By Clark Vernon, October 11, 2021
Ballots [proxies] requesting your approval of an assessment Increase well over and above the near 5% which would be expected in January are in the mail.
Given the Property Owners’ Association’s track record, and intentions not consistent with good management, an increase coupled with an unaltered course, will result in greater damage to the Village as a whole, and your “NO VOTE” is highly recommended.
Raising assessments without substantive financial and operational change will only result in larger and greater needs in the future. Click here to go to the website, AmericanaWhen.com for all the details you will need.
On its current path, the next 10 years will see another $40 million in cash losses from Golf and Park & Recreations. Coupled with the $44.4 million in losses of the last 11 years ended in 2020, we can then boast of $84.4 million in losses over 21 years! For What Purpose? So that some privileged minority can play golf or tennis whenever and wherever they want to instantly?
Adding insult to injury is the highly regressive nature of raising assessments and the fact that lot owners and lower valued improved property owners will carry a very disproportionate share of the load to finance these losses and for what? Attached is a chart showing taxes paid for certain value ranges for lots and housing in Saline and Garland County, along with the Village Assessments now and proposed (2022 and 2024). Payments were displayed with a percentage that represents the percent the tax bears to the assessed value of the property. You can easily see who is paying the greater percentage of their property value each year!
For lot owners, it is particularly egregious since they have no way of knowing if they will be able to build on the lot and connect to utilities. The POA under its legacy management has chosen to compete with its own lot owners on price and availability. The POA has a consistent record through their sales efforts of destroying lot values and continues to do so with their 50% commission program for local relators. In addition, since all lots do not have water and sewer to each site, the POA as a major lot owner will be in direct competition for the limited services. This assessment in effect is a demonstration of how serious our management problem is and how much we need to change it. Not giving inappropriate management new money with which to injure us further is the place to start. And we can do that by Just Saying NO!
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HSV Golf and Parks & Recreation 10-Year Losses
Golf-and-Parks-Rec* * *
Comparing Tax Amounts Across Asset Class Value Ranges with HSV, Saline County, and Garland County
Comparing-Tax-Amounts-Across-Asset-Class-Value-Ranges-with-HSV-Saline-County-and-Garland-County-2-pages* * *
Thank you for reading. If you like, please comment below. We love to hear your opinion, but civil discourse is important. Comments must be made using your first and last real name, or they will not be accepted. Be sure to bookmark this website.
Beverly Murphy
10/11/2021 — 3:04 pm
Cheryl, you need to pull back your guy Clark Vernon for his lack of “civil discourse”. Just because a large majority of people living in the village like to play golf, tennis or do anything outdoors does not make them feel privileged and entitled. He is way off base and you are also for allowing this.
HSVP C
10/11/2021 — 5:42 pm
Beverly, thank you for your comment. I understand what you are saying, but we do have in our disclaimer that items posted by others do not necessarily reflect our opinions. Instead of asking me to quelch free speech, why don’t you write a rebuttal and I will be happy to publish it?
Additionally, Clark Vernon is not “my guy.” He is an independent operator. Thank you again and have a lovely day.
Beverly Murphy
10/11/2021 — 5:27 pm
You got my rebuttal. I did not give an opinion on the upcoming vote only to what you allowed and let Clark Vernon label a group of people unnecessarily. My opinion.
HSVP C
10/11/2021 — 5:48 pm
Beverly, we provide news and opinions, the same as other online sites. The Village Voice provides news and opinions. Does this mean the Voice agrees with everything they publish? Of course not. Your beef is with Clark, not me so please address him.
Beverly Murphy
10/11/2021 — 6:10 pm
I’m sure he will see it. Thank you.
HSVP C
10/11/2021 — 6:15 pm
You are welcome.
mark oliver
10/12/2021 — 7:25 am
What percentage of village residents play golf 3 or more times per week?
Gary Godfrey
10/13/2021 — 9:03 am
I used to play three to four times a week. We moved after 15 years for two reasons, Golf became way to expensive to play there. Moved back to our home state and golf is half the price then in the Village, Forty bucks for a member with a cart. Unreal. It is evident the price is to high judging by the amount of rounds going down every year. 2005 360,000 rounds now your around 200,000 if that.
The second reason we moved was because of the actions of the POA board. Waste of money on things that didnt work or was just dropped.
Mark Oliver
10/13/2021 — 11:40 am
Gary, you hit the nail squarely on the head.
Mark Oliver
10/12/2021 — 11:45 am
Salaries aren’t infrastructure. Voting no.
Robert Busse
10/12/2021 — 3:23 pm
Wages and salaries may not be classified as infrastructure, but presently that cost takes ALL the revenue brought in by our annual dues payment plus a little bit more. We know that there is likely to be an increase to the state minimum wage coming. Many folks believe that the reason for the lack of available employees is that our POA pay scale is lagging behind many employers in the area. There is an effort by some residents to get the POA to raise our employees pay.
It doesn’t matter if an expense is infrastructure or not, they all require money to be paid out, therefore leaving us with less. And you “NO” folks want to do nothing to the dues rate knowing good and well that costs go up each year, wages and salaries go up regularly, and we are in a long-term period of inflation that the Feds say will be with us for a while. If revenue is not increased, the BOD will be forced to cut expenses (services) and raise fees more than it wants to. Additionally, the POA will have to put off some needed maintenance due to lack of funds. Then next year a new BOD will have to come back with a request for bigger increases than are asked for now!
Lloyd Sherman
10/13/2021 — 11:07 am
Bob,
You may be misinterpreting what I perceive the issue is with NO votes. This is not about whether we need an assessment increase. I believe most accept the fact that we do. This was proposed as an infrastructure assessment increase and has now expanded to include salaries, which is a whole other subject. It’s about accountability of doing what was said was going to be done. We don’t exactly have a stellar record in this area.
Mark Oliver
10/13/2021 — 3:09 pm
Bingo!
Robert Busse
10/13/2021 — 6:55 pm
I do not know who I am responding to. I thought I was responding to Mr. Oliver, but I see Lloyd Sherman, who hadn’t posted on this thread, responded to my comment as if Oliver’s post was his. Come on, all, everyone, give your opinion.
My point is that with the State and Federal govts. getting involved with minimum wages, and also all the pandemic relief funds available, and the inability to hire employees, wages and salaries are quite likely to increase. Granted, this revenue request started with maintenance as its focal point. But do we proceed blindly forward with the request solely based on that or seeing the almost definite need for increased wage/salary money do we include that in the figures and vote also?
If you needed to replace the windows in your house and were going to have to borrow money for the job, and before you went to the bank, you learned your car needed a new transmission, would you still just go to the bank and borrow money to only pay for windows or would you increase your borrowing to include the transmission so you could drive your car?
With your thinking it’s like cutting your nose off to spite your face. We said maintenance and that is all we are going for. We know wages and salaries are going to be a big problem and are a major cost item, which will get us in trouble, but we can’t do anything about that because we said only maintenance! Strikes me as not very good thinking or management.
HSVP C
10/13/2021 — 7:15 pm
Robert Busse, anyone is allowed to respond to your post on this forum, no matter if your comment is directed at them. This is public communication, not a private conversation. Thank you for participating.
Mrs. Katherine Miller
10/12/2021 — 12:10 pm
Mr. Vernon, Hot Springs Village common properties and services were never intended to support themselves. That is why, in order to take possession of real estate in Hot Springs Village, you obligated yourself to pay updated assessments towards common properties and services. Assessments are based on responsibility for those common properties and services, not based on each other’s private properties.
Lorri Street
10/12/2021 — 1:51 pm
Mrs. Katherine Miller…you are clearly blind to anything other than your opinion. HSV Property Owners, resident and non-residents HAVE been paying dues for over 50 years! My point is: Had over the course of 50+ years (especially the past 10) the assessment $’s been allocated to the infrastructure over time, rather than to inflated upper management (titles) salaries and many, many pork-belly spending sprees, HSV would not be SO behind in fixing infrastructure. $1.2 mil for pool, $1 mil for a state-of-the-art fire ladder truck, at least a million for combined cost of CMP AND all the promotion travel and marketing that went along with that, at least 1/2 mil for overly inflated upper management salaries, NOT including Nalley’s salary and buyout to the tune of hundreds of thousands of $’s. They was a lot more frivolous spending that I’m not reporting here, ALL of which should have gone into beefing up our infrastructure. At one time (during Nalley’s push for the CMP) I recall Jason Temple quantifying and publishing the number of culverts needing repair. Property Owners were aghast with the number and incredulous that money for Nalley’s pet projects was NOT being directed to the needed repairs. Shortly after Jason publicly shared that information…another announcement was made that far fewer culverts were in need of repair as previously reported. Nalley et. al, were the consummate ‘spin masters’.
We won’t be fooled again!
Robert Busse
10/12/2021 — 3:47 pm
Lori Street, you seem to be basing your entire opposition on how the many past BOD/CEO did things and spent our money. I know you are aware that Nalley and her puppet Boards have been gone for two years, and it is not possible for them to effect today’s Boards and POA. So, can you not keep dwelling on what happened 2, 5, 10, 20 years ago and look at the positive things that have changed, what the new leaders are trying to do, and how much smarter and aware of what is going on everyone has gotten. If the new leaders continue to try to change things, but need money (mainly for deferred maintenance) and you, and those who think like you, continue to live in the past and bring up what happened, we will never get anything done or changed.
You intimate that we do need an increase to get added revenue, but don’t like the option. So are you going to oppose any increase until leadership comes up with what you like?? That could take years and as each year goes by, HSV gets further behind and closer to default and incorporation.
Lesley Nalley
10/13/2021 — 2:46 pm
Lorri, in my opinion, replacing a 50 year old shuttered pool is the very definition of addressing deferred maintenance. Perhaps your position is that aging facilities should simply be closed rather than restored but aren’t we all tired of that 10+ year old debate? You might also ask any fireman about the increased capabilities of a ladder truck related to those living in multi story facilities such as Good Sam and Los Lagos or residents whose homes are on a steep incline. You do not believe the benefits outweigh the cost, and that’s your prerogative, but several of us rest much easier knowing that should the worst happen in such a facility, HSV firefighters are equipped and at the ready. As for culverts, you appear to be ill informed about what has been spent on such repairs, as well as what was added to reserves. A quick review of Jason’s records will clear that up for you. As for the CMP, which was filled with suggestions gathered from villagers for over a decade and despite supposedly being revoked, it is noticeably being implemented as we speak. The push to discredit what most thriving communities use to guide them merely paved the way for such activities to occur without modern protections and practices.
Frankly, you need a new set of talking points, ones with a more civil tone and relevant data. May I respectfully suggest that you move beyond these tired battle cries when debating whether the village is or is not properly funded today. Personally I would have preferred the inclusion of special assessments, if nothing else to identify who supports what and to begin facing those looming issues, but that is just one woman’s opinion. With the $3mil+ in free PPP money and over $4mil in bad debt collected from NRPI successor entity/large investor actions, these so called “pet projects” were more than paid for without using our money. Beyond your battle cry examples, which occurred during a period where millions more of our assessment dollars were spent on deferred maintenance and added to reserves, we are merely debating spending preferences and priorities. Such debates are typical in any community, especially one where there’s more month than money, and we should be thanking rather than berating the board members, committee members and staff who have carried that burden for decades. Either way, you and I definitely agree on the importance of not being fooled again.
Susan Posner
10/14/2021 — 3:14 am
CMP was a canned master plan DZP Inc from Florida who makes their money by marketing(charettes) and selling it around the country and not from HSV owners input other than survey of charettes that not all members could attend. From Florida where DZP based, selling the same canned plan even there to 7 counties whom all rejected it. Yup fooled by that grifter. Demographics differ by state and region as do costs, rather than comparing it to other, better to design plans locally, vote on by membership not board and board should remain neutral on vote that’s fiduciary duty. Trying to force a square peg into a round hole causes a lot of damage doing so. I agree this 3 year should be deemed a special assessment for the stated purposes as per governing documents. Minimum wage increase was and is a state ballot issue limited in duration. Inflation isn’t only increase cost factor, it’s less disposable income too. Agree that the almost doubling of assessments in 2017 did allow deferred maintenance catch up and allowed for extras yet IRS non profit 90% into rule dictated. Most default issues arose from years of bad practice of selling lots without commitment to build or insuring access, making assessments into two tiers which discourages house building for new resident ownership, which led to less amenity use and subsidizing, no moratorium on % of rentals. Increasing amenity fees, then nearly doubling owners assessments just 5 yr ago didn’t stop those poor practices. Only Garland county portion of HSV is 51 years old and most of it has been up graded with 2017 increase. Commitment to stop those poor practices, seek increase of new resident ownership would been a better task force agenda. HSV would need new resident roofs for growth, it’s initial developer plan/design was for more than is here now or there would be no empty lots and that must be considered. Boards are temporary, residents shouldn’t be. Resorts are for vacationing at, but community is for living in and trust is earned not a given. Agree no berating, snarky comments or telling people to move(that’s a personal choice) to any one in HSV community, input is essential to talk, listen and respect every community should desire. Peace.
Lorri Street
10/14/2021 — 2:18 pm
Well Hello Lesley…long time since we’ve talked! I will respond to your post when my time is freed up. For now I’m busy sharing factual information to HSV Property Owners.
More later….
Lorri Street
10/12/2021 — 4:34 pm
If we’re that close to default and incorporating then what I wrote earlier I continue to stand by. Repeat…WE are in this mess because of systemically poor management of Property Owners money (assessments). I don’t know about you Robert but I got myself educated (graduate degree) worked hard and retired here out of choice. I just want to make darn sure I have a choice to stay!
Susan Posner
10/14/2021 — 11:28 am
That We The People actually got a large amount members together and exposed a trend of non transparency and breach of fiduciary duty that was occurring. A lawsuit/judgement to get transparency pointed to that bad trend. Past board members and management have been influencing new boards, past board members sit on member committees, so called board orientation has prior board and management speaking to new board members. Most boards, management and even homeowners can and should be educated online through Community Association Institute(very valuable resource) https://www.caionline.org/pages/default.aspx HSV has a member portal where digital surveys and digital suggestion form could be offered to members, no need for email or mailings. There is lot of ways to improve two way communication and gain knowledge essential for any community. Peace
Mrs. Katherine Miller
10/13/2021 — 1:27 am
$32 worth of social security benefit (or POA dues) in 1970 would have been equivalent to our current $69 way back in 1987, at our proposed $110 in 2002, and is equivalent to $162 worth of social security benefit today. That difference was arrived at by application of an annual cost of living adjustment most years since 1975.
https://www.ssa.gov/oact/cola/colaseries.html
Looking at it that way makes it seem that, overall, our boards and employees have actually managed to spoil the villagers. There should not be outrage and bullying over raising the POA dues to what they should have been two decades ago.
Tom Blakeman
10/13/2021 — 7:59 am
The part of HSV that needs fixing is the broken governance model. Fix that first and the rest will take care of itself.
Demanding exponentially more “funding” in a time of rising inflation and national uncertainty is only a recipe for disaster and more of the same down the road.
Let the automatic COLA due Jan 1 work as per the Declarations and address the chronic waste and bad management. That is the solution.
Minn Daly
10/13/2021 — 9:03 am
Agree totally with Lorri Street & Tom Blakeman! Thanks to Linda for the article posted above. My votes are a NO ! If the POA is in default or close to it, then an emergency assessment should have been the agenda. This is not the time for this type of increase until a declaration change is initiated. Minn Daly