Special Committee Meeting on Capital Projects & Infrastructure

On Sunday, November 10th, 2024, the board presented its plans to hike our rates by 50% in 2025.

Included below is a summary of the meeting. Here is an audio recording. The unofficial transcript can be read here. Currently, the WWC Board does not provide this level of transparency, so we are doing it.

The recent Whitewater Creek HOA committee meeting primarily addressed the pressing financial needs for maintaining and upgrading neighborhood infrastructure. Key points discussed include:

1. Aging Infrastructure: Whitewater Creek’s infrastructure, particularly its private roads and stormwater drainage system, has deteriorated significantly. Much of the neighborhood’s original infrastructure, built with corrugated metal pipes rather than concrete, has corroded due to age and environmental exposure, causing sinkholes and flooding issues. Replacements are costly, with some projects requiring $72,000 for just 170 feet of pipe repair.

2. Capital Reserve Study: The board presented findings from the most recent Capital Reserve Study, revealing that past contributions to the reserve have been insufficient. As a result, essential maintenance and repairs have been deferred, exacerbating infrastructure deterioration. A recommended annual capital reserve contribution increase to $550,000 is necessary to cover these future expenses and avoid critical failures.

3. Current and Future Budget Shortfalls: With annual operating costs around $728,000, the HOA has historically only allocated a portion of collected dues to the capital reserve. There’s currently $718,000 in reserves, but this falls short of covering all required repairs and upgrades. The board proposed increasing monthly dues by $100 to $130 per household to meet projected future expenses over a nine-year plan.

4. Funding Options: The board discussed options, including a one-time assessment or incremental dues increases, to bridge the budget gap. A loan was considered, but current high interest rates make this option financially impractical. The board emphasized that immediate, increased funding is crucial to prevent higher costs due to inflation and further deterioration.

5. Resident Involvement and Transparency: The board urged greater community participation and emphasized that future meetings would provide regular updates. They plan to conduct a survey to gauge resident preferences on funding strategies and prioritizing expenditures. The board encouraged residents to volunteer for committees and provide feedback to help manage neighborhood issues more effectively.

6. Additional Issues: Smaller budget needs were also discussed, such as maintenance of the pool, tennis courts, and guard shack, as well as the costly but necessary replacement of security lights and gate systems. While the HOA has managed to control costs in some areas, more extensive repairs and upgrades are required to maintain property values and neighborhood security.

The board stressed that failure to address these financial needs would likely result in depreciated property values and potentially higher costs in the future, underscoring the importance of resident approval for the proposed budget increases.