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JimS (Delaware)
Posts: 10
Posted:
At our last annual meeting the issue of installing lighting on an entrnce sign came up. We had previously installed lighting at our other sign for a cost of about $5000.
Based on a question from a resident, I as the President, stated we are looking to get county funding for the project. I further stated we intended to light the sign, if we can get funding. This was not a motion nor was it voted on my the Board. Although our minutes are usually very accurate, I do not recall if my veerbal response was that definitive that if no funding was found, we would not light the sign. I felt that I was trying to convey that we wanted to light the sign, and that we would make every effort to find outside funding.

We could not find any funding. The majority of the Board (all but one) wants to proceed with the project. The other memeber feels that since we stated that in the minutes we cannot procved. I understand that when one reads the minutes, you can read it two ways. Of course you all know that there will be somne who take the position that this statement is written in stone, while others see the lighting as beneifical and the wording in the minutes only meant to convey we would make a good faith effort to get funds.

The question is, Will this preent an ethical issue of credibility of the Baord, or me actually. I was only responding to a question and maybe I didn't phrase it correctly. Are we bound by this statemtn. Most Board meebers feel that we made a good faith effort and now it bioils down to - do we want to enhaaance our community entrance or do we not? How would you answer the one Baord member? and others if the issue is raised?
PaulM (Pennsylvania)
Posts: 1,347
Posted:
Jim5:
Is the installation of lighting on an entrance sign part of your annual budget? and was your annual budget for 2007 approved by the membership?

If the lighting expense was not part of the budget then you would want to call a special meeting to bring it to the residents for a vote. Without the funding that was hoped for, the residents would have to incur a 'special assessment' to cover.
If an expense was not made part of the annual budget, it becomes the board's fudiciary duty to bring it to the residents on whether to incur the expense or not.
Though the board has 'power' to spend assn. monies, in the case of an 'unapproved' expense, or one not on the approved budget, I encourage you to remain open to the residents and seek a majority vote before the board takes action. A surprise assessment will not be received well and you will open yourself up to all kinds of negative repercussions.
A lawyer once stated---'though you can, doesn't mean you should'.
Good Luck!
PaulM

BrianB (California)
Posts: 2,820
Posted:
things written in minutes are not written in stone. in fact, that's why minutes should be read later and agreed upon. Even when agreed upon, statements made in minutes remain statements. that's all. If the board decides later to re-examine an issue, they have every right to re-open it, and perhaps reverse a decision.

RogerB (Colorado)
Posts: 5,067
Posted:
Jim, the minutes are official - not what you meant to say. Have they been approved yet? If not, perhaps you can correct the minutes.

Nevertheless, technically the Board has the authority to reverse the opinion stated in the minutes by a vote to fund and put in the sign light unless the budget change requires members approval. Before signing a contract it would be best to let the members know of this reversal in advance and explain the reason for it.
JimS (Delaware)
Posts: 10
Posted:
I certrainly thank all of you for your responses. To clarify, the installation of the sign will not increase assessments. The Board goes over the budget in detail at each annual meeting and then the Board votes if there are no protests.

We did mention the sign at the last annual meeting and there was no negative response when asked. However, the statement in the minutes was my opinion, not a vote of the Board. I know that according to Robert's Rules that if a decision is voted on but not implemetned it can be rescinded. Since this was only an opinion most of our Board now feel that we can revisit the isssue and proceed since we made a good faith effort to find funding. We installed lighting at our other entrance and had asked at a monthly meeting how residents would feel about the outlay. It was overwhelmingly positive.

At any rate I will take the advice and bring it up again at the next meeting, explain that we have a budget surplus which can be used to fund the project,(no increae in asessment) and test the waters. We have the authority to committ as a Board, but in the past I have alsways sent out questionaires or emails asking for resident's opinions. We have tried to be open with all, otherwise, chaos reigns!!

Thanks again

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