Wekiva Hunt Club Community Association










CHAPTER 17 - BUDGETS FIXING ANNUAL MAINTENANCE ASSESSMENTS COLLECTION OF ASSESSMENTS  ANNUAL FINANCIAL REPORTS BID REQUIREMENTS/EXCEPTION  

PART I

PURPOSE OF THIS CHAPTER

All property owners in Wekiva are members of the Wekiva Homeowners Association and are therefore bound by the terms of the recorded Declaration to pay annual maintenance assessments. The purpose of this Chapter is to set forth the Association's policies as they relate to:

 

A. The fixing of annual maintenance assessments;  

B. The adoption of annual budgets;  

C. The collection of annual maintenance assessments;  

D. The preparation and communicating financial reports; and  

 

PART II

DOCUMENT AND STATUTORY PROVISIONS RELATING TO THESE MATTERS  

 The applicable provisions relating to the above referenced matters, which are found in the Declaration, the Articles of Incorporation and the By-Laws of the Association, and in the Florida Statutes as they exist as of June 1, 1996 are as follows:  

A. DECLARATION:  

The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. (Section 7, Article IV)  

 

Any assessment not paid within thirty (30) days after the due date shall bear interest from the due date at the rate of six percent (6%) per annum. The Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the property. (Section 8, Article IV)  

B. ARTICLES OF INCORPORATION:  

(The Association shall) fix, levy, collect and enforce payment by any lawful means, all charges or assessments pursuant to the terms of the Declaration; (Section (b), Article IV)  

C. BY-LAWS:   

As more fully provided in the Declaration, (it shall be the duty of the Board of Directors) to: 

(1) fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period;  

(2) send written notice of each assessment to every Owner subject thereto at least thirty (30) days in advance of each annual assessment period; and  

(3) foreclose the lien against any property for which assessments are not paid within thirty (30) days after due date or to bring action at law against the owner personally obligated to pay the same. (Section 2 (c), Article VII)  

 

As more fully provided in the Declaration, each Member is obligated to pay to the Association annual and special assessments which are secured by continuing lien upon the property against which the assessment is made. Any assessments which are not paid when due shall be delinquent. If the assessment is not paid within thirty (30) days after the due date, the assessment shall bear interest from the date of delinquency at the rate of eighteen (18%) (sic) percent per annum, and the Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien against the property, and interest, costs, and reasonable attorney's fees of any such action shall be added to the amount of such assessment. (Article XI)  

D. STATUTORY REQUIREMENTS:  

1. Required Components of Budget: "The Association shall prepare an annual budget. The budget must reflect the estimated revenues and expenses for that year and the estimated surplus or deficit as of the end of the current year. The budget must set out separately all fees or charges for recreational amenities, whether owned by the Association, the developer, or another person." (Section 617.303(6), Florida Statutes)    

2. Notice Of Budget: "The Association shall provide each member with a copy of the annual budget or a written notice that a copy of the budget is available upon request at no charge to the member." The copy must be provided to the member within ten (10) business days after receipt of a written request for the same. (Section 617.303(6), Florida Statutes)    

 

3. Notice That Assessment Will Be Levied: "Notices of all board meetings must be posted in a conspicuous place in the community at least 48 hours in advance of a meeting, except in an emergency. ... An assessment may not be levied at a board meeting unless the notice of the meeting includes a statement that assessments will be considered and the nature of the assessments." (Section 617.303(2), Florida Statutes)  

4. FINANCIAL REPORTING: "The Association shall prepare an annual financial report within 60 days after the close of the fiscal year. The association shall, within the time limits set forth in subsection (5), provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member. The financial report must consist of either:  

 

(a) Financial statements presented in conformity with generally accepted accounting principles; or  

(b) A financial report of actual receipts and expenditures, cash basis, which report must show:  

i. the amount of receipts and expenditures by classification; and  

ii. The beginning and ending cash balances of the association." (Section 617.303(7), Florida Statutes)  

PART III

GENERAL TERMS AND PROVISIONS  

For purposes of this Chapter, the following terms and provisions shall apply:  

A. ANNUAL ASSESSMENT PERIOD:  

The annual assessment period for Wekiva shall be the calendar year.  

B. MAXIMUM ANNUAL ASSESSMENTS VS. ANNUAL ASSESSMENTS:  

The maximum annual assessment is different from the annual assessment and may be increased each year not more than three

percent (3%) above the maximum assessment for the previous year without a vote of the members as provided for in the Declaration. The Board may fix the annual assessment each year at an amount not in excess of the existing maximum assessment.  

C. ABSOLUTE DEADLINE FOR FIXING AND NOTICING ANNUAL ASSESSMENTS:  

The Board must fix the amount of the annual assessment and notify the members of such assessment at least thirty (30) days in advance of December 31st of each year.  

PART IV

PROCESS OF FIXING ASSESSMENTS AND ADOPTING BUDGETS  

To the extent possible, the Association shall comply with the following guidelines for the fixing of annual assessments and the adoption of annual budgets. Unless otherwise required by law, failure to strictly follow these guidelines shall in no way affect any such assessments or budgets.  

JULY:

  1. The Board shall appoint a "Budget Committee" at its July general board meeting.  

AUGUST:  

1. Prior to the August general Board meeting the Budget Committee will meet at a properly noticed meeting to discuss and prepare a rough draft budget for the upcoming year. The Management Company will give advice and counsel to the committee and will assist in insuring that the form of the proposed budget will comply with the statutory requirements. If possible, the rough draft budget shall reflect year end figures for the last full year, the current figures for the current year and an estimate of the year end figures for the current year.  

2. In late August or early September, the Directors will meet and conduct a properly noticed budget "workshop" meeting (allow approximately three hours). At this workshop meeting, a line-by-line discussion will be held with the purpose of understanding the nature of each category, and upcoming plans and needs. After the workshop meeting, the Treasurer will, if necessary, revise and redraft the budget with the advice and counsel of the Management Company.  

SEPTEMBER:  

1. At its September general board meeting the board will again discuss the refined proposed budget, allowing those members present the opportunity to provide input concerning the same

  OCTOBER:  

1. The October newsletter will announce to the members that at the October meeting the Board will:  

a. Fix the annual assessment for the upcoming year;  

b. Fix the annual tennis court fee for the upcoming year; and  

c. Discuss the proposed budget for the upcoming year.  

A prominent notation will be included in that newsletter inviting all members to the meeting to discuss the proposed assessment, tennis court fee and budget. Sample wording for such notice is: "Homeowners are cordially invited to the October xx meeting to discuss the 19xx annual assessment, tennis court fee and budget".  

This newsletter must be mailed in sufficient time to be received by the members prior to the October general board meeting.  

2. At least 48 hours before the October board meeting, the Management Company shall post the statutory meeting notice with a statement that assessments will be considered at the October meeting along with a statement of the nature of the assessments.  

3. At the October meeting the board will fix the annual assessment and the annual tennis court fee for the upcoming year.  

4. The proposed budget will be discussed and refined at that meeting but no final action will be taken thereon.  

NOVEMBER:  

1. The November newsletter will:  

a. Announce to the members that the Board has fixed the annual assessment and tennis court fee for the upcoming year and set forth the amount of such assessment and fee; A sample notice is: "At its October meeting the Board of Directors fixed the 19xx annual assessment at $XXX per year and fixed the 19XX annual tennis court fee at $xxx" per year; and  

b. Include a copy of the proposed budget, along with an invitation to all members to attend the November meeting to discuss the same. Sample wording for such notice is: "Homeowners are cordially invited to the November xx meeting to discuss the 19xx proposed budget".  

This newsletter must be mailed in sufficient time to be received by the members prior to the November general board meeting. This will insure that the members are notified of the fixing of the annual assessment at least thirty (30) days in advance of the annual assessment period (the calendar year) which is required by the Bylaws.  

2. At the November Board meeting, the Board will again discuss the proposed budget. Homeowners will be given the opportunity to ask questions and provide input concerning the same. At the conclusion of the discussions, the proposed final budget, in the proper statutory form, will be prepared by the Treasurer with the advice and counsel from the Management Company.  

DECEMBER:  

1. The December newsletter will inform the members that the final budget will be adopted at the December general Board meeting.  

This newsletter must be mailed in sufficient time to be received by the members prior to the December general board meeting,  

2. The final budget will be distributed to the Board of Directors at the December meeting and will also be distributed to those homeowners who attend the December Board meeting.  

3. At the December Board meeting, the Directors will make any last minute changes, if any, and formally adopt the final budget.

  

PART V

PROCEDURES FOR COLLECTION OF ASSESSMENTS  

A. PAYMENT NOTICE/ MAILING DATE/COPY OF ADOPTED BUDGET:  

No later than January 4th of each year a written notice requiring the payment of assessments that were fixed as provided for above shall be sent to every owner subject thereto. This shall be done by way of a written statement sent to each owner by first class mail, postage prepaid. The statements shall be sent to the last address which is on file with the Association. A copy of the adopted budget shall be included in every payment notice.

  B. PAYMENT DATES/DELINQUENCIES/LIENS/COLLECTIONS:  

Unless specifically changed by the Board, the due dates for the payment of the annual assessments shall be as follows:  

1. Annual Assessments are due on February 1 of each year. (Fees are payable in advance).

 

2. Assessments not received by March 2nd are delinquent, and interest shall accrue from that date.    

3. After March 2nd a second notice of payment will be sent to those owners who have not paid their assessment by that date. This second notice shall inform the owners of the Association's intent to lien the owner's property and shall add interest from March 2nd at six percent (6%) simple interest. This second notice shall be mailed before April 1st to the last address on file with the Association by first class mail, postage prepaid. Any owner who pays their assessment after March 2nd shall pay interest even if the payment is received before the second notice is prepared or sent.  

 

4. Owners who still have not paid their assessments by May 1st will receive a third notice which will be delivered by certified and regular mail, which will insure that every effort has been made to contact the owners. This notice shall include at least the same information as was contained in the second notice. No additional charges shall be added, however, interest shall continue to accrue. 

5. If payment is still not received by June 1st, a lien will be prepared and recorded in the public records of Seminole or Orange County, as is appropriate. Upon return of the recorded lien from the County, a final notice will be mailed to the owner by first class and certified return receipt mail (postage prepaid) informing them of the non-payment and the result thereof. In addition to the amounts already charged, any administrative charges that are charged by the Management Company to the Association may be charged to the owner to cover postage, recording, administration and satisfaction fees.    

6. If fees are not received within 30 days from the date that the third notice is mailed to the owner, the account, including the lien will be turned over to the association's legal counsel for collection. Additional fees and costs will be charged at this time by the Attorney as is appropriate.  

 

7. At any time during the above described collection process, the Association may commence the fining procedure as outlined in Chapter 13 of this code in an effort to collect the assessments. This fining procedure shall be in addition to the above described collection method.  

PART VI

WRITE-OFFS AND INSTALLMENT PAYMENTS  

A. RECEIVABLE WRITE-OFF:  

After all efforts to collect fees, including legal actions, have failed, the Treasurer of the Board of Directors will recommend to the Board the write-off to uncollectible accounts.  

B. INSTALLMENT PAYMENT REQUEST:  

Any resident requesting installment payments for annual dues must fill out a request form and be present at a Board meeting for review.

  PART VII

ANNUAL FINANCIAL REPORTS  

As required by Section 617.303(7), Florida Statutes, the Association shall prepare an annual financial report within 60 days after the close of the fiscal year. The association shall, within the time limits set by law, provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member. The financial report must consist of either:  

(a) Financial statements presented in conformity with generally accepted accounting principles; or  

(b) A financial report of actual receipts and expenditures, cash basis, which report must show:  

1. The amount of receipts and expenditures by classification; and

 

2. The beginning and ending cash balances of the association."  

PART VIII

BID REQUIREMENTS / EXCEPTION  

A. For all expenditures exceeding $2,000.00, three bids must be secured by the management company from licensed, qualified vendors or service providers. In the event that three (3) bids are impractical to secure, the Board may approve of a lesser number of bids or may avail themselves of the exception provided for in subparagraph F below.  

B. Specifications for the specific project shall be placed in writing by the management company subject to approval by the Board of Directors. The specification shall be provided to each perspective bidder  

C. Copies of the specifications and copies of the bids, including total bid amount and detail services to be provided, shall be submitted to the Board of Directors, prior to the board meeting at which they are to be considered.  

D. The Board of Directors will select a bid assuring the best implementation of the project based on the specifications, including consideration of the quality of the resulting project or service and the cost.  

E. The project shall not be artificially split into individual projects to avoid the $2,000.00 level requirements for competitive bidding.  

F. Notwithstanding the above, the Board may extend existing contracts and transactions or enter into new contracts and transactions with a vendor or service provider without requiring the above bidding process, but only if the directors determine, by duly adopted motion, that to do so is in the best interest of the Association. No such motion shall be adopted if more than one (1) director votes against the adoption of such motion.    

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