MEMO

From the Board of Directors of the Association

The board heard a disturbing treasure’s report at its regular board meeting held October 24th, 2013.

Based on reliable time records, the bookkeeping salary paid to the person keeping the Willow Pond books, records, and doing its administrative activity in September of 2013, was $723.75. This number does not include any of the other expenses associated with her work station in leased office space. The Board pays $400 for this service and has for quite a number of years. The large number of delinquent accounts has made late payment notice letters impractical to continue, none were involved in the September hourly service.

Faced with the loss of the current service provider, the Board considered options. One of which—paying more for the same level of service—was given very little consideration. The Board is convinced that the percentage of the Association’s revenue consumed by accounting is already a concern and no one wants it to become higher.

The consensus on the Board is that the reasonable direction to go to address this concern is to reduce the bookkeeping service required. Currently the bookkeeper sends twelve statements and the majority of homeowners make twelve payments by cash or check each year. If the numbers can be reduced, the cost of processing should drop accordingly. The level of administrative work (setting up new homeowners, dealing with the title companies for sales, dealing with institutional owners after foreclosures, etc.) will not change as the number of billings and payments are reduced, so the percentage reduction will not completely mirror the percentage in fewer statements, but some savings can be had by cutting back the billing cycles and payments. The Board’s goal is not to increase bookkeeping costs.

The Board is aware that the existence of an association has a positive effect on property value and that Willow Ponds monthly dues are some of the lowest in Laramie County. Many associations charge monthly more than Willow Pond’s annual assessment. At a time when monthly electic & heating, telephone, and even water bills exceed the annual homeowners' associations; dues, payment once a year is within the means of our membership.

To that end, the following policy was considered and adopted after motion, second, and unanimous approval:

1. Effective January 1, 2014, the Willow Pond Homeowners’ Association will commence the annual billing of its membership dues in the amount of $144 per year. This will be described in the statement mailed December 15, 2013. There will be no late fee for any annual dues paid anytime in the month of January of 2014. In 2014, the Board will consider approving a request made in writing to the Board in January, from a homeowner, to be allowed to pay the non default rate for payment in full by April 15th that year, so long as not less than $12 is tendered each month until the balance is paid. This is extra-ordinary treatment and will require ongoing statements for as long as four months, and the Board is hopeful that raising $144 will not take many homeowners six months from notice of the new procedure.

2. After payment in any year, no more statements will be mailed to a homeowner who has paid that year’s dues.

3. During 2014, dues will be considered current if a homeowner writes to the bookkeeper during January of the year with his/her first payment, that he/she elects quarterly payments for 2014, and tenders $36 in January, April, July, and October the first month of each yearly quarter.

4. During 2014, dues will be considered current if a homeowner writes to the bookkeeper with his/her first payment in January and elects semi-annual dues payment, once in January and once in July of $72.00.

5. For those who elect quarterly and semi-annual payments, the bookkeeper will send a statement in the middle of the month before the month in which the next payment will be due. Absent a written request for delayed payment, dues will be considered delinquent after Janurary 31st in future years.

6. In the year 2015, semi-annual payments may be made but there will not be a quarterly option.

7. In 2016, and for years thereafter, only annual payments will be accepted.

8. Dues paid currently in 2014 and all years until further notice, will remain at $144 per year which is the rate we have enjoyed for several years.

9. Dues not paid currently will be $180 per year commencing in 2014. The effect of a late payment is a $36.00 penalty for the year.

10. As is currently the case, a member’s account that is past due will be assessed a $5.00 late fee each month it remains past due and the unpaid delinquent balance accrues interest at 5% per annum. Lien fees and other charges are enforced on seriously delinquent accounts and credit is reported for those members turned over for commercial collection.

11. If this procedure results in satisfactory revenue, the Board will seriously consider rewarding one time payers with a further reduction in annual dues. Late payers that continue to require statements will not be the beneficiaries of more favorable treatment.

12. INCENTIVE PROGRAM There are currently approximately two dozen seriously delinquent accounts. A delinquent account is subject to a late fee, accrues interest, suffers lien fees and other accruals, and starting in 2014 will be assessed at the higher $180 annual rate. Any delinquent account holder that pays the annual dues in the month of January of 2014, for the year 2014, on written request can have the delinquent account reduced to a sum certain with all accruals as of December 31, 2013, and the repayment of that sum without further late fees or accruals will be accepted by the Board in full satisfaction of the account, so long as a payment is made each and every month after January of 2014, on that balance in any amount not less than $25 per month. The board sincerly hopes many members will take advantage of this one timeoffer.