Pine Mountain is required to create an Annual Assessment each year by the 1st of January. Unfortunately, this has not happened for quite a while. Each year, since 2015, Pine Mountain has not only adopted the budget from the previous year but cost analysis from the required annual assessment has not taken place.
For the past 2-years, the Board Treasurer has continuously stated that if something isn’t done, Pine Mountain will run out of money — all savings will be dry. That time has come.
Ever since this Board was put into place, how to stop being $60k in the hole every year has become a key issue of concern. This isn’t an easy task, nor can it be accomplished by only one person. Therefore, several people have been tasked different projects in order to discover the truth behind where the budget numbers have been coming from and what are their true nature. For example… did you know that our dues line item for ‘Trash’ has not totaled enough throughout the year to even pay the bill? That’s insane, in my book. And if it’s true for trash, what else is it true for.
Our Treasurer, Jim, has been putting in some very long hours and burning the night oil – all in an effort to help dig at the truth. His facts and numbers will be presented to a working board this month but there is no way we can approve a budget during the September meeting… not enough time.
Therefore, what you need to know is — October will be all about Finances. In order to present the Budget, Cost Analysis (Assessment), Collections and all other topics of money, as well as provide Pine Mountain Members with notices, a head’s up and allow for everyone to voice their opinion – we will be dedicating October’s Board Meeting to just finances. If you are not able to attend — have no worries, the information presented will be published on this website.
For additional information about how our governing documents direct us to conduct business financially, start with Pine Mountain’s Covenants and Restrictions, Part Three, Covenants for Maintenance Assessments, Article I, Section 6: Date of Commencement of Annual Assessments: Due Date.
The annual assessments provided for herein shall commence on the date fixed by the Board of Directors of the Association as the date of commencement. In no event shall the assessment commence as to any particular Unit of PML Property until a contract of sale covering such Unit of PML Property has been entered into by the Developer. When the assessment so commences as to a Unite of PML Property, it shall remain in effect during the life of the contract of sale and after delivery of a deed or certificate of ownership from the Developer to the Purchaser.
The due date of any special assessment under Section 4 hereof shall be fixed in the resolution authorizing such assessment, and it shall be payable in full or in such periodic increments as the Board of Directors of the Association shall determine.
According to NC GS 47F-3-103 Executive Board Members and Officers, (c):
Within 30 days after adoption of any proposed budget for the planned community, the executive board shall provide to all the lot owners a summary of the budget and a notice of the meeting to consider ratification of the budget, including a statement that the budget may be ratified without a quorum. The executive board shall set a date for a meeting of the lot owners to consider ratification of the budget, such meeting to be held not less than 10 nor more than 60 days after mailing of the summary and notice. There shall be no requirement that a quorum be present at the meeting. The budget is ratified unless at that meeting a majority of all the lot owners in the association or any larger vote specified in the declaration rejects the budget.
In Pine Mountain’s Declaration, Covenants & Restrictions, Part 3, Article I, Maintenance Assessments Applicable to all Members of the Association,
Section 1. Creation of Lien and Personal Obligation:
Each owner of a unit of PML Property by acceptance of a deed or Certificate of Ownership therefore, or by entering into a contract of purchase … shall be deemed to covenant and agree to pay to the Association: (a) annual assessments or charges; (b) special assessments for capital improvements. Such annual and special assessments are to be fixed, established and collected from time to time as provided. The annual and special assessments, together with such interest and cost of collection, including reasonable attorney’s fees, shall be a charge on the land and shall be a continuing lien upon the Unit of property against which each Assessment is made. Each assessment, together with interest, costs and reasonable attorney’s fees shall further be the personal obligation of the party who was the owner of property at the time the assessment became due. The personal obligation for delinquent assessments shall not pass to the owner’s successors in title unless expressly assumed by them.
Section 2. Purpose of Annual Assessments:
The annual assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety, and welfare of owners in the PML Properties and for the construction, improvement and maintenance of properties, services and facilities devoted to this purpose and related to the use and enjoyment of the common properties and the improvements situated upon the PML Properties, including, but not limited to, construction of extensions to the water system and sewer system; the payment of taxes and insurance on the common properties, and repair, replacement, operation, and additions and for the cost of labor, equipment, materials, management and supervision. The limitations shall not preclude the use of assessments levied for maintenance of ways of access for vehicles and roads and streets within the PML Properties, even if subsequently dedicated to the public.
Therefore, according to the guidance of Pine Mountain’s governing documents and North Carolina General Statutes, the 2017-2018 Interim Board is conducting an Assessment of current costs to run our community. It’s not surprising to discover the cost is in the $500,000 neighborhood.
Notices will be announced in Facebook, the bulletin board, e-Newsletter, and the Quarterly Newsletter dues will be affected.