Annual Meeting, Playground Update, and Proxy
Posted December 7, 2018
Greetings Fellow Kingsgate Five Homeowner,
This has been another great year for Kingsgate V. Good weather led to many of our members enjoying the sun and water at the park and pool. The annual Easter Egg Hunt in April and Association BBQ at the pool in July were well attended. Thanks to all who helped organize and attended these fun events. Remember that information regarding dates and activities for the association is included in your newsletter mailed by postal mail and email, found on our website (http://www.kingsgate5.com/), and posted to our Facebook page: https://www.facebook.com/kingsgate5 (you do not have to be a member of Facebook to use this public page). The annual meeting will be held on Monday, January 28, 2019 from 7:00 – 9:00pm in the library at John Muir Elementary. Among the important issues that will be voted on will be the 2019 budget and voting for board members for future years.
I want to thank all the members of our association for their continued support and feedback to the board. The board and the success of our community depends on that. Any thank you would be incomplete without including all the members of the board who support our whole community: Ashley Gillen – treasurer, James Weinrod – member at large and swim team liaison, Susan Schilling – secretary, Alan Nelson – vice president and compliance chair, Kelly McPherson – trustee at large and recreation, Lauren Johnson – trustee at large and recreation, Sarah Curde – trustee at large, and Bill Keating – park chair. Also thank you to our maintenance manager Dan Lund and Cindy Klein our pool manager for their excellent service. After nearly 20 years of outstanding service Cindy has decided it is time to pass the torch to someone new. Words cannot express how grateful I am for all of that she has done for our community.
I look forward to seeing many of you at the annual meeting. If you are unable to attend in person, please submit a proxy ballot to appoint an individual to vote on your behalf. Any neighbor in good standing (all dues paid) is able to bring your proxy ballot.
President & Homeowner
Kingsgate Highlands Division V Homes Association
As you may be aware, for the last couple of years the board has been looking into replacing our existing playground. There are several reasons for this. First, the equipment there is more than 25 years old and needs replacement. Our reserve study indicates that the useful life of the current equipment has been reached. Second, the board has been approached by homeowners wanting a better and safer playground. We have had committees of homeowners looking into this and they consistently report that there are limited providers and costs are rising. In the interest of serving the community in a way that ensures the safety and upkeep of this common area and is fiscally responsible, this project should commence as soon as possible. At the end of 2017, the board approached homeowners regarding a one-time special assessment to fund one of the proposals that came out of a committee. While the vote did not achieve the 60% majority required to pass a special assessment, the board and common area planning committee agree it should still be a priority for the reasons stated above and has identified an opportunity to fund the playground improvement within the existing budget.
In November 2018 the HOA board and common area planning committee held a special meeting (read the approved minutes) to discuss alternate options to funding this important project. We have found that there are institutions specializing in loans to HOAs for these types of projects. The board is in the process of investigating this option and wanted to let you all know what is being considered.
Some points we have identified so far:
- We would be able to get all funds necessary for the playground replacement and possibly some improvements in the lower park (picnic tables, benches, etc.)
- The loan’s collateral is future years’ HOA dues, and it will be paid out of the existing budget. The loan will not be made against HOA or homeowner assets
- Because there are already budgeted dollars for park/playground work there will be no assessment or increase of dues to cover the repayment of any loan
- Now is a good time to get this started as interest rates and playground equipment prices are going to go up next year and locking in now would save money for the association
- The association has used this type of loan before for pool repairs when existing funding was inadequate to cover the repairs
- We have consulted with legal counsel and reviewed our governing documents. A vote among the board of trustees is adequate to move forward with this option
The loan we are investigating would be for $200,000 with a 10 year payback period. The loans we have looked at have no pre-payment penalty so the intention of the board is to pay it off within 5 years to minimize interest expense.
We are excited about the possibilities this provides to complete this effort to add value to the community. Your elected board of trustees takes seriously the task of ensuring safe and well-maintained common areas while maintaining the necessary reserves to keep our neighborhood financially sound. Thank you for your support. We welcome feedback to be emailed to email@example.com.