Archive

What steps are being taken to protect our technology infrastructure?

As we increase our technological footprint, we recognize that it is critically important to protect the data we collect and the systems we employ. For this reason, in 2019, the DWBOD unanimously moved to authorize and begin an independent technology audit every other year. This review is designed to assess infrastructure and procedures so that the DWBOD can take immediate corrective action or implement preventive action to assure adequate and proper protection of systems and data.  The first audit is to be completed in the fall of 2019 at which time the necessary corrective plans and improvements will be made.  Subsequent surveillance audits will be planned for future years at a scope that is determined to be cost effective. ...

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Are Dunes West financial records independently audited?

Yes, the DWBOD voluntarily subjects all accounts and financial related matters to an independent audit. A full audit is performed in alternating years; a comprehensive review is performed each intervening year. While not legally obligated to do so, the DWBOD believes this is in the best interest of the community to establish trust, transparency and accountability. Very few POAs/HOAs in America subject themselves to this level of scrutiny.  The results of the audits, performed by Elliot Davis CPA, financial statements and budgets are available for property owner review by visiting the POA office on Bessemer Road or through our website (logged in users). ...

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How often do we submit large contracts for competitive bidding?

Major contracts that are periodically reviewed (3-5 years) include the Security, Landscaping, and Management contracts. These contracts are internally reviewed every year for performance against the provisions of the contract and the performance of the leadership personnel assigned to DWPOA. Also note that all of our contracts have a 30 day “cancelation without cause" clause without cause. It has been learned over the years that there is a limited number of companies available in the area to address the unique needs of a large-scale property like Dunes West both in capital equipment and available qualified labor at hourly rates that are normal to these industries. ...

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How does Dunes West perform long term planning?

We address long range oversight for Dunes West in three ways: Known factors - As we look forward into the future, Dunes West has invested in a routinely updated Reserve Study (you can find this on the website) to assure we appropriately account for managing and maintaining our common areas and infrastructure, as well as assuring timely replacement of key components when required. As we make new capital investments, these are added to the reserve study so the community will benefit into the future.Conceptual/Actual rolling 5 year planning - In our financials (also online at the DWPOA website), we include a section where we list projects under consideration and planned. Depending on the phase, these may be listed with or without budget projections. For example, if we're simply exploring an idea and whether it might benefit...

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What are the differences between a POA, HOA and Board of Directors?

POA (Property Owners Association) and HOA (Home Owners Association) are synonymous terms used to describe the legal entities set up by developers of planned developments to identify the group of all owners of land within the development, whether improved or not. Within the Dunes West Community: POA is the all-encompassing organization, defined in the Dunes West Articles of Incorporation and associated governance documents. The Board of Directors (BOD) is the group of property owners within the POA that is responsible for governance of the association.  The DWBOD is often mistakenly referred to as the POA, as is the office on Bessemer Road that is staffed by the POA’s Management Contractor. Dunes West neighborhoods include condos and townhomes with a “sub regime” HOA, each with its own BoD for managing issues that solely impact these property owners and not the larger...

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Why do we need reserves / a replacement fund? Can’t we just pay for maintenance needs as they occur?

Several reasons support a POA having a strong replacement fund. Lending institutions view the funding level of an association’s reserve or replacement fund as a key indicator of the financial health of the organization. This is similar to how investors view the liquid assets of a public corporation. It provides confidence that the association or business has the means to meet future needs that are critical to its performance and to respond to unexpected conditions that may arise.  Well-funded reserves also provide protection to association members against expected or unexpected spikes in spending needs to replace critical infrastructure.  A good example of this is the periodic need to repave the private roads in Dunes West. Instead of placing that one to two year burden, in excess of a million dollars, completely on current property owners inside the gates,...

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What makes up the Dunes West Reserve Budget?

The Reserve Budget is comprised of three funds as allowed by the Dunes West CC&R’s.  Replacement Fund – The largest fund is the Replacement Fund, which is prepared by a professional consultant to ensure adequate dollars are saved and set aside to replace/upgrade all of the assets owned by the DWPOA as these approach the end of their useful life. This assessment is now performed yearly (at different levels of scrutiny) to recommend the amount of replacement monies to be set aside for the yearly budget. Nearly 80% of the funding is set aside to maintain the DWPOA owned roads and drainage system. Capital Fund – The second fund is the Capital Fund, which are monies set aside to fund possible future projects agreed to yearly by the DWBOD in the five year planning session. This effort has...

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How is the annual POA budget developed?

The yearly budget has three major drivers, each reviewed annually. These are the forecasted: Operating Costs for the coming year,Replacement Fund – the amount of money to be set aside for each of the next 30 years to adequately replace the assets that will deteriorate over their useful life. This funding level is determined by a professional reserve adviser consultant hired by the DWBOD, andCapital Funding – the amount of money to be set aside to invest in new assets that will improve the attractiveness of Dunes West and therefore its property values. A detailed description of annual budget development can be found here: Budget Development Process. ...

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Why do the dues (assessments) automatically increase to a designated maximum amount if the annual budget fails to pass?

Provisions in our covenants protect all who invest in Dunes West property—the developer (“Declarant”—original and current), new buyers of property in the community, and the lending institutions who provide mortgages for those buyers—by assuring there will always be a way to fund the financial obligations of the POA and protect our assets and property values.  Section 12.3.2 of the Dunes West Declaration of Covenants, Conditions, and Restrictions (CC&R) describes the provision where, if a proposed budget is not approved by a majority of the votes cast, in person or by proxy, by members entitled to vote, then the Maximum Budget and Maximum Annual Assessments are calculated according to Section 12.4. The calculation is either of: the “current” year budget increased by the Consumer Price Index or 5%, whichever is greater, orthe budget and assessment from the year of Declaration filed...

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When new property owners are added to the community, shouldn’t assessments go down?

While new development generates revenue from new neighborhood property assessments, such development also adds to our community’s expenses. Often the developer turns over new roads, ponds, and common areas as soon as possible. This means the Property Owners Association (POA) must absorb the property tax and maintenance costs for these parcels, usually before all the nearby homes are sold. This means there’s a period of time where the expense related to new development comes before any associated new income from these neighborhoods. ...

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