Another assessment election approved by board
Only two days after hearing the results of an assessment election, the board of the Bella Vista POA voted to try it one more time at their monthly meeting on Nov. 21. The next assessment election will begin with ballots mailed on December 12.
A standing room only crowd attended in the board room, as well as several members seated just outside in the visitors center. Six members addressed the board with three speaking in support of the administration and three critical of the status quo.
On Nov. 19, the board and the membership learned the recent proposal to raise the assessment by $11 for improved lots and $2 for unimproved lots failed in spite of a slight majority. The governing documents require a 51 percent majority, so it failed by about 150 votes, according to board Chair Ruth Hatcher.
“The vote was very close, as you know. We did have a popular vote. So we have people who want the assessment increase,” Hatcher said. “Yes, we have an equal number of people who don’t want it, but we feel it’s time to send it back.”
The new assessment proposal raises the monthly fee for improved lots by $13 to $37 a month. Unimproved lots will not be affected and the assessment remains $16 a month.
Board member Jerre Barron, Jr. reminded the board that not long ago, the Country Club was “a storage” building. The reserves that were used over the last few years were spent to update amenities that can now be used by all members.
“The 2020 plan is a good plan,” he said.
Barron also addressed the controversy around the COO’s salary.
“Anybody can take a job, but you won’t get the quality that you’ve got. And you can’t replace him for the price he’s making now.”
The new proposal includes the same fee schedule as the original 2020 plan. Many fees will be
abolished for members with an activity card. That includes the fees for lake use, fitness rooms, pools and the gun range. Nonmembers will not be allowed to use those amenities unless they have a valid guest card.
Fees for golf will go down for members, and up slightly for nonmembers. Tennis fees also go down.
Two members voted against the motion for a new election. Teah Bidwell said she supports the 2020 plan, but believes it’s too soon for a another election.
Steve McKee also liked the 2020 plan and was disappointed when the election was so close. He suggested that any new proposal should be developed with membership input. He also pointed out that the new proposal won’t bring in the same amount of money as the earlier one.
When the vote was taken, five members voted yes. Bidwell and McKee voted no and an abstention was counted for David Whelchel who was not present but had provided a limited proxy.
Voting begins with the ballots going out on December 12 and ends with a membership meeting on January 16, 2020. If passed the new assessments would take effect on March 1, 2020.
The board had already approved a budget for 2020. When COO Tom Judson presented budget information at an open meeting last week, there were two budgets discussed. One included the extra funds for the proposed assessment increase. The other budget, referred to as the “fail budget”, did not and the board adopted it.
A written statement by Hatcher, passed out after the meeting, pointed out that the fail budget includes cuts to operations of $947,000 as well as $254,000 in cuts to capitol improvements. The statement also promises a freeze on all salaried POA employees and a freeze on all bonuses.
McKee suggested the budget vote be delayed so the board could find a way to cut even more expenses.
He said the budget will still be cash flow negative and that’s a “huge issue.”
He also criticized the
“allocations” for elections - some $80,000.
Board member Jim Abrahamson disagreed. He pointed out that the written budget shows a small cash flow.
“It’s very frugal for next year,” he said.
“I watched these guys cut and cut and cut,” Barron said about the department heads that developed the budget. “I don’t think you can cut any more without hurting this whole organization.”