Virginia City Highlands Property Owners’ Association
Minutes - Special Meeting – Wednesday April 29, 2009
Virginia City Highlands Fire Station Training Room
Present: Biederman, Morrow, Robbins, Tallent-Stewart, and Lumos
I. Call To Order, Declaration of a Quorum and Approval of Meeting Agenda
President Biederman called the meeting to order at 7:10 pm and declared a quorum present. The agenda was approved as posted.
II. Comments by Association Members (NRS 116.3108(3))
No comments were offered by those present.
A. Review Draft Reserve Study
Jed Margolin asked whether the reserve study is required by state law. It is a requirement under NRS 117. State statute requires that the reserve be adequately funded on a reasonable basis as stated in the reserve study. The Commission requires that a report be made annually which indicates compliance or noncompliance with the approved study.
Andy noted that if the sale of the fire station and house is completed that will reduce the amount needed to adequately fund the reserve. The process of selling the property will likely take a couple of years to complete, if at all, considering that a majority of the property owners would have to approve the sale.
The cost allotted for refurbishment and replacement of the mailbox sheds was questioned. The cost appears to be based on having a contractor do the work. Perhaps it could be lowered. It was also questioned whether the cost for mailbox replacements is for the sheds or actual mailboxes. This will be clarified.
Sale of the loader was suggested. It is seldom used since the County took over maintenance of Cartwright. A roller would be a more effective piece of equipment. Fire Safe Highlands currently uses the loader to clean up the area of the slash pile.
The amount allocated for replacement of the grader appears to be deficient. Perhaps the amount of the loader could be added to the replacement cost for the grader.
Steve and Andy will work with the consultant to revise the study to reflect the revised equipment replacement costs and actual roadwork anticipated for the next few years. It would be helpful if the revisions were made before the May meeting to aid in the budget discussions.
B. 2010 FY Budget Workshop
Dave Thomas explained that the numbers shown on the last sheet of the budget worksheet are the same as those in the draft reserve study regarding funding of the reserve study. He commented that the replacement costs for the heavy equipment in the study were insufficient.
Dave had prepared alternate proposed budgets assuming varying amounts for the special assessment.
The estimated cash balances at the end of this fiscal year are projected to be $75,700 in operating and $58,300 in reserve. The road committee anticipates spending approximately $115,000 on road work in May and June of this fiscal year. Since the reserve fund is required to be funded above what has been done in the past, capital road work for next year will be about $55,000 with the remainder meeting the requirements of the study.
The proposed operating budget is based on spending history with a greater amount budgeted for snowplowing than was spent in the current year. If there is surplus in the operating budget at the end of the year, some can be transferred to the reserve account, thus lowering the amount of the next special assessment.
The decision on the amount of the special assessment and adoption of the proposed budget will take place at the regular May meeting.
IV. Any Other Matters which the Board Members Wish to Discuss
No other matters were brought before the board.
There being no further business the meeting was adjourned at 9:10 pm
Rita Lumos, Secretary