Summary The Board of Directors at the November 7th meeting approved a 5.8% increase in the annual association membership assessment for 2024. The 2024 assessment is $330 dollars per household, that’s a quarterly payment of $82.50. This is an increase from the 2023 assessment by $4.50/quarter.
Why is the Increase Necessary? The increase is necessary to address inflationary increases in goods and services, as well as to provide increased funding to the Capital Reserve Fund.
Where does the money go? Our three greatest expenses are the Management Fee (32%), Reserve Funding (24%), and the Landscaping costs (22%), respectively. Three-quarters of our annual dues are allocated to managing the business of the HOA and landscaping services for the common areas; the last quarter goes to the Reserve Fund. Road maintenance is scheduled for 2027, and the schedule of required funds for this capital expense has not been keeping pace with inflation.
Board approves a 5.8% increase in the annual dues to address inflationary increases to goods and services; as well as increasing funding to the capital reserve. The 2024 Dues are now $82.50 per quarter; a $4.50 increase.
Capital reserve study planned for mid-year.
Delequent payments of homeowner dues approach $1,000 dollars. Approximately 17% of the homeowners in the Association.
Board approves motion to remove late and miscellaneous charges to homeowners’ AR accounts to encourage dues payments before December 31,2023. Many of these charges are the result of difficulties with using Cadden’s new payment system.
Annual Meeting is set for January 23, 2024, 5PM, at the Oro Valley Library
The approved 8.3% Increase equates to $2 Dollars a month for each Lot Owner. The Quarterly Assessment for 2023, will be $78 Dollars.
Why was the Increase Necessary?
Our 2022 operating expenses ending on September 30, 2022, have generally been within budget with the exception of Landscaping. However, the loss of three common area trees, two to monsoon storms, and one that was causing root damage to a homeowner’s property, have exceeded our landscaping budget by $1,346. An additional October expense was to remove drought-killed vegetation in our common area adjacent to the golf course. These expenditures will exceed the 2022 year end landscaping budget by approximately $3,300.
2023 Assessment Increase
Addressing these extra-ordinary landscaping expenses to as capital expenses reduced the cash balance of the capital reserve account. It was recommended that the 2023 assessment be increased to provide sufficient funds for capital funding, as well as inflationary impacts to operating expenses. The recommendation to the Board was for an 8.3% increase. This increase is equal to the Estimated CPI for 2022; the maximum allowed by Section 6.03c of our CC&Rs, without requiring a special vote of the Association membership. The Board approved this increase at the November 3rd meeting.
Board Members Present: Derald Owens – President Hugh Mosher – Vice President Todd Fedoruk – Secretary/Treasurer Joe Recchio – Member at large
Management Representative: Jose Becerra – Cadden Community Management
Homeowners Present – None
QUORUM: Requirement is Three (3) directors
HOMEOWNER INPUT – None
APPROVAL OF MEETING MINUTES
MOTION: To approve the October 27, 2021 Board of Directors Meeting minutes. – Approved
President Report Overall the community has operated smoothly. Weeds in the front yards, and parking issues continue to be occasional problems within the community. These issues are usually resolved quickly, without further enforcement action.
Issues with inconsistent response and support from Cadden personnel was discussed. According to Cadden, they have experienced recent growth and employee turnover. Our issues have been noted and will be addressed by Cadden management.
Treasurer Report Financial Report for the period endinbg September 30, 2022 – Operating Account is healthy – Reserve Account is behind schedule, with unexpected espenses for drought and monsoon damage to common area trees and vegitation. – Homeowner Dues are up to date. – There are no unpaid invoices.
Operating Expenses Operating expenses ending on September 30, 2022, have generally been within budget with the exception of Landscaping. The loss of three common area trees, two to monsoon storms, and one that was causing root damage to a homeowner’s property, have exceeded our landscaping budget by $1,346. Additional common area landscaping work behind Lot 28, to remove drought-killed vegetation, was approved by the Board, and was scheduled for late October. These expenditures will exceed the year end landscaping budget by approximately $3,300.
The Board decided to consider these extra-ordinary landscaping expenses to the common areas to be capital rather than operating expenses, since these were one-time expenses (i.e. tree removals and drought-caused damage to vegetation), rather than normal maintenance work.
MOTION: To approve the financial report for September 30, 2022 as submitted. – Approved
Manger’s Report Jose Becerra, Community Association Manager
MINUTES & AGENDA:
The current agenda and minutes of the previous meeting have been included in the Board packet for your review prior to the meeting.
Copies of the balance sheet, budget comparison report, and financial summary for September 2022 is included in the Board packet.
A copy of the full financial reports for September 2022 has been forwarded to the Board of Directors.
MANAGER’S ONGOING ACTION LIST:
Reviewed September 2022 financial reports.
Fielded phone calls and emails from homeowners.
Interacted with the Board members via email and telephone.
Interacted with vendors on behalf of the association.
Reviewed Association invoices and bills as received and coded for payments.
Sent out violation letters as needed.
MANAGER’S COMPLETED ACTION ITEMS FROM LAST MEETING:
Annual meeting was held in January 2022
Provided board with the updated Attachment A Effective August 01, 2022.
Drafted 2023 budget
Entryway solar lighting reimbursement The Board approved payment to reimburse Todd Fedoruk for the purchase of the replacement solar lights.
Community Garage Sale – November 5 An Ad has been posted on Craig’s List and ‘A-Frame’ signs will be placed along Naranja Drive for this Garage Sale.
Draft Budget for 2023 Addressing extra-ordinary landscaping expenses as capital expenses will reduce the cash balance of the capital reserve account. It is recommended that the 2023 proposed assessment should be increased to provide sufficient funds for capital funding, as well as inflationary impacts to operating expenses. The recommendation is for an 8.3% increase, this amount equal to the Estimated CPI for 2022; and the maximum allowed by Section 6.03c of our CC&Rs, without a vote of the Association membership. If approved by the Board, this will increase the 2022 assessment by $2 Dollars per month, per Lot.
Call for Board Candidates A call for candidates postcard will be mailed to all homeowners. A call for candidates has also been posted on the HOA website and emailed to all members who have provided email addresses. Two Board seats are vacant for 2023. Todd Fedoruk has agreed to run for another 3-year term.
2023 Annual Meeting The date for the annual meeting is, Tuesday, January 24, 2023, at 5PM. The meeting will be held at the Oro Valley Public Library.
Annual Meeting on January 24, 2023
ADJOURNMENT – Meeting adjourned approximately 5:30 PM
The annual meeting of the association was conducted on-line via Go-To-Meeting, on January 26, 2022, at 5:30 PM. The meeting notice and agenda was mailed to each owner of the lot; as well as posted on the Association’s website, and emailed to members and residents that had submitted their email address to the Association Secretary.
The meeting was attended by three of the five directors, Derald Owens, Joe Recchio and Todd Fedoruk; as well as the recently appointed HOA Manager, Jose Becerra. No additional homeowners attended this meeting,
With a quorum of directors being established, and (24) twenty-four of (64) sixty-four ballots being submitted via US Mail to Cadden Community Management; a quorum of the membership being reached as well, the annual meeting proceeded.
Approve 2021 Annual Meeting Minutes 24 -Yes, 0-No
Re-Elect Joe Recchio to the Board 36 – Yes, 0 – No Note: The Board had two vacancies, this allowed for a maximum of two votes per ballot to be cast; either both votes for one candidate, or one vote per candidate.
There were no other candidates listed on the ballot and there were no write-in candidates entered.
We are still short one Board member. The Directors will seek out any interested homeowners willing to serve, and be appointed to the Board.
2021 Expenses Expenses were within budget, with a 1% positive variance. Cost overruns in insurance and landscaping were offset in cost reductions in other areas. The three major expenses for the association are Administrative, Landscaping, and Reserve Funding.
2022 Budget This 2022 budget is a 5.5% increase from 2021, basically covering inflationary increases; and an increased percentage of assessments dedicated to the reserve fund. This increase is to have sufficient funds for a road resurfacing expense in 2027.
The three largest expenses still remain as Administrative, Landscaping, and Reserve Fund Requirements, respectively.
Adjournment Without any further business to discuss, the annual meeting was adjourned and the Organizational Meeting to select officers was called to order.
Selection of HOA Officers for 2022 The Board agreed to keep the assignment of officers the same as in 2021, with one exception. Hugh Mosher was selected as Vice President, replacing the retiring Ken Harry. The list of officers for 2022, is shown below.
Board of Directors and Officers of the Association
The Board meet on-line via Go-To-Meeting on October 27, 2021 at 5:00 PM. The meeting notice was posted on the Association’s website and an email posting to Association members (48) that have provided a email to the HOA. The meeting was attended by four of the five directors, Derald Owens, Todd Fedoruk, Joe Recchio, Hugh Mosher, and HOA Manager Maritza Sosa. A quorum being reached, the meeting proceeded.
A letter was received from two households (1) questioning the need to expend funds for street sweeping, (2) requesting a tree stump removal and wanting replacement trees planted in the common area, that were recently removed, and (3) give consideration to replacing the existing roadway with new asphalt, as opposed to continuing crack seal and chip seal layer maintenance.
Homeowners questioning the value of street sweeping is a annual event around Budget time. Street Sweeping is performed quarterly, at an annual cost of $7.35/Lot. In years past, this service was cancelled to save money, then reinstated, after homeowners complained about debris accumulating on the roadway and neighbors bickering over who was responsible for sweeping up leaves and other debris not from their yard. This year, the Board has decided to cancel the sweeping service starting in 2022, and apply the $470 annual savings to the capital reserve fund. Homeowners will be responsible for maintaining the appearance of their section of roadway adjacent to their property, regardless of the origin of the debris. If this change in policy results in a deteriorating appearance of the community, or excessive enforcement action by the Board, the decision to reinstate the street sweeping service will addressed.
Common Area Tree Replacement
The Board will investigate the cost of replacing the two trees lost in the common area. This area lacks irrigation and will require a means to providing water for the trees to survive, until they “take hold”. Replacing these trees and providing a means for their survival will be a capital expense, that will most likely require a special assessment and approval by the Association members. As for the stump removal, the Common Area is a “natural” landscape, so removing the stump was not planned for in the scope of work. We will investigate the cost of stump removal and decide the course of action at a later date.
According the Cactus Asphalt, our roads are capable of receiving one possibly two chip seal layers before an asphalt replacement is required. We have reached out to Cactus to receive a budgetary estimate for an asphalt replacement. In the meantime, the current plan is to apply a chip seal layer in 2027.
Minutes for the October 15, 2020 Approved
Operating Fund is in good shape; expenses are within budget.
Reserve Fund is down after planned expenses for road and tree maintenance. A portion of the planned 2022 5.5% increase in the assessment, and the $470 from the cancelled street sweeping expense will be added to the Capital Reserve Fund.
No Unpaid Invoices
Delinquent Assessments total $141; the majority of which is from one homeowner.
Cadden Management fee increases by 5.3% for 2022, to cover inflationary costs. Other office expenses from Cadden increase as well.
Budget for 2022 Approved
Increase of 5.5% was approved to meet inflationary increases in administration and capital funding requirements.
The Quarterly Assessment increases by $3.75 ($15.00 annually). The 2022 Association assessment will be $72 per quarter ($288 annually).
The Street Sweeping operating expense ($470) will be cancelled for 2022. The savings in this operating expense will be added to the capital reserve fund.
Call for Candidates
Two Boards seats are “open” for 2022. A mailing will be sent to each Owner of the Lot, seeking candidates for these seats. Joe Recchio is seeking reelection for another 3-year term. The deadline for having your name on the ballot in time for the Annual Meeting packet printing is November 30. After that date, anyone wishing to run for a seat on the Board will have to be a “write-in” candidate.
Annual Meeting Wednesday, January 26, 2022 at 5:30 PM is the date for the Annual Meeting of the Association. At present, the Oro Valley Library is not accepting meeting room reservations, so this meeting will be an on-line meeting. One meeting packet and ballot, will be mailed to the Owner of the Lot, in early January 2022, pursuant to State Law.
The Board of Directors’ Meeting will be on-line via smartphone, tablet or PC, using the Go-To-Meeting application. You can can also just listen to the audio portion of the meeting by dialing in with your phone.
Please join the meeting from your computer, tablet or smartphone.
At the October 15th Board of Directors meeting, the 2021 Budget was approved. This budget requires a 5% increase of the 2020 HOA assessment to cover increased costs for landscape maintenance, and capital funding requirements.
The 2021 HOA Dues are as follows: $273/year ($68.25 paid quarterly). This is an increase of $13 from 2020.
Budget details will be mailed to each homeowner as part of your annual meeting packet.