It is important to know and realize that POA stands for Property Owners Association. We as members pay assessments (dues) monthly. That means ALL of Pine Mountain’s common property, assets, records, etc. belong to the Members.
What is our Assessment year – Jan-Dec or Fiscal? Pine Mountain uses Fiscal Year July 1st to June 30th.
What are assessments (dues)? The cost of day-to-day operations, monthly bills; salaries; estimated maintenance fees for all association property, buildings, and common areas (golf course, recreational facilities, and amenities); taxes; and water/wastewater operations. (C&R, Part 2, Article I, III)
How are Assessments calculated? Pine Mountain has approximately 1200 lots. The easy answer would be… the annual estimated cost to fully operate Pine Mountain is then divided amongst those 1200 lots, then divided again by 12 to calculate monthly charges. But that’s not what happens. Not everyone is paying their assessments, forcing those that do pay to pay more to cover operation costs.
Example: Let’s say it costs $300,000 to operate Pine Mountain in one year. If you divide $300,000 by the number of lots (1200), that would mean every lot would pay $250 per year to cover all costs. But what’s happening? Not everyone pays. We only have approximately 250 lots paying not 1200. That means the $300,000 is divided by 250 equals $1,200 a year, making it $100 a month. But not every lot pays $100 a month because it was determined why should a vacant lot pay the same as a house or townhouse, therefore the variables are: single house homes, townhouses, vacant lots with water access (a water pipe runs by their property) and vacant lots without water access.
Note: There are rules and procedures in place that addresses lot owners that do not pay (delinquency). You’ll have to see another section for a full description of that process.
What are Capital Improvements? projected construction,
The association has the right to suspend the enjoyment rights of any member for any period during which any assessment, service, or use charge, remains unpaid, and for any period not to exceed 30-days for any infraction of its published rules and regulations. (C&R, Part 2, Section 3(c))
Board of Director’s Duties: The Board of Directors shall fix the amount of the assessment against each unit of property at least 30-days in advance of the commencement and prepare a roster of all units of properties applicable that shall be kept in the office and be opened to inspection by any owner. Written notice of the assessment shall be sent to every Owner subject thereto. (C&R, Part 2, Section 7; NC GS 47F-3-102)
- The Association shall, upon demand at any time, furnish any Owner liable for the assessment a certificate in writing by an officer of the Association assessments that have been paid. A certificate shall be evidence of payment. (C&R, Part 2, Section 7)
- The Association, upon written request, shall furnish a lot owner or authorized agent, a statement of the amount of unpaid assessments and other charges against a lot. The statement shall be furnished within 10-business days after receipt of the request and is binding on the association, the executive board, and every lot owner. (NC GS 47f-3-118b)
Banking & Budget:
- The Treasurer shall provide oversight to the Secretary in all banking matters of the Association and shall disburse funds as directed by the Board of Directors. Disbursements will be conducted within the limits of a budget adopted by the board. The Treasurer will sign all checks and notes, provided that the same notes shall also be signed by the President or Vice-President. (By-Laws, Article XI, Section 6)
- The Treasurer shall keep proper books of account and cause an annual audit to be made at the completion of each fiscal year. The Treasurer shall prepare an Annual Budget and an Annual Balance Sheet Statement, and the budget and balance sheet statements shall be presented to the Membership at its regular Annual Meeting. (By-Laws, Article XI, Section 7)
- The Audit Committee shall supervise the annual audit of the Association’s books and approve the annual budget and balance sheet statement to be presented to the Membership at its regular annual meeting. (By-Laws, Article XII, Section 8)
- In case of any Budget changes, the Secretary will prepare a notice of any meeting stating the time and place of the meeting and the items on the agenda including the fact there will be budget changes discussed. (By-Laws, Article XIII, Section 3)
Proposed Budget: (NC GS 47F-3-103c) Within 30-days after the adoption of any proposed budget, the 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 ratification of the budget meeting will be established by the board not less than 10-days or more than 60-days after mailing the summary and notice. The budget will be ratified unless the majority of all the lot owners or any larger vote specified in the C&R rejects the budget. If the proposed budget is rejected the last ratified budget will be continued.
Financial Statements: (NC GS 47F-3-118; 55A-16-20)
- A corporation upon written demand from a member shall furnish that member its latest annual financial statements to include a balance sheet as of the end of the fiscal year and a statement of operations for that year.
- If financial statements are prepared for the corporation, the annual financial statements shall also be prepared.
- If financial statements are reported by a public accountant, the accountant’s report shall accompany them. If not, the statements must be accompanied by the statement of the president or the person responsible for the corporation’s financial accounting records.
- Financial records shall indicate all cash receipts and expenditures and all assets and liabilities.
- Annual income and expense statements and balance sheets shall be available to all lot owners at no charge and provided within 75 days after the close of the fiscal year to which the information relates.
- Records for the current or immediately preceding fiscal year, a more extensive compilation, review, or audit of the association’s books and records for the current fiscal year may be required by a vote of the majority of the executive board or by the affirmative vote of a majority of the lot owners present and voting in person or by proxy at any annual meeting or special meeting duly called for that purpose.