HOA President...The Door is Open!

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SPANISH OAKS

HOA

The welcome mat is out

and approximately 35

Spanish Oaks homeowners

attended our February 17th

Board of Directors meeting.

These are highlights from

the Board Officer/Director

reports to keep you

in-formed.

Meeting Highlights:

My President’s Report

fo-cused on the importance of

positive communication

and correcting

misinforma-tion on the street. We also

outlined how the Open

Meetings will run to include

homeowner participation

yet manage a timed

agenda.

Board Committees are

be-ing formed and we

encour-age homeowners to share

their time and talents by

completing an application.

The guard house has forms,

or you can contact

HOAMCO:

((((

abennett@hoamco.com

).

The Board will select three

homeowners per committee

by March 31st. Each Board

Director chairs one of the

five committees.

Our Treasurer, Jeff Starling,

has worked countless hours

on prior year expenses,

cur-rent year budgeting, reserve

planning and setting

realis-tic expectations for

finan-cially managing Spanish

Oaks through 2015. As we

change from cash

counting in 2014 to

ac-crual accounting in 2015,

the net income results are

unfavorable

($31,140)

in

December and

unfavor-able

($21,752)

in

Janu-ary. This is due to unpaid

bills and approved special

projects by the previous

Board. Bottom line,

ap-proximately $35,000 of

expenses carried over

from 2014 work that have

to be paid in 2015.

As of the end of February,

the new Board is going to

have to re-budget 2015,

based on these expenses

and there will be little

room for any new special

projects in the community.

Jeff is available to go over

materials with

homeown-ers, as some who missed

his presentation at the

meeting have already

re-quested. I encourage you

to reach out to Jeff with

questions. His email is:

jtstarling@gmail.com

Alan Algan reported on

landscaping and the

wis-dom of using a landscape

architect to plan any

fu-ture projects. Desert Villa

welcomes the Board’s

commitment to working

with a professional

de-signer. Also noted,

McCor-mick Ranch remains

com-mitted to green spaces,

now and into the future,

thus landscape plans in

Spanish Oaks will remain

in harmony with

McCor-mick Ranch with

“sensitivity to drought

re-sistance.”

Steve Newell reported on

the new security company

(continued

(continued (continued

(continued———page 2)—page 2)page 2)page 2) 6:30 PM Tuesday Meeting

6:30 PM Tuesday Meeting 6:30 PM Tuesday Meeting 6:30 PM Tuesday Meeting Dates: Dates:Dates: Dates: 3/17/15 3/17/15 3/17/15 3/17/15 4/21/15 4/21/15 4/21/15 4/21/15 5/19/15 5/19/15 5/19/15 5/19/15 6/16/15 6/16/15 6/16/15 6/16/15 7/21/15 7/21/15 7/21/15 7/21/15 August off August offAugust off August off 9/15/15 9/15/15 9/15/15 9/15/15 10/20/15 10/20/15 10/20/15 10/20/15 11/17/15 11/17/15 11/17/15 11/17/15 12/15/15 12/15/15 12/15/15 12/15/15

HOA President...The Door is Open!

The Open Door

March 10, 2015

Volume 1, Issue 2

Given the attendance at our Given the attendance at our Given the attendance at our Given the attendance at our first Board Meeting, the first Board Meeting, the first Board Meeting, the first Board Meeting, the March 17th meeting location March 17th meeting location March 17th meeting location March 17th meeting location will be just up the street at will be just up the street at will be just up the street at will be just up the street at The Scottsdale Conference The Scottsdale Conference The Scottsdale Conference The Scottsdale Conference Center, 7700 E. McCormick Center, 7700 E. McCormick Center, 7700 E. McCormick Center, 7700 E. McCormick Parkway, Arizona Rooms II & Parkway, Arizona Rooms II & Parkway, Arizona Rooms II & Parkway, Arizona Rooms II & III. Please join us early from III. Please join us early from III. Please join us early from III. Please join us early from 6

66

6----6:30 pm to hear the Cen-6:30 pm to hear the Cen-6:30 pm to hear the Cen-6:30 pm to hear the Cen-ter’s General Manager pre-ter’s General Manager pre-ter’s General Manager ter’s General Manager pre-sent on their renovations sent on their renovations sent on their renovations sent on their renovations and potential specials avail-and potential specials avail-and potential specials and potential specials avail-able to residents.

able to residents.able to residents. able to residents.

Town Hall Meeting 2

Security Services 2

Overall Master Site Plan 3

How is Your Money Being Spent—Real Cash Position

3

How an HOA Should Use Reserve Fund 4 Reserve Spending 4 President’s Close 5 Building a Sense of Community—HOAMCO 5

Inside this Newsletter:

SPANISH OAK LEAF SPANISH OAK LEAFSPANISH OAK LEAF SPANISH OAK LEAF

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seeking homeowners to update their gate contact sheet, purchase gate openers from HOAMCO and use wind-shield stickers for entrance.

Bruce Fox emphasized the require-ment for homeowners to seek ad-vanced Board approval on any pro-jects altering the exterior of their homes, including landscaping. Con-tact abennett@hoamco.com abennett@hoamco.com abennett@hoamco.com abennett@hoamco.com to re-ceive the SOHOA Architectural Re-quest Form or the guard house has a supply. A Board decision is made

within 45 days of receipt of a request, and work must be completed in 12 months or the request must be resubmitted.

Jeff Starling noted the pool temperature is kept at 80-82 degrees and the spa is set at 101 degrees. We continue to monitor the cost of propane and the number of months the pool is heated.

Note: Jeff wanted to update you that the Note: Jeff wanted to update you that the Note: Jeff wanted to update you that the Note: Jeff wanted to update you that the lake dock has structural issues and is not lake dock has structural issues and is not lake dock has structural issues and is not lake dock has structural issues and is not safe to walk on. It has been “caution safe to walk on. It has been “caution safe to walk on. It has been “caution safe to walk on. It has been “caution taped” and repairs are being quoted. taped” and repairs are being quoted. taped” and repairs are being quoted. taped” and repairs are being quoted.

Friday—Peter & Richard Saturday—Peter & Charles Sunday—Peter & Gary

Please keep in mind that as a Span-ish Oaks resident, there are options for entry into the community: 1)

1)1)

1) Remote control gate opener—

ob-tain through HOAMCO for $35 2)

2) 2)

2) Punch in your security code on the pad by the gatehouse 3)

3) 3)

3) Place a Spanish Oaks window de-cal on your windshield and proceed slowly enough for the guard to verify it—obtain decals from the guard

upon verification of ownership 4)

4) 4)

4) Stop at the guardhouse and check Security Services is our new front gate

services company. Diane and Wally Buchholz have built their almost 20 yr. old company to over 60 employees and have developed a focus on cus-tomer satisfaction.

The current guard hours are: The current guard hours are: The current guard hours are: The current guard hours are: 6:00 am to 9:00 pm 6:00 am to 9:00 pm6:00 am to 9:00 pm 6:00 am to 9:00 pm Staffing: Staffing:Staffing: Staffing: Monday—Richard Tuesday—Richard & Charles Wednesday-Richard & Peter Thursday—Peter & Richard

in with the guard on duty Please let the guard know in advance if Please let the guard know in advance if Please let the guard know in advance if Please let the guard know in advance if you have a non

you have a non you have a non

you have a non----resident entering the resident entering the resident entering the resident entering the community. Otherwise, they may be community. Otherwise, they may be community. Otherwise, they may be community. Otherwise, they may be turned away. turned away. turned away. turned away. Guard House #; 480 Guard House #; 480 Guard House #; 480 Guard House #; 480----991991991991----4114 4114 4114 4114 (Be careful not to dial 911 instead of 991 or you will be getting some un-wanted attention!)

Questions? Questions? Questions?

Questions? Please contact Security Ser-vices owner Diane Buckholz at: 602

602 602

602----740740740740----1128 1128 1128 or: 1128

Email Board Director Steve Newell at: steve7835@gmail.com

steve7835@gmail.com steve7835@gmail.com steve7835@gmail.com

Continued from Page 1—HOA President...The Door is Open!

Security Services

during the last part of the meeting. This is an information gathering meet-ing for homeowners and there will not be any formal Board business.

As background, we are including a separate summary sheet along with this newsletter that summa-rizes where we are and the current impact to homeowners. Please read prior to the Town Hall Meet-ing to be current on the issues. Thanks!!

The Board is hosting a Town Hall Meeting on the question of HOA gov-erning documents and returning HOA provided front yard landscape ser-vices. A panel of experts (attorney, insurance agent, HOAMCO, land-scaper) will be available to share their knowledge about HOA CC&R’s and any issues associated with HOA pro-vided lawn seeding, fertilizing, bush trimming and irrigation timing. Please join us on Monday, March Monday, March Monday, March Monday, March 23rd at 5:30

23rd at 5:3023rd at 5:30

23rd at 5:30———7:00 pm in the Mus-—7:00 pm in the Mus-7:00 pm in the Mus-7:00 pm in the Mus-tang Library Auditorium

tang Library Auditoriumtang Library Auditorium

tang Library Auditorium, located at 10101 N 90th St, Scottsdale, AZ 85258. A moderator will take home-owner questions filled out on a card at the door, and there will be time-controlled comments from the floor

Announcement!! - Town Hall Meeting Monday, March 23rd

Ask Questions!

Offer informed opinions!

Fun AZ Facts!

• It takes 50 years for a saguaro It takes 50 years for a saguaro It takes 50 years for a saguaro It takes 50 years for a saguaro (sah wah ro) cactus to grow one (sah wah ro) cactus to grow one (sah wah ro) cactus to grow one (sah wah ro) cactus to grow one arm. In April or May the sa-arm. In April or May the sa-arm. In April or May the arm. In April or May the sa-guaro blooms. The blossoms guaro blooms. The blossoms guaro blooms. The blossoms guaro blooms. The blossoms become edible fruit.

become edible fruit. become edible fruit. become edible fruit.

• The sun shines in southern The sun shines in southern The sun shines in southern The sun shines in southern Arizona 85% of the time, which Arizona 85% of the time, which Arizona 85% of the time, which Arizona 85% of the time, which is considerably more sunshine is considerably more sunshine is considerably more sunshine is considerably more sunshine than Florida or Hawaii. than Florida or Hawaii. than Florida or Hawaii. than Florida or Hawaii.

• Arizona is known as the Arizona is known as the Arizona is known as the Arizona is known as the "Nation's Valentine", because it "Nation's Valentine", because it "Nation's Valentine", because it "Nation's Valentine", because it joined the union on February joined the union on February joined the union on February joined the union on February 14th.

14th.14th. 14th.

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Email Board Director Steve Newell at:

The Board is interested in an overall landscape master plan for this community. As a first phase to developing this plan, we have commissioned Metropolitan GREEN to develop design plans for landscape improvements of the main entry from McCor-mick Parkway. This was a project previously approved by the former Board. Once completed, we can review with the commu-nity and determine the best way to implement.

A full comprehensive site plan would provide a base for landscape improvements throughout the property and be a great investment tool for future home owner applications and overall property management. Landscape goals and benefits to this landscape renovation plan would consist of updating common area plants, providing updated residential planting guidelines and options that will help maintain a unified look to the development. This plan’s goal will be to maintain grass as the main focal element in the landscape, but remove it in areas where it causes property damage or just could be better served with lush, flowering plantings. During the development phase, the HOA will provide its residents with opportunities to review plans so adjustment can be made as needed for maximum resident support. Reducing some turf can have cost efficiencies in land-scape water consumption, maintenance costs, and building maintenance related to irrigation water damage. Beyond overall site improvements, design plans would also include updated designs for the mailbox kiosks, entry sign wall and revisiting the previous changes to the pool area. All of which once designed, can be then sent out for multiple bids providing a full under-standing of future project designs and how they might need to be phased for construction.

Funding for the overall Master Site Plan will probably be something we look at for 2016. Funding for the overall Master Site Plan will probably be something we look at for 2016.Funding for the overall Master Site Plan will probably be something we look at for 2016. Funding for the overall Master Site Plan will probably be something we look at for 2016.

Overall Master Site Plan—Metropolitan GREEN

This is Jeff Starling bringing you the second installment of “How Is Your Money Being “How Is Your Money Being “How Is Your Money Being “How Is Your Money Being Spent”

Spent”Spent” Spent”.

As I noted in the Feb meeting, our real budget position is not as positive as it seemed at the end of the year. Several normal bills were not paid in Dec or Jan and spending for 2014 Board authorized, year-end special projects, exceeded budget. Along with this, several own-ers prepaid some of their 2015 fees in Dec. Without close attention to the finances, one could believe we were in a very cash rich posi-tion, when we were not. Think of it like your checking account. Although you have money in your checking account, you need to know what outstanding bills are due before you write any checks for new items.

Given all these unpaid expenses, we have to rework our budget and be very “thrifty” this year. There will not be much room for addi-tional “special projects”. We have also found maintenance items that need addressing, so we will prioritize, and may delay less critical items to next year. If you would like additional information on any If you would like additional information on any If you would like additional information on any If you would like additional information on any financial items you may email me at: financial items you may email me at: financial items you may email me at: financial items you may email me at: jtstarling@gmail.com

jtstarling@gmail.comjtstarling@gmail.com jtstarling@gmail.com

How is Your Money Being Spent? Real Cash Position

A Message from your Treasurer…

Volume 1, Issue 2 Page 3

Above is a table summarizing where our true cash position was at the end of Above is a table summarizing where our true cash position was at the end of Above is a table summarizing where our true cash position was at the end of Above is a table summarizing where our true cash position was at the end of Jan prior to the New Board being seated. We will keep you posted on our re Jan prior to the New Board being seated. We will keep you posted on our re Jan prior to the New Board being seated. We will keep you posted on our re Jan prior to the New Board being seated. We will keep you posted on our re----budget progress. We believe we can rework the re----budget and cover normal budget progress. We believe we can rework the budget and cover normal budget progress. We believe we can rework the budget and cover normal budget progress. We believe we can rework the budget and cover normal operating expenses. We hope we do not have much unplanned or emergency operating expenses. We hope we do not have much unplanned or emergency operating expenses. We hope we do not have much unplanned or emergency operating expenses. We hope we do not have much unplanned or emergency spending this year. If so, we do have the option to stop our monthly reserve spending this year. If so, we do have the option to stop our monthly reserve spending this year. If so, we do have the option to stop our monthly reserve spending this year. If so, we do have the option to stop our monthly reserve additions. However, as you will see in my next article, we have some work to additions. However, as you will see in my next article, we have some work to additions. However, as you will see in my next article, we have some work to additions. However, as you will see in my next article, we have some work to rebuild our reserve as well.

rebuild our reserve as well. rebuild our reserve as well. rebuild our reserve as well.

Operat-ing

Reserve Total

Bank Cash $104,753 $88,331 $193,084

Less Homeowners’ Fees paid ahead in Dec & Jan

($18,433)

Less Accounts Payable—Dec. & Jan normal invoices not paid in operating and reserve Loan balances

($27,271) ($11,613)

Less Outstanding Special Projects Landscape Invoice

($9,930)

Less Outstanding Storm Water Pros ($5,900)

Less Minimum Checking Balance (10% of assessment income) HOAMCO recommends to cover late assessment payments, early billing statements & emergency expenditures

($42,055)

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Funding community operations by an HOA Board is one of the most impor-tant, if not the most imporimpor-tant, func-tions of the group. Properly overseeing day-to-day actions and long-term pro-jects insures the neighborhood will have a continuous supply of funds to keep the community running effec-tively.

As HOA Board members we have a fiduciary duty

fiduciary duty fiduciary duty

fiduciary duty to make sure all money is properly allocated. A realistic and realistic and realistic and realistic and successful budget

successful budget successful budget

successful budget can be created by using actual expenses and reserve study guidelines. The reserve study (done last year) takes a fresh look at and takes into account larger scale issues such as pool upgrades, major repair or replacement of roads and sidewalks, granite (rock area) replace-ments, lake sedimentation removal, lake equipment repair, irrigation sys-tems, buildings (guard house) or other large expenditures.

There are basically two types of funds we deal with in our HOA. The day-to-day operations are taken care of by operating funds. The major or long-term projects are handled by the re-serve fund. An HOA Board typically runs its financial operations like every household does. A checking account is used for the everyday and ongoing expenditures and a savings account is used for unforeseen circumstances or planning for future repairs and re-placements. Civil/IRS code requires these two funds to be kept separate– reserves cannot be used for operating. reserves cannot be used for operating. reserves cannot be used for operating. reserves cannot be used for operating. The reserve fund is used for larger scale projects, such as replacement and repair in the HOA community. These monies usually have strict crite-ria for how they are used based on CC&R’s, bylaws, rules and regulations. These expenditures do not occur on an annual basis.

As HOA Board members, we have sev-eral issues to keep in mind when

deal-ing with your community reserve fund.

How an HOA Should Use the Reserve Fund vs. Operating Fund

Reserve Spending: Reserve Spending:Reserve Spending:

Reserve Spending: Sorry if the chart above is hard to read. The top lines shows the reduction in reserve funds over the last 6 years and the other lines show the spend-ing from it. There was also no annual reserve addition made in 2013 in order to cover operating expenses, also resulting in the need for the fee increase in 2014. The red line shows over $43,000 of the decline was due to inappropriate non-pool expenditures for operating expenses. The rest of the reduction came due to the improvements made to the pool in 2009, costing $229,552. Of that amount, $79,552 (green dot) was paid directly out of reserve, with a pool loan of $150,000 used for the balance. While upgrading the pool may have been needed, how it was upgraded and how the decisions were made in 2011-2012 to partially prepay and accelerate payments on the loan, reduced the reserve more than probably was nec-essary. There are several missing meeting minutes during that time that make it difficult to determine what the reasoning was. This may leave us short to cover items needed as indicated by the reserve study. The loan is scheduled to be paid off by the end of 2016. In addition to the $150,000 principal pay back, we will pay approx. $24,500 in interest by the end of 2016. Our monthly loan payments are $536. If you would like more details, please email me at: jtstarling@gmail.comjtstarling@gmail.comjtstarling@gmail.comjtstarling@gmail.com

It is essential to have money put aside for major expendituresessential to have money put aside for major expendituresessential to have money put aside for major expendituresessential to have money put aside for major expenditures, in order to avoid special homeowner assessments

special homeowner assessments special homeowner assessments

special homeowner assessments to pay for major projects.

The Board has the fiduciary responsibility to keep the operating and reserve funds The Board has the fiduciary responsibility to keep the operating and reserve funds The Board has the fiduciary responsibility to keep the operating and reserve funds The Board has the fiduciary responsibility to keep the operating and reserve funds separate, clearly documented and in good standing at all times. This is one of the separate, clearly documented and in good standing at all times. This is one of the separate, clearly documented and in good standing at all times. This is one of the separate, clearly documented and in good standing at all times. This is one of the most important aspects of the Board Director’s role.

most important aspects of the Board Director’s role. most important aspects of the Board Director’s role. most important aspects of the Board Director’s role.

The reserve study completed in July 2014, was not discussed in detail at an open meeting by the previous Board and the new Board has yet to complete their analy-sis. We do know the bottom line of the study indicates, based on estimated up-grade and repair schedule on the current assets, we should be adding at least $50,000 annually to our reserve fund starting in 2015, then increasing over time. Unfortunately, this study excluded the lifespan of the irrigation system which will increase the need for additional reserve contribution. As a comparison, our current budgeted reserve contribution in 2015 is $32,440—($17,560) less than recom-mended by the study. (Some information for this article came courtesy of the HIGNELL Company.)

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HOAMCO Property HOAMCO Property HOAMCO Property HOAMCO Property Management Management Management Management 14861 N. Scottsdale Rd 14861 N. Scottsdale Rd 14861 N. Scottsdale Rd 14861 N. Scottsdale Rd Suite 201 Suite 201 Suite 201 Suite 201 Scottsdale, AZ 85254 Scottsdale, AZ 85254Scottsdale, AZ 85254 Scottsdale, AZ 85254 Phone: 480 Phone: 480 Phone: 480 Phone: 480----994994994994----4479447944794479 Fax: 480 Fax: 480 Fax: 480 Fax: 480----951951951951----5242524252425242 Email: abennett@hoamco.com Email: abennett@hoamco.com Email: abennett@hoamco.com Email: abennett@hoamco.com

Serving Planned

Communities Since 1991

SPANISH OAKS

HOA

We are on the web!

www.hoamco.com

As Board Directors, we hear from many homeowners with diverging views. We read all your notes as a Board. Our primary goal remains squarely on 2015 fiscal respon-sibility and straightforward communication about decisions by the Board. The Board volunteers their time to responsibly manage $420,000 $420,000 $420,000 in annual HOA funds $420,000 with decisions for the good of all homeowners, using complete transparencythe good of all homeowners, using complete transparencythe good of all homeowners, using complete transparency. the good of all homeowners, using complete transparency When considering open meeting HOA business, all our information is your information,

and we pledge to make smart decisions to protect our real estate assets. If you

want any information about open meeting business, please seek out a Board Direc-tor or contact our HOAMCO Property Manager, Anna Bennett (contact info to right). It continues to be a pleasure to work with my fellow Board members, HOAMCO and homeowners for the future of Spanish Oaks!

Linda Pobuda, HOA Board President Linda Pobuda, HOA Board PresidentLinda Pobuda, HOA Board President Linda Pobuda, HOA Board President

Email:

llpobuda@gmail.com

Phone: 480

Phone: 480----492

Phone: 480

492

492----9585

492

9585

Anna Bennett, our HOAMCO

Property Manager is your first

point of contact for daily issues

related to your home and

com-munity.

munity.

abennett@hoamco.com

602

602----502

502

502----3133 (mobile)

3133 (mobile)

After normal business hours,

please call the 24 hour line:

1

1----800

800

800----447

447

447----3838

3838

President’s Close

Page 5 The Open Door

Building a sense of Community!

The number of community associations in the Unite_{d States has increased} from just 10,000 in 1970, to more than 320,000 tod_{ay. Spanish Oaks is not} alone. _{Homeowners choosing to live in a planned commun}

ity, agree to pay fees and live by a set of rules and regulations. The_{se rules and regulations} provide consistent community standards for exterior_{s of homes, yards,} park-ing, pet ownership, etc.

We are, for better and worse, a highly transient socie_{ty. Americans follow} Pro-fessional opportunities, retirement and other preferen_{ces from state to state.} By their inherent nature, community associations _{bring people together,} strengthen neighborhood bonds and promote a sense_{of community and} be-longing—attributes that are often overlooked. A large _{percentage of the more} than 62 million Americans who make their homes in A_{ssociations take} advan-tage of association-sponsored activities like holiday _{events, fitness activities} and community amenities, like a pool or guardhouse.

These activities and amenities help residents get to kn_{ow their neighbors and} forge new, supportive friendships. Social opportunitie_{s exist even in smaller} associations that don’t have the resources or critical _{mass to sponsor formal} activities. Many Americans make enduring friendship_{s by serving on} associa-tion boards and committees and volunteering in oth_{er ways. Spanish Oaks} current Board is focused on moving forward by pr_{otecting property values} through curb appeal. In addition, they are carefully sp_{ending the Associations} funds as fiduciaries of the Association.

I am always amazed by the time and energy volunte_{ers will put into serving} their neighbors. Truly at times a thankless

job.

_{We hope you feel that Spanish} Oaks is a great place to live!

Jim Hanley, President HOAMCO