Esquire Village Neighbors

Treasurer's Report

Oct 22, 1999

Treasurer's Report
By Don Scarpitto

Fellow neighbors and friends,

This past year has been very busy and trying for all of us as we work together toward resolving several very taxing issues. As your treasurer, I've been busy working with the board of directors to find a means to increase our profitability and build cash reserve once again. I am very happy to report we are well on our way toward this goal.

In the purple April/99 newsletter from the board of directors, our financial picture was looking less than rosy with each succeeding month. Our costs have steadily risen yet income remained the same for years. The unfortunate result of this type of non-growth was a loss of revenue. Each month for the past twelve months we had to dip into our cash reserve to pay debts. The balance sheet for June/99 tells the story well. We had to take $192.19 out of our reserves for June alone. At this rate, our reserves will deplete in just two years. The board worked together with your help to resolve this problem.

As you read earlier in this issue of the newsletter, your board of directors found ways to cut your costs, improve your services, and help restore your financial picture back where it belongs. I am pleased to report we reduced our costs significantly.

First, however, let me report the results of the most recent campaign to raise our monthly assessment.

If you recall, the board requested Jomar to mail out yellow proxy ballots asking each homeowner: Vote YES or NO to approve a $10 assessment increase (suggested by Jomar). The referendum failed. More NO votes than YES votes were received.

The board then instructed Jomar to issue another proxy ballot asking each homeowner, to approve a $5 increase (the amount the treasurer originally requested). The results of that campaign were:
YES=58 NO=11 NOT VOTING=12
The board had to disqualify 14 of the 58 YES votes, because those homeowners were not in good financial standing with the association when the board conducted the election. Hence we were left with 44 YES votes, and 54 (2/3 of 81 homeowners) votes were needed to pass per our original CC&R's.

In 1995 Section 2.1 of the bylaws was
amended stating that any approval of
members of the association shall require the vote of fifty-one percent (51%). The board recognized that the $5 increase vote just barely passed due to the '95 amendment. The board agreed that the $203 monthly savings together with a smaller monthly increase of payments should be the way to address our expenditures for the upcoming year.

This left the board with one final option: utilize a 20% increase in the assessments as allowed by House Bill
# 2299. 20% of $10 (current assessment) = $2.
Beginning November/99 monthly HOA payments will be $12.00 per month.

The board managed to reduce the association's cost each month by implementing several changes.
Those monthly savings will be:
 $157 Management Company
 $ 5 Landscaping
 $ 41 Insurance
For a total cost reduction of $203 per month, or $2436 per year.

The board will be finalizing contracts for a new landscaper and a new insurance company by the end of September/99.

The decrease in costs, coupled with the $2 increase in assessments, will enable us to pay our bills and begin our reserves again.

I personally want to thank all of you who voted to support the board's efforts, and ask that you plan on attending the annual meeting.