Framing the Whetstone HOA Finance Issue

SATISFYING WHETSTONE NEEDS

The Whetstone assessments no longer satisfy the needs of the community, and the Whetstone Board is increasingly impatient for an assessment increase.

BOARD HAND WRINGING
The Whetstone Board of Directors has bemoaned its fiscal condition year in and year out reminding residents that it takes money to cut down its pin oaks and repave its roads.

UNCONVINCING REASONS
The reasons for an increase cited by the board have been unconvincing including the need to increase assessments every 4-5 years, county tax increases, and inflation.

SOLUTIONS
The solution to fiscal challenges is management. In managing the Whetstone financial challenge, the board actions have included pushing maintenance projects into succeeding years and dabbling in reserve investment strategies.

RESIDENT UNWILLINGNESS
The residents have shown an unwillingness to accept an increase in Whetstone Assessments. With a current quarterly assessment of $420.32, the Whetstone Board has voted unanimously to seek an increase this October. The annual increase amount tossed about was $150. A recent attempt to increase Whetstone Assessments by $116 failed to achieve a quorum vote. An earlier attempt at a cost of living increase of 1-2% was a nonstarter.

BOARD CHALLENGE TO EXPLAIN
Having failed to provide convincing reasons for seeking an increase in earlier attempts, the Whetstone Board now needs to explain exactly what the increase would deliver if approved and exactly what the consequences of disapproval would bring.

ASSOCIATED BOARD ACTIONS
The Whetstone Board attempted a program of austerity and an appeal to volunteerism to contain the problem. The Whetstone Board President also cracked down on blatant board member favoritism in project selection and approval. Only partially successful, one need only consider the recent street repair locations and county easement survey decisions. One board member actually threatened to sue if I highlighted board favoritism again and even called out my regular attendance at Whetstone Board meetings as evidence that I should know better [WHC Trasurer, November 21, 2017, 2:56 pm]. Is this proper behavior and code of conduct for Whetstone Board members?

MOST CONSEQUENTIAL
Most consequential has been the neglect of the Whetstone Board to systematically replenish reserves. The board now recognizes that this neglect cannot continue, and the reserves must be replenished beginning with making up for this earlier neglect. In June the board voted to contribute $100,000 to the reserves and accepted a $2,800 proposal for a reserve study update.

PRESSURES
In addition to replenishing the reserves, financial pressures stem from Dock Replacement, a community lighting infrastructure project, fears about inflation, tree removal and trimming, a liberal snow removal and ice treatment policy, and street repair.

EXPECTED OUTCOME
Without a program of revised financial strategy for Whetstone, the expected outcome to this financial crisis is not hopeful. Revisions to the Whetstone financial state of affairs need to include dropping the Dock Replacement, adopting a more modest snow and ice policy, and more prudent and up to date investment in CD's.

WHAT HAS CHANGED SINCE THE LAST FAILED VOTE?
1. Has board favoritism been eliminated?
2. Has volunteerism surged?
3. Has the Whetstone austerity program made an impact?
4. Have inflation concerns subsided?
5. Have reserve investment strategies including CD's proved effect?
6. Has Global Warning promised warmer winters?
7. Has the board made a compelling case to increase Whetstone assessments?
8. Exactly what are the reasons the board is seeking an increase at this time?
9. Exactly what are the consequences if the increase sought is disapproved?
10. Have residents' willingness to accept an assessment increase changed?