Minutes of Special Board Meeting on June 19, 2003
VIRGINIA CITY HIGHLANDS PROPERTY OWNERS’ ASSOCIATION
June 19, 2003
All Board members being present, President Judson called a Special Session of the Virginia City Highlands Property Owners’ Association to order at 7:20PM, June 19, 2003 at the Highlands Fire Station.
Judson stated that the purpose of the Session was to discuss and approve the Association’s Operating Budget for the fiscal year beginning July 1, 2003 and ending June 30, 2004.
Judson presented the proposed Operating Budget indicating that with the present income levels and even with adjusting expenses and funding the reserve account at the minimum necessary, the Association would be out of funds in the operating account by August 2004. He opened the meeting for discussions of options. Items of discussion included, among other items, the Ombudsman fee paid to the State of Nevada for both past and future years, potential income tax due on the Association’s rental property, picnic expense, deferring the purchase of a new truck and plow called for in the Reserve Budget, adjusting funding and timing of the Reserve Budget, increase in transfer fees, increase in advertising fees, elimination of Board member and Architectural Committee member fees, and elimination of paid mailbox maintenance.
Prior to final approval of the Budget, Ingram proposed that even with the limited funds available that it would be prudent to consider the purchase of a maintenance building from Storey County for $2,000.00. Reasons for this purchase at this time include the reduction in the deterioration of the Association’s vehicles, ability to place vehicles out of sight of the public, and a clean and dry environment for the repair of equipment. A similar building would cost approximately $50,000.00 if purchased new. Although there is concern as to where the funds will come from to prepare the site and construct the building, it was felt that the Association should not pass up this opportunity which is time sensitive.
Ingram moved, and Kennedy seconded, that the Board adjust the Reserve Budget and Operating Budget and approve an expenditure of $2,000.00 for the purchase of a 5,000+/- square foot maintenance building from Storey County subject to county permission and Special Use Permit issuance. The motion was passed 4-1 with Judson dissenting. In his dissent Judson stated his belief that the expenditure was fiscally irresponsible, that the building is not needed, and that the project has unknown final cost.
After adjustment for the above expenditure by funding an additional $2,000.00 to the Reserve Budget, the amended Reserve Budget (copy attached) was unanimously approved on a motion by Fruzza, seconded by Kennedy.
After adjustment for an additional funding of $2,000.00 to the Reserve Budget from the operating account the Operating Budget was unanimously approved on a motion by Fruzza, seconded by Kennedy.
All business of the Special Session being completed, it was moved by Ingram, seconded by Kennedy, and unanimously approved to adjourn the Session at 8:59PM.
Reserve Budget FY04
Operating Budget FY04