There's no dues increase in the proposed Fiscal Year 2011-2012 budget of the Seven Lakes Landowners Association [SLLA].
That's the good news.
But initial reports from the recently completed Reserve Study suggest that substantial annual increases to reserve funds will be necessary over the next five years -- increases that may be hard to achieve without future dues increases.
"This year, we did not attempt to incorporate, at this late notice, any dues increase," Treasurer Denny Galford told the SLLA Board of Directors during their Monday, January 10 Work Session. "We want to take time to review operating costs and whether we can improve those first. If we can perfect current operations, then we may be able to generate additional monies.”
Detailed information on the Reserve Study and the proposed FY2011-2012 budget were not presented at the meeting, but discussion indicated that anticipated capital expenditures planned for next year include $125,000 from unrestricted reserves for work at the stables, among other projects, and $80,000 in restricted reserves to complete road repairs at Lancashire and Dogwood Lane -- two of the four areas identified as needing significant repair work prior to a community-wide major road repaving project.
The Board is expected to vote on the proposed budget during the January 26 Open Meeting.
Reserve Study recommends building reserves
The recently completed Reserve Study is a comprehensive evaluation of all community assets and infrastructure -- a long range planning and financial tool that includes recommendations for the next thirty years.
At Monday’s meeting, Director Bud Shaver gave Board members a summary of information from the Study that will be made available for public review once the full report is formally accepted at the January Open Meeting.
Shaver has advocated forming Ad hoc committees to look at each area covered by the Study and has also asked the Finance Committee to review the financial recommendations presented in the document.
“They have done a superb job of defining what needs to be done and anticipated costs,” Shaver said of the Reserve Study, noting that the report indicates reserves will reach a critical juncture in 2017, if the Association continues to fund them at the current level.
The Study recommends incremental but substantial annual increases to the reserve funds: $300,000 in 2012; $471,000 in 2013; $642,000 in 2014; $660,000 in 2015; and $679,000 in 2016 -- a total of $2.75 millon over five years. The Association's total budget for this year was $1.4 million.
Treasurer Denny Galford said he was very pleased with the study, adding that it could serve as a consistent base for planning as the composition of the Board changes from year to year.
“The important thing is, this year we’re not increasing dues but cutting costs,” Galford said, explaining that, at least initially, reductions in operational costs will be used to offset the recommended contributions to reserves.
He anticipated that sufficient funds will be set aside to bring the Association into compliance with the Reserve Study recommendations by the end of fiscal year 2012.
Once approved, both the Reserve Study and Shaver’s summary will be posted to the SLLA website, and copies will be available for review at the office.
Boating rules amendments spark debate
Numerous and repeated boating violations observed last Summer on Lake Sequoia prompted Director Chuck Mims to draft several proposed amendments to boating rules and regulations that specifically address safety violations and proposed penalties. The Board is scheduled to consider those rules changes under action items at the SLLA Open Meeting on January 26.
During Monday’s Work Session, Director Chuck Mims presented the amendments and explained that the purpose for the recommended changes is to provide a fair and even application of rules. The amendment calls for increasingly severe consequences for first, second, and third offenses; however, Director Melinda Scott expressed concern that the facts of a case -- not repeated violations -- should determine the penalty.
“I agree with the proposed penalties, but to codify them by frequency is a mistake. In regular judicial processes, it’s not just how often [that determines penalties] but the severity of the violation and circumstances surrounding it.”
Scott recommended that the proposed penalties should be included, but only as a recommendation.
Mims responded that he was concerned about impartiality and the possibility that rules could be applied to some landowners and not others.
"How do we enforce based on ‘I like you and I don’t like you?'" he asked. “What we need is a law that is not open to interpretation.”
Scott countered that there has been no negative feedback from homeowners contesting the impartiality of Judicial Committee rulings. If a Judicial Committee member had problems with rendering impartial decisions, Scott added, he or she should be removed.
“When Judicial looks at a violator, the decision-making process will be the same," Scott said. "It’s more than just frequency, it’s the intensity of the type of penalty, and it shouldn’t be the same penalty when you have different violations."
Looking for a compromise, Zielsdorf suggested amending the rules so that any suspension be imposed for a minimum of thirty days and also involve a fine. He also suggested that after three violations, a member could permanently lose privileges.
"It is crucial that we come together and put something together," Zielsdof said. "We do not want to go through another boating season without new rules in place."
Wildlife Commission Enforcement Presentation
Exploring options for boating safety enforcement, several Directors to met recently with Sgt. Mark Dutton of the NC Wildlife Resources Commission [NCWRC] to discuss options for safe boating enforcement.
At the SLLA Board’s invitation, on Wednesday, January 26 from 6:00 pm to 7:00 pm, Sgt. Dutton will provide an informational presentation and be available for questions. All interested residents are encouraged to attend, as this "meet and greet" will provide an exceptional opportunity to learn what services are available from the State and, perhaps, to dispel some common misconceptions.
Toe drains to be installed on dams
Four of five recent dam inspections indicated no apparent problems, reported Cochran, but a fifth inspection -- of Little Juniper Dam -- raised concerns and generated a recommendation that a toe drain be installed a the foot of the dam. Toe drains are used in earthen dams to prevent saturation of the soil on the dam's face, particularly near the bottom of the structure.
While the problem at Little J has been in existence since at least 2008, according to reports filed by the engineering firm S&ME, Cochran recommended correcting the problem sooner rather than later.
In addition, she recommended installing a second toe drain at Sequoia Dam, which would reduce water pressure within the dam.
Cochran told the Board that some of the necessary work can be completed by in-house staff and that the recommended repairs had been included in the proposed Fiscal Year 2012 Budget.
Other business
In other business on Monday, January 10, the SLLA Board:
- Heard from Cochran that work is not yet complete at Echo Dam, but the roadway was reopened for traffic. Cold temperatures and high soil moisture caused delays in the project.
- Heard from Cochran that five inspectors visited the Northside Pool and made recommendations. “I feel confident that it’s not as bad we thought it was,” she said, referring to the condition of the thirty-year old pool. Some work, including adding additional bars to some points of the pool fencing, will be necessary.
- Prior to the Work Session, the Board met in Closed Meeting to discuss legal and personnel issues.
