HSVPOA BOARD BRIEF #4 – August 4, 2021
TASK FORCE RECOMMENDATIONS DELIVERED TO THE BOARD OF DIRECTORS
Today, Wednesday, August 4, the Future Revenue Analysis Task Force brought to the HSV Board of Directors their recommendations for addressing the short and long term financial needs for Hot Springs Village. The recommendations are the result of six months of in-depth data gathering and analysis, consideration of more than 300 revenue and cost-reduction suggestions from residents, meetings with attorneys and discussions with Cooper Communities Inc.
In their presentation, the Task Force clearly identified the “problem” – an average $6.7 million funding shortfall between 2022 and 2027. This shortfall would impact everything from streets and culverts to our fleet of vehicles, buildings maintenance, and our water and sewer systems.
The Task Force explained that the $6.7 million number includes maintenance that has been deferred – sometimes for years – and the current maintenance needed to address our 50-year old infrastructure.
Each of the three options included several ways to generate additional revenue to address the $6.7 million shortfall (the “red blob” on the Task Force PowerPoint presentation).
- a rapid recovery option that minimizes future deferred maintenance
- a special assessment option that immediately eliminates deferred maintenance
- a balanced approach option that balances revenue recovery with property owner cost impact
The Task Force also provided the Board with a list of general recommendations covering declaration changes, POA-related policies and procedures, procurement and contract policies, as well as additional revenue and cost reduction ideas.
The Board was extremely encouraged by the breadth and depth of the recommendations submitted by the Task Force. The stage has been set for a more rounded fiscal strategy that encompasses not only revenue generation but better business practices as well. The Board’s plan is to vote on a recommendation at the August 18th Board meeting.
Today’s Task Force presentation to the Board, which was live-streamed, will also be available within 2-3 days in the member section of explorethevillage.com.
HSVPOA Board of Directors
August 4, 2021
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FRATF work may be viewed on the Explore the Village website. Click the Members section and then click Revenue Task Force or click here.
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08/04/2021 — 2:14 pm
Option #3 looks like another 2tier increase with the resident property owners carrying the full load.
“The Task Force explained that the $6.7 million number includes maintenance that has been deferred -sometimes for years- and the current maintenance needed to address our 50 -year- old infrastructure” are the same words used in 2015 for the first 2tier. Where did all the money go from that increase?
If we accept this argument we can expect to see another form of CMP, more wasted money on pipe dreams and pleas for another increase in 2027.—Gene
Mrs. Katherine Miller
08/04/2021 — 11:14 pm
Remember when FRATF explained that for every $1 increase in the minimum wage, our village labor costs go up by $1.5 million? Well, since 2015, minimum wage in AR has risen $4.75! So our labor costs are now $7,125,000 higher than they were. That might help to explain why the previous assessment increase has not covered what was intended.
08/04/2021 — 6:40 pm
I can’t support an increase until ————- (fill in the blank). Instead of their recommendations they should —————(fill in the blanks). I imagine you get the idea. Basic questions are:
“do we have a problem” and “do we want to act while we can.” I will support any of the three options presented as imho they are all reasonable and justified.
08/06/2021 — 11:32 am
Shades of 2018. The “Just Vote No!” people are still here.