By Tom Blakeman, October 17, 2019
Note from Cheryl: This email was sent to Diana Podawiltz and Tormey Campagna.
Budget Suggestions
Your opportunity to adjust the budget has been extended. Even though the fee schedule was passed, it too could still be modified. You as the Board hold this power. Please consider the following options:
1. Remove planned Golf Surcharge. In a climate of low demand, attempting to increase prices across the board is doomed to failure – good weather or bad. There are many other adjustments to the Golf Fee structure that could be made which would help increase demand.
2. Follow Committee recommendations for the Fitness Center. Similar logic to the above.
3. Reduce Total Compensation Expense. Other than required minimum wage increases to comply with law, all wages and salaries should be frozen. There should be no bonuses budgeted for 2020. Salary and/or staff reductions should be implemented for all Grades 10 and above. The savings goal should be approximately $1,500,000 to keep 2020 Compensation in line with the projected 2019 Forecast.
4. Utilize some of the savings from reduced compensation to fund the Golf Capital Improvement Fund.
Perhaps we will need an assessment increase some day. But, right now virtually every Villager believes we have a bloated management staff that is not operating efficiently. No one believes that we should consider an assessment increase until such time as Management and the Board have earned it. Taking the steps above will be a move in that direction.
PS: Feel free to share with the other current board members.
Lorri Street
10/17/2019 — 8:20 pm
Absolutely spot on Tom. Nalley and her inner circle of cronies and enablers have a limited time of further control of OUR community of HSV. WTP (All like-minded HSV Property Owners) are diligently pursuing and are current on the disdainful and corrupt shenanigans of Nalley and BOD’S. We ask only for the truth.
George
10/17/2019 — 10:49 pm
I think most people would agree. Charging us more would be ok, but only after they take steps to reduce staff salaries. The director salaries are a burden that no one can justify. Placemaking, F&B, Recreation, CMEO…just too much repetition.
I do feel our reserves need to be built up.
I have never gotten to see the reserve plan from the CFO. It was never placed on the HSV website. They seem content at $2-$3 million, obviously they have not considered the golf courses. It should be closer to $6 million. About a third of assessments.
This is where the board needs to get into the detail. Ask the tough questions of the inexperienced management.
Julie
10/18/2019 — 5:37 am
Charging us more is not ok.
The fee increases they have announced along with the golf surcharges are all ridiculous and will only result in reduced revenue.
To freeze salaries that are already way, way too high is also ridiculous.
I am outta here!!! Enough is enough.
Anonymous
10/18/2019 — 6:45 am
Not one thin dime until Lesley is removed from office and the legacy BOD members and turncoat Tormey are replaced.
NOT ONE THIN DIME!
Bank on it!
Andy Kramek
10/18/2019 — 9:38 am
It seems that our POA, like many politicians, are unable to grasp the simple facts of economics. First, unless you have a monopoly on a necessity, increasing prices reduces consumption and hence revenue. Golf fees are a perfect example of this basic truth – just look at the graph of rounds played versus fees over the past 5 years!
Second, you cannot spend your way out of debt. The only way to reduce your liability is to reduce costs. What is the major cost (other than subsidies) for the POA? Salaries! Continuing to pay ridiculous salaries (and unearned bonuses) to directors and managers the need for whom is, at best, questionable is an insult to all of us who pay our monthly assessments. Frank is right, freeze all salaries, and cancel bonuses, for managerial and director grade personnel until such time as there are sufficient funds to meet them.
Minn Daly
10/18/2019 — 10:38 am
Tom, your statements should be adhered to! However we have a legacy BOD that does not adhere to any suggestion unless it is connected to what they & CEO want. Question is why? If you ask questions of this group you get NO answers. Suggested that we all seek legal council as well. Respectfully, Minn Daly