Next meeting time is 3:00 p.m., not 3:30 as originally reported on Tuesday, 11/5/19.
On Monday, 10/28/19, the HSVPOA Board of Directors CEO, Lesley Nalley and CFO Liz Mathis met for a Zoom Budget Meeting in the POA Conference Room. All six Directors were in attendance.
Board Chairman, Cindi Erickson stated, “The purpose of the meeting is to regain a consensus or at least a majority,” in preparation for a Special Budget Meeting where a vote will be taken to pass the 2020 budget.
Director Campagna stated that he feels the golf revenue projections are being overstated by approximately $750,000. He could live with some overstatement but wants this number brought down by $450,000, which could be achieved by a combination of reduction of both golf and nongolf expenses and the redirection to golf of some funds that were planned for reserves.
Director Podawiltz said that in addition to the overstatement of golf projections, the food and beverage category is also overly optimistic. Food and beverage expenses can only be reduced by so much.
Fitness Center
A majority of the discussion centered on the fees for the Fitness Center and the recommendations that the Recreation Committee made. At the last regular Board Meeting, Recreation Committee Chairman, Donna Aylward, gave an impassioned speech about the Fitness Center fees. (See video below to watch Ms. Aylward’s presentation to the Board.)
Originally the Board felt that a continuation of the 2019 fee structure was appropriate. The Recreation Committee recommended that the 2019 yearly fee of $490 be lowered to $350 annually. The logic was that with the higher fee, there would be fewer annual signups and less profit would be realized. In other words, the thought is that with lower annual fees we would at least break even and may even make a larger profit.
Director Dixon provided a report on Fitness Center fees
Director Buddy Dixon stated he researched this topic and interviewed a number of folks. Dixon also prepared a detailed report with his recommendations. Dixon concluded that the annual Fitness Center fee should be $399. He originally felt it should be $400, but became convinced that $399 would be better.
Chairman Erickson asked, “Is it worth $50?” The Recreation Committee put a lot of work and thought into their recommendation. Director Diana Podawiltz was also like-minded and felt the Committee made a sound recommendation and that the fee should be lowered to $350.
Director Podawiltz said she “hated to supersede the work of the committee.” Contrary to the findings of the Recreation Committee and Director Podawiltz’s opinion, the majority of the Board supported a $400 annual Fitness Center fee.
CEO Nalley stated that we may not be as competitive price-wise as some of the other local fitness center options because we may be offering more. Are we offering the same features as the other centers or are our features superior?
Austerity program is needed before the community will vote to increase assessments
Podawiltz said that the 2020 budget needs to be an austerity program. She stated it is a problem that the budget does not deal with the elephant in the room. This elephant is that we cannot justify adding another accounting person to the staff when new timesaving paperless software is budgeted to be purchased for this department. This additional employee will be in charge of surveying our buildings. Podawiltz stated that with the new and improved software being budgeted for the accounting department, we should need fewer people on staff and not more.
CFO Mathis countered that she has already reduced the staff by two in the past three years. CEO Nalley added that this is also in addition to a previous cut of two people in the accounting department.
Campagna said, “It is our job to come up with a revenue line and an expense line.”
Podawiltz stated that our problems for operating are that:
- one-third of the lots don’t pay assessments, and
- our monthly assessment is too low for the amenities we have. In order to justify an assessment increase (above Southern CPI), “we need to show a lean, mean machine.” (Director Podawiltz also knew this opinion may not be favorably accepted among the membership.)
CEO Nalley asked, “Where is the thought on how much people get for $68 a month?” We are not doing enough to communicate this message.
Campagna stated it was up to the CEO to work within the budget approved by the Board and not up to the Board to manage operations.
Campagna offered a four-pronged plan
In summary, Campagna offered a four-part plan:
- redirect $150,000 as available to golf instead of reserves,
- challenge the staff to reduce $150,000 in nongolf expenses,
- challenge the staff to reduce golf expenses by $150,000, and
- establish a $400 annual fitness center fee and adjust the other fitness center fees to correspond. This reduction from $490 to $400 is being done as a 50th Anniversary reduction and is not the new benchmark. There is the possibility, as always, of this fee going up next year.
In regard to cutting costs, Director Dixon inquired, “If we close a golf course, how much money do we save per day?” The staff did not have those figures on hand but agreed there would be savings and that it also depended on which course would be closed.
It was agreed that if there was enough demand for golf, that courses should remain open.
When asked who would be willing to pass the budget next week with the above items established, Podawiltz was the lone dissenter.
Final 2020 Budget Meeting to be held on November 5, 2019
It was decided there would be a final 2020 Special Zoom Budget Meeting next week on Tuesday, November 5, 2019, at 3:00 p.m. This meeting will also be held at the POA Conference Room. The public is invited to watch on their internet devices.
Zoom instructions from Village Digest
“To view the meeting visit https://zoom.us/j/735072877 and click “Save File” to download Zoom_launcher.exe. From there, you will need to find the Zoom file in your downloads, open it and follow the prompts.
“Those who do not have access to a computer can dial in and listen through their phone. To listen in, dial 1-646-558-8656 or 1-669-900-6833 then, when prompted, enter the webinar ID which is 735072877. International numbers are available at https://zoom.us/u/abpWL9L5tD “
Recreation Committee Chairman, Donna Aylward, gives a presentation to the Board Directors and staff on 10/16/19
By Cheryl Dowden, October 29, 2019
Julie
10/29/2019 — 10:53 am
I have news for you people….unless you sit at home and do absolutely nothing your fees are not anywhere near $68 a month!!
If you golf, go to the gym, play pickle-ball, bocce, or lawn bowling, use a cart, have a boat or two on the lake, your fees for all this are way, way above the $68. In fact, they would be at least an additional $100 a month more in this scenario…minimum.
Most successful communities do not nickel and dime their residents for every little thing they want to do. They just don’t. And why? Because every single time you raise the fee for something people do it less. Every time. And to have fees for everything anyone might want to do just so you can advertise low monthly POA dues is beyond ridiculous. It is patently absurd.
How nice to know that our “leaders” are comfortable with overstated revenue projections…just so they are not so overstated as to be laughable. Great work if you can get it.
None of these people know what they are doing….not a one….that much is clearly evident.
And how nice to add a catchy name like zoom to such a crazy waste of time.
Zoom, zoom! I like it…zoom…zoom…great! Speed our way to failure…more zoom sessions are obviously needed….ZOOM!!!
Cindy Anderson
10/29/2019 — 3:38 pm
Absolutely agree. These people don’t care about the residents, with the exception of one or two.
Tom Blakeman
10/29/2019 — 11:40 am
Thank you Julie for clearly stating what is obvious to most of us but totally opaque to others including our BOD.
Minn Daly
10/29/2019 — 11:49 am
Good call Julie! BOD/CEO zooming HSV into bankruptcy! If solutions do not fit the queen bee the 🐝 hive will initiate change. They do not care about costs! Look what we spent $500,000 on, with NO results! Look at all the failed attempts with lawsuits! Look at overrun costs on pool that is still under construction. Amazed that zoom for them works! It just doesn’t work for the rest of membership. Again we need change beginning with NEW BOD/General Manager. With members, supporting Tucker, Dick, & Loyd! Respectfully. Minn Daly
cindy
10/29/2019 — 3:40 pm
agree
Donna Aylward
10/29/2019 — 1:15 pm
First, I am pleased to see the Board re-evaluate the recommended Fitness Center Fee.
During the meeting Director Erickson said, does it make sense to not take the committee’s and staff’s recommendation by not dropping the fee the additional $50? When there was no buy in to go to $350, the BOD should have gone with Director Dixon’s recommendation of $399. That rate would have offered a better marketing opportunity.
CEO Nalley tried to justify why we should charge more than fitness centers in other parts of our nearby community by saying our center offers more… this is only true if you want more! Most people will say they do not want to pay for a pool and fitness… some are looking for one or the other. I don’t wish to pay for surf and turf when all I want is a steak. So.. I choose something else!!
The committee has also been told there is no option for closing off parts of the building to create different membership offerings, or we could address the issue.
Lloyd Sherman
10/29/2019 — 4:13 pm
Lucy, you got some splaining to do! The Recreation Committee made a fee recommendation after what one has to assume was much deliberation. That fee recommendation was mostly ignored (like many other committee recommendations) and why? According to what I heard, the fee reduction would result in more people keeping their annuals and the revenue would be $40K higher. So instead of reinventing the wheel every time, why doesn’t the board accept the considered opinion of this committee? I remain baffled in HSV!
Melinda Noble
10/29/2019 — 5:01 pm
Nalley doesn’t understand or care that SHE is the problem and throwing money at any of the Village’s problems won’t be solved until she is gone. Her ability to waste money is never ending and giving her more will not help. I for one have no problem with an increase in assessments but not if Lesley and most of this BOD are spending it.
Pat McCullough
10/30/2019 — 8:29 am
Oops! I was looking for an episode of Comedy Central but this came up instead.
Stephen Rust
10/30/2019 — 9:48 am
Julie, thanks for your comments. I was thinking the same thing about fees while reading Lesley Nalley’s comment. I am not in favor of an assessment increase as long as Ms. Nalley has any say in this village.
I would like to know why someone hasn’t done some study on golf. I golf in the afternoons and can walk on most if not all courses without a tee time. We need to consider some different rates. I golfed in Chicago area on one course that after a certain time with a cart you could play as many holes as you could get in by dusk for $25. Another was 18 holes golf with cart for $18 after a certain time. I know of other courses that had twilight rates. I’ve played Diamondhead for $25 with a cart after 3 p.m.
I went to a course in the village at 3 one afternoon (5 hours sunlight left) and just because they had a tournament earlier they closed the course.
Closing courses with 5 hours daylight left and prices so high no one comes in from outside are not helping golf revenue.
Anonymous
10/30/2019 — 2:35 pm
I agree. The courses should be open later
The evenings are a nice time to play
ANONYMOUS
10/30/2019 — 1:36 pm
DO NOT CLOSE A GOLF COURSE … THE EXPENSE OF JUST CUTTING THE GRASS WILL NOT GO AWAY.
In regard to cutting costs, Director Dixon inquired, “If we close a golf course, how much money do we save per day?” The staff did not have those figures on hand but agreed there would be savings and that it also depended on which course would be closed.
PROPERTY VALUES ACROSS THE VILLAGE WILL FALL … AND THOSE THAT DO VISIT WILL GET THE MESSAGE THAT WE ARE IN FINANCIAL TROUBLE.
Pat McCullough
10/30/2019 — 2:26 pm
I have what I consider to be legitimate question that I am wondering why no one has mentioned before view of our desperate shortfall in this still not approved budget. Does anyone know how much the outside security service is costing us to run the gates?? We had volunteers who were happy to do this job for FREE. To me, this is an immediate chance to save some real dollars that are going out the door everday!!!
Anonymous
12/07/2019 — 6:31 pm
Close to a million per year to a foreign entity.
Pat McCullough
10/30/2019 — 3:22 pm
correction to my comment above……I may have been thinking too far back in time when our own people did the gates on a totally free basis. But am pretty sure that what we may have paying our own people before the move to this outside vendor had to be a lot less. Anyway, I would like to see the numbers.
Gary Godfrey
10/31/2019 — 7:51 am
Steven Rust. I agree with all that your said about Golf. I went to many BOD meetings back when Jerry Kosglow (Spelling) was President of the board and complained about the rising cost of golf. One time it worked and they kept rates the same and didnt raise the price. I believe that our past Golf director did a lot of hurt to Village golf. He hated the fact of having Private carts and did everything he could to discourage it. Cart seats and such. I believe the graph that I saw from Frank Leeming says it all over the past 10 years. Cost of golf going up at a 45 degree angle and the rounds going down at a 45 degree angle.
Those costs for golf that you mentioned are about what we pay here in our home state too. Remember was seniors we get senior rates. Much cheaper. Golf was why we moved to the Village because of price and after 15 years living there the price of golf and other pricing is why we left. To bad they dont get it