Reference our recent article about “[1] You CAN Participate During Board Meeting Discussions“.  The following information could be a good item to discuss during upcoming board meeting discussions about the budget.

The Board’s own data as previously reported during a board meeting shows that the SCA board has consistently overcharged annual assessments/dues by 1 to 2 million dollars every year.   That is a fact.  See this link for our previous postings on this issue.
[2] Dues Holiday is Bogus

If $720 per unit ($5,143,580) was enough to fully fund the needs for this association during the past 2 years, why will it take $2,000,000+ more to run it in 2011, and the future? That question must be clearly and concisely answered to member satisfaction.

In addition, according to:

1. [3] NRS 116.31073.3(c) “Notwithstanding any other provision of law, the executive board is prohibited from imposing an assessment without obtaining prior approval of the units’ owners unless the total amount of the assessment is less than 5 percent of the annual budget of the association.“
2. [4] NRS 116.3115.8:  “If liabilities for common expenses are reallocated, assessments for common expenses and any installment thereof not yet due must be recalculated in accordance with the reallocated liabilities.”  This appears to state that when a board determines that assessments are overstated, and a”dues holiday” is declared as was done in the past 3 years, the following year’s assessment rate must be recalculated and reduced accordingly.  Not doing so would seem to violate this Statute.

Obviously, a 39% increase must be fully justified and approved by the membership via ballot.  In addition, this whole murky situation calls to question:

1. Was last year’s action to raise dues from $720 to $960 legal?
2. When will the board’s reported $3,000,000+ of accumulated ’surplus assessments’ be refunded as required by law?
3. When will the other millions retained for the unjustified (per IRS ruling) slush funds called ‘working capital’ be refunded to members as required by law?

This seems to be the case where an extra million here, and another extra million there, and the board  and finance committee members wind up with some serious money owed to the members and some potential liabilities for the actions taken! 

Our community should demand the refunds be made now, and not not allow the board to waste the hundreds of dollars owed per household on unnecessary income tax payments, fines, and penalties.