PROPERTY OWNERS' ASSOCIATION

POA Million Dollar Balancing Act

By Bill Gaylord, Treasurer

The POA Budget for 2008 contains a variety of Revenues and Expenses. The primary source of revenues is the annual Maintenance Fee that each property owner pays per the Declarations of Reservations. The “Base fee” this year is $232.41 and is billed for each lot in Horseshoe Bay (Central area, North, South and West). In addition, for all property owners in West, an “Additional fee” of $325.47 per lot is charged. The maintenance fees are increased each year by a factor tied to increases in the Consumer Price Index occurring from one year to the next. The most recent CPI increase was 2%. Of the maintenance fees collected each year, the POA receives approximately 35% of the total and the Resort receives the remaining 65%. The POA’s share for 2008 is estimated to be $1,020,000 and most of this money will be collected in the first quarter of the year. In addition, the POA receives other revenues from the sale of yard lights and phone directories, interest from short-term investments such as CD’s, rentals from member use of the Quail Point facilities and the Campgrounds, billings for lot mowing services for privately owned lots and several smaller miscellaneous fees. These other revenues are expected to total $108,000 this year. On the expense side, the POA has three employees, Tom Engler, the General Manager, Alyce Duncan, the Assistant Treasurer, and Judi Lane, the Assistant Secretary. They provide numerous services to the POA members, the POA Board of Directors, the Resort and Maintenance Fund personnel and they also interface with dozens of contractors. Like other business entities, the POA incurs various administrative expenses along with the usual insurance and utility costs. One of the larger areas of expense is the upkeep and operation of the Quail Point grounds and facilities and the maintenance of the Resort’s primary entrances, boulevard esplanades and ponds (via a separate service contract with the Resort). Other POA duties include keeping the streets and byways clean and litter-free and maintaining the irrigation channels along the roads. As needed, fences and signs are repaired or replaced to keep traffic flowing in the right direction. Major weed and brush control efforts are also expended to clear fire hazards and to improve the overall appearance of the entire subdivision. However, it should be recognized that street repairs, annual maintenance programs and major road enhancements are the primary responsibility of the POA during the year. And last but not least, this year’s POA’s special projects include the Quail Point beautification demonstration, the replacement of the lighthouse beacon, installation of safety gates at various low water crossings and installation of additional satellite mailboxes throughout Horseshoe Bay. Overall, the POA budget is designed to balance the POA’s million dollar revenues with expenses for the year. Occasionally, deficits or excesses occur at year-end, but generally they are minor.

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