by Frank Leeming, September 17, 2019
Board faces pivotal day tomorrow
In the 25 years we’ve lived here, I’ve never seen us approach a day with more peril and consequence than Hot Springs Village faces tomorrow. Consider:
• Instead of embracing what is expected to be an historic turnout of property owners at the monthly board meeting, the Property Owners’ Association has so far refused to move to a larger venue, a decision guaranteed to make an angry crowd even madder when they can’t squeeze into the Ouachita Room.
Click the YouTube button below to watch the livestream at 9 a.m. on 9/18/19
With planned sign-waving and an extra heavy dose of police presence expected, few will be happy with the POA’s try to pacify folks by live-streaming the meeting on YouTube. Couldn’t they move the meeting across the walkway to the 640-seat Woodlands Auditorium?
Board chair, Cindi Erickson, clearly rattled at recent meetings by hostile property owners eager to tell her unpopular board what they think, is likely to cut short or shut down public comment.
In the past, POA boards have re-arranged their agenda and moved public comment to the front of the meeting so hundreds of Villagers aren’t forced to endure hours of tedium before being allowed to speak.
• The 2020 budget will be unveiled. It defies credibility. The budget is based on $37.1 million in revenue – $3.2 million, or 9.4 percent, more than we brought in last year. Through eight months this year, we’re $324,415 below last year in revenue. Last year the POA missed its revenue budget by $2 million, or 5.2 percent.
So where is the POA going to get all this new money?
If you’d like to see the budget, there’s a pdf below. It won’t take long to read. It’s only 10 pages long – eight if you don’t count the cover and calendar. How has this changed? The 2014 budget had 232 pages of detail.
• The board will be asked to approve spending $4.6 million to tear up and repair the Balboa Golf Course beginning next month. How are we going to pay for this? Two primary ways: Borrowing $3.3 million and adding a $5 surcharge on every round of golf played in the Village next year. The surcharge would be $4 in 2021, $3 in 2022 and $2 a round in 2023 and 2024.
The budget forecasts 200,000 rounds of golf being played in each of those years. This year we’re on track to have 198,500 rounds (we’re down 8.4 percent from last year through the end of August). If the surcharges put a damper on golf play as expected, there is no way the 200,000 rounds figure will be achieved. Result: A busted budget.
The skimpy 2020 budget posted on line had no fees schedule, so I don’t know if there’s a proposed hike in golf and/or cart fees. If there is, it will likely push the number of rounds even lower next year.
• Also on the agenda tomorrow: A $2.3 million plan to tear down the Balboa Clubhouse and replace it with an 8,000-square-foot golf shop and grill. How are we going to pay for this? Borrowing and the golf surcharge.
Villager Chuck Alvord sent an excellent letter to the board on why it should proceed with extreme caution on the Balboa course and clubhouse projects. If you’d like to read it, click here.
• The board will change its rules so it will require a two-thirds vote to kick a director off the board. Four days ago the board, for the first time ever, did just that, kicking Dick Garrison off the board under the existing rules requiring just a simple majority. The vote was 4-3.
* * *
Some have asked about lawyer Mary Carole Young’s investigation into the legality of grievances filed by CEO Leslie Nalley against directors Garrison and Diana Podawiltz. I asked vice-chair Tormey Campagna if he’d received the report. He was the one who ordered it. He didn’t answer me.
So I filed a formal request with the POA and Nalley responded yesterday: “Your attached records request is declined, as the Association does not possess such records.”
Since the board fired Garrison last Friday, I suppose Nalley’s grievances against him are moot. We’ll keep trying to find out about the grievance charges against Podawiltz.
* * *
Notable financial numbers
Some notable numbers from CFO Liz Mathis’s financial report for the first eight months of this year:
• The number of unproductive lots (those in the POA inventory and those 61 days or more past due in paying assessments) dropped 18 in August. The good news: It was the seventh month in the last year the number has gone down. There’s still a long way to go. There were 11,177 lots not paying assessments at the end of August – 32.4 percent of the 34,457 total.
• There were 35 new-home permits approved in the first eight months, down 11, or 23.9 percent from last year. This is a key barometer of how well the Village is growing.
• Net assessment revenue was down $69,553, or 0.7 percent, even though assessments were increased 2.7 percent this year.
* * *
First 8 months of 2019 amenity use
Reports on amenity use in the first eight months this year:
– Golf rounds played were down 8.4 percent.
– Fitness Center attendance was up 0.3 percent.
– Attendance at the Woodlands was up 15.6 percent.
– Tennis play was down 6.6 percent.
– Losses in our food and beverage operations increased $42,627, or 13.1 percent, to $349,003.
* * *
Final thought
A final thought on the budget proposal being submitted to the board tomorrow: The POA is one of the few large organizations I’ve ever encountered that doesn’t use Pro-forma budgeting.
In this case, a Pro-forma budget would show 2019 numbers as eight months of actual and four months of the remaining budget.
This would provide board members and property owners a much more accurate way to compare the 2020 budget numbers.
The POA has been widely criticized over the years for its poor budgeting. One reason is the staff keeps preparing next year’s budget based on this year’s budget. And if this year’s budget is way off (as it usually is), then next year’s will be as well.
2020 proposed budget – Hot Springs Village
132020-Proposed-Budget-V1-Consolidated-1by Frank Leeming, September 17, 2019
Maureen Heenan
09/17/2019 — 3:50 pm
It is quite obvious that the board, our CEO and financial staff need to take a budget 101 course. If I ever presented an Open To Buy, not based on actual figures I would not have my job for long. We are in deep trouble.
Linda Van Scotter
09/17/2019 — 3:53 pm
Those 18 lots were the ones sold to rennaisance homes for Siega neighborhood development , I’ll bet!!!
Man from the clouds
09/17/2019 — 6:00 pm
Linda yes you are correct and I say let’s boycott golf for a month
Man from the clouds
09/17/2019 — 6:02 pm
I know it sounds like we’ll be cutting our nose off to spite our face but the POA way it’s going to send us into bankruptcy
T j Creech
09/17/2019 — 6:03 pm
There is now no BOD here. She will just fire all who oppose her. This is now a kingdom..
Ordinary Citizen
09/17/2019 — 8:50 pm
As an ordinary concerned resident, I reviewed the included budget. My immediate question involves the differences of certain 2020 budgeted items as compared to 2019 amounts. Am I reading these correctly? The items with the largest percentage drop of budgeted expense amounts in maintenance areas to include: Maintenance of land & streets (-107.8%); Maintenance of lakes and dams (-53.9%); Maintenance Pump Station (-99.3%); Maintenance Wastewater System (-58.1%); Maintenance Water System (-48.7%). Am I overreacting in my concern? God forbid we have anything unexpected happen. Maybe the 388.3% increase in expected donations will take care of any issues that pop up?
Concerned
09/17/2019 — 10:09 pm
Agree with you…very disturbing drop of 50% in budgeted Maintenance spending in 2020 vs. what is forecasted (projected) to be spent in 2019.
From the 2020 Proposed Budget…
Expenses in Excess of $50,000 for those items designated Maintenance. There is 50% reduction in what is budgeted for these items in 2020.vs the 2019 Forecast. $3.2M in 2019 vs. $1.6M in 2020.
The greatest decrease in amount is the Maint of land and Streets. A $1M decrease, from $1.4M in 2019 Forecast to $350k in 2020.
Based on the recent information from Frank Leeming that we have not been spending money on raod resurfacing, this seems to beg an explanation.
I sincerely hope we are not deferring maintenance for the sake of supporting other items that are not critical.
Mike F
09/18/2019 — 7:37 am
We are getting close to the truth. These people will go out the door the day after the next election, if not sooner. (But they will have full pockets.) We have a lot of smart people working behind the scenes. It is a slow process and cooler heads are appreciated. In the mean time keep the faith.
Anonymous
09/18/2019 — 7:27 pm
Turns out that more maintenance items will be capitalized rather than expensed in 2020, therefore it didn’t show in the budget as shown. No mention of that in the budget handout online.
Board also received more than the 10 pages that was put on line. That is unfortunate, hope it gets corrected soon.
And Balboa costs removed. 🎉
PD
09/18/2019 — 8:18 am
This mornings POA meeting is a big one . We should pray .
In the name of the father , of the son and of the Holy Ghost , removal of the CEO , is what we want the most ..LORD HEAR OUR PRAYER
Oh dear God , we show up in mass today , in great hopes that our board members decide to resign and go away .. LORD HEAR OUR PRAYER
WE pray that there is exposure of the board and their incompetence and trick , which they try to conceal by firing Dick … LORD HEAR OUR PRAYER
Spending of our money is always the object of their day , Lord send us some messengers that will help us now make them pay
LORD HEAR OUR PRAYER
Lord they know this Quachita room is too small for the crowd to fit , they figure many ppl won’t show , not wanting to stand but preferring to sit , Jesus let her know we are sick of this sh$t ,
LORD HEAR OUR PRAYER
and at end but by far not last , send us some leaders that can do simple math , some leaders that will get the village on a fiscally sound path .
Dear God hear our prayer .
Anonymous
09/18/2019 — 12:22 pm
Amen
Melinda Noble
09/18/2019 — 7:07 pm
PD could you please give the prayer at the next BOD meeting.
Kirk Denger
09/20/2019 — 9:39 pm
Amen!
Mark Oliver
09/18/2019 — 1:40 pm
Thank you to everyone that made public comments at todays board meeting, with the notable exception of the guy that struggled to speak due to the fact that his lips were so firmly planted on LN’s backside. I was unable to attend, but watched as much as possible on youtube. Today’s speakers did a good job of calling these people on their behaviors and sharing the opinions that we have about the administration. Hopefully this is just the beginning and the groundswell of opposition will continue to grow. To quote a former Arkansas Sheriff and politician, “The only thing these people understand is force”. Great job today folks!
Anonymous guy
09/18/2019 — 9:23 pm
Ladies and Gentlemen,
Good Morning.
My name is Keith Hall. I live at 3 Jaguar Circle and have been a resident for nearly a decade. Thank you for the opportunity to address the board.
As ‘bonafides’ are seemingly so important in this community, I am a retired career Soldier, a former senior civilian in the national Intelligence Community (IC), and a former Director, then CEO, of a like-size corporation under contract to NASA for maintenance and logistics of the International Space Station.
Simply put, I have sat in your chair and faced similar challenges.
In the Village, I have guarded your gates, policed your beach, rehabilitated multiple facilities, served on committee, and volunteered at many events and activities.
During my time here, I have watched each iteration of the board and staff grapple with post-Cooper transition challenges, ranging from the inherited bad debt of historically deferred maintenance to professionalizing the corporate effort and posturing the corporate-community for future success.
These are significant challenges given the long history and unusual demographics of the Village.
I have found Board of Directors and senior staff leadership actions of the past three years consistent with modern operational practices. While there is always room for improvement, recent previous boards and the CEO have clearly demonstrated the desire to prepare this community for a world much changed since 1970.
Certainly, mistakes have been made and there are processes in need of your direct attention and emphasis; this is the nature of communities and complex organizations of which we are both.
But none have been so egregious as to warrant reprehensible public behaviors, incessant ad hominem attacks, and threats to members of our community, conveyed verbally and in writing.
Nor do they require tearing down the institution instead of “working the problem.”
This on-going behavior is shameful, embarrassing to the community, and counter-productive because…the world is watching.
And I find no evidence of grand conspiracies or surreptitious activities. Quite the opposite, I have been provided pertinent facts when requested by simply using corporate bylaws and policy, and inherently governmental processes.
The bottom line is that the Board of Directors, the CEO, and the entire staff are doing yeoman’s work in an extremely difficult environment created by suspect development practices from previous decades and creation of a culture which is unnecessarily adversarial, and clearly does not understand professional and personal conduct standards.
While I may have concerns about specific operational functions, I am more appalled by the disintegration of civil behavior in public.
I support ALL of your actions to date. I encourage you to continue refining those processes which require your able attention.
I thank you for your professionalism and dedication to the future of Hot Springs Village.
Ken
09/19/2019 — 2:10 pm
Thank you for applying sanity to this. It is much appreciated!
Kirk Denger
09/20/2019 — 11:41 pm
Hello Anonymous guy 09/18/2019 — 9:23 pm, My name is Kirk Denger, 1 Soga Pl. My family and I have enjoyed, worked and lived in HSV for 40 years. CCI built this community for fifty years, and you describe it as created by suspect development practices from previous decades and creation of a culture which is unnecessarily adversarial and clearly does not understand professional and personal conduct standards. Who are you to urbanize it and then talk about civil behavior in public? Your on-going behavior is shameful, embarrassing to the community, and counter-productive. We do not need you tearing down CCI’s institution and none have been so egregious as to warrant reprehensible public behaviors, incessant ad hominem attacks, and threats to members of our community conveyed verbally and in writing.
How do you swing a deal as a director to become the CEO?
Did you guard our gates as a volunteer? Police our beaches as a volunteer?
If volunteer how do you represent yourself as Police?
I have filed your astute analysis for your YES vote as a DPZ plant in HSV for future use. This is your attack on NO voters last year:
“Mr. Blakeman, Thank you for taking the time to explain what a “white paper” is and provide us with your astute analysis. It’s important to remember that email is viral. It’s also been legal documentation since the Clinton administration, so I’ll be sure to file yours away with Mr. Lemler’s for future use
It would be easy enough to counter your counters sequentially since they are, regrettably, misinformed. Given that you’ve been here less than two whole years, I can understand your challenges. However, let me address the greater thematic issue which seems to have gripped this community – conspiracy. The community is obsessed to psychosis levels that vast, powerful conspiracies have been put in play; that both the current and immediately proceeding board members as well as the CEO and her staff (commonly, but erroneously referred to as “the POA”) are engaged in nefarious operations designed to thwart individual and collective liberties, as well as execute immediate fiscal collapse. Your white paper is replete with casual inferences and direct statements of improprieties by members of the corporate executive. While you have been somewhat restrained, members of your loose affiliation have been libelous. As with all conversations with Villagers, you began by regaling us with you curriculum vitae and impressive accomplishments, so let me counter your notions about CCI as well as the actions of the aforementioned and extraordinary talented team of professionals currently leading us. I’m confident your vast engineering and business experience will get you through. CCI, either through ignorance or single-minded focus on their narrow business plan and lack of knowledge on urban planning, set the conditions for the organization’s subsequent decline and eventual collapse. At transition, they handed to us millions of dollars in bad debt in the form of long deferred maintenance and no sustaining engineering effort. Simultaneously, they retained for themselves a series of future privileges that are unheard of in modern, privatized community development. Simply put, CCI constructed a 1970’s, feudal model which we must now correct in order to protect our current posture and subsequently build a modern future. It’s a very simple thing attempting to be executed by people who put their every effort into insuring that this community endures another fifty years.
Lastly, I’m curious as to why your stellar efforts are restricted to clandestine and whisper-down-the-lane email dissemination. Maybe it’s just an oversight (?) I’ve taken the liberty of CC’ing Ms. Nalley and our directors. I hope Ms. Nalley will share your work with her entire staff. After all, they went to great effort to share their due diligence and work product with you. Let’s make sure they enjoy the benefit of your keen insights. v/r k. Keith V. Hall p.s. Yahoo hasn’t been a secure domain in many years. You may wish to consider a cloud service and integrated approach to SMTP traffic, social media, an other on-line activities.”
Thankfully your 3 minutes is up. The world is watching!
Kirk Denger
09/21/2019 — 12:17 am
Keith Hall, Your conspiracy theory tells a lot about your reality. Those of us who happen to agree with many of Mr. Blakeman’s ideas are not “his” affiliation. His stellar email has gone viral because he put into words what many independent responsible voters were already thinking. When you accuse others of being libelous, isn’t that a form of being libelous? Because you have been a resident for 14 whole years, does that make your theory any more relevant than an intelligent responsible member that has been a resident for two? Why would you say that CCI, One of the most successful private businesses, is ignorant with lack of knowledge of residential development and has collapsed? You might check who formed the POA in1970, who was the first chairman of the BOD and who is essentially in charge of this corporation today, what transition are you talking about? Can you cite your reference to future privileges that are unheard of in modern, privatized community developments? One question is why and who are you and those of your leadership who are attempting to overthrow this?.Cooper created this premier community and is still here after fifty sucessful years, will you and your leaders of the CMP be here for another fifty? That is what the voters are to decide. Lastly Mr Blakeman published his astute analysis using zero POA funds where your leadership will waste tens of thousands of our money to present theirs. Please allow each of us to make informed decisions. I also have filed your replies along with your other deleted replies for future usefulness.
Julie
09/19/2019 — 5:21 am
The world is not watching.
No one outside of HSV cares at all.
Who is this fool???
Ken
09/19/2019 — 2:12 pm
A perfect example of not being civil. Name calling accomplishes nothing. Try running for the Board to help instead of just being critical.
Julie
09/20/2019 — 7:43 am
It is not name-calling if it is true. And anyone who says the world is watching is obviously wrong – thus, a fool.
Not wanting to offend anyone – just stating a fact.
It is more offensive to me that someone would post such a completely ridiculous notion. What does that solve?
You should run for the board. Then you can pass a resolution outlawing comments such as mine.
Minn Daly
09/19/2019 — 8:14 am
Mr Keith Hall, we are happy that you love our community as we all do. Also happy that you were able to convey that in a 5 minute speech that no other villager would be able to do with your compliments to BOD/CEO. Not happy with you or BOD/CEO who allowed you to run over time & a member in good standing, Linda Anderson was unable to speak. She was on list before you were to be called. Majority of us do not like what’s been happening here, not acknowledging COOPER as our developer or trying to get us into debt without thought of financial issues . According to your own statements you are a very bright person, it would seem you would have looked at cost of all the issues that have happened these past 3 years, see the issues. COOPER did not leave us in debt! BOD legacy in past 8 years has allowed this to happen by not takeing charge of what the General Managers/current CEO is doing. We love that you are here, please get your facts straight. Majority of members here are hard working intelligent people who want the promises that BOD candidates run on when elected to follow through on, not backpeddle let CEO make decisions. They make the decision, Stop creating debt & unnecessary lawsuits! The 3 minute rule is to allow those that wish to express their opinions on issues is for all to share thoughts, ideas, not just for praise of individuals. Respectfully, Minn Daly
Clyde Berry
09/19/2019 — 9:21 am
Thank you Minn for showing the fallacies in this man’s thinking in such a kind, respectful way.
FIRE NALLEY NOW!
09/21/2019 — 8:25 am
Regarding Keith Hall’s speech at the recent BOD meeting: Wake up and smell the coffee! This guy is kissing and licking the CEO and Legacy BOD members and turncoat Tormey all over – WHY – because he wants that empty seat on the Board!
What better way to entice and impress the old school, anti-property owner mind-set that currently sits on their thrones, ready and eager to replace Dick Garrison.
His presentation was clearly an advertisement of himself – with the message being – “hey Nalley and BOD and turncoat Tormey – PICK ME, PICK ME!”
Nothing more!
Any one that doesn’t live under a rock knows that all that Keith stated is just plain and simply BS!
Man from the clouds
09/19/2019 — 6:02 pm
Thanks Minn daily
Man from the clouds
09/19/2019 — 6:04 pm
The workers in this Village the boots on the ground are doing a yeoman’s job at very little pee and emaciated Staffing controlled by egotistical upper management with feather plumes in their hats please appreciate the workers they’re just trying to do what they can under this direction to feed their families
Man from the clouds
09/19/2019 — 6:11 pm
I don’t know if anybody realizes but a large percentage of the POA Staffing is temporary employees perhaps that would explain the 1.4 million dollar miscellaneous account
Anonymous
09/21/2019 — 6:49 pm
Maligning Keith Hall is so telling of the general intelligence of the hostile group at Wednesday’s BOD meeting. He has obviously done a better job of researching the problems that exist in the Village and the history of how we got to where we are. It is a shame that we have so many “unthinking” people in our Village. You would be well advised to listen to intelligent people like Mr. Hall. We would be very lucky to have him on our Board.