FINANCIALS OVERVIEW GRAPHICS

Please be advised that all costs and dates provided in this section are derived from board-approved association records, ensuring accuracy and reliability.

For context, it is crucial to draw attention to the TFE/Ogden contract, which formerly stipulated that “If [Ogden] fails to pay utilities and/or other regular bills incurred by the HOA while sufficient funds are available in the account more than 2 times in a 24-month period, the contract is in material breach.” However, we regret to inform you that the Meister/Ackerley board has taken the decision to remove this clause, subsequently signing a new contract on January 26, 2023.

Considerations on Expenditure History:

Upon reviewing the charts above, it becomes apparent that there have been instances where Ogden’s contractual obligations were not met under the prior contract. That raises important questions that merit thoughtful consideration:

1. Payment Discrepancies: If Ogden can be deemed to be in Material Breach of Contract due to failure to timely pay bills, it raises concerns as to why monthly payments to Ogden were still made during those months. Understanding the rationale behind these payments is crucial in order to ensure transparency and accountability.

2. Rate Increase Authorization: Given the instances of bills not being paid in a timely fashion, which was a Material Breach of Contract, it is pertinent to question why the Meister/Ackerley board authorized an increase in Ogden’s monthly rate (first billed 6/3/2022). Ogden then got a 55% (!) rate increase in February 2023.

3. Removal of Performance Clause: The performance clause served as a safeguard to protect the HOA from late fees and incentivize Ogden to fulfill their contractual obligations. Its removal raises further inquiries. Understanding the motives behind this decision is essential to comprehending the board’s perspective and the potential implications it has had on the HOA’s financial well-being. Consider our Reserve balance history, shown below…

Reserve Account Balance and Impact of Legal Expenditures:

As responsible homeowners, it is crucial to address the financial implications affecting our community. Let’s acknowledge the financial impact of these legal fees and hold our board accountable for their decisions. Consider the following key points:

  1. Borrowing from our Reserves! Halting Reserve Contributions! Due to the Meister/Ackerley board’s repeated decisions to litigate rather than settle, they spent so much on litigation costs that, in June 2023, they had to borrow $15,000 from Reserves to pay operating expenses and litigation costs. And they voted on 7/26/2023 to HALT future Reserve contributions.
  2. Excess Operating Funds: Without the Meister/Ackerley board’s legal costs, there could have been tens of thousands of dollars (about $26,000 as of Jan 31, 2023) added to our Reserves, potentially exceeding 100% funding ($254,000 by EOY 2023, c.f., 10/14/2016 Reserve Study, recommended funding level).
  3. Avoidance of Assessment Increases: By eliminating unnecessary legal expenses, we could have prevented (and will prevent) the need for near-term assessment increases.
  4. Unfavorable Outcomes: The legal battles have not been in favor of the HOA, and the current ongoing litigations are unlikely to result in positive outcomes for the HOA. What, if anything, does the HOA stand to gain by allowing the board to litigate?

Together, let us recognize the financial repercussions of these decisions and encourage constructive dialogue among homeowners. By working towards prudent financial management, we can ensure the responsible stewardship of our community’s resources at Tonto Forest Estates. Your active participation is crucial in our collective pursuit of financial transparency and accountability.

Closing Statement:

By posing these questions, we encourage homeowners to engage in critical thinking and further explore the implications of the provided expenditure history. It is our collective responsibility to seek clarity and hold our board of directors accountable for their decisions, ensuring the best interests of Tonto Forest Estates are upheld.

We believe in promoting transparency and accountability within our community, and it is our responsibility to inform and keep homeowners informed. By providing this information, we aim to foster a better understanding of the decisions made by our board of directors and their potential impact on our community.

Should you have any further questions or require additional details regarding the financial matters of Tonto Forest Estates HOA, please do not hesitate to reach out. We are committed to providing clarity and ensuring that members are well-informed about the financial aspects that affect us all.

Thank you for your continued support in our collective pursuit of an accountable and transparent homeowners association.