I applaud this effort and support the need for a capital reserve but feel the current proposal to fund this reserve from a "sales tax" on property sales is flawed and shortsighted.

A "sales tax" approach yields an erratic revenue stream since the revenue is totally dependent on how many sales occur and the value of the transaction.   This is a poor choice of funding for a capital reserve.

A better approach would be to revisit our monthly assessment and determine how much does it cost to operate Big Canoe with the current level of service?  No such analysis has been done to my knowledge since the transition to homeowner control of the POA Board.

In the past the monthly assessment was kept artificially low to make lot sales more attractive.

I believe we need to do the following before we ask the property owners to vote on any funding strategy.

1. Review our current operating budget and determine what the monthly assessment should be to cover our current operating costs.
2. Secure an independent analysis comparing our budget with similar size communities to see if our costs are comparable.   In FY 2007 our annual payroll was in excess of $4.7 million dollars.  Is that inline with other communities of a similar size?
3. Include a percentage of the monthly assessment to fund a capital reserve.
4. Eliminate over time the amenity reserve fund and direct that revenue to our general operating budget. (This fund is intended to pay the developer for agreed upon amenities and once that has been accomplished the fund should be eliminated)

Central to this approach is hiring an experienced general manager.

The POA Board is not elected to run Big Canoe!  Their job is to provide policy direction and oversight to the General Manager.  The Transition Committee went to great effort to define the role of the POA Board and the General Manager to minimize the Board's involvement in the day to day operations of Big Canoe.

I recognize that Big Canoe operations are not static and decisions must be made every day but it is imperative that we move forward with the recruiting process for a new General Manager.

Since September the POA Board and the Acting General Manager have made a number of decisions that will impact our operating budget and organizational structure for years to come.

I recommend that we not move forward with a property owner vote on funding a capital reserve until we have a comprehensive plan for Big Canoe's finance strategy designed to provide long term financial viability.

Bill Saling