BACA GRANDE SUBDIVISIONS — Members of the Baca Grande Property Owners Association met with the board on September 20 for an “information exchange” on finances.
The 2023 proposed budget for the POA includes six categories of revenue sources listed at the top of the first page, followed by three more pages of expenses subdivided into 29 categories. A 30th category for reserve expense is offset by a budgeted reserved revenue budget triggered by a transfer of $100,000 from the operating budget.
The proposed budget includes figures for 2021 and 2022 when the amount of the assessment per lot increased from $426 to $493. Assessment collections are the backbone of the 2023 budget, accrued up to $640.90 under a formula that splits the check equally among lot owners. The 2023 assessment amount, if collected in full, represents $2,293,140 of all projected revenue. Other sources add a hopeful $673,649.
Nationwide, POAs and homeowners associations experience a 3 percent delinquency rate from homeowners who don’t pay their appraisals. An HOA with a 6 percent delinquency rate is considered high.
Baca Grande’s POA is far out of line with national averages. In 2019, 49.7 percent of POA members did not pay. In 2020, this number dropped to 39.8 percent. Declines to 29.8 and 24.4 percent followed in 2021 and 2022.
Of the POA’s total budgeted water expenditures for 2023 ($83,964.36), almost half is diverted to the golf course, a price tag of $40,000. Other expenses related to the operation of the golf course include $1,428.50 for building maintenance, $7,957 for electricity, $6,000 for grounds maintenance and another $2,500 for propane and heating plus $2,000 for fuel and oil for vehicles, as well as $377.25 for reservation expenses .
From debits to credits, golf course revenue is $3,361.50 with a projected $2,000 in facility rental fees and possibly $1,361.50 in greens fees. Golf course expenses total $60,262.75. On paper, the golf course appears to cost $56,901.25 underwater.
A quartet walked the field with their clubs at the start of the POA meeting on September 15, smiling as they walked down the green fairway. Frisbee players ride the same course, a benefit of POA membership. Others enjoyed the lush green field prior to the September 20 meeting as members entered POA Hall.
Fully defunding and closing the golf facility without increasing other revenue or cutting other POA expenses would reduce the projected 2023 assessment from $640.90 to $624.05.