Congratulations to the NEW board!!!
Congratulations to our new President Rui Deng!!!
Dear Towngate Homeowners!
After we informed our neighbors about the gaping holes in FirstService’s explanation of how $1.4 Million from our reserves were spent by the previous board, FirstService sent a blast email on Friday to all homeowners with the title “Unauthorized Email”. We never claimed that we speak for the association or that this email was an official association email. To the contrary, our emails have a disclaimer with the phrase: “…in no way should be construed as an official association communication.”
Since when do homeowners need permission from management to speak to each other, whether in person, by email, or any other means?
The CAM and FirstService Residential have to refrain from interfering with our election and with homeowners exercising their rights, or they will be held accountable.
FirstService has to stop sending communication in the name of the association that has not been approved by the Board.
Please join the budget and the annual meetings on:
TUESDAY NOV 16th at 7 PM
Hopefully, everyone has by now received their meeting package for the 2021 annual membership meeting and the 2022 budget meeting. Management (FirstService) was asked by the board to explain to all homeowners the almost 1.4 Million in reserve spending from 2018 to 2020 and how much was spent on “Sable Clusters”. According to the audited annual financial reports from the CPA, a total of $1,369,061 was spent from our reserve funds in the years 2018 to 2020. Florida Statutes require audited annual reports to be sent to all homeowners within 90 days after the end of the year. Management explained that $461,973 was spent for 21 legitimate reserve items. However, the management report also identified the misuse of $533,211 of our reserves for new projects and other illegitimate reserve spending.
This leaves a gaping hole of $373,877 for which management did not provide any explanation.
What happened with these reserve funds is a mystery at this point. Even the spending of $461,973 for listed reserve items requires further scrutiny. Applying the pricing from the 2017 reserve study, the cost to replace or refurbish the 21 items was $207,993. Apparently, the previous board and management must have overpaid by a whopping 120% or factor 2.2 on average. Furthermore, the previous board decided to replace 17 items, which had a useful life span of 4 to 10 years left. It is highly questionable whether all of these 17 items suddenly deteriorated so rapidly that their replacement was justified, just one year after the reserve study was released. Whoever authorized the spending of the $533,211 must have had a fundamental misunderstanding of reserves or was willing to skirt the law. Reserves can be spent only for the upkeep and long-term maintenance of the existing common property, like pools, pool houses, irrigation pumps, and sidewalks, if these items were listed in the reserve study. New structures and any enhancements, improvements, beautifications, however desirable for the community, are NOT legally permitted reserve expenditures. These items have to be paid from the operational budget. Likewise, any recurring annual maintenance (tree trimming, seasonal plants refurbishment) is NOT a reserve expenditure and has to be included in the annual operational budget.
SUMMARY: Management confirmed that at least $907,088 of our reserves have been misused or misappropriated, and the spending of $373,877 could not be explained at all.
Please join the budget and the annual meeting on Nov. 16th, 2021 starting at 7 pm, in front of the Silver Palm Elementary School, or register to this site if you want to sign a proxy. We will contact you to arrange a pick-up.