Something Needs To Change Quickly

Written by Tormey Campagna

The CMP calls for 2500 houses over 20 years, that’s an average of 125 homes per year. Who believes that with our current marketing that we will double our current run rate, I sure don’t. But let us say we did. Over the next 10 years these new homes would generate an average of about $600,000 per year in increased assessments assuming that the lots they are built on are not paying any assessment now. If the CPI increases at 3% per year and our expenses (salaries, equipment, POA utilities, etc.) increase by an equal amount to the CPI the net will be no extra money to spend on infrastructure needs from the current base revenue of about $33,000,000 from all sources. The CMP indicates that there is $5-7M in infrastructure needs per year for at least the next 10 years. If this is correct then we need to spend on average $6M per year on infrastructure repair and replacement. From the above you can see we have about $600,000 per year to spend on infrastructure above whatever amount we are spending today. Let’s say we are currently spending a true $3M on our decaying infrastructure of the $6M needed. That would leave us a short fall of $2.5M per year. Where is it going to come from? There are only two places, reduced expenses or increase fees, assessments, or special assessments. Lloyd Sherman and I believe that at least $3M can be cut from the current expenses. If expenses reductions are made this may solve all or most of the problem. But, delaying these reduction only increases the magnitude of the problem. The time to act is now!!! It would appear that our current Board and POA senior management are in denial. It is time for some straight talk not the fluff we get at the monthly Board meetings.

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