1. How is the ESHA annual assessment determined?
The board determines the annual assessment. The board considers ESHA's cash reserves target, the budget for the following year, and the current cash and accounts receivables. The board the strives to set an annual assessment that is relatively stable with appropriate cash reserves.
2. What is ESHA's cash reserves target amount?
The purpose of ESHA's cash reserves target amount is to allow ESHA to have cash flow to operate, while maintaining a relatively stable annual assessment. And, also not over-assess members (i.e., not assess beyond what's necessary).
ESHA's cash reserves allow paying vendors ahead of annual collections. For instance, often ESHA incurs significant expenses early in the year, before all assessments are collected. Also, while some of ESHA's expenses are incurred every year, some expenses may or may not occur in a given year (e.g., storm damage, vandalism...) and, other expenses occur only once every few years (e.g., new mulch, sprinkler repairs...). Cash reserves allow ESHA to have a cash on-hand to cover these expenses that are not incurred every year. For this reason, ESHA has never had to charge a special assessment.
In 2011, ESHA established its cash reserve target at $30,810. $12,810 covers Operating Reserves; $4,000 covers mulch replacement (every 3-5 years); $8,000 covers landscaping needs (e.g., trees); $3,000 covers sprinkler repairs; $3,000 covers compliance (legal/tax).
3. Why doesn't ESHA repair or replace mailboxes?
Mailbox repair or replacement is not allowed by the Echo Shores Covenants. ESHA's attorney has advised, "The ESHA has no obligation and no right to spend association funds on any portion of individual lots, whether for mailboxes or exterior maintenance, or on mailboxes on city property."
Since 9/8/2009, the ESHA board has held that ESHA does not have the authority to spend ESHA funds on mailboxes. For further context:
While the ESHA board does not have the authority or responsibility to compel any homeowner to maintain their mailbox, the board has provided guidance for homeowners on how to maintain, repair and replace their mailboxes.
Of course, there is always an opportunity to amend the covenants, if enough members support the proposal.
4. What was the purpose for establishing the Echo Shores Homeowners Association?
"To operate and manage the Echo Shores residential development, with all powers necessary to carry out the obligations under the Declarations of Covenants, Conditions, Restrictions and Easements applicable to Echo Shores" (per Articles of Incorporation).
5. What are consequences of not paying annual assessment?
"The annual assessments, together with interest, costs and reasonable attorney's fees, shall be a charge on the Lots and...a continuing lien upon the Lot...and shall also be the personal obligation of the person who was the Owner at the time when the assessment fell due" (per Article V Section 1 of CCR's).
The board determines the annual assessment. The board considers ESHA's cash reserves target, the budget for the following year, and the current cash and accounts receivables. The board the strives to set an annual assessment that is relatively stable with appropriate cash reserves.
2. What is ESHA's cash reserves target amount?
The purpose of ESHA's cash reserves target amount is to allow ESHA to have cash flow to operate, while maintaining a relatively stable annual assessment. And, also not over-assess members (i.e., not assess beyond what's necessary).
ESHA's cash reserves allow paying vendors ahead of annual collections. For instance, often ESHA incurs significant expenses early in the year, before all assessments are collected. Also, while some of ESHA's expenses are incurred every year, some expenses may or may not occur in a given year (e.g., storm damage, vandalism...) and, other expenses occur only once every few years (e.g., new mulch, sprinkler repairs...). Cash reserves allow ESHA to have a cash on-hand to cover these expenses that are not incurred every year. For this reason, ESHA has never had to charge a special assessment.
In 2011, ESHA established its cash reserve target at $30,810. $12,810 covers Operating Reserves; $4,000 covers mulch replacement (every 3-5 years); $8,000 covers landscaping needs (e.g., trees); $3,000 covers sprinkler repairs; $3,000 covers compliance (legal/tax).
3. Why doesn't ESHA repair or replace mailboxes?
Mailbox repair or replacement is not allowed by the Echo Shores Covenants. ESHA's attorney has advised, "The ESHA has no obligation and no right to spend association funds on any portion of individual lots, whether for mailboxes or exterior maintenance, or on mailboxes on city property."
Since 9/8/2009, the ESHA board has held that ESHA does not have the authority to spend ESHA funds on mailboxes. For further context:
- The board has consistently communicated that members' mailboxes are their personal property. As such, the board has communicated that each homeowner is responsible for the upkeep and replacement of their mailbox (see Mailboxes page). Many homeowners have invested in maintaining their mailbox, or purchasing new mailboxes when needed.
- The board has consistently communicated that using member assessments to paint owners’ mailboxes (i.e., personal property) is not allowed. In fact, the board has published to homeowners, “…the Board does not have the authority to go ahead and start charging residents to repaint mailboxes…”
- Using ESHA funds to repaint/replace mailboxes may create legal liability for the board and/or require rescinding any such policy. Article VII, Section 1 of the CCR’s state “…any owner, shall have the right to enforce, by any proceeding at law…all restrictions…imposed by the provisions of this declaration.”
- Article V, Section 6 requires "uniform assessment." Not all ESHA homeowners have a personal mailbox. So, providing services/mailboxes to improve the personal property of only some members could amount to charging different assessments.
While the ESHA board does not have the authority or responsibility to compel any homeowner to maintain their mailbox, the board has provided guidance for homeowners on how to maintain, repair and replace their mailboxes.
Of course, there is always an opportunity to amend the covenants, if enough members support the proposal.
4. What was the purpose for establishing the Echo Shores Homeowners Association?
"To operate and manage the Echo Shores residential development, with all powers necessary to carry out the obligations under the Declarations of Covenants, Conditions, Restrictions and Easements applicable to Echo Shores" (per Articles of Incorporation).
5. What are consequences of not paying annual assessment?
"The annual assessments, together with interest, costs and reasonable attorney's fees, shall be a charge on the Lots and...a continuing lien upon the Lot...and shall also be the personal obligation of the person who was the Owner at the time when the assessment fell due" (per Article V Section 1 of CCR's).