Quick Recap

Due to scheduling conflicts and time zone discrepancies affecting a quorum, the formal meeting was postponed. However, the members present engaged in a working session to review urgent financial and maintenance items. Key topics included the high cost of water and landscaping (currently consuming ~50% of the budget), the review of a new landscaping/snow removal proposal, and the urgent need to move reserve funds into an interest-bearing account.

Next Steps

  • The HOA Board: Reschedule the formal budget meeting for December 14th.
  • A Board Member: Contact a wealth management firm to inquire if they handle HOA accounts for better interest yields on reserve funds.
  • The Board: Review the comparison between the current landscaping contract and the new vendor proposal.
  • Management Company: Coordinate with the Board to schedule the annual community meeting in January and prepare for board elections in March.

Summary

Attendance and Scheduling

Two board members were present. Due to the absence of a quorum (scheduling misunderstandings and travel), the group agreed to reschedule the official voting meeting to Sunday, December 14th. The Board noted the need to set up the Annual Community Meeting in January and prepare for the election of one board seat, as that term expires in March.

Snow Removal and Maintenance

The Board reviewed the recent snow removal performance. The current vendor was commended for their timeliness, having cleared roads by 6:00 AM. A proposal from a competing vendor was discussed; while their maintenance bid is slightly lower, there are concerns regarding their equipment capabilities (salting vs. plowing). The Board needs to verify if the new vendor possesses adequate snowplows before making a decision.

Financial Review and Budgeting

A significant portion of the discussion focused on the 2025 budget.

  • Expense Analysis: It was noted that water/irrigation and landscaping maintenance combined account for approximately 50% of the total budget (approx. $60,000). Management fees are currently the lowest of the three major expense categories.
  • HOA Dues: The Board discussed a potential 3% annual increase in HOA dues to keep up with inflation and rising costs.
  • Billing: It was noted that the billing vendor may have already sent out annual invoices reflecting the previous year’s rate. This will need to be addressed with the management company.

Reserve Funds and Investments

The Board identified that approximately $102,000 is currently sitting in a checking account earning negligible interest.

  • Goal: The priority is to move these funds into a high-yield savings account or a secure investment vehicle to generate compound interest.
  • Action: A board member will research wealth management firms that specialize in HOA accounts, noting that high-yield rates have recently adjusted to around 3.4% - 3.5%.
  • Reserve Status: The Board acknowledged that the reserve fund is currently behind the 2026 target of $118,000, emphasizing the need to reduce expenses and increase investment yield.

Landscaping Strategy Proposal

To address the unsustainable cost of irrigation (approx. $23,000 annually), a proposal was introduced to consider “Xeriscaping” (drought-tolerant landscaping) in future projects. This would involve replacing water-intensive grass with bark, rock, and native plants. The Board agreed that such a significant change would require a community vote but would result in substantial long-term savings.