2023 Proposed Covenant Amendments
2023 Covenant Amendments
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Proposal to Increase the current annual association fee
Whereas, the Board of Directors has determined that an increase in the annual assessment fee is necessary to cover the increased costs of operation, incurred debts, and replenishment of the emergency reserves;
Now, therefore, be it resolved that the annual assessment fee for each Lot shall be increased from Five Hundred Dollars ($500) to Six Hundred and Fifty Dollars ($650) effective on June 1st and will be prorated for the current Fiscal year.
The Board of Directors shall take all necessary steps to ensure that the increase is implemented and that all members are notified of the new fee schedule in a timely manner.
Reason: The Board is currently not able to balance the budget to satisfy the Association's debts, cover the increased cost of operation, and meet the covenant requirement to place a portion of the Association's dues in reserve. If the Board is not able to increase the dues we will be unable to satisfy the debts without closing the pool and suspending the maintenance of common areas.
Amendment Proposed for Article IV: Assessments
The following language in Section 2 that defines the Annual Assessment amount will be removed:
Assessments shall be four Hundred Fifty Dollars ($450.00) per year if paid in annual installments; Two
hundred twenty five ($225.00), payable every six months if paid semi annually; and one hundred twelve
dollars and fifty cents ($112.50) payable every three months, if paid quarterly.
Section 3: Computation will be replaced by Section 3: Budget and Computation which will read as follows:
The Board of Directors shall present to the Association a proposed budget covering the estimated costs of operating the Association for the upcoming year, which shall allocate at least 10% of the annual assessment to a capital contribution or reserve. The annual Association fees shall be based on the proposed budget. The proposed budget shall be delivered to each member at least 30 days prior to the end of the current fiscal year. If the resulting fees do not exceed 120% of the previous year's fees, the proposed budget and the assessment shall become effective unless disapproved at the annual meeting by a Majority of the total Association vote. If the resulting fees exceed 120% of the previous year's fees, the proposed budget must be approved by a Majority vote of the Association instead. If the proposed budget is not approved, the Board of Directors shall continue to operate using the previously approved annual budget until a new budget is approved by the Association.
Reason: Having the dues amount in the covenant document requires a very stringent vote to make any adjustments to the dues. The proposed amendment will allow the amount of the association dues to be based on the budget that is presented to the community. This means the dues can go up or down depending on the financial needs of the association. This does not mean that the board can just set the dues to any amount, the dues have to be based on a public budget that is presented to the association for approval. The requirements for approving the budget are slightly more lenient and will allow the budget to be approved by Quorum. It also has a clause to limit increases in any year to 120% of the previous year's dues without a full 3/4 vote.
Amendment Proposed for Article III: Association Membership and Voting Rights
The following section will be added to Article III
Section 3. Voting in Absentia. Members shall be notified of any vote at least thirty (30) days prior to the closing of the vote. The Board of Directors shall announce the results of the vote publicly. Members who do not exercise their vote by the closing of the vote shall be deemed to have authorized the Board of Directors to cast their vote on their behalf. The Board of Directors shall exercise its discretion in the best interests of the Association, and its decision shall be final and binding on the member. The Board of Directors shall not be responsible for any failure by a member to receive notification of a vote.
Reason: The board has discussed what to do in the absence of participation from the Association. Recent votes have shown that a portion of the Association does not feel the need to perform the basic civic duties of making their voices heard on any vote. The current voting system is based on an assumed no vote. Meaning that any household that does not vote is counted as a no when the vote closes. However, we feel that this unduly punishes members who are actively participating in the work of the board to maintain our property value and that all members should have to express through a vote if they are against a proposal brought to the Association. This amendment will allow the board to choose to vote for any member who chooses to abstain from a vote on any proposal.