POA ballot to include seven measures

Along with the annual election of directors, there will be seven ballot measures included with this year’s Canyon Lake POA ballot. This year’s Annual Meeting of the Members and Election of Directors will be on May 13.

Those running for the board openings have not been announced because the deadlines for submitting Intent to Run forms isn’t until March 13. However, the seven ballot measures that will be on the ballot have been determined.

The Canyon Lake POA board said it worked closely with its legal counsel and staff to develop the seven proposed ballot measures that will be included with this year’s election. The Annual Meeting, Ballots, and Statements will be mailed to members on April 12. Until then, here are the seven measures that each member will be voting on.

IRS Tax Measure

The proposed IRS Ballot Measure is considered an annual industry standard to allow for clear tax filing authorization. The IRS Revenue Tax Ruling 70-604 allows associations to avoid a tax consequence on any inadvertent excess member income that is applied to the following fiscal year assessment when filing a tax return Federal Form 1120.

Though the Canyon Lake POA recognizes three options for application of excess income, ((1) refund to the membership, (2) apply to following year’s assessments/operational budget or (3) apply to the reserves) this ballot measure only pertains to the option of applying excess income to the following year’s assessment, should the board so choose.

Failure to allow the IRS measure on the ballot, and failure of the membership to approve the measure, may result in the Canyon Lake POA being subject to additional federal income taxes.

Board of Director Terms

Efficient operations are significantly hindered by annual changes in the board. This measure was placed on the ballot to improve efficiency and governance by avoiding the annual turn-over of the Board of Directors, and to add stability in the Canyon Lake POA’s governance.

If approved, the years for Board Director terms would double, allowing the Canyon Lake POA to hold bi-yearly elections, rather than annual.

This change would cut election costs in half and could significantly increase governance consistency and improve long term continuity by reducing the chance of dramatic fluctuation in planning focus, expenditures, and budgeting.

With this change, the Canyon Lake POA will be guided by more experienced leadership that will carry a greater responsibility for the long-term impact of their fiscal decisions. It may also encourage more members to serve for four years without having to endure two election cycles.

General Manager Designation

This measure proposes the documentation and formalization of the current highly successful style of Canyon Lake POA operations, and clarifies the relationship between the President and the General Manager.

Capital Improvement Spending

This ballot measure proposes the Capital Improvements spending authority would increase to $2 million over a two-year period. This is consistent with the inflationary increase that has occurred since the current value was first declared in the 1990s.

It is this spending authority that permits the Board to make appropriate decisions to support the interests and activities of specific communities within the Canyon Lake POA. The increased amount is more closely aligned with the cost of projects now being implemented and planned and will likely increase spending on new projects within a one-year period.

Purchase Limitation

If approved, the spending authority for the purchase, sale or rent of real property would increase to $400,000. This is consistent with the inflationary rise since the value was first introduced in the 1990s. It may result in increased spending on individual projects within a one-year period.

Capital Improvement Funding

If approved, the Canyon Lake POA will be able to finance Capital Improvements now in planning, but beyond the current CIP reserve. It would shift the payment for those improvements to the current members who will benefit from them.

The current limitations require annual member assessments to increase the CIP reserve to fund projects that benefit only the members when they are completed. It will also remove outdated and inapplicable language from the original Bylaws, permitting the Canyon Lake POA to lease its amenities from the developer. No such leases exist.

Sierra Park North

If approved, Sierra Park North can be completed under a single contract within one year. Four Canyon Lake POA Boards of Directors have supported this project as a significant addition to POA amenities. The boards have said that the project will directly support the growing number of families in the community who seek recreational opportunities for their children. It would be an appropriate use of an unimproved section of the community and is located where it has the least amount of negative impact on its neighbors.