POA departments, escrow subjects of board meeting

HOT SPRINGS VILLAGE — The monthly report by Hot Springs Village CEO Lesley Nalley dominated the meeting of the Property Owners Association’s board of directors on Wednesday.

Nalley touched on items concerning the past, present and future of the HSV community, giving an overview of finances, changes and plans.

She began with numbers that correlate with the end of May, saying that at 41 percent into the year, 38 percent of the operating budget and 20 percent of the capital budget has been spent, while 34 percent of the net revenue has been earned versus budgeted.

There has recently been a dip in the number of properties in good standing, and steps have been taken to hopefully resolve the debts, including liens being issued on several homes.

The sound operation of the Recreation Department under Director Stacy Hoover was recognized, and Nalley said there is now both more money coming in and less going out as expense in that department.

Subsidies have also been reduced in the departments of Public Safety, Public Utilities, and Planning and Inspection, with revenue received from the Lakes Department now outpacing 2016.

Regarding Food and Beverage, Nalley said there was a total of $216,000 budgeted as subsidy for 2017. When that budget was made, it was thought that operations at Granada Grill would be handled by a vendor, but since the decision was made for inhouse operation, she hopes to see a lower number spent at the end of the year.

In the real estate program, a milestone will soon be reached with building of the POA’s first spec house, expected to begin in the next weeks.

The board held its annual retreat earlier in June, and Nalley said creation of a comprehensive HSV Master Plan from the existing workbook was a large part of the discussion. One focus of that plan will be increasing handicap accessibility.

Board member George Parker commented that the retreat was the best he’d personally been involved with, and Vice Chairman Tom Weiss said many action items were discussed, and a good amount of time was spent focusing on the board’s governing role.

In his chairman’s report, John Weidert pointed out that Village Pride Day will take place Saturday. The Friends of Hot Springs Village will oversee operations that day to collect trash and debris from the ditches and shoulders of main roadways.

Weidert also mentioned the upcoming Stars and Stripes Festival, beginning June 29 and culminating with a fireworks display over Lake Balboa on July 4. He urged residents and guests to make safety a priority during their holiday celebrations.

The POA continues to await the appeals court decision on two-tier assessments. Oral arguments are not yet scheduled, and the court is approaching its summer recess. The 2016 assessment payments were escrowed, and the escrow was halted in 2017, as a decision was believed to be near.

In light of the court’s continued delay, the board revisited that discussion during Wednesday’s meeting, and voted unanimously to resume escrowing effective July 1. Nalley said she remains hopeful that the court will uphold the membership vote. She also noted that no funds from the escrow were ever used, so the full escrow amount remains.

Four other items were voted on, all passing unanimously — the water tank rehabilitation project, revision to the Appeals Charter, revisions to Chapter 1 Article 23 regarding protective covenant policies, and recension of the list of administrative fines for infractions.

Under new business, to be voted on in July, Nalley proposed revisions to the Chapter 1 Article 10 policy called “Building Reserve Fund,” last updated in 2003. She said it should be referred to as a “Reserve Fund” instead, with one area covering Public Utilities, one covering non-utility repairs and replacements, and another for operational reserves. She suggested a fund with one year of annual depreciation to be in each area, recommending a five- to sixyear approach to reach that amount.

COO Linda Mayhood discussed the other item of new business — the formation of an ad hoc committee to update the community’s history, so an in-depth story can be written and book printed in time for Hot Springs Village’s 50th anniversary in 2020.