The Fennel Ridge Homeowner’s Association met in a General Meeting on Monday, October 7th, at the Pierce County Bonney Lake Library. This is a summary of the meeting.
Opening Comments
HOA President, Dave Scott, called the meeting to order shortly after 6:00pm.
There were twelve members represented in person with two represented by proxy. This is a marked improvement on our last meeting at which there were only three members represented.
Dave presented an update on what the new board has been working on and where he plans to take the association in the coming year.
Treasurer’s Report
HOA Treasurer, June Scott presented her report showing income and expenses from September 1st, 2023, through August 31st, 2024. She painted a grim picture of our finances with only $5,800 of homeowner dues being submitted on time. Another $5,500 were collected as past-due payments. There are still $4,700 of dues outstanding.
Many of the past-due amounts were for multiple years, so penalties have been applied. Those one or two members who refuse to pay are about to be notified for the third, and final, time that the HOA will be placing a lien on their property. All costs associated with the lien will be the responsibility of the tardy homeowners.
Operating Budget
Our annual assessment of $188 goes to cover off the things the HOA is required to maintain throughout the year. With increasing costs, several services were let go this past year resulting in the decline in the way our common areas present.
June presented the proposed operating budget for next year, 2025. This budget only covers regular expenses and does not include any project work which would require special assessment.
Annual Assessment to Increase in 2025
This operations budget assumes an annual assessment of $200. As the CC&Rs only allow a 5% increase in the assessment without a 51% membership approval, the Board will be raising the assessment by that 5% to $197.40 in 2025.
Because costs have increased so much over the last couple of years, we will not be able to fully fund some of the regular maintenance items so it is likely we will continue to skimp on landscaping services for the common areas.
Project Budget
Your Board of Directors has put together a proposed project budget for 2025. This budget is to fund the clean up of the two monuments and some fence maintenance.
Background
Section V. Common and Easement Areas, of the CC&Rs defines, as its title says, the common areas that are the responsibility of the HOA to maintain. Paragraph 7 explicitly states what the Association is responsible for. Paragraph 8 defines the responsibility of each lot owner.
The repair and maintenance of the Monument on the corner of 189th Avenue and 109th Street will require significant expense. This kind of expense would be classed as a capital expense and as such will require approval from 66% of our membership.
June presented this project budget to the meeting.
Outcomes
Because there were only twelve members represented, or 24% of the membership, no action was taken and the meeting was adjourned.
The Board of Directors will meet on Thursday, October 10th to discuss our options for moving forward.
Attachments
The following documents have been attached to this article for your reference: