Twin River Ranch Property Owners Association
Minutes, Annual Members Meeting
September 5, 2020
Hoots Cafe, White Bird
Call to Order: The meeting was called to order at 10:30 AM by President Pat Hurt. Present were John Urbahn, Vice President; Debbie Little, Treasurer; Susan Schubert, Secretary; Kristin Donaldson, Webmaster; and Cathy Little. Robin Lipinski, Equipment Operator, was also present with the Board.
Nomination and Election of Board Members: Cathy Little and Wolfgang Schubert were nominated from the floor.
President’s Message: Pat announced rules for the meeting – only one person talking at a time and no side conversations. Pat introduced the Board members and thanked each for their contribution and volunteer work which saves the Association money: Debbie keeping the books and preparing the Association’s taxes; Cathy doing all the printing and mailings; and Kristin managing and updating the website. Other members have helped throughout the year with mailings and road maintenance.
Voting Commenced. Ballots were collected, and the meeting resumed.
Road and Equipment Report: Robin reported the following. Hammer Creek and Gregory Creek Roads were graveled and rolled this year, and Elk Run was graveled. Pilgrim Ridge will be graveled next year. Grades, such as on Hammer Creek, are too steep to keep gravel on hills. Grading F gravel and rolling helped but would have helped more if the roads had been watered. Watering costs more as we must hire someone with a water truck and permit to withdraw water from the River. Puncture weeds were sprayed twice this year, but we may spray three times next year. Grading when the roads are this dry pulls out clumps of weeds and grass and rocks, so he will wait until we have sufficient rain and then will grade. Equipment maintenance is doing good with the exception of the grader which has a transmission seal leak. It is recommended that the John Deere dealer in Grangeville fix it. Cost will be $3,000 to $5,000. The truck is running well. This was a normal year for roads. There is $3,000 left in the budget for graveling this year. It was moved, seconded, and all agreed to approve the Road Report.
Treasurer’s Report: The following documents were given to those in attendance: Balance Sheet Comparison for December 31 for 2019 and 2018; Income Statement – Actual and Budgeted for Year Ending December 31, 2019; Statement of Cash Flow for Year Ending December 31, 2019; Balance Sheet Comparison for August 31 of 2019 and 2020; and Income Statement for Eight Months Ending August 31, 2020. Please contact Debbie if you would like to see copies of these statements or if you have any questions on them.
Debbie reported that the Board adopted the Accrual Method of accounting this year. Previous treasurers have used the Cash Method or a mix of accounting methods. The Accrual Basis of accounting provides more accurate information because it properly matches income and expenses in the correct accounting period. Income is recognized when it has been earned, not when it is received; and expenses are recognized when they are incurred, not when they are paid.
The Association had not previously included a Balance Sheet with the financial reports, so Debbie reconstructed our Balance Sheet based on historical and current records. The Balance Sheet is required for complete financial reporting since it shows the financial position of the Association as of a specific date, and includes information not found on the Income Statement, such as our cash balances, property and equipment, accounts receivable and payable, and any debt owed.
Under Assets, Debbie discussed the Reserve Account, Accounts Receivable, Property and Equipment and Depreciation. The current Board has decided to try and build the reserve account up to $100,000 to offer better protection for emergency expenditures. The Board’s goal is to have an excess of income over expenses of at least $5,000 each year; that excess cash will be moved into the reserve account at the end of the year. There should also be enough in the reserve account to cover the depreciated amount of the property and equipment, which is currently $24,000. Property and equipment depreciation show how much of the equipment’s life has been used up, and is the amount we should anticipate for replacement or major repair costs. The accounts receivable balance is primarily from seven properties that are owned by three people. The Association is pursuing collection activities on all of these accounts. The Board adopted a three-step collection procedure this year: 1) if dues are not received within 30 days of January 1st, a lien is filed against the property; 2) if the amount is still owed 12 months later, a lien extension is filed to cover the next 12 months; and 3) if the amount is still owed 24 months later, the Association will take the property owner(s) to small claims court to receive a judgement. We currently have one small court action in progress.
Under Liabilities, Debbie discussed that dues paid in advance (i.e. 2020 dues received in 2019), are a liability because they are not earned yet, and would have to be refunded if the Association were dissolved on December 31. The Association has no long-term debt since all of our equipment purchases have been made in cash.
Under Member’s Equity, she also explained that this is the net worth of the Association, and, in essence is the amount money that would be returned to the members if the Association was liquidated.
Income Statement. The Income Statement shows income and expenses, including Dues Assessments, Other Income, Road and Equipment Maintenance and Administrative Expenses. Since the 2019 budget included a large deficit, which would have had to be funded out of our small Reserve account, the current Board decided to restrict planned expenditures for the remainder of 2019 so that we could come as close as possible to a break even. These cutbacks created a large favorable variance between actual and budgeted expenditures for 2019.
It was moved, seconded and all agreed to approve the Treasurer’s report.
Secretary’s Report: Susan thanked Debbie and Cathy for tracking property sales. There have been 21 properties sold in the last year with buyers from Idaho, Washington, California, Oregon, Texas, Pennsylvania, and Florida. Three homes have been completed and are now occupied. Two additional homes have been started. Plans have been submitted for another home, and two lots have had driveways and/or building pads developed. There are eleven properties for sale, two that are pending or contingent, and one that should close this week. Susan delivered a Certificate of Appreciation and gift card to a retiring Board member who chose not to run again. Susan also reported that pop and beer cans and cigarette butts are starting to appear on Bucks Boulevard between Doumecq Road and Salmon View Road. She asked that property owners remind visitors and workers not to litter and especially not to throw cigarettes out during these hot, dry conditions. It was moved, seconded and all agreed to approve the Secretary’s Report.
Obstruction of Shuck Creek: Pat reported that the covenants clearly give the Board authority to clear obstructions from the roadway and easement area and to recover costs if a property owner knowingly obstructs the roadway or easement. This summer a couple who are property owners obstructed one of the Association roads by putting a rock and debris pile in the center of the road. They also dug a large trench in the easement area at the same location. The Board hired someone to remove the rock and debris and fill in the trench. The property owners were billed $90 for the cost of the cleanup and given a certain date to pay by. They did not pay so were invited to a Board meeting where the Board would discuss what action to take next. The couple did not attend the meeting. At that meeting, the Board voted to put a limited assessment on the couple’s property and give them 10 days to pay it. If they do not pay it, the Board will take them to small claims court.
Political Signs: The CC&Rs do not allow political signs; however, the State of Idaho does not allow HOAs to ban political signs. The Board will allow political signs, but they must meet the restrictions in the CC&Rs for signs.
Election Results: Cathy Little and Wolfgang Schubert were elected to the Board for three-year terms each.
From the Floor: The Board responded to questions from the floor. Reserve Fund: Assets in excess of $5,000 will go into the Reserve Fund. The current Board cannot guarantee that future Boards would continue to strive for $100,000 in Reserve. The membership could try again for a covenant that limits how much the Board can spend without membership approval. The membership can also pay attention to the budget that the Board presents and request that the Board continue the deposits into the reserve fund. Shuck Creek Road Sign: The Shuck Creek Road sign was placed at the intersection with Hammer Creek Road because the road is passable and many folks in the Association use it to get from Hammer Creek Road to Gregory Creek Road. That portion of Shuck Creek Road also provides another exit in case of a fire. The Board could possibly put a warning sign or a sign indicating no winter maintenance along with the road sign. Hunter Trespass: Hound hunters have been trespassing on Association property to collect their dogs. However, there is no trespassing allowed on Twin River Ranch property. Anyone who trespasses does so at their own risk. Road Insurance: We have 25 miles of road to maintain and were asked to look into getting catastrophic insurance if it is available and what it would cost and if dues would have to be raised to cover it. Electronic Mailings: The Board will look into using email instead of USPS mail for sending out mailings to the membership. Summer Grading: Members wishing to discuss the possibility of grading during the dry summer months to try and eliminate washboards should contact the Board in writing and ask for a meeting.
Meeting Adjourned at 11:45.
Susan Schubert, Secretary
Twin River Ranch Property Owners Association