Resort Use Fees

What Happened to the Resort Use Fees?

A Clear Timeline of the $232,035 Payment

During last week’s Finance Committee report, it was stated that a large lump‑sum payment was made by the HOA to the developer in May. After reviewing Financial Summaries back to October 2024, here’s a clear, homeowner‑friendly breakdown of what appears to have happened.

TL;DR (Quick Summary)

• From Oct 2024 → Feb 2025, the HOA’s monthly Recreation Facilities Use Fees (payment for using the Resort) largely weren’t paid even though funds were available.

• Those unpaid amounts accumulated in Accounts Payable (AP), growing to $232,035 by Feb 2025.

• May 2025: The HOA made a $232,035 catch‑up payment to the developer, and AP reset to $0.

• A new Use Fee formula (signed Mar 28, 2025) increased monthly costs to $74,220 (May) and $75,128 (June)—about $900K+/year.

• We’re asking for clarity, controls, and a payment policy so cash balances aren’t mistaken as “surplus” when bills are simply unpaid.

At‑a‑Glance Timeline (from the HOA Financial Summaries)

• Oct 2024

• AP: $0 → $52,584

• Monthly Use Fee (then labeled Recreation Program): $52,584

• New Recreation Facilities Use Agreement took effect Oct 1.

• Nov 2024

• AP: $52,584 → $109,931

• Monthly Use Fee: $57,347 (cumulative AP equals Oct + Nov)

• Dec 2024

• AP: $109,931 → $112,401 (net +$2,470)

• Expense line shows –$420,799 (anomalous adjustment flagged for explanation)

• Jan 2025 (format change in the Financial Summary)

• AP: $112,401 → $172,218 (+ $59,817 under new “Recreation Facility” category)

• Feb 2025

• AP: $172,218 → $232,035 (+ $59,817)

• Mar–Apr 2025

• AP remains $232,035 while current months’ fees appear paid (Mar: $59,817; Apr: $61,017)

• May 2025

• $232,035 catch‑up payment to developer; AP resets to $0

• New agreement (signed Mar 28, 2025) takes effect → monthly “Recreation Facility” increases to $74,220

• Jun 2025

• Monthly “Recreation Facility”: $75,128

• AP line no longer shown in the summary

Note: Figures above are taken from the monthly HOA Financial Summaries; December contains accounting entries that require clarification.

Why This Matters

• Transparency & trust: Owners deserve a clear view of cash, liabilities, and what is actually paid vs. accrued.

• Budget integrity: A growing “Operating Funds” balance can be misread as a windfall when it may reflect unpaid bills.

• Internal controls: Regular, on‑time payment cycles and AP aging reports reduce risk and confusion.

• Decision quality: Capital‑spending talk should follow a verified picture of obligations already due.

Questions We’re Asking the Board & Management

1. Why were Use Fees not paid Oct–Feb despite apparent ability to pay? Was this a policy decision or an oversight?

2. Who approved deferral and when was the Board informed?

3. December 2024 adjustments: What do the –$420,799 entries represent, and were they reviewed by the Finance Committee?

4. Late fees or interest: Were any assessed (or waived) on the deferred amounts?

5. Controls: Will the HOA publish a monthly AP aging report and a payment schedule to prevent future accrual surprises?

6. New Use Fee formula: Please provide the calculation details and effective date, and post the executed agreement for owners.

7. Reconciliation: Can we publish a month‑by‑month reconciliation (Oct–Jun) showing billed, paid, accrued, and ending AP?

What We’re Requesting (Owner Action Items)

• Post the Use‑Fee agreements (Oct 1, 2024; Mar 28, 2025) with the exact formulas.

• Publish a monthly AP aging report and check register with payee names and amounts.

• Adopt a payment‑timeliness policy (e.g., net‑30) unless the Board votes in public to defer.

• Explain December’s entries in plain language and correct the public record if needed.

• Finance Committee briefing: Invite homeowners to a walkthrough of the Oct–Jun ledger for shared understanding.

What Homeowners Can Do Now

1. Read the posted Financial Summaries (Oct 2024–Jun 2025).

2. Submit written questions for the Board packet (cite page/line where possible).

3. Attend the next meeting and request the AP aging + check register be included going forward.

4. Share this post with neighbors who watch the budget.

Glossary (Fast Definitions)

• Accounts Payable (AP): Bills the HOA owes but hasn’t paid yet.

• Operating Funds: The HOA’s day‑to‑day cash (its “checkbook”).

• Recreation Facilities Use Fee: The monthly charge the HOA pays the developer for homeowners’ access to the Resort amenities.

Sources & Notes

• HOA Financial Summaries: Oct 2024 → Jun 2025 (Balance Sheet page A‑1; Expense Detail pages D‑1+).

• Recreation Facilities Use Agreements: Executed Oct 1, 2024 and Mar 28, 2025.

• Figures above reflect homeowner review of those documents; please consult the official posted copies for the record.

This post is homeowner analysis intended to aid understanding; it is not legal or accounting advice. Resort Use Fees? A Clear Timeline of the $232,035 Payment