Westside Treasurer Don Freiert is recommending a two percent dues increase on developed lots, and just over six percent on undeveloped lots, for Fiscal Year 2012-2013. Even with the dues increase, balancing the budget will require reducing the amount the Association devotes to capital projects and capital reserves by $42,000.
“A more challenging year” faces the Seven Lakes West Landowners Association [SLWLA], Freiert told his fellow Directors during their Tuesday, December 13 Work Session.
Anticipating a $94,000 increase in expenditures but only $52,000 in additional revenue, Freiert recommended an overall decrease of $42,000 in allocations to capital reserves and proposed capital projects -- an 8.5 percent reduction.
The additional revenue reflects an increase of dues on improved lots from $912 to $930, and an increase from $684 to $726 on unimproved lots. Freiert explained the steeper hike on unimproved lots is aimed at gradually bringing the dues on all lots into parity over the next seven years.
Responding to a question on the rationale for parity, SLWLA President Mick Herdrich said the covenants allow for only one type of member, so the Board felt strongly that all should contribute equally.
“The budget expenditures are mainly operating expenditures -- that is, what it takes to run the Association," Herdrich said. "Whether they [members] have a house or own a lot and live in Michigan, we still maintain the roads, the pool, the lake.”
Treasurer Freiert agreed, noting there are also instances of lots being purchased exclusively for access to the community’s amenities.
“You can’t make a distinction," said Freiert. "Yes, it is true some own lots and never come here. But, the reality is, they are either part of the community or not. The community has to exist and operate. This puts all on a equal footing with everyone else.”
Administration and infrastructure drive expense increases
The $94,000 projected increase in expenditures is drive largely by a $44,000 increase in administrative expenses, and an additional $31,000 allocated for infrastructure, Freiert reported. The Association plans to add an additional CAS staffer to the office at a cost of $49,000, an expense that will be partially offset by the elimination of a part-time compliance officer at $5,000. Freiert emphasized the addition of the staff member has Board approval and is based on a recommendation from the Human Resources Committee.
A $6,000 reduction in insurance premiums and $4,000 savings on audit expenses are expected to be offset by increase state and federal income taxes.
The increase in infrastructure spending includes an additional $20,000 for Road Maintenance and $11,000 for an expanded yard waste program, boats storage lot maintenance, and landscaping.
Freiert noted increases at Johnson Point related to enhanced security measures and also expanded Roving Patrol costs and guardhouse supplies and equipment. In addition, the budget includes $4,000 based on a planned expanded lake quality study.
The Treasurer recommended no change in debt service costs next year. Capital Reserve allocations for roads $80,000, while allocations for other capital projects will increase by $38,000. A proposed $279,500 for capital projects will include for work on mailhouse relocation and improvements to the front entrance, additional fire hydrants, and other improvements.
A complete copy of the proposed Fiscal Year 2012-2013 Budget is available for review at the SLWLA office and on the Association website. Residents will also have an opportunity ask questions or provide comment on the budget during a Town Hall meeting scheduled for Wednesday, January 4 at 7:00 pm in the Great Hall of the West Side Park Community Center. The Board will review the budget again during the January 10 Work Session, and the Board-approved budget will be submitted for final vote at the Annual Meeting in March.
Improvements lower pond & dam
Many issues both structural and safety-related are being addressed simultaneously at the lower pond dam, Infrastructure Director John Goodman reported.
Work has included removal of a tree and repairs to the dam face; improvements to the storm drainage system, overflow and spillway pipes, and widening of the dam itself to allow for a pedestrian walkway and to eliminate any chance of erosion or collapse on the side facing the pond.
One related item that drew considerable interest and discussion in Tuesday's meeting was a proposed "guiderail" system to separate pedestrians from passing vehicles on the dam.
Describing standard guiderails as unattractive overkill and heavy steel-backed timbers as too costly, Goodman instead recommended a lighter single-rail version of timber guiderails that he said is very attractive and modular -- that is, they could be relocated if desired.
Goodman acknowledged there has never been an accident at the location, but said guiderails were a budgeted improvement that would enhance safety along the walkway and also the two corners of the pond where they intersect with Lakeway Drive. Guardrails at those curves would be less obtrusive than the existing white vertical posts, he noted.
“The vision of the entry is that it is one of those things that everybody loves,” said Goodman. “I would like to reopen the view to the lake and make it one big feature of our community . . . These are high quality and they will look nice.”
However, some questioned whether the guiderails were even necessary.
“I don’t like the epidemic of one,” said resident Roger Brooke. “There was one person who couldn’t make the turn so we put in the posts. Now we’re talking about taking out the posts and putting in a guardrail.”
Brooke said he was concerned over both costs and aesthetics and argued that pedestrians share the road with vehicles throughout the community, “So, now, we’re suddenly going to worry about that in one place?”
Another resident questioned whether deepening the pond would be helpful, particularly for irrigation.
Goodman responded that the main purpose of the pond is to beautify the area. And while natural springs normally provide a more-than-adequate water level, he said the current improvements also include installation of an underground sleeve where a future water line could be located to draw irrigation water up from Lake Auman, if needed.
“It doesn’t matter how deep it is, we need to maintain the water level in the pond for an aesthetic reason,” Goodman said.
Dam bypass road
Reporting for the Long Range Planning Committee, Director Freiert said there was no news related to the ongoing effort to develop a bypass road around Auman Dam.
“This is a continuing effort to see if this is a possibility," he said. "We will come back to the community for substantial input before going further.”
Responding to resident Jim Ballew’s question on conceptual design, Freiert said there are multiple variations on where the road could be placed, and that other questions -- such as how high a bridge would be needed over the stream at the dam's foot -- were premature.
“There is no road plan . . . at this stage it is simply speculation," Freiert explained. "If we could? Where we could? And could we get the right-of-way across any of those variations? There is no concept other than we might be able to draw a line from point to point -- that is all there is today.”
Treasurer’s Report
Expenditures for the month were normal with ongoing expenses posting slightly higher than anticipated, reported Freiert.
Non-recurring expenses noted include $36,362 for Johnson Point marina dock resurfacing; $18,500 for road improvements; $9,600 for collection fees under the legal line item; and $6,700 for gatehouse supplies.
Based on a recommendation by Freiert, the Board unanimously approved the transfer of $25,000 from unrestricted funds to roads and related infrastructure account.
Freiert also reported annual tax returns have been filed and the Association received an unqualified opinion on the recent biannual audit. A full copy of the audit report is available for review at the SLWLA office.
Community Events
The community Christmas Party events were well-attended and very well-received, reported Director Jim Ferguson.
An evening party for adults with Basco Catering providing delicious treats was extended for longer than anticipated, as over one hundred and thirty residents danced the night away; and an afternoon party with special guest, Santa Claus, was attended by sixty local children.
Ferguson thanked the many volunteers who coordinated the parties and also those who decorated the Westside Park Community Center. In addition, he thanked residents for their generosity in donating enough toys to overfill four boxes for the U.S. Marines Toys for Tots program.
The next community event will be “Wine, Cheese, & Chocolate,” scheduled for February 17. Tickets will be available for purchase in mid-January.
Real Estate Open House
Looking to assist potential new residents with navigating the community, Director Ferguson recommended allowing placement of Realtors signs to guide visitors to Open House events.
Specifically, he suggested signs could be placed at strategic locations up to one hour before and one hour after the Open House, and that maps be distributed by gatehouse guards.
“We are looking to help the community maintain or improve our values and also make it easier for those not familiar with the community to get around,” he explained.
Lake & Dam
Rather than start from scratch, the Lake & Dam Committee is considering resurfacing the existing swim platform, reported Director Adam Wimberly.
Resident Dick Williams also recommended that the decks of the Association’s two boats should be resurfaced with a more durable material. Wimberly agreed and noted that others have also suggested installing a winch and sturdier guard rail to assist with buoy retrieval.
Bruce Keyser, Sr. was appointed to the Lake & Dam Committee by unanimous approval.
Safety and Security
A proposal to install an additional access gate in Seven Lakes West was withdrawn due to lack of support, President Herdrich told The Times.
Taking a humorous look at recent repairs made to the main entrance gates, Director Jim McCarthy joked they were expected to work for at least the next hour.
Additional repairs & improvements
Repairs have been made to the pool cover, said Community Manager Joan Frost, and blinds were installed in the Great Room of the Westside Community Center. In addition, two recently painted walls in the building were damaged by tape and repair costs were assessed to the responsible party.
During her report, Frost also said she assisted with budget preparation, is using new letter developed for compliance violations, and that materials ordered for the deck resurfacing project at Johnson Point are expected any day.
Noting that fencing at the storage lot has been knocked down six times over the last year, she said they are considering enlarging the gate area and also adding electricity.
During a brief discussion related to boats stored directly in the gravel roadway of the lot, Wimberly said those were boats that had been pulled temporarily from Johnson Point due to the renovation project.
Other business
In other business on Tuesday, December 13, the SLWLA Board of Directors:
• Unanimously approved formation of a new committee to oversee amenities. Chaired by Nancy Workman, the committee will develop guidelines to optimize and protect the use of various community amenities, including the pool, Johnson Point, and Westside Park Community Center.
• Heard from Sessler a request for clubs and organizations to send information for publication in the monthly Association newsletter. She also said the Communications Committee could use help with photography.
