Long-time Finance Committee member, Rich Pendleton, has recently resigned and reported on some of the SCA Board’s financial misconduct and gross arrogance.   Quoted below is Rich Pendleton’s email to board members, finance committee members, and 2011 board candidates.  His words are devastating indictments on the boards and finance committees.

“It is with my greatest regret that I must announce my resignation from the Finance Committee at this time.  As most of you know, I have been operating with cancer and a breathing problem.  As long as my wife was able to pick up some of the load, I was able to fulfill my commitment to the committee.  Unfortunately, in January, my wife was hospitalized and my priorities were affected in a major way, such as how are meals going to be handled?  My wife is now at home, her condition has greatly improved and she will be able to continue in her membership in the Lifestyle Committee.

It is also unfortunate that dealing with the issues that most mattered to me did not happen.  I had thought that my participation on the Finance Committee would have enhanced their chances of acceptance.

The first issue was to get control of the budget process.  Over the four years of my participation, much improvement has been seen, and I developed an Excel model for calculating  assessments.  Each year, I wanted to have a review meeting after the budget was approved to identify the problems and develop solutions.  The previous chairmen did not see fit to hold such meetings.  This year, a Budget Task Force has been established (I have not been asked to participate) and I hope it will accomplish my long standing goal.

The second issue has to do with our reserve funding.  Bottom line, I believe our Reserve Fund is seriously over funded and, as a result, our annual assessment is greater than it needs to be.  I pointed this out to the previous chairmen and they agreed that it looked over funded but they were unwilling to take any action.  I have prepared two reports and have presented them only to selected Board members and one Finance Committee member.  For reasons discussed in the attached report, the Board will not consider reduction of the rate of Reserve funding.

I think it is an example of Board arrogance that their reserve funding approach is the only acceptable approach and that no consideration will be given to an approach that will save homeowners millions of dollars over the years.  Since the Board will not deal with this issue, I have written my final report and have attached it to this email.  This email has been sent to all Board members and candidates for the 2011 election.  It has been sent to all members of the Finance Committee and the (former) Reserve Study Advisory Group.  Please read it and feel free to discuss it with any homeowner, but please do not allow it to go to the press or any person outside of Sun City Anthem.

The data in the report comes from the ARC Reserve Study for 2010 and has been incorporated in an Excel workbook for analysis purposes.  I will be happy to discuss the workbook with any interested person.

Richard Pendleton”

Attached is Rich’s report to SCA Homeowners on Reserve Policy Overfunding

[1] Overfunding of Reserves & Overcharging of Dues