(Based on Association audits, budgets, and monthly financial statements)

Why this matters

Owners have paid regular maintenance fees and multiple special assessments.

Despite this, the Association continues to carry significant debt, operating deficits, and interfund dependency.

This snapshot summarizes what the Association’s own financials show — and what remains undisclosed.

Key Financial Facts (as of November 2025)

🔴 Operating Fund Deficit

• Total Operating Equity: approximately ($979,000)
• This means the Operating Fund is “in the red” on a cumulative basis

🔴 Total Liabilities

• Combined Operating + Special Assessment liabilities: ~$2.09 million

Loans & Borrowing

Special Assessment Loan (City National Bank)

• Original loan: ~$1.2 million
• Balance as of Nov 2025: ~$996,000
• Interest paid to date: ~$349,000

Line of Credit (LOC) Exposure

• Association’s access to a ~$4.7 million Line of Credit
• Owners have not received clear disclosure regarding:
  
  • Amounts drawn
  • Terms
  • Voting approvals
  • Future borrowing plans

Interfund Transfers / Commingling Risk

“Due to SA from Operating” (internal IOU indicator):

• Jan 2025: ~$382,000
• Peak (Jun 2025): ~$849,000
• Nov 2025: ~$566,000

This indicates persistent reliance on Special Assessment funds to support Operating expenses, which increases risk and obscures true cash flow.

Insurance Budget Red Flags

2024

• Budgeted: ~$750,000
• Actual paid: ~$368,000

2025

• Budgeted: ~$827,000
• Actual cost: ~$350,000
• Policy term: May 8 – May 8

Over-budgeting distorted financial projections and masked underlying deficits.

What owners still do NOT have

Owners have not been provided:

• Full loan agreements and amortization schedules
• Clear disclosure of borrowing approvals
• Reconciliation of insurance financing
• Complete picture of total debt exposure

We know part of the picture — not the whole picture.

Why this affects every owner

Lack of disclosure and continued deficits can lead to:

• Higher future assessments
• Reduced unit values
• Financing and resale issues
• Increased lender control over Association decisions

Bottom line

Debt is replacing transparency.

Borrowing is replacing sound financial planning.

Owners are carrying risk without full disclosure.

Source: Association audits, budgets, and monthly financial statements.

Disclosure:

This communication is from Concerned Owners and Candidate Team. It is not sent by or on behalf of the Association, its Board, management, or vendors.