Post by Veritas on Jan 17, 2024 0:16:36 GMT -7
Questions Regarding Assessments Readers Asked Us
We received many questions regarding GLA's Proposed 10% Assessment Increase. Questions and answers are below.
1) How much money will the assessment increase raise?
A 10% raise should bring in around $20,000.00.
2) What is the total amount of assessments that remain uncollected and are past due?
About $84,000.00 is currently outstanding. The top seven past-due debtors owe a total of almost $60,000.00.
3) Can past-due amounts be used to cover GLA expenses?
Yes, but since it is not dependable income past-due accounts cannot be included in the paper budget.
4) How much money does the GLA have in the bank?
As of December 31, 2023, the GLA had $202,000.00 in the bank in their Checking and Savings accounts.
5) Can the $202,000.00 be used to cover GLA expenses?
Yes, most of it can. The $202,000.00 is stashed in Reserve Fund Accounts. These are paper accounts and are used to hold money that comes from unspent budget items, past-due assessments, and court settlements. However, the money is not part of the GLA's current income, so it cannot be included in the paper budget.
6) What are the reserve funds used for?
The $202,000.00 is distributed among six funds. All are listed at the top of the GLA Balance Sheet under Assets. They are:
a) Construction Bond Reserve Cash - This is money that landowners have paid to the GLA for construction bonds. Typically, landowners ask for this money back after they finish a project and reseed disturbed areas, etc. It is money that legally belongs to landowners and cannot be spent by the GLA. This fund contains $31,677.00.
b) NG Chip Seal Reserve - as the name implies, this is money set aside for chip sealing North Glastonbury paved roads. It contains $7,475.00
c) NG Road Reserve Cash - this fund is normally used to deal with emergency road repairs caused by flooding or other one-of-a-kind damage. It currently holds $23,205.00. The balance of over $20,000.00 is often used to supplement spring or fall grading. $20,000.00 is generally considered more than enough to cover emergency repairs.
d) SG Road Reserve Cash - this is an identical fund to the above NG Road Reserve cash and used for the same purposes. It was tapped in 2018 for the flooding of Hercules Road. Since then, it has ballooned in size to $70,000.00. Normally anything over $20,000.00 is used to supplement South Glastonbury road maintenance. The GLA Board could also decide to use part of this money to repair and lengthen guardrails on Hercules Road.
e) Lawsuit Reserve Cash - this fund is money set aside to pay attorneys because the GLA does not have Director and Officer insurance to cover lawsuits. It cannot be spent for other purposes. When the fund is partially depleted it is usually rapidly replenished. It currently holds $30,000.00.
f) Snow Removal Reserve Cash - this fund receives all unused snow plow budget money. If we have a light snow year the fund grows. In heavy snow years, money is withdrawn after all the budgeted money is spent. $25,000.00 is generally enough to cover even the worst blizzard.
The funds total $197,357.00, as of December 31, 2023. An extra $5,000.00 is sitting as unallocated cash in the checking and savings accounts, which brings the total to $202,000.00.
7) Since some reserve funds are normally used to supplement the GLA budget, why do we need to increase assessments? Could we not just take $20,000.00 out of a reserve fund and place it in the budget?
Reserve funds are frequently used to supplement annual GLA spending, but they are not considered income, so they cannot be part of the paper budget. However, there is no logical reason to raise assessments when $63,000.00 in reserve funds can be used for 2024 roadwork.
8) What other assets does the GLA own?
The GLA owns over 200 acres of land. At the January 11, 2024 Finance Committee meeting, Director John Carp said that a land sale of the 20-acre Quonset Hut property could bring in $300,000.00 to $500,000.00, once an engineering review was completed and current septic restrictions lifted.
9) It appears that the GLA has sufficient capital to pay for unforeseen emergencies, natural calamities, and lawsuits. I understand that the draft budget is a paper plan on how assessments will be spent for everyday expenses. But with all the extra cash and valuable real estate, why does the GLA want to raise assessments?
We are speculating here but from the GLA's perspective, it is very easy to raise assessments. The Governing Documents allow assessments to be raised by 10% per year. All it takes is a BOD majority vote. Landowners rarely complain and they must pay or face legal action. Many GLA directors do not live in Glastonbury either. So they may not know that many landowners depend upon their Social Security checks for income. Few are here in the winter and may not understand how difficult and expensive it is to heat manufactured homes and trailers that many call home. Several directors have second homes in Glastonbury and they are accustomed to paying much higher HOA fees in their home states. They see our assessments as being far too low.
10) What can I do?
A lot. Your voice is important and will be heard if you email the GLA Board at info@glamontana.org. Or attend the next board meeting and voice your thoughts during the Landowner Comment Period. The next GLA Board meeting is on Wednesday, January 17, 2024, at 7 pm. The meeting is by Zoom or phone only. The GLA website calendar states "The GLA Board is scheduled to meet at 7 PM at Emigrant Hall and via Zoom and Phone. Meeting ID: 879 1933 7183 Call-In #: +1 720 707 2699 Password:2023".
You may also call the GLA at 406-451-0033 and leave a voicemail message. Your message will be automatically forwarded to all board members.
11) Can I view the proposed 2024 Draft Budget?
Yes. It was just released by the GLA. You may download it by clicking here.
1) How much money will the assessment increase raise?
A 10% raise should bring in around $20,000.00.
2) What is the total amount of assessments that remain uncollected and are past due?
About $84,000.00 is currently outstanding. The top seven past-due debtors owe a total of almost $60,000.00.
3) Can past-due amounts be used to cover GLA expenses?
Yes, but since it is not dependable income past-due accounts cannot be included in the paper budget.
4) How much money does the GLA have in the bank?
As of December 31, 2023, the GLA had $202,000.00 in the bank in their Checking and Savings accounts.
5) Can the $202,000.00 be used to cover GLA expenses?
Yes, most of it can. The $202,000.00 is stashed in Reserve Fund Accounts. These are paper accounts and are used to hold money that comes from unspent budget items, past-due assessments, and court settlements. However, the money is not part of the GLA's current income, so it cannot be included in the paper budget.
6) What are the reserve funds used for?
The $202,000.00 is distributed among six funds. All are listed at the top of the GLA Balance Sheet under Assets. They are:
a) Construction Bond Reserve Cash - This is money that landowners have paid to the GLA for construction bonds. Typically, landowners ask for this money back after they finish a project and reseed disturbed areas, etc. It is money that legally belongs to landowners and cannot be spent by the GLA. This fund contains $31,677.00.
b) NG Chip Seal Reserve - as the name implies, this is money set aside for chip sealing North Glastonbury paved roads. It contains $7,475.00
c) NG Road Reserve Cash - this fund is normally used to deal with emergency road repairs caused by flooding or other one-of-a-kind damage. It currently holds $23,205.00. The balance of over $20,000.00 is often used to supplement spring or fall grading. $20,000.00 is generally considered more than enough to cover emergency repairs.
d) SG Road Reserve Cash - this is an identical fund to the above NG Road Reserve cash and used for the same purposes. It was tapped in 2018 for the flooding of Hercules Road. Since then, it has ballooned in size to $70,000.00. Normally anything over $20,000.00 is used to supplement South Glastonbury road maintenance. The GLA Board could also decide to use part of this money to repair and lengthen guardrails on Hercules Road.
e) Lawsuit Reserve Cash - this fund is money set aside to pay attorneys because the GLA does not have Director and Officer insurance to cover lawsuits. It cannot be spent for other purposes. When the fund is partially depleted it is usually rapidly replenished. It currently holds $30,000.00.
f) Snow Removal Reserve Cash - this fund receives all unused snow plow budget money. If we have a light snow year the fund grows. In heavy snow years, money is withdrawn after all the budgeted money is spent. $25,000.00 is generally enough to cover even the worst blizzard.
The funds total $197,357.00, as of December 31, 2023. An extra $5,000.00 is sitting as unallocated cash in the checking and savings accounts, which brings the total to $202,000.00.
7) Since some reserve funds are normally used to supplement the GLA budget, why do we need to increase assessments? Could we not just take $20,000.00 out of a reserve fund and place it in the budget?
Reserve funds are frequently used to supplement annual GLA spending, but they are not considered income, so they cannot be part of the paper budget. However, there is no logical reason to raise assessments when $63,000.00 in reserve funds can be used for 2024 roadwork.
8) What other assets does the GLA own?
The GLA owns over 200 acres of land. At the January 11, 2024 Finance Committee meeting, Director John Carp said that a land sale of the 20-acre Quonset Hut property could bring in $300,000.00 to $500,000.00, once an engineering review was completed and current septic restrictions lifted.
9) It appears that the GLA has sufficient capital to pay for unforeseen emergencies, natural calamities, and lawsuits. I understand that the draft budget is a paper plan on how assessments will be spent for everyday expenses. But with all the extra cash and valuable real estate, why does the GLA want to raise assessments?
We are speculating here but from the GLA's perspective, it is very easy to raise assessments. The Governing Documents allow assessments to be raised by 10% per year. All it takes is a BOD majority vote. Landowners rarely complain and they must pay or face legal action. Many GLA directors do not live in Glastonbury either. So they may not know that many landowners depend upon their Social Security checks for income. Few are here in the winter and may not understand how difficult and expensive it is to heat manufactured homes and trailers that many call home. Several directors have second homes in Glastonbury and they are accustomed to paying much higher HOA fees in their home states. They see our assessments as being far too low.
10) What can I do?
A lot. Your voice is important and will be heard if you email the GLA Board at info@glamontana.org. Or attend the next board meeting and voice your thoughts during the Landowner Comment Period. The next GLA Board meeting is on Wednesday, January 17, 2024, at 7 pm. The meeting is by Zoom or phone only. The GLA website calendar states "The GLA Board is scheduled to meet at 7 PM at Emigrant Hall and via Zoom and Phone. Meeting ID: 879 1933 7183 Call-In #: +1 720 707 2699 Password:2023".
You may also call the GLA at 406-451-0033 and leave a voicemail message. Your message will be automatically forwarded to all board members.
11) Can I view the proposed 2024 Draft Budget?
Yes. It was just released by the GLA. You may download it by clicking here.