HOA Meeting Minutes

General Meeting Minutes and Voting Results for Annual Meeting held at the Access Lot on: Saturday, May 21, 2016 @ 1:00 PM

Dues were collected, keys distributed and ballots and budget distributed
Meeting called to order at approximately 1:50 PM by Matthew P. McCurdy, President

Agenda was presented, which included voting on bylaw changes and approval of the budget

Minutes from the Annual Meeting in May 2015 were reviewed by the Secretary, Mindi Whitt

No questions regarding the minutes

Motion to approve the minutes was motioned and seconded; motioned passed to approve minutes.

Announcements were made and included:
*Community statistics including: number of homes/lots, dues payments, renters *Member asked about collecting dues from past due members and offered to help *Update on fence installation
*Member objected regarding fence approval and funding; discussion and explanation of voting rules and votes needed according to Articles 11 and 17 of the bylaws were provided and voting results reviewed from the General Meeting *Member motioned to move forward with the agenda; motion was seconded and approved
*President reviewed Robert’s Rules

Treasurer, Brooke McCurdy, reviewed the comparison document for last year’s budget and reviewed the proposed 2016-2017 budget

No questions regarding the budgets

Motion to approve the budget was motioned and seconded

Votes were made by majority show of hands; the budget was approved

Motion to approve Terry Marciniack as Member-at-Large for the 2016-2017 fiscal year was motioned and seconded.

Votes were made by majority show of hands; the motion to approve Terry Marciniack as Member-at-Large for the 2016-2017 fiscal year was approved.

President, Matthew McCurdy, stated the format for bylaw change review (each bylaw would be explained and the floor then opened for questions)

Change to Article 1, web address change, was explained and the floor opened for questions

Member asked why the board was moving to a new domain and an explanation was provided that the board was unable to obtain the .org domain from the current webmaster and it was necessary to get a new one in order to make improvements to the website

Change to Article 4, dues increase, was explained and the floor opened for questions No questions regarding Article 4

Changes to Article 9, Section 4, tax filings, was reviewed and the floor opened for questions

Member asked about the need for use of a CPA and the board explained this provision was recommended to ensure taxes were properly filed in the future; H&R Block could be used in the future

Change to Article 9, Section 5, start date of elected board members, was reviewed and the floor opened for questions

No questions regarding Article 9, Section 5

Change to Article 13, removal of percentages for spending, was reviewed and the floor opened for questions

No questions regarding Article 13

Change to Article 16, removal of minimum spending amount, was reviewed and the floor opened for questions

Member interjected why they added the provision and asked why $1,500 could not be guaranteed to be saved each year

The board explained and referenced the newly passed budget as to the reasons for not being able to meet that minimum; costs have increased through the years and $50 per year per member was not providing enough funds for that level of savings

Change to Article 17, minor project dollar amount increase to $500, was reviewed and the floor opened for questions

No questions regarding Article 17
President instructed members to cast their ballots and place them in the ballot box No new business was discussed or brought to the floor
Motion to adjourn the meeting was motioned, seconded and passed
Meeting adjourned at approximately 2:35 PM

NOTE: Voting results, copy of the ballot, previous budget review and approved 2016-2017 fiscal budget follow this document.

May 21, 2016 Annual Meeting Voting Results

On Saturday, May 21, 2016, the Bahia Bay HOA met for the Annual Meeting to vote to approve the 2016-2017 Annual Budget, as well as several bylaw changes that have been proposed. Below are the results.

Please note, according to Article 17 and Article 11 of the bylaws, votes needed to pass motions are: a majority for spending projects over $1,000.00, which includes the budget, and a two-thirds (2/3’s) vote for bylaw changes, respectively. Please see voting ballot for details starting on page three (3) of this document.

The motion to pass the proposed annual budget for fiscal year 2016-2017 has passed by a majority show of hands.

Change to Article 1: officially update the website address for the community to www.bahiabayhoa.com.

Vote For: 60 Vote Against: 2

The motion has passed.

Change to Article 4: increase annual dues from $50.00 to $75.00 beginning fiscal year 2017-2018.

Vote For: 52 Vote Against: 10

The motion has passed.

Change to Article 9 Section 4: community must file taxes with and by the use of a CPA.

Vote For: 57 Vote Against: 5

The motion has passed.

Change to Article 9, Section 5: specify the start date for newly elected board members to coincide with the fiscal year.

Vote For: 61 Vote Against: 1

The motion has passed.

Change to Article 13: remove percentages for funds allocation.

Vote For: 59 Vote Against: 3

The motion has passed.

Change to Article 16: remove minimum savings for long-term projects.

Vote For: 55 Vote Against: 7

The motion has passed.

Change to Article 17: increase smaller amount value from $200.00 to $500.00 for minor expenditures.

Vote For: 62 Vote Against: 0

The motion has passed.

Bahia Bay Fiscal 2016-2017 Annual Meeting Ballot

This fiscal year, several items are up for a vote. Each item up for a vote with start with an explanation of the change followed by the current language of the bylaw and the new language that the bylaw will be changed to if approved. Please indicate your vote by placing an ‘X’ next to ‘Vote For’ or ‘Vote Against’.

BYLAW CHANGES UP FOR VOTE

Article 1: The current board has decided to update the community website in an effort to provide updated information and more online forms, access and future enhancements and as such, needs to change the official web address. This will result in an official change of the website address from www.bahiabay.org to www.bahiabayhoa.com

Current Language of Article 1:

The name of this association shall be the Bahia Bay Community Association Inc., P.O. Box 1202, Cornelius NC 28031. Web site is Bahiabay.org.

Proposed Language to Article 1:

The name of this association shall be the Bahia Bay Community Association Inc., P.O. Box 1202, Cornelius NC 28031. Web address is http://www.bahiabayhoa.com

Vote For: _____ Vote Against: _____

_________________________________________________________________________________________________ Article 4: As described in the Annual Meeting Notice, also the April 2016 Newsletter, the community will need to consider increases dues to accommodate currently planned projects and to ensure solvency into the future. The board proposes to increase annual dues from $50.00 per year to $75.00 per year beginning in the 2017-2018 fiscal.

Current Language of Article 4:

In order to provide funding for the Association to carry out its objectives as set out above, annual membership dues shall be assessed per lot. However, where one residential structure is built upon one or more lots, those parcels being contiguous, the property owner shall be assessed as one lot for purposes of dues. Currently the annual dues are set at $50, payable at the Annual Meeting of the Association in May, and are not refundable in whole or in part. Members whose dues become past due by more than 120 days will be subject to a late fee in the amount of ten percent (10%) per annum, and if late by 6 months or more, possibly other penalties as established by the policies of the Association, and in accordance with NC Statute 47F.

Proposed Language to Article 4:

In order to provide funding for the Association to carry out its objectives as set out above, annual membership dues shall be assessed per lot. However, where one residential structure is built upon one or more lots, those parcels being contiguous, the property owner shall be assessed as one lot for purposes of dues. Currently the annual dues are set at $50, but will be increased to $75.00 per year beginning in the 2017-2018 fiscal year, payable at the Annual Meeting of the Association in May, and are not refundable in whole or in part. Members whose dues become past due by more than 120 days will be subject to a late fee in the amount of ten percent (10%) per annum, and if late by 6 months or more, possibly other penalties as established by the policies of the Association, and in accordance with NC Statute 47F.

Vote For: _____ Vote Against: _____

_________________________________________________________________________________________________

Expand Article 9, Section 4: Treasurer

The community is required to file a federal tax return even though the community will not owe taxes, in most cases. The community has not filed taxes properly, if at all in the past. We suggest adding language to this Article to require the Treasurer to file appropriate tax forms in accordance with IRS guidelines using a Certified Public Accountant (CPA) approved the board.

Current Language of Article 9, Section 4:

The Treasurer shall have custody of all funds belonging to the Association; shall keep a full and accurate account of receipts, dues and expenditures; shall make disbursements authorized by the Executive Board. The Treasurer shall be responsible for coordinating the distribution of Access Lot gate keys and the collection of the annual dues. The Treasurer shall present a financial statement at the mid-year general meeting and the annual meeting. The Treasurer shall keep a copy of the annual budget and all bids on major projects in the financial records file.

Proposed Language of Article 9, Section 4:

The Treasurer will ensure that all necessary and appropriate tax forms are filed in a timely fashion with and by the use of a Certified Public Account (CPA) that is approved by the board.

Vote For: _____ Vote Against: _____

_________________________________________________________________________________________________ Article 9, Section 5: There has been confusion in the past as to when exactly a new board will take over official duties once elected. The Board proposing adding language to further clarify the timing and terms of the elected board members.

Current Language of Article 9, Section 5:

All officers shall deliver all reports and materials to their successors not later than ten (10) days following the close of the fiscal year.

Proposed Language of Article 9, Section 5:

All officers shall deliver all reports and materials to their successors not later than ten (10) days following the close of the fiscal year. The term for board members shall be the same as the fiscal year. Board members will serve from June 1 through May 31 with newly elected officers assuming the new positions effective June 1 in any election year.

Vote For: _____ Vote Against: _____

_________________________________________________________________________________________________ Article 13: Removal of the second and third paragraphs from Article 13.
The restrictions based on percentages places an unnecessary burden on the community and board members to properly manage projects for the community and since the community must vote on and approve the annual budget and all large spending projects, these sections are no longer necessary.

Current Language of Article 13:

A budget for each fiscal year should be prepared by the Executive Board and presented for approval at the Annual Meeting of the Association. It should be based on both the monies available in the treasury and expected revenues from the collection of annual dues in the coming year. The budget should realistically reflect the spending priorities of the Association for the coming fiscal year, taking into account all required recurring expenses and estimates of discretionary expenses. A small percentage, not to exceed twenty (20) percent, should be left unbudgeted to cover unexpected but necessary expenses that may arise.

The Association’s guidelines for allocation of funds available each fiscal year shall be generally as follows: Forty (40) percent to Access Lot maintenance, fifteen (15) percent to Beautification, fifteen (15) percent to Social Functions, five (5) percent to Safety Sub Committee , and five (5) percent Discretionary in addition to an Access Lot Account to allow for a one-time $4,000 amount (No legal fund amounts as long as it stays at maximum $7,000).

Anytime the Treasury’s balance at the end of a fiscal year plus the projected revenues from collection of dues for the upcoming fiscal year exceed the cost of items budgeted for the upcoming fiscal year by an amount greater than thirty percent (30%), the Executive Board shall call for a vote at the annual meeting on whether or not to reduce the amount of the annual dues assessment to a lower figure which still adequately covers the budgeted expenditures for the upcoming fiscal year.

Proposed Language of Article 13:

A budget for each fiscal year should be prepared by the Executive Board and presented for approval at the Annual Meeting of the Association. It should be based on both the monies available in the treasury and expected revenues from the collection of annual dues in the coming year. The budget should realistically reflect the spending priorities of the Association for the coming fiscal year, taking into account all required recurring expenses and estimates of discretionary expenses. A small percentage, at least twenty (20) percent, if possible, should be left unbudgeted to cover unexpected but necessary expenses that may arise.

Vote For: _____ Vote Against: _____

_________________________________________________________________________________________________ Article 16: Remove the last sentence of this article related to minimum savings for long-term projects as the community is unable to guarantee savings in the amount of $1500 each year for long term projects at the current budget levels.

Current Language of Article 16:

The Executive Board shall maintain a list of major spending projects that have long- range implications for the subdivision. The budget for any such project may span more than one (1) year. A minimum of $1,500 per year placed in a separate account for access lot projects and other projects (after first year of $4,000.00) if monies are available.