Click History for a list of changes and updates.
__The continuation of this post is my email to MOA members on the stated subjects.
Don Nordeen
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- Key Words:_ Accounting Practices (MOA), Financial Information (2009 General), Governing Documents, Members' Rights, MOA Board of Directors, MOA Operations (General/Total), accounting, balanced budget, budget, duty of obedience, GAAP for property owners associations, governing documents, replacement fund, reserve fund
Board's Proposal for Dues Increase and Discussion Forum for MOA Members (continued)
Memo: Please forward this email to other MOA members. If any MOA member would like to be added to the distribution list for future memos to MOA members, please send me your email at my email address listed above. Your email address will never appear in any email from this writer.
Don Nordeen
(989) 939-8240
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2009 February 14
Dear MOA Members,
Re: Discussion Forum for MOA Members
____Dues Increase Proposal
Discussion Forum for MOA Members
__Given the serious financial issues, the management and governance issues, and the limited opportunities that MOA members have to communicate with one another, it is time to take advantage of the discussion opportunities available with the internet.
__The software and practices are well established. The liability issues are settled. The provider of the discussion forum is not liable with appropriate terms of service.
__Several years ago, I explored the possibility of using the discussion forum software for organizing comments on recommendations concerning possible amendments to bylaws. Click Discussion Forum to view the forum. The overall content is displayed but only a few of the categories are available to the general public. The rest is password protected and requires registration.
__Click Discussion Forum for MOA Members for the explanation for registering and using the discussion form which is "password" protected for use by MOA members only. I would gladly transfer this forum to MOA with an agreement from the board to provide the forum to all members without censorship.
__The number and type of posts to the Discussion Forum may be indicative of members' interest in the governance and activities of MOA.
Board's Proposal for a Dues Increase
__ At a Special Board Meeting on 2009 Feb 09, the board unanimously approved a proposal for a annual dues increase from $400 to $475 beginning in 2010. The vote of the members is to be taken in just two months. The opportunity to comment on the proposal for the approximately ten MOA members in attendance was not provided by the board. Mr. Jim Pagels sent an emailto many of you on his concerns about the proposal and that the proposed $75 increase is only the tip of the iceberg.
__ The rush to a vote in just two months is hard to understand. Why take a vote in April for an increase to be effective next January. Further, the opportunity for MOA members to provide comments on the proposal is very limited. The board adopted a policy of requiring three readings for new policies of the board to provide board members and MOA members the opportunity to comment on the proposed policy before a vote is taken by the board on its adoption. Unfortunately, there is no mechanism for members to read the comments from the board members and other members before the vote is taken. Shouldn't the board provide the equivalent of three readings for this dues increase proposal?
__ The Discussion Forum for MOA Members described above provides the opportunity for members to sound off about the proposed dues increase. Topics and questions for your consideration include:
- The board provided a balanced budget for 2009 and assured the members that it will be met. So, why is a dues increase necessary?
- It is unlikely that the 2008 audit report will be available and summarized/distributed to members prior to the voting date. Also, the board is yet to mail to the members a summary of the results in the 2007 audit report, which wasn't available for the 2008 annual meeting.
- The board has not provided the promised breakdown of total costs by facility and major activity.
- Are you satisfied with the quality and timeliness of the financial statements and descriptions in the business reviews?
- Are you satisfied with the quality of the annual budgets? All budget proposals have been balanced for the past 8 years. But major operating losses have occurred every year.
- Would you like the board to propose an annual operating plan with associated budget and required dues for approval by members every year and a default plan if not approved?
- The board continues to give members two golf passes for timely payment of dues which results in a reduction in golf revenue. Should be pay MOA members for making timely payment of annual dues?
- The board has not had a vigorous discussion about adopting user fees which would more fairly distribute the costs of operation and maintenance to those members who derive personal enjoyment from their use?
- Should MOA charge competitive fees for all goods and services?
- Should perks be paid by those who receive them?
- Is MOA capable of properly operating and maintaining the recreational facilities? If not, what alternatives should be considered.
- Would a dues increase destroy the value of vacant lots?
- What is covered in the $75 being proposed? What is not? How much more next year? and the year after that?
- What is the status of the reserves for capital repair, replacement and renovation (preservation fund)? The 2006 audit report states that the fund has a shortfall of over $800,000. It is even larger today.
__ We hear much today about bailout and restructuring. Should MOA be bailed out by providing more money without any restructuring?Will that solve MOA's financial, governance, management and operational problems? Or should MOA define the necessary restructuring to be avialble owners association and use the new structure to define the operating dues required?__ A topic on the proposed dues increase is included in the MOA Member Discussion Forum — the third from the top of the list on the homepage. To view this forum, you will need to register first as described in the Discussion Forum.
__ If you have any questions, please write or call. Thanks for your time. Sincerely,
Don Nordeen
(989) 939-8240
- History:_
- 2009 Feb 14— Initial Post
- Links:_ Discussion Forum for MOA Members & Dues Increase Proposal at [http://swagmanmwpoa.blogspot.com/2009/02/boards-proposal-for-dues-increase_14.html]
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