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EHFJR

We Need To Vote No...

Updated: Sep 27

Last summer, the Board convinced our community to support a Special Assessment of $225. It was really two Special Assessments, one, a $150 Special Assessment due September 30, and then a $75 due March 15, 2024.


People were flabbergasted that the courses needed another injection of cash. They were incensed that management had taken their "eye off the ball" which undoubtedly led to our President's unpopularity, and his poor showing in the subsequent election.


People swore and cussed and howled, that this was the last time. No more bailing out the courses. Even diehard fans, golfers, and non-golfers alike said "No more!"


Now here we are, a new President, that if asked, will tell you, he has business experience up the wazoo. Yet just five (5) months after the March 2024 Special Assessment, he is demanding, yes, he is demanding, that we accept a Covenant change of his own making, that provides 10% of our operating budget to be earmarked for the courses. I say demand because he has said that if we do not pass the CCR Addendum, he will close the courses. Odd since hasn't he professed that "closing one course is off the table." and "He (sic) will not let the courses fail."


This is the first reason why we need to VOTE NO. We elected this man to serve our community. Instead, he is giving residents an ULTIMATUM. We can not accept being dictated to. We can not accept this behavior from our President. The Board serves the residents, not the other way around. The second reason is the 10%. He has announced the monthly assessment will increase a whopping $30, to $165. This is irresponsible and is not required. But let's calculate exactly what 10% is. ( 10% x $165 x 12 x 2820 ) = $558,360 annually.


We must VOTE NO, because our Board wants residents to approve a PERMANENT, at a minimum, $558.360 assessment to support the golf courses. Whether a person golfs or not they will have to pay. What is that per person? (10% x $165 x 12) = $198. We are being robbed. Every resident will have to pay $200 a year -- to start -- minimum.


Now here is the worst part. Membership is set at $289 a month. That is cheap for 18- Holes, but our Management provides 36-Holes. I inquired to the LLC President, "Why are you charging only $289?" His reply was, "Because golfers don't want to pay anymore and we will lose members if we charge more." So golfers do not want to pay a fair price for golf and instead will make a little gray-haired elderly lady or man, living on a fixed income, barely getting by, never played golf, and never will play golf, subsidize their play. When this is brought to the attention of the Board, our President has responded by insisting "If you can't afford to live here, you should move. " Our Treasurer has suggested people get reverse mortgages or equity loans. So our Board does not have a problem if an individual has to take on debt, to support the courses. Our Board does not have a problem placing a financial burden on those who least deserve it, or can least afford it.


The justification for this unethical and in my opinion morally reprehensible behavior:


1. The courses are not viable businesses and need community support for financial stability. What this means is that businesses can not support themselves. They will go broke if left on their own.


2. The Board does not want to continuously have a dialog. The Board does not want to continuously ask for money for the golf courses. What this means is the Board wants to just be able to take money when they want to.


THIS IS NOT A GOOD IDEA for many reasons.


First a foremost, there is no enforcement. At the 09/06 meeting with the attorney, he admitted that the only enforcement, if the Board decided to exceed their 10% allocation, would be to hire an attorney and file a complaint with the courts.


Second, there are NO reporting requirements. THE BOARD IS NOT REQUIRED INFORM RESIDENTS. They are not required to inform residents when or how much was transferred to the LLC. In 2023 our current Treasurer destroyed the HOA Accounting, and this very poor accounting continues to this day.


Will our Board be honest and adhere to the 10% limitations? Will they report accurately? Let's look at recent events.


A. The Board announced that the courses are financially doing well despite the deferrals. That is not correct. The deferrals have not been accounted for.


B. The Board announced the courses are doing well despite paying off a $100,000 unsecured loan. This is not correct. Repayment of the loan was provided for in the Special Assessment (SPA 2). One-half of the loan was paid in 2023, and the other half in 2024.


C. There is plenty of cash and with the Special Assessment (SPA 2), we will make it through the summer. This is not correct and shows a lack of understanding of running a seasonal business. Also, as of July 2024, the SPA 2 has only $3,492.49 of cash.


D. No funds have been transferred to the LLC from the HOA until July. This is not correct. The LLC records show:


January 2024 $25,000 Contribution

May 2024 $125,000 Contribution

June 2024 $75,000 Contribution

--------------------------------------------

Total 6 Month Contribution: $225,000


The second Special Assessment (SPA 2) is the ONLY legal source of funds for the LLC from the HOA. SPA 1 has exceeded its limits long ago, and is most probably in violation of covenants and does not have enough remaining cash flow to pay its obligations.


The June HOA Balance Sheet shows SPA 2 Cash at $85,072.29. The July HOA Balance Sheet shows Cash at $3,492.49. If funds were transferred in July as suggested by our Board, it would be most likely be limited to $75,000. If any greater than $75,000. Where did it come from?


Seven (7) month total of funds provided to the courses is likely to be ($225,000 + $75,000) = $300,000. Add this to the $175 Oct 20th Special Assessment proposed ($175,000 x 2820 ) = $493,500. ($300,000 + $493,500) = $793,500. This is the most money that has been provided to the courses since the acquisition in 2021 and is more than twice as much as Summer of 2023.


It shows that the courses are NOT IMPROVING, they are getting worse. It shows management does not know what is transpiring and in my opinion has not been truthful. Where is this money going? Is it being properly accounted for? Otter Creek was completely renovated? Have records been kept of the cost of the renovation. Has the SPA 2 been properly accounted for? I would suggest no, not at all.


Our President has said he will not let the courses fail. Does that include NOT being truthful to residents? For our Board to misinform is unethical and in my opinion all the more reason to VOTE NO.


He has give us a ULTIMATUM, do as he wishes or he closes the courses. These are scare tactics.


We must VOTE NO. Our leadership has demonstrated a propensity to hide facts, and to misinform. We can not trust them to have the self-discipline to adhere to a 10% restriction. VOTE NO.


Residents need to maintain control and supervise our leadership. Residents need to hold our Board accountable. Do not provide a blank check. VOTE NO.


Thank you for your support.

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