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Budget Letter

WHY DID THE BUDGET PRESENTATION CHANGE?

WHY DID THE BUDGET PRESENTATION CHANGE? View / Download pdf Remarks from RACCA meeting 9-29-15     View 2015 Budget

General Questions about the Budget

Community Association Budget for 2016 Following is the proposed budget for Riverwood Athletic Club Community Association, Inc. (the “Association”) for the 2016 calendar year and fiscal year for the Association: View Budget Some frequently asked questions concerning the Association budget, and the answers to those questions, follow: Explain some of the major Income line items: Section 8.1 of the Declaration of Covenants, Conditions, and Restrictions (the “CC&Rs”) for Riverwood Athletic Club (the “Community”) provides that each fiscal year the Association […]

Explanation of Major Income Budget Items – Part 1

Explanation of Major Income Budget Items – Part 1 For More Information, View / Download pdf Explain some of the major Income line items: Section 8.1 of the Declaration of Covenants, Conditions, and Restrictions (the “CC&Rs”) for Riverwood Athletic Club (the “Community”) provides that each fiscal year the Association Board must approve a Base Assessment to be levied against all Units. The 2016 budget contemplates a Base Assessment of $60 per Unit Per month, and that there are 1,022 Units. […]

Explanation of Major Expense line Items – Part 2

Explanation of Major Expense Budget Items – Part 2 For More Information, View / Download pdf Explain some of the major Expense line items: Per Section 13.1 of the CC&Rs, the Association and FSC I, LLC d/b/a Fred Smith Company have entered into an agreement pursuant to which FSC I provides to the Association, for the use of each owner of a Unit in the Community, a Bronze level membership in the Sports Club. That agreement provides that the Association […]

What is the Declarant Contribution and why is it shown as an Income line item? Part 3

What is the Declarant Contribution and why is it shown as an Income line item? It is typical of community associations that, until the community is built out, the income from owner assessments is not sufficient to cover association expenses.  Thus, typically the developer of the community subsidizes the association until the community approaches build-out. The third paragraph of Section 8.1 of the CC&Rs provides that the “Declarant may, but shall not be obligated to, reduce the Base Assessment for any […]

What is the process for approving the Association budget? Part 4

What is the process for approving the Association budget? Pursuant to the North Carolina Planned Community Act (the “Act”) and the CC&Rs, each year the Association Board first adopts a budget.  The adopted budget is then transmitted to the members, with a notice of a meeting of members to consider ratification of the budget.  At the member meeting the adopted budget will be ratified and approved by the members, unless “disapproved” or “rejected” by at least 75% of the total […]

Why is the budget subject to the approval of the Class B Member? Part 5

Why is the budget subject to the approval of the Class B Member? The Act provides that the declaration of covenants for a planned community may provide for a period of declarant control of the association, during which the declarant or persons designated by the declarant may appoint and remove the officers and members of the executive board.  Typically a declarant will maintain control of an association until the community is “built out” and the association is no longer subsidized […]

When will the Community Association be run by homeowners?

When will the Community Association be run by homeowners? Section 3.5 of the Bylaws of the Association provides that “within 90 days after termination of the Class “B” Control Period, the President shall call for an election by which the Class “A” members shall be entitled to elect three of the five directors”. The Class “B” Control Period will end when 75% of the total number of units proposed by the Master Plan of Riverwood Athletic Club have been built […]