10 IMPORTANT FACTS THAT AFFECT ALL SHAREHOLDERS
- All Board members swear an Oath of Service; sign a Code of Ethics and a Confidentially Statement prior to serving the Community.
- Board Members are not liable for mistakes in Judgment except for WILLFUL MISCONDUCT OR BAD FAITH. Board members are liable if any of their actions or contracts are made in bad faith or contrary to the provisions of our By-laws.
- Board members powers are governed by Carefree Governing Documents and all applicable laws. None of their acts shall conflict with the By-laws, Declaration of Covenants and/or other action duly passed by the Shareholders at an election.
- All Shareholders have equal ownership. The elected Board of Directors represent the interests of all 1614 Shareholders and everyone must be treated equally. Board Directors are volunteer positions and do not have any superior power over the Shareholders.
- The Board of Directors must establish the Yearly Association Dues based on the Board approved Annual Operating Budget.
- The Board is responsible for all Common Property maintenance, repair and replacement; most of these expenses are allocated in the Falcon Group Capital Reserve Fund Study. This study provides the Board guidance for proper funding and capital replacement needs.
- The Board must prepare a balance sheet, an annual statement of income and an Operating Budget which must be voted on by the Board in the presence of Shareholders at an Open General Meeting on or before the January Open Meeting. All financial statements are always available in the office to view by Shareholders. The Operating Budget is currently being prepared.
- Capital Reserve Funds are necessary to save for major repairs and to avoid "Special Assessments". Our By-laws require the Capital Reserve is funded by:
1. Prior Year's Earnings Surplus
2. Current Year's Homeowner's Transfer/Rental fees
3. If necessary, Special Assessments
- Our Capital Reserves are not funded according to our Falcon Group Study. We should have over $1,000,000.00 in our Capital Reserve fund. WE ARE GROSSLY UNDERFUNDED! Please take the time to view the Falcon Study in the association office.
- Deficits must be taken seriously! Deficits occur due to poor budgets or no budgets, overhead costs and indirect expenses. In our case we had NO budgets. The solution is to look at the overall spending and come up with a plan to lower expenses and generate revenue.