"You don't achieve harmony by everyone singing the same note" - Doug Loyd

Wednesday, February 15, 2012

Attention: Suntree HOA (Indian Bend Village) Members

 This information is not intended to anger, frustrate, or do anything else which will cause your  blood pressure to rise.  But, as people buy and sell within the community things aren't known about, things change in our lives, and people forget about shortfalls in our financials that must be fixed.  This post is intended to catch new owners up to speed and remind everyone else what the situation is in our community.

To recap in 2008, we were told that the reserves were short due to not making contributions and borrowing from the reserves.  At the time the figure was $99,726.02 that was owed.  As the economy changes so does the scheduled contributions just as scheduled expenses.  The fore mentioned figure has increased by 12%.  

In the last three years the board has done a great job of making contributions.  The total scheduled net contributions for the three years was $94,760.61 and actual net contributions totaled $106,482.13.  This unfortunately only paid $11,721.52 on the amount borrowed. 

In 2009 and 2010, the board again did a great job of creating a $50,252.00 surplus.  However, this surplus was not contributed to the reserves or refunded per AZ Statues.  In 2011, the board had created a surplus of $37,392.61 but, decided to do a couple projects.  Had the projects not been completed and the total put into the reserves only $12, 326.54 would be due plus regular contributions.  This could have made the reserve balance $305,893.40 and allowing the streets to be completed.  But, they did not!

Instead they spent $82,094.71 on landscaping projects in 2011, causing them to spend $33, 975.00 of the $50,252.00 surplus.  This also resulted in the streets being deferred, costing us another $28,000.00 to do the streets.  There are pot holes are forming with one in front of the presidents house.  Where we could have only needed to make up $12,326.54, been able to complete the streets, and saved $28,000.00.  We now have to make up $128,351.75 to repay the reserves and make up for the increased cost to do the streets plus make regular contributions.  To boot the 2012, contributions budgeted are almost half the amount budgeted in the last three years.

All the efforts to save money was intended to repay the reserves not spend it on needless projects.  I'd rather have them charge a special assessment than to cheapen our community so they can spend money on personal agenda items.  They can only charge a special assessment of 2 months dues without getting membership approval.  That is $48,000.00 without a vote.  If they have to get a vote they have to justify and prove the need exists for an unanticipated expense.  As it is they aren't asking anyone and not doing as the majority wants.

They saved $10,000 on propane in 2011 and $6,000.00 in 2010.  But, when an owner asked about raising the pool temp in the winter so those with health issues could get exercise to improve their quality of life.  The board said, no it was too expensive and would create bacteria issues.  They didn't say ok, well send out a questionnaire to ask what the ownership wants.  Nor did they ask for a vote of those at the annual.  They just said, no.  Because it would cut into their spending habit. 

I hope that the new board members are willing to stand up and do what's best for the community putting their own wants to the side.  One of the current board members is responsible for the shortfall in the reserves created in 2006 and 2007.  You can figure out which one.

There is no longer any repercussions for speaking up and letting your voice be heard in Suntree.  The board can no longer fine you.   

3 comments:

Anonymous said...

hello,
is this blog for the Suntree at Indian Bend and Hayden Rd in Scottsdale? I live here and am being harassed for things by the board that are non existent in my property and I have had it!

Ian Moone said...

Anonymous, Yes, it's the same Suntree. I'd be glad to help you out anyway I can. You can send me an e-mail at azhoaownersvoice@yahoo.com and we can talk in private.

Anonymous said...

hello Ian..I shall do so, do you live in the community?
Thank you!

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