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FROM THE PRESIDENT'S DESK We all have heard the story of Chicken Little. One day while in the woods an acorn fell on his head. He was overtaken by panic and was sure the "sky was falling. " He ran off to warn the King, and along the way he told his story to Henny Penny, Ducky Lucky, Goosey Loosey, and Turkey Lurkey. Prior to hearing Chicken Little's story none of them felt there was a problem. However, Chicken Little was so convincing they followed him blindly. Of course the sky was not falling. However, the story does demonstrate how one person's unfounded perceptions, if repeated loud and often can become reality to others. Chicken Little was not bad. Nor did he intend to create panic. He was well intended, but mis-informed. Sometimes a community, such as ours, mimics the Chicken Little story. A well meaning person, educated and experienced in the business world believes that some things are not being done properly or at least not done the way they would do it. Although the person has business experience, and does research, they are not experts in HOA law and/or proper practices. At first they talk to there acquaintances about the perceived problems. Then the acquaintances tell other people, and before you know it there is a major problem that will surely bring our community to ruin. The danger here is not with informed and involved residents. They are aware of what is real and what is not. The danger is the uninvolved residents who believe the misinformation and add to the panic. Kelly G. Richardson, managing partner of a law firm specializing in HOA law, has been writing articles for the Press Enterprise. On July 3, 2012 he wrote an article entitled "How Healthy Is Your HOA?" In that article he pointed out nine areas that can be looked at to determine the health of a community such as ours. Maintenance – "Is the property well maintained?" Just look around you and judge for yourself. Yes, you can find a spot or two that may need some work, but due to the hard work of our Landscape Committee and Maintenance Department, we have beautiful well maintained residences, common areas and facilities. Management – "Professional Management is not a luxury. " Our management company is top of the line. Does that mean that we are going to automatically renew with them on an annual basis. No! The Board has taken a firm line with them and we are in the midst of a contract that has many commitments and promises that must be fulfilled by them. However, the Board recognizes the vast experience and resources the company has to offer, and is working very closely with them to insure Sun Lakes is getting everything it needs and deserves. Communication - "Does the association keep its members informed?". The Board uses our in house television station 97, Lifestyles Magazine, Bulletin Boards, and District Delegate Assembly to maintain constant communication with the community. All important notifications and information is displayed on a regular basis through these media. Insurance - "Review the HOAs summary of insurance, and the risks it has insured. " One of our biggest expenses throughout the year is insurance. The Board reviews our insurance annually to be sure that Sun Lakes has comprehensive and adequate coverage. Financials - "How many members are delinquent? Is there a budget? How long has it been since assessments were increased?" Again Sun Lakes is in terrific shape. Our delinquency is less than 3 percent. This is compared to the average which is about 7 percent. We have had minor assessment increases over the past couple of years, but not excessive. The current Board has produced budgets that are meaningful, and due to good oversight we have had modest surpluses. Reserves - "The law requires HOAs to have very detailed reserve funding disclosures. A short sighted HOA skimps on reserve-fund saving to artificially avoid assessment increases, but that is actually a form of growing indebtedness." Our reserves are at approximately 85 percent. Most experts will tell you that 75 percent is very good. Our percentage funded continues to go up even though we are adding new things to the Reserves all the time. The newly added items consist of capitol improvement projects and other are items that previously existed but we discovered were not already in the report. Board Meetings – " HOA boards must by law meet at least quarterly… all but the smallest associations meet at least monthly. Can you By George Moyer, SLCC HOA President observe the meeting?" Our Board meets twice a month in Executive Session and once in Open Session. The Open meeting is recorded and shown daily on Channel 97. This is done to insure that anyone interested has an opportunity to observe the meeting. Our meetings are well structured, precise in the topics, and follow generally accepted guidelines of conduct. Time is always allotted for audience comment. Board Minutes - "Board Minutes must by law be made available to members within 30 days, and are a very informative resource. Are there minutes? Do they reflect regular meetings? What do they tell you about what the Board is addressing? Board Minutes are posted in a timely fashion in all of the club houses. In addition, they are available upon request at the Administration Building. They accurately reflect the topics discussed and actions taken. Governing Documents – "Do they seem burdensome or unduly strict?" Are there any rules at all? Yes we have rules, CC&Rs, and Architectural Standards. Some people feel that there are rules that are too restrictive. However, it is the rules and regulations we have that keep our community in the great shape that it is. The Board recognizes the changing environment and diverse make up of the community and is always receptive to listening to proposed rule changes. In fact, hardly a month goes by where we are not acting on at least one rule change. Updating or changing the CC& Rs is a whole different story. They can not be changed without a membership vote. In our case it takes a special election and super majority to make a change which is a very costly process. What is important to remember is that current laws always supersede older documents, such as our CC&Rs. If we were to change the CC&Rs with every new law that is passed we would be having costly special elections every year. Are there always going to be hurdles to jump and questions that need to be addressed? Yes. However, we live in a great place, and Sun Lakes is in excellent condition. Don't be confused by the Chicken Littles of this world. Don't be afraid. The sky is not falling. In fact, most days the sky at Sun Lakes is bright blue and sunny. community news | september 2012 | 3