In blatant disregard of the Declaration of Reservations, the Maintenance Fund has continued to defund the POA. Since March (for February receipts), the receipts YTD (Oct 23 to Apr 24) totaled $3,587,127.66 of which $2,229,912.16 went to the Amenities (Resort) owner and $1,282,215.50 went to the POA less 39.5% ($506,475.11) leaving us with $775,740.39 for operating the POA. Until the court rules on the recent lawsuit, the POA will be forced to make severe cutbacks in spending to avoid running out of money by the end of the current fiscal year on Sept 30.
As the agent for the POA, the Maintenance Fund deducts $15,000 monthly for services they should provide. However, our last report shows there is $1,684,736.78 in current outstanding liens to be collected for past due fees owed. There is an additional $2,795,782.03 in outstanding dues from prior years. The Maintenance Fund provides no information on how/when these monies will be collected or paid to the POA. The Declarations & Reservations states that the “…Maintenance Fund Association SHALL distribute not less than monthly all Base Maintenance Fees collected…”
According to the Declaration of Reservations, the $2,229,912.16 of POA fees that are paid into the Amenities Fund can be used for the operation and ownership of the amenities for all of Horseshoe Bay. There is no distinction as to how these funds are to be allocated otherwise, for members or non-members of the resort, we are still paying for these amenities, even outside of our POA. The POA function as outlined in the Declarations and Reservations shall include “….all other functions reasonably incident to maintenance of the safety, health, welfare and recreation of the property owners and residents of the Subdivision (our POA);”
Although the Maintenance Fund has NOT paid the POA since March, our expenses continue. Our annual budget of POA fees to be received from members is $1,626,187.50 less what is paid immediately to the city of $642,344.06. This leaves a net of $983,843.44 of which we have received $775,740.39 (79%). There are five months left in our fiscal year as of April 2024, the POA has paid the following:
$28,082.30 to the Declarant per the EC&R’s as mandated on page 128 of the Declarations. Annual payments are $48,776.97
In addition to our obligation to the Declarant, we have paid $99,077.98 TOTAL ADDITIONAL MONEY for the beautification of our entryways. This does not include the maintenance of Quail Point, Fox Park, the hiking trails, or campground.
This concludes my report.
Respectfully submitted,
Belinda Roberts, Treasurer
|