Purposed budget meeting or not?

I’ll apologize now for such a long post. As many of you know, I’m the VP of our HOA. The Treasurer and the PM together have composed a budget for the 07 year. In the CC&Rs is says that the purposed budget has to be presented to the members of the community, within 30 days prior to the due date for the assessments, (ours are January 1st) at that point if no one disapproves the purposed budget then it’s good. The problem I’m faced with is that we (the board) have mailed out a letter (special information letter) to all homeowners, explaining the reasons for the increase in assessments and to make clear why the need for a specific assessment is being implemented to every homeowner. We didn’t want the increase to be deceitful or “shocked“ in any way. This letter was mailed to all homeowners only, to inform them individually of the increase prior to them receiving the coupon in the mail.

Our newsletter committee (chief editor) has reiterated the date, time and location of the meeting, calling it a “purposed budget meeting” The PM has informed the President that he can not call it a “purposed budget meeting” He says that it isn’t up for discussion, it has already been approved, we (the board members) are only presenting the information to homeowners, and answering any question or any concerns homeowners may have. I totally disagree with his authority on this. In my letter to him I mention that the CC&Rs say that in the budget will be approve unless 2/3 of the membership is present, at that point if all agree to disapprove the budget, then it wouldn’t be passed and the last years budget would be used. (By default)

I have read and re-read the CC&Rs for clarification on this subject. I wrote an email to the property manager this morning asking him why the meeting can’t be called a “purposed budget meeting”. I’m yet to receive a reply. That is why I’m turning to all of you for advice. The advice I receive from all of you is always so detailed and prompt.

I would appreciate any and all incite on this matter. I can supply more information as needed.
I have enclosed what our CC&Rs says about general assessment, and specific assessments. I hope this helps

Again, sorry for the long post

Chuck W.

I don't see in either attachment where it says the budget needs 2/3 majority approval...or approval at all, it just states in case of a disapproval the current budget will stay in place.

We are in GA too and probably have similar covenants. Our covenants state that the board will approve a budget and it is to be mailed to all homeowners 30 days prior to the last day of the fiscal year. We are in the process of sending ours out as year-end is 12/31.

JulieS.

You are correct (good memory) we are both “Georgians” LOL
Our CC&Rs states something very similar, instead of the fiscal period it is 30 days prior to the assessments being due.

Thanks
Chuck W.

GlenL

I appreciate you suggestion, you are correct in saying it is a “plain budget meeting” I re-read the two attachments, and nowhere did I read purposed. I thought I had. HMMMMM With the definitions I found on-line, it doesn’t make what we announce WRONG! I guess just by having budget meeting, it wouldn’t be insinuating that the budget would be up for debate or disapproval. Which, personally I feel is being deceitful. It’s kind of like saying “We (the board) have read in the CC&Rs it states that we have to purpose a budget for the year we are in office” and as a homeowners you may not suggest any alterations. This is it, pay it or don’t”! As a board member I know what are community needs and with these needs, comes expenses! I can relate to that, but a couple of months ago, I would have very well have been the homeowner that had emailed the board to express my feelings as well. At this meeting we are anticipating a really large turn out, although I’m sure it won’t be for the reasons we (the board) would like, but nonetheless these are homeowners that do care (or they wouldn’t have showed at all) and I can respect that. Our intentions are to educate these homeowners with the same information that we are most familiar with, for us to have explained the reason for why we increase assessment and assessed a specific assessment. I have spent a tremendous amount of time on this and other HOA discussion forums to have been educated (by many of you) enough to have learned, to always (in my best interest) pay my assessments on time and to do the “right thing” That is the type of person I am, prior to getting more familiar with the “dos” and the “don’ts” on an HOA. That is why I have the desire to be a good role model for MY community.

Thanks as always
Chuck W.

pro•pose

1. to put forward something such as an idea or suggested course of action formally or officially.

2. to announce a plan or intended course of action.