Pool Dues: Changing from optional membership to required membership.

Started by CandyB • 5 replies • 1533 views

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CandyB (Pennsylvania)
Posts: 11

Posted:

In the past, pool membership was optional. If you paid a fee, separate and distinct from the assessment,you could join the pool for the summer season. This procedure was changed last year. We voted to have all community members pay for the pool through a minor increase in the quarterly assessment allowing everyone to be a member.

We now have approx. $58,000 of past pool membership dues sitting in a fund. What do we do with it? As the treasurer, I feel that this money doesn't belong to those members who did not pay into it. Should we refund the money to those who paid? Or can it legally be used for common purposes? I can't find any accounting guidelines relating to this.

CharlesW1 (Georgia)
Posts: 826

Posted:

Candy,

I’m not 100% sure on this but I would think you could use the money collected for anything your community is in need of, road repairs, sign repairs, any amenities, landscaping, HOA utility bills. Could you put the money in the reserves?

I wish we had that kind of funds in our reserves. We are going to have to raise assessments and request a special assessment just to pay for the resurfacing of the community pool, this year.

We are not going to be liked, but the board will have to pay this increase and special assessment as well.

Keep us posted
Chuck W.

Charles E. Wafer Jr.

JoeS4 (Kentucky)
Posts: 77

Posted:

I would tend to agree to a point, I think that you raised everyone to afford to operate the pool. There must be a seperate pool budget, I would assume that you have collected more than need for the pool budget, so it can be used for whatever needed. Maybe next years fees could be readjusted if you have surpassed what was needed in addition to reserves. However, be assured pools are know for developing leaks and wearing out expensive equipment, so maybe someone had a seperate reserve for the pool. I would check with previous budget minutes as well as the past treasurer if needed. Remember you looking out for everyones best interest, the people that didn't pay for the pool, only didn't pay because it used to be an option, now that its not an option, everyone owns a small part of it and everything else the POA takes care of, equally.

Good Luck

PatrickH (California)
Posts: 204

Posted:

Candy, you should keep all those dues for work on the pool and pool area, since that's what they were paid for.

If you haven't had one done, I'd get a reserve study for the pool area. That will tell you how much all the various items will cost to replace, when they estimate the replacement will be needed and how much money you should have now towards those costs. You might be surprised how many things there are that will need replacement and how much they cost.

My HOA has a separate account just for the recreation center with it's own dues, budget and Reserves. We have just over $ 200,000 in our Reserve Fund, which is about 95% funding for the Reserves. It sounds like a lot until you look at the Reserve Study and see how many things there are that will need replacement.

BradP (Kansas)
Posts: 2,640

Posted:

Candy:

I would keep that money as a reserve for future pool maintenance. You never know when a pump will go out or a pipe will break. It was collected for the pool, keep it for the pool.

CandyB (Pennsylvania)
Posts: 11

Posted:

Thanks everyone for your input. I felt good about recommending to the rest of the Board to keep the money in reserve for future maintenance. They agreed and all was said and done!
CANDYB

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