HOT SPRINGS VILLAGE -- The Hot Springs Village Property Owners' Association Board of Directors voted 4-2 Wednesday before a standing-room-only crowd to let property owners decide this fall whether to create a two-tier assessment system.
If approved by property owners in good standing, developed properties -- those with a water meter -- would increase to $65 a month, while unimproved lots would remain at $36.68.
The proposal is expected to generate approximately $3 million in revenue.
Most of the property owners who spoke during the hour and a half prior to the board taking action opposed the two-tier system. Property owners who spoke said they realized that an assessment increase is needed, but felt going two tiers would divide the community. Other property owners cited the problems a similar system created in Bella Vista.
Property owners also questioned the legality of going to a two-tier system. POA attorney Don Schnipper said there is nothing in the Declaration, the community's governing document, that specifically addresses it.
"We've heard many comments about low owners who don't live here not having any skin in the game. Two-thirds of our assessment revenue comes from unimproved lots. If this increase passes this fall, those with improved lots will pay 46 percent of the overall assessment revenue. This is a more fair for everyone," said Vice President Harv Shelton, who chaired the Future Financial Task Force that came up with the recommendation.
"This is a difficult situation, but I ask that everyone look at all of the information that will come out in the next few months. I said from the start, how do we expect companies to invest in us if we don't invest in ourselves?" said Director Bobbie Bateman.
Directors Frank Leeming and Jeff Atkins opposed the vote. Leeming made an amendment to table the item for further discussion that Atkins also supported.
"If this goes through, I don't see us being able to get another increase passed again," Leeming said.
"The first piece of property I ever bought had a two-tiered assessment system -- one for the larger units and one for the smaller ones. It was already in place. Our Declaration does not have a two-tiered system defined ahead of time. It should be in place legally on our governing document before asking our members to vote on increases," Atkins said.
Leeming's amendment failed, and the main motion passed, causing a loud reaction from the audience, which had already been called down more than once by board President Keith Keck.
"See you in court," an audience member called out as the meeting broke up.
A second motion was passed, also 4-2, to mail all members in good standing a proxy, not less than 30 days in advance of the meeting, tentatively set for Nov. 21, in which the proxies will be counted, as required by the Declaration Article X, Section 6.
Shelton emphasized that solving the Village's upcoming financial crunch involves three approaches -- an assessment increase to provide more time for other revenue sources to be tapped, increasing amenity usage, and utilizing all cost-saving measures possible.
One of the revenue involved a unanimous vote to enter into a marketing partnership with Troon Golf, which is involved with golf and community recreation packages across the country and internationally. Chief Operating Officer and General Manager David Twiggs explained the agreement with Troon, which would help generate more outside golf rounds and attract more people to the community.
This agreement was met with opposition of audience members who wanted to know how much the contract would cost the Village. Keck said the contract was a private issue but that funds had already been budgeted for golf marketing to enter into the five-year contract, with an option out after two years.
"This is one of the big-ticket items we are working on to attract new members, add value back to the Village and gain exposure in many other markets," Twiggs said.
In other action, the board approved a revised vision statement that will read, "Hot Springs Village, a gated community nestled in the Ouachita Mountains, offers a welcoming, dynamic lifestyle with first class amenities, providing a variety of activities for all ages."
Local on 08/21/2014