other words about 90% of the lots have had their assessments paid for 2010.
Mr. Kovach furnished copies of our attorney’s opinion concerning the legality of placing a lien against lots with unpaid assessments. It was moved, seconded and passed unanimously to recommend to the BOD that they seek a clarifying opinion. Mr. Kovach will present that recommendation to the BOD.
The 2008 F & L report to the BOD was briefly discussed. There was no 2009 report but it is generally agreed that F & L will make a formal 2010 report to the BOD.
The lack of agreement in our financial reports was discussed. Kirk and Kathy are making excellent progress in rectifying procedures and mistakes in order to make the documents more verifiable. Mr. Root suggested the committee members be furnished copies of the documents a few days before the meeting. Our new auditors will make a presentation at our SVRA annual meeting on June 26. Mr. Kovach expressed the opinion that the implementation of the POS and linking it to our Quick Books system has been a big step in the right direction. Considerable discussion ensued about the committee’s need to be fully informed on financial matters and, in turn, be able to advise the BOD and membership.
Considerable discussion ensued over the “Capital Improvement Plan”(CIP). Tom Hensel briefly discussed a “Priority Rating System” and will make a more detailed briefing at our next meeting. It is generally agreed that we need a multi-year plan with predictable funding for an effective CIP. The $420,000 payment, from the town, for the purchase of the Green Canyon water tank will be received late this month. About $220,000 of that will be utilized for replacing the water line in Green Canyon. The remainder of those funds will be designated for the Capital Improvement Fund. In that regard, the committee appreciates & agrees with BOD actions that retain funds from the sale of “Capital” assets until needed for “Capital” improvements.
A brief review of the “Cart Path Program” took place. For several years funds received from the Golf Cart Trail Fees were restricted to being utilized for the cart path program. The committee however, discovered that any improvements to the paths were being funded out of regular operating funds and the cart path fund was not being utilized for its’ intended purpose. The committee therefore recommended, and the BOD concurred, that the Cart Trail Fees no longer be designated for cart path improvements. The committee also recommended however, that the “Cart Path Program” should continue to be funded at the rate of $25,000 per year, as part of the “Capital Improvement Plan”, for as long as the cart paths have a need. The committee thanks the BOD for authorizing a $25,000 expenditure for the 2010 Cart Path Program during the May 2010 meeting.
The committee, although recognizing the imperfections of our financial reporting system, is encouraged with the progress being made. We however, anticipate an audit report that will be an honest but critical analysis & realize that continued effort will be necessary before we are satisfied with the transparency and accuracy of our financial reports.
Meeting adjourned at 4:30 P.M. The next meeting will be in the Library at 3:00 P. M. on Monday, June 21. Future meeting will be held on the first and third Mondays during the “season”.