By Tom Blakeman, November 8, 2019
Whether you realize it or not the recently completed budget fiasco was not about fiscal management of the Village. It was all about setting the stage for increasing our assessments – sooner rather than later. I’d bet there will be an assessment increase push and vote scheduled BEFORE the next board election.
Frankly, I’m sick and tired of hearing that our assessments are too low. “If only we had more lots paying. . . . If only we charged as much as some other communities. . . . If only Cooper. . . . If only. . . . If only. . . .”
But what about smarter, more efficient utilization of what we already have? Think about these analogies:
1. You own an older automobile (golf carts) and it needs a little maintenance. Instead of fixing it up you sell it for some quick cash. Then you spend the cash on dreams and fantasies (CMP). But now you need a car and you have no money. Problem solved. . . you lease a new car (golf carts), right? Yes, and now you have a monthly payment every month – forever.
2. You invent a widget (HSV) with special features no other widget has. You market and advertise. Your widget sells like hotcakes. After a few decades, you decide to GIVE your widget to new owners (POA). But the new owners act carelessly and soon run short of money. Problem solved. . . they stop marketing and advertising and save big, right? Yes, except now all the widget buyers (retirees) go elsewhere.
3. You are a kid with a newspaper route (golf course). Newspapers (green fees & cart fees) sell for 10 cents and you get a penny for every paper delivered. But you need/want more money. Problem solved. . . you increase the price for a newspaper to 12 cents and pocket the extra two pennies, right? Yes, except subscribers (golfers) decide they don’t need expensive paper delivery anymore.
4. You run a business (POA). You take a generous salary plus bonus, perks, and benefits. Then you add cushy “positions” for friends so you all get paid big bucks and live the good life. But eventually, the business runs low on cash. Problem solved. . . you outsource certain functions (gates, crack sealing) and cut hourly workers – less labor, less cost, right? Yes, but now there is no one to do the day-to-day work keeping the business running and contract service costs go up regularly.
5. You are a provider of recreation of all types. Some venues (golf) you can charge for but other venues (swimming) not so much. But customers really like “free stuff” and you need/want happy people. Problem solved. . . you spend big money on more “free stuff” (new pool) – more happy people, right? Maybe, but now there are no funds to fix the revenue-generating venues (Balboa).
6. You like to eat out so you open restaurants (Granada, DeSoto). Few customers come as they get better food, service, and pricing at many other nearby places (Home Plate, Tanners, Debra’s, McDonald’s). So, you lose money – hundreds of thousands a year. Problem solved. . . you hire new managers and chefs, put in new carpet, provide free entertainment and its fixed, right? Actually No. But it doesn’t matter because you don’t really need to make money – just raise fees and taxes (assessments) on all the residents (members).
Anyway, fasten your seatbelts and hold on to your wallet. An assessment increase is coming soon to your Village. In fact, I’d bet that our leaders have already cranked up the PR machine to “sell” it – to you. Stay tuned.
Tom Blakeman, November 8, 2019
Sam Taylor
11/08/2019 — 11:43 am
They will only get my “yes” when the person responsible for all these situations is GONE. When LN leaves the building, we can talk …
George Sorrell
11/08/2019 — 1:51 pm
I believe as long as we have the current management running things, there will be very little support to do anything constructive or progressive. Regardless of whether you believe we need to raise prices and attract the higher income brackets or want to see the prices remain the same and attract the lower income folks, there will be no support from the existing property owners to do anything for the current leadership.
So we are in gridlock until major changes take place in the BOD.
Using a baseball analogy, it’s time to replace the current pitcher with one from the bull pen. In all likelihood, the first thing the new pitcher will want is a new ball and more money.
I would be inclined to pay more if I thought the money wouldn’t be wasted. It is really just that simple.
If the current leadership were in fact committed to doing what is best for Hot Springs Village and not for self-preservation, a resignation would certainly make the point. How many out there think that is possible?
George II
11/09/2019 — 8:09 am
Agree with you. Only the friends of the CEO and BOD chair support them and that is a small group. Resignations are the best outcome. There would be plenty of candidates for the GM position. Qualified, experienced leaders.
They are a defeated pair, hanging on for the once in a lifetime salary (CEO) and silly pride (BOD chair).
No chance of any assessment increase or special assessment passing with them in place. That will not stop them from trying and spending tens of thousands to do it, not to mention the staff time.
Judy w.
11/09/2019 — 4:38 pm
Would love to see LN resign….but with this cushy job why would she.
We need to see what it would cost POA to fire her verses putting up with this craziness. It might be very worthwhile to fire so we can start this beautiful place over with a clean slate of BOD except for one and a new GM not CEO.
Vicki Husted
11/08/2019 — 2:30 pm
Thanks, Tom Blakeman, for another excellent article. If only they will read it, even the most determined “ostriches” (head in the sand types)–with the apparent exception of Cam 11/08/2019 — 1:21 pm–SHOULD be able to understand and become concerned about what has been done to us and move to get it corrected.
Anomous
11/08/2019 — 2:39 pm
The sky is falling, the sky is falling. drink the kool aid and we will all be saved
Joe
11/08/2019 — 6:20 pm
We the Property Owners will Vote down any special assessment or any assessment increase over the Southern CPI.
Our CEO does not control this Village. We the Property Owners control the Village with our VOTE to approve assessments over the Southern CPI.
We will have another successful VOTE NO Campaign when the CEO decides to raise the taxes on Property Owners to her finance her New Urban CMP Agenda.
Stephen Rust
11/08/2019 — 6:51 pm
As long as Lesley Nalley is CEO I will vote no on any assessment increase above what the board has power to do and no for any special assessment and work as hard as I can to help get assessment increases voted down.
Sally
11/08/2019 — 8:29 pm
Our assessments are already very, very high if you include all the fees for every single thing imaginable. Plus the water and sewer charges, window sticker costs, boat stickers, etc. everything costs extra. The more truthful total for any active resident of HSV is close to 200 dollars a month. Easily. Maybe more. Much more.
So we are not, by any means, being charged less than other “comparable” communities. Not by a long shot. The Villages charges approximately 150 dollars a month, but that is it. No extra fees for bocce, pickle ball, swimming, tennis, etc., etc. None.
Fees are already so high they have curtailed participation to the extent that the actual money collected, despite the high fees, totals less than what used to be collected when the fees were not so insane.
What is very clear is that the current board and the “ceo” are hugely incompetent and are doing nothing to improve HSV. They are, in fact, ruining HSV to the extent that next year’s election wishes may be way too little and way, way too late.
Have you tried to sell your home recently at a profit? How did that go?? No buyers with even a passing knowledge of what these idiots are doing will ever purchase a home or a lot in a community that is rapidly dying. Not one.
Patrick T. McCarthy
11/09/2019 — 6:59 am
In the Declaration election owners voted against their own interest to show how much they wanted to push back against the Board and POA. Results were 55/45 to 60/40 – a pretty convincing rejection and not “a small minority” as some tout at times regarding the “opposition” to the Board/POA.
Then the Board election resulted in 3 new Board members being elected who clearly campaigned/stood for change – again a clear signal by owners of dissatisfaction with the Board/POA.
If the “old Board members (oBm)” had read these signals and meshed to some degree with the new Board members we might be in a different place today. Instead the oBm doubled down and, if you can believe it, made things worse.
For the life of me I don’t get what the payoff is for this and prior Boards in fomenting such opposition. And the same goes for the POA. The votes are pretty clear and saying it’s a small minority is poppycock (loved using that word).
It’s not about words, it’s about votes. I think the prior votes I mentioned tell what owners want. Let’s see if that trend continues in March of 2020. If the owners want a different direction and a restoration of trust they will eventually elect and get to 4 to 2 on the Board. At that point the message of the owners won’t be in dispute.
steve bylow
11/09/2019 — 8:53 am
Patrick – I agree the vote was a clear message to the oBm’s and ceo. At a “let’s talk” an oBm stated she felt the vote was not a clear message but simply a miscommunication. She then went on to talk about how complex it was running the POA…
Although one of the new Board members has decided to make poor decisions which endorse the oBm and ceo’s method of governance, I am confident the 2020 vote will result in a Board with four leaders who have the business acumen and character to get the POA back on track.
Linda Anderson
11/09/2019 — 10:45 am
THANK YOU TOM BLAKEMAN FOR YOUR INSIGHT. The old guard BOD ( Now 5 ) continues to side step their sworn duty to protect HSV from financial ruin. Their voting together on most decisions shows the intent to be committed to the CEO’s CMP agenda. There is no more money to spend. With no oversight, the next step could be to push the membership into a corner with the Balboa Rebuild ” DEBT ” project to force a vote for an assessment increase. This will brake the camels back and there will be no wallets to hang on to. Many people will sell their homes and leave the village. Until we have Directors who support the interests of maintaining and protecting first with reasonable and responsible accountability, HSV is held captive with great concern for it’s future.
Judy W.
11/09/2019 — 4:47 pm
Agree with what you mentioned. Thank you Diana Podiwiltz for standing strong for all Villagers. You know what needs to be done!
Many Villagers are behind you!
Anonymous
11/09/2019 — 11:33 am
NOT ONE DIME! NOT ONE DIME! NOT ONE DIME! NOT ONE DIME!
NOT ONE RED CENT UNTIL LESLEY, THE LEGACY BOARD MEMBERS AND TURNCOAT TORMEY ARE GONE – GONE – GONE!
NOT ONE DIME! NOT ONE DIME! NOT ONE DIME! NOT ONE DIME!
Scott
11/09/2019 — 12:24 pm
Will you post on this sight a rebuttal from me or anyone else that has opposing views?
Tom
11/09/2019 — 2:55 pm
Of course they will Scott. This site is not like NextDoor.
Annonymous
11/09/2019 — 1:12 pm
Mr. Blakeman, I believe, has only lived in the Village 3-4 years. He needs to do some research into how we got into the financial shape we are currently in. Mr. Cooper and his Father had more to do with putting us near bankruptcy than did LN or the current BOD. They continued to build amenities to sell more lots even though the POA didn’t have money to take care of the infrastructure already here. Also, in 2009 he made himself a “sweet deal” with the help of David Johnson, POA Manager, that left Villagers responsible to build new roads. LN and our recent BOD’s have done what they could to keep us afloat. Now, Mr. Blakeman is advocating for change that will give Mr. Cooper absolute control over us, and he’s made it very clear his real objective is to sell us his unsold land by his giving us a large loan to accomplish this. Mr. Blakeman is right in one way. Better watch your pocket book as soon as Mr. Cooper takes over control.
JD
11/09/2019 — 6:20 pm
A CEO Troll posted “Now, Mr. Blakeman is advocating for change that will give Mr. Cooper absolute control over us”!
JD sez, If the CEO Troll actually read Tom’s article, he would not have posted such an erroneous statement. Trolls totally facts disregard FACTS!
Kirk Denger
11/09/2019 — 8:28 pm
Annonymous11/09/2019 — 1:12 pm, Since you have lived here for 2 years, I find it amusing that you point out other’s residency spans. How do you consider your research superior to anyone else’s? Were you created as a superior race? Or do you only subscribe to the jealous opinions of developer want-a-be’s? Cooper created the POA and has carefully sustained it with “sweet deals” for 50 years. It is a shame you have a sour, out of touch perspective of the piece of Earth where you call home which was prepared for you by CCI. Mr. Cooper served on the boards of Walmart, J. B. Hunt Transport Company, Entergy, Arkla Gas Company, Arkansas Power and Light, Union Planters Bank, and Worthen Bank Holding Company. He was a founding member of the Arkansas Business Council and Mildred B. Cooper Memorial Chapel Foundation.
He was honored as a 1998 recipient of the Sam Walton Award, presented by the Bentonville/Bella Vista Chamber of Commerce. An avid sportsman and hunter, he loved the outdoors and was a charter member of the Arkansas Nature Conservancy Board of Trustees and served on that board from 1983 until 1986. The Arkansas Nature Conservancy recognized him in 1994 for his leadership role in the Arkansas Corporate Council for Conservation. In 2003, that organization honored Mr. Cooper by establishing The Cooper Family Conservation Award. The award is presented annually to a business, organization or individual who has made outstanding contributions to conservation in Arkansas. As a lifelong philanthropist to many causes, he was instrumental in providing property for the Bella Vista library, The Nature Conservancy, numerous community parks and recreation projects, and through Cooper Communities, Inc. donated locations for over 50 churches and 5 schools. John Cooper is a person of quiet fortitude, yet very interested in the well being of people and dedicated to making our world a better place, he brought the country club life to the common man. Creating communities with first-class amenities that are the envy of most developers today and making them affordable is something very, very few in the industry have ever been able to accomplish. The Cooper family has had such an impact on so many lives. I owe a great deal to John, Jr., III, and the whole Cooper family for the opportunities that they provided for me and many other families.
Johnny C
11/09/2019 — 3:01 pm
Only when they don’t censor your message. Several people are keeping track of all submitted but never posted or deleted messages from this site and on their Facebook page.
They want you to believe that the sky is falling and everyone is a crook. In my opinion Joe and Cheryl Dowden’s sites are negatively impacting property values.
Submitted 3:00pm November 9
Judy W.
11/09/2019 — 5:02 pm
They show both sides of the issues. I keep up with BOD meetings if I can’t attend….visual and scripts of them. Very helpful to keep up with what is happening in our Village.
Also like the fact we can post our ideas..concerns and have healthy banter about issues.
House values aren’t going down due to the 2 sites. Houses are still selling and at good prices so my sister in law says and she us a realtor.
Joe Dowden
11/09/2019 — 6:27 pm
You are way out of touch with reality by stating Joe and Cheryl Dowden’s sites are negatively impacting property values. Troll read the last real estate report–
https://hotspringsvillagepeople.com/hsv-real-estate-market-watchdog-october-2019/
Just W.
11/09/2019 — 4:54 pm
If you are so concerned about Village feel free to use your name next time Mr./Mrs.Annonymous…just more friendly.
I will agree all of us should check facts.
Frank Shears aka Bubba
11/09/2019 — 4:58 pm
Tom Blakeman, From what I have seen, you are absolutely correct! I cannot endorse any fee increases with the “Old BMs” in office. They have not shown good business sense nor have they listened to anyone offering constructive criticism. They have wasted way too much money on pie-in-the-sky plans that have no chance of being successful. Then they tell us we need to increase our Property Owner fees. My wife says that at times I have selective hearing just like the POA Old BMs.
As soon as the BMs roll up their sleeves and fix the problems facing the POA the sooner I will be willing to listen to their reasoning to increase the assessments. BUT, until that happens I will continue to exercise my “Selective Listening” skills and until then the answer is a resounding NO.
This next election is critically important to all of us who live in this wonderful place. We need to elect three brave souls willing to face the issues and take whatever drastic steps it takes to get ‘OUR’ Village back on the right track. I can think of three very knowledgeable and brave people who would be a perfect fit. All three have announced their candidacy. Lloyd Sherman, Dick Garrison and Tucker Omohundro have all three announced their intention to run for Board positions.
Now it’s time for US to roll up our sleeves and help get them elected!
Stephen Rust
11/09/2019 — 7:20 pm
Anonymous, maybe you had better do some study. Mr Cooper was letting your heroine, Ms. Nalley and the old board run things until they decided to change the Declarations and kick Mr. Cooper completely out. That’s what brought him back.
Johnny C
11/09/2019 — 8:45 pm
Joe Dowden it sounds like you agree things are going better in the village than what you generally describe in your personal posts. Good to know.
Submitted 8:45pm November 9
Bob Mollerberg
11/09/2019 — 8:31 pm
Weren’t substantial rate increases already approved by the BOD when they approved the 2020 budget??? CPI +1.1%/Utility rate +3%/ Sanitation +2.7%! Hasn’t the train already left the station except for a potential “Special Assessment?
Minn Daly
11/10/2019 — 9:11 am
Kirk Dinger, thank you for standing up for our DEVELOPER JOHN COOPER. John Cooper JR, equally concerned with all things HSV! Cooper never left HSV, Legacy BOD/CEO used him as needed with help on assessments increase & never asked him for advice on any projects that they embraced. They still do not ask advice on projects on going. They never reviewed facts that he controlled easements, & still owned property lots of it in HSV. It took lots of HSV funds & court costs attorney fees & judges ruleing to make this BOD understand facts & that he is still HSV developer. He was the winner in this court case! We need BOD change, we have 3 very qualified candidates that are running, Tucker, Dick, Loyd, let’s all get behind them & try to stop all actions of current legacy BOD. Tom Blakeman is correct with this current assessment of BOD/CEO they have no one there to say “NO”to CEO. We need the General Manager not a CEO reporting to a strong BOD, who values & understand finances as well as structured understanding of running this community. Minn Daly
Vicki
11/10/2019 — 1:28 pm
And soon you won’t have any members. Why do we have a good service manager whom I am sure we pay a tidy salary, when the POA is subsidizing the restaurants?
George
11/10/2019 — 2:46 pm
Couldn’t help but dream of the announcement our BOD would make after seeing the AR football coach was fired and the announcement the University put out.
Modified their announcement slightly and it is ready for our BOD to publish and move on, just as the University will. BOD, you are welcome!
University of Arkansas head coach firing announcement…
“As part of my continued evaluation, I have come to the conclusion that a change in leadership is necessary to move our football program forward and position it for success,” Yurachek said. “It is clear that we have not made the progress necessary to compete and win, especially within the Southeastern Conference. Throughout our history in football, as well as with our other sport programs, we have demonstrated that the University of Arkansas is capable of being nationally competitive. I have no doubt that as we move forward, we will identify a head coach that will help lead our program to that benchmark.
Adapted for BOD use…
“As part of our continued evaluation, We have come to the conclusion that a change in leadership is necessary to move HSV forward and position us for success”. “It is clear that we have not made the progress necessary to compete and win, especially within the retirement living community market. Throughout our history, we have demonstrated that Hot Springs Village is capable of being nationally competitive. We have no doubt that as we move forward, we will identify a general manager that will help lead our community to that benchmark.
Julie
11/10/2019 — 4:56 pm
She’s never leaving. That is why we are.
Melinda Noble
11/11/2019 — 11:02 am
Julie: don’t leave, she won’t be here forever. She has thrown we out of her office but she can’t throw me out of the Village.
Melvin west
11/11/2019 — 8:27 am
Not argument that we need a strong BOD
Ones that will listen to the homeowners and not be yes persons
Run the village. Please
Lorri Street
11/11/2019 — 1:41 pm
Bob Mollerberg…you are spot on! The increases to our assessment of 1.1%, sanitation 2.7% and utility 3% adds up to a 6.8% increase out of our pockets to LN’s. She didn’t get the Declaration change she wanted to increase our assessments to 5%, so instead she took the backdoor approach to reach her intended goal. All HSV improved lot Property Owners will be impacted by these sneaky increases.
Anonymous
11/17/2019 — 12:35 pm
To those espousing the virtues of John Cooper, III, be aware.. He will take back complete control of our Village, as he had when we had a long-serving GM. A past Board found it necessary to replace this man. It will be good for all to remember that several months prior to Mr. Cooper coming. back into our Village he told our CEO that his real interest was to sell the POA his unsold property for 14.5M dollars and he was prepared to give the Association a loan at a “good interest rate” to make the sale happen. In his own words, he “was. furious” with LN when she didn’t accept his deal and “walked out of the meeting”. That should tell you what his real objective is. Certain of the Article amendments, if approved, would have weakened his position.
Anonymous
11/17/2019 — 9:43 pm
Anonymous11/17/2019 — 12:35 pm,
1. You post a lot of hearsay, In his own words, he “was. furious”. You obviously did not hear that with your own ears, but you do soak up like a sponge other’s hearsay. What John III did say at the Woodlands was that there is no amount of money on Earth that he would sell his family’s interest to the present leadership.
2. LN can accept or reject deals only up to $50,000, so that is more hearsay that you have swallowed. CCI’s objective has always been to successfully sell real estate.
3. HSV has had 2 capable and stable long-serving GMs for more than the first 4 decades of its development. That is a good thing. In the last less than a decade, we have had 3, with each becoming exponentially detrimental to our Village.
4. “Certain of the Article amendments, if approved, would have weakened his position.” Praytell which Articles were approved by the members who love a Developer who loves his development?
Scott
04/18/2020 — 9:04 am
Tom,
You lost that bet.