There continue to be rumblings about another assessment increase—the most recent one is coming from newly resigned and former board chair Diana. Meanwhile, we have a new GM who, no doubt, is still trying to get his feet on the ground and get his head around what he’s gotten himself into. And, we still don’t have a clear picture of what our financial situation really is.
What I want to know is where is Board Member Kirk Denger’s plan to change our assessment scheme to one which bases assessments on assessed property value, just like property taxes? The idea has merit and makes sense in many ways, yet the only whispers I hear suggest that nobody, including Kirk, is doing anything at all about it. Not even interested. Period.
The concept makes a lot of sense to me because we are basically a city/county and that’s how money has always been generated nationally for such entities. Sure, it is a tax. But it is not a “regressive” tax such as sales taxes, gasoline taxes, liquor taxes, and, of course, POA assessments. Let’s think like our Liberal Democratic friends and start taxing the rich. After all, if you own an $850k home on lake Balboa you are probably more well-heeled than someone owning a $125k, 50-year-old townhouse. No?”
Tom Blakeman, August 16, 2020
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I added the following information to Tom Blakeman’s article for clarification. – Cheryl Dowden
Assessment increase comment from Diana :
Taken from the comment section of an article on HSV People dot com – (Click here and scroll down to read the full comment.)
Next issue, our assessments are too low to cover the freight given that we have nearly 12,000 lots that pay ZERO in assessment dollars. It is crucial for the property owners to vote yes on an increase when you elect 4 new board members. Had I stayed on the Board I would’ve recommended an increase of $15/ month beginning in June 2021 and another $15/month beginning in January 2022. ONLY ON IMPROVED LOTS. A provision of $0 increase for proven Financial need by bringing in Your tax Return. We can afford to help the less fortunate members of our community.
Diana Podawiltz, August 15, 2020
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Kirk Denger’s Assessment Plan
Taken from the Hot Springs Village Voice (click here to read the full article)
I wish to represent my fellow HSV property owners, especially those of us who rely on fixed incomes consisting mainly of our Social Security.
I built my home in HSV and as a home builder I have been serving HSV for 40 years.
If elected as your director, I will motion and vote to balance our assessment structure to closely match our County Real Estate Tax. This will reduce assessments for 2/3 of property owners and give all property owners the opportunity pay their fair share.
The solution to financing our community is keeping property owners happy by making property and home ownership affordable, which has always been the Hallmark of HSV and should continue to be our top priority.
I wish to represent my fellow HSV property owners, especially those of us who rely on fixed incomes consisting mainly of our Social Security.
I built my home in HSV and as a home builder, I have been serving HSV for 40 years.
If elected as your director, I will motion and vote to balance our assessment structure to closely match our County Real Estate Tax. This will reduce assessments for 2/3 of property owners and give all property owners the opportunity pay their fair share.
The solution to financing our community is keeping property owners happy by making property and home ownership affordable, which has always been the Hallmark of HSV and should continue to be our top priority.
Kirk Denger, January 21, 2020
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Scott
08/16/2020 — 9:26 pm
I agree with Joe and Tom. Mr. Dingers plan has merit. I would support any type of increase. It’s vital to our chances of survival as the Village is structured today(our own independent entity).
The Board needs to review all options, thoroughly analyze each to insure it balances expense/revenue.
If the best choice is to structure like property taxes then so be it.
The only thing I would suggest is there should be an increase for all resident, with a graduate scale based on property value.
Scott
08/16/2020 — 9:37 pm
I might have incorrectly included Joe. Now realize he was the messenger of Tom’s note.
Roger
08/17/2020 — 11:03 am
You are so right. And rich people should pay more for a loaf of bread at Walmart, too. After all, they can afford it.
With this new money HSV will finally prosper and be a great little retirement community with amenities second to none.
Every option should be considered – except, of course, spending what money we do have wisely.
John
08/19/2020 — 8:26 pm
Just because one has a more expensive home does not necessarily mean that they are rich or more well to do. Every one should be treated the same regardless of how much square feet they own or are buying.
Scott
08/17/2020 — 11:27 am
Your point about the loaf of bread Is a good analogy. It proves the point there are no free/discounted lunches.
If the people on fixed income that can’t afford a loaf of bread they might have to go without unless the wealthier pay their way.
Maybe we should ask all Villagers to provide an audited financial statement and balance all wealth in the Village by redistributing the wealth. The wealthy could give money to all the less fortunate until everyone had the exact same wealth. That is essentially exactly what a graduated assessment fee structure would be doing on a smaller scale.
Charles
08/17/2020 — 12:04 pm
You cannot assign “fair value” to properties in HSV because we are split into 2 counties. Saline and Garland counties assess their real estate differently. There will always be undervalued and overvalued properties and any attempt to assign POA assessment based on property values will be met with serious opposition.
Kirk Denger’s proposal is a non-started. It’s ill-conceived and will only cause more divisiveness within our community.
If the POA needs more money, I would ask that the current BOD get a handle on where our money is being spent – FIRST – and then make a fair proposal to property owners supported by real financial data and needs, for any future assessment increase.
If you start forcing those folks with higher property values, such as your example of those who live on lakes, then those property owners are going to want more services, rights and privileges because of their higher assessments.
Kirk’s proposal will never be accepted by property owners and I for one will fight it as will many others.
So please direct your inflammatory and argumentative assessment idea to those folks who can actually do something about it. The new BOD.
Tom Blakeman
08/17/2020 — 1:28 pm
No one is being inflammatory and argumentative except you.
Keep in mind that the Board already knows that such an assessment plan has been proposed in the past and one of their current board members endorses it. In fact, he ran on that issue and got elected.
There are other options out there too besides just increasing the assessment on the residents, alah two-tier. Stop shooting the messengers of ideas and come up with a few yourself.
BTW, the board has already started trying to figure out the financial mess we are in. That’s not a new concept. “Fair Proposal”? That will be judged by the majority of property owners.
Guest
08/18/2020 — 1:22 pm
Wasn’t the current assessment structure voted on, albeit, in a rigged vote, just a few years ago? If we needed a vote to implement the two-tier system, then isn’t another membership vote necessary to implement ANY changes to the current system already in place?
Also, I looked at the millage rates for Garland County (.0012?) and Saline County (.0050?), which are different, obviously. It seems that a flat percentage across the board, regardless of county, would be in order, but it seems that considering assessments in the same category as property taxes might be problematic, to say the least. One thing I know for sure; usually any idea, plan, or scheme to “soak the rich” only causes the affluent to move their money or their property elsewhere to take advantage of a lower tax rate. I know we’re speaking of assessments, but a “soaking” is a “soaking,” regardless of the mechanism employed. A two-tier system was implemented to increase revenues to solve budgetary woes? Did costs equal or exceed the additional monies raised? I certainly hope misappropriation, malfeasance, or manipulation were not the reasons for the state we’re in. If costs outpaced the increase in revenue, then a drastic and dramatic cutting of the budget to mid-2017 levels must be in order.
And on a side note, I recall the budgetary crisis of 2010/2011, when 33% of the POA staff was let go, and over the next two weeks in The Voice I saw two department heads seeking to either increase operation hours/payroll and also a request for more equipment….strange indeed when 33% of the employees were let go and a budget crisis declared.
Spending needs to be reigned in, otherwise with every assessment increase will only encourage an increase in spending…..maintaining the status quo of never having enough money to do the job. Like I’ve heard before in the Village, “I love spending other people’s money.” If we cannot tax and spend ourselves into prosperity, then we cannot assess ourselves into prosperity.
Scott
08/19/2020 — 9:44 pm
When the two tier was established one of its objectives was to raise assessments and not get more lots returned to the POA. (e.g. lot owners did not get the increase that homeowners did)
Before the two tier POA owned lots was around 800. Today it’s between 3000 and 4000. The increase in returned lots translates to over a million dollars per year in assessment revenue lost. The benefit of the two tier increase did not result in as much cash as was needed given the return of lots to POA.
Tracey
08/17/2020 — 8:32 pm
Our POA fees are just that a FEE! Not a TAX! Quit trying to drive people out! I know myself and many others would bail if this happened. I have saved my entire life for what I have. I’m not “rich” or entitled. Stop with the millennial attitude!
John
08/19/2020 — 7:43 pm
We are new here and was not aware of all the grumbling about this and that. We love it here and while we do not like to pay more “fees” anymore then anyone else does I do not think it can be avoided. Did you move here years ago and expect prices to stay they same? We have a 50 year old institution that has not been properly maintained. You can threaten to move and maybe some should. This is not the less expensive place to live in Arkansas. We are certainly not going to move if the assessments go up $15 or so a month. Wages and materials and the number of things to repair have gone up. If you think the proposed rates are bad just wait till inflation hits and taxes go up to pay for what the Federal government is spending to keep the country afloat. So get over yourselves and let us work together to keep this place ” a little slice of heaven”.
Roger
08/21/2020 — 7:40 am
Remember one thing here folks – if you change the assessments to reflect the value of the property then you will have to send money back to those whose property is worthless – which would include most if not all of the 3 to 4 thousand delinquent lots.
You would apply a negative multiplier to their assessment, wouldn’t you?? To be fair? And just.
Really, people, a POA fee is just that. Don’t move here if you can’t afford it. Simple as that.
Bernard
08/21/2020 — 5:52 pm
This may sound absurd to many folks, but for years I have been trying to get the Board to attempt to entice ANY major Hotelier (Marriott, Ritz-Carlton, Sheraton, OR others) to come and build a Mini-Resort within the Village. It would be a business tool for them and a Marketing tool for the Village. Any Hotelier would be responsible for the construction of all amenities normally associated with such a development. HOWEVER, as inducement the Village would have to provide facilities for that construction, and I do, mean such as GIVING them a GOLF COURSE, Balboa comes to mind. Terms could be worked out.
Sounds weird right, well think about it, the Village loses maintenance and upkeep on Balboa, the Village does not have to remodel the existing Clubhouse, etc. Meanwhile, there is a Hotel erected within the confines of the Gates, complete with swimming pools, tennis courts, etc. Perhaps even a Casino or Movie Theater might be on site (wishful thinking).
Think about this; our only source of real revenue is play on our golf courses. This community must have additional income just to remain viable as a community. We are not enticing the numbers of people to move to the Village needed to keep it thriving. Having ‘guests’ vist on ‘Packages’ would expose our courses to much greater play and greater income for the Village. The better aspect is these ‘visitors’ would be exposed to our community and might decide to buy a property or purchase a house for their retirement. It is important all know those people who travel on ‘golfing vacations’ are YOUNGER than community golfers. Having them exposed to the low cost of our properties would be an enticement for sure.
As it currently exists, no golfers will travel from Michigan, N.Y., or other distant states simply to play golf on some of the nicest golf courses in the country as there is absolutely no place for them to stay, no place to dine, and little to do (unless one plays Skittle Ball or wants to go hear a lecture at the Woodlands).
Face it, folks, there is nothing to do in or around the Village, it’s boring, very boring. We need amenities that will attract others who might then be induced to buy.
Hey, I told you this would sound strange but, it seems to beat whatever it is our Marketing Group is NOT doing. It is definitely time for ‘Out of the Box Thinking’.
Roger
08/30/2020 — 9:05 am
No one is ever going to build a hotel inside HSV.
Ever.
That is why your efforts are ridiculous.
bernard
08/30/2020 — 1:46 pm
Roger, glad to see your reply. You are correct, no one would build inside this Village for no one has ever investigated the possibility.
What is ridiculous is your remark of ‘ridiculous’ for it truly indicates a limited thought process, a lack of imagination.
I think you will admit that should what I have suggested above occur, we would make a huge stride in advancing this sequestered community. If venues are not explored, there is no possibility of knowing is there? Come on Roger, put on your ‘thinking cap’ rather than deride thoughts of others.