Subject: Duquesne Place POA Board Appeal to Duquesne Residents for Dues increase 2016
Dear Residents:
Those of you who have attended the past few POA Annual meetings and reviewed reports from this board know that our financial situation is under stress. We are experiencing a shortfall of approximately $4,000. Our reserves ran out at the end of 2012 due to extra-ordinary expenses involving draining issues, trees surrounding the subdivision, streetlights, and landscaping to name a few.
When the subdivision was established around 1998, Chenal Properties provided the newly established POA seed funds to cover first year expenses. Money left over from that first year was set aside and carried over to the following years’ budget. The annual dues were set at $200.00 per lot until 2012. The POA Board could have increased those dues by at least the CPI each year but voted not to do so due to the reserve funds on hand, which had only been used lightly for emergencies. Unexpected expenses due to the aging of the subdivision plus extra-ordinary damage from heavy rains in the past and other factors caused the POA to draw upon the reserves. In hindsight it would have made sense to have taken the CPI from the beginning to help keep the reserve fund in a strong position (which is what Chenal Properties has been doing).
To rectify this shortfall, the board is seeking your support for a an increase in our annual dues beginning January 1, 2016 of $43.39 which when added to the 2015 dues of $206.61 would bring the annual dues to $250.00 per lot. This would add $8200.71 to our collected dues which would allow us to cover current annual expenses and allow us to begin building a new reserve for emergencies. We propose to cap these reserves at $18,000. The board will continue to monitor this situation to insure the reserve has been met for estimated expenses for the New Year. If this slight increase allows us to pay our expenses and maintain a reserve, then dues may stay the same or may slightly increase by the CPI. It is possible we might be able to reduce the next year’s dues if it seems clear that the reserve will increase too far beyond the cap.
The board, supported by our treasurer, believes this increase is necessary to be able to operate effectively and keep our subdivision in good condition. Otherwise we will be faced with a continuing struggle to meet our obligations and will have to defer needed maintenance.
Please provide us with your approval and comments no later than April 1, 2015. You can email your response to . Please put POA dues in the subject line and your residence address. The board will review the results and then determine what the next step will be.
According to Article 8, Section 2 of the By-Laws that govern our subdivision (available on line at our website duquesneplace.org) 75% of the residents must approve any increase beyond the CPI. If the board receives a mostly positive response by email then a formal ballot will be sent out and a special meeting called for later in 2015.
If this request fails then everyone will understand that the board will continue to do our best to maintain the subdivision although some needs may be deferred for the reasons outlined above.
Sincerely,
POA Board