SCA Financial Projection Warning

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SCA Financial Projection Warning

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    Rana Goodman

    Subject: SCA Financial Projection Warning

    By: Robert Stern

    Fellow Homeowners

    By now you are aware that your 2023 main assessment is 25% higher than 2022. The CCNRS limit the increase to 20% but the $16.55/quarter overcharge is not worth the legal fight. 2023 is $1656. 2022 was$1324. 2024 and 2025 are likely to increase 20% max each year to $1987.20 and $2,384.64 respectively.

    The board’s financial irresponsibility has the main reserves at 71% with a new reserve study scheduled for 2023 and if you read the board’s recent document carefully, they are anticipating a need to assess you even more. A Special reserve assessment would possibly reduce the projections above depending on the amount of any special reserve assessment in 2023.

    One item fueling this financial mismanagement is the deficit financed restaurant. Already they have sunk $500,000 into this pet project as startup costs and have budgeted and projected a $300,000 annual deficit each year for several years. The $300,000 is $42 per year per household.

    The odds are this restaurant project fails as it will put financial pressure on the operating budget and main reserves every year. It will fail like every other restaurant tried there. With this inflationary environment, injury will grow. The restaurant was and is not a wise financial risk.  We cannot recover the lost money on this pet project. But we can help stop this annual $300,000 or more deficit of this financial loser by hoping that it dies in the first year in order to stop the bleeding.

    I urge you to boycott it and to urge your friends and neighbors to stay away so that it has a quick death. The contract already provides for a slow death because of the contractual notice period. The sooner it dies the sooner the losses will stop.

    Don’t shoot the messenger. What has happened to owners in the villas is horrifying. There are no easy answers.

    The only way this financial mess gets fixed is to have a financially competent board of directors doing the right things over a couple years. Unfortunately, I am not sure and understandably so, that there are an adequate number of competent people willing to serve to create a sound board majority.

    Be prepared to pay more and more for 2024 and 2025 and possibly a 2023 special assessment. Plan accordingly.

    Elizabeth Breier

    Excellent article by Robert Stern. I will only disagree with the concept of boycotting the restaurant. Mostly because I don’t think it’s necessary. Based on past performance and the increased amount of competition (which continues to grow) in the immediate area since the demise of the last debacle,  I don’t believe there will be enough patronage for it to survive.   A “boycott”  will  happen naturally.
    In the meantime, is this restaurant going to open without a liquor license? All the numbers were predicated on having that. I haven’t heard  that the license  has been approved, although it’s been months sitting in the city attorney‘s office.

    Rana Goodman

    I have been tracking the status of the liquor license. To the best of my knowledge, it still remains in the City Attorney’s office. The normal process of when a liquor license is requested, it goes to the Business License Department (BLD). Once the BLD ensures that all of the paperwork is complete, it then goes to a select group of people in the Police Department. It then takes 6 to 8 weeks for this group to determine whether or not the license can be approved. It then goes to the Planning Commission for approval, and then to the City Council for final approval. It should be noted that at both the Planning Commission meeting and the City Council meeting, residents of the City of Henderson can speak on their inputs/opinions.

    I do not know why the liquor license request is being held in the City Attorney’s office, although I do have my opinion. Once I determine who signed the request, I will then have a better understanding of why the delay. I have a contact in the BLD, and once the request is posted on the COH website, we all can better understand the process.

    What is mystical to me is why the Western Hospitality Group is assisting the SCA Board of Directors. Why isn’t our lawyer involved?

    Rana Goodman

    What puzzles me even more is that once upon a time we had a liquor license and the then BOD when Vic’s was in the space was, (if I have been informed correctly,) “given” the license. If that is true, was it “given”, “sold” could it be that the city attorney has similar questions?

    And are we or are we not having gaming machines in the bar this time around. If so, who is going to sign for the gaming license?

    Sherry G

    I agree with everybody as far as the restaurant. You won’t need to boycott because it will never get that many people. There are way too many restaurants within a three mile distance that have so many specials they won’t be able to compete. Remember Buckmans has the golfers.  I agree they are spending too much of our money too fast.  I also said once to board members that a lot of people will have trouble paying so much, I was told “ then they shouldn’t  be living here” really sympathetic to our community. They are rushing to take the grass out so we will qualify for the rebate, but have they weighed the odds with everything else they are doing? Repairing the common walls, grass, parking lot restaurant, sound system in the theatre, etc, sure sounds like a lot to me all at once.

    Also I agree with Liz that we have a lot of qualified finance people here, but did they retire to work 30-40 hours a week.  They need to learn to delegate.

    People also need to remember a few of these board members were never elected. Twice at least they didn’t have an election because of co-vid and the remnants of it. These people put their names in no one else went to the club to submit their name and poof they are on the board.  These people are spending the money like a child in a toy store told he can  have everything he wants.  They have no regard for the spending or else they just don’t care.  The parking lot as Liz said is fine I agree we need big stop signs because I have seen too many near misses but we also need a big one way sign and how about a crosswalk from Independence to the parking lot. Too me these things are more important for our seniors safety.Maybe they are spending like it’s their money, some of them might be very extravagant with their money but this isn’t just theirs, it belongs to all of us and I for one care about the people who have lost a spouse, get some food from the food banks and would like to live in the home they have lived in for twenty years. We need a board with financial smarts as well as a heart. This is just my opinion.

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