In August 2019, we all voted to approve the sale of the new buildable lot (620 Tahoe Keys Blvd) separated from our 2016 purchase of the Lake Tallac Lagoon Property. The intent was to use the proceeds from this sale to pay back $167,285 owed to our Common Reserve due to unexpected legal fees incurred in previous years related to Tahoe Keys Marina & Yacht Club (TKM&YC), with any money leftover going to offset our 2020 operating expenses (resulting in a lower quarterly assessment fee for 2020).
The lot sold in August of this year for $250,000, and after fees and expenses related to the sale, we received a total of $235,985 in net proceeds.
As part of the 2020 budget, the Board had estimated the net proceeds from the sale would be $265,000 and had expected there to be $97,715 leftover, after repaying our Common Reserve, to offset operational expenses that year. So we were about $30,000 short, unfortunately.
Suffice to say, 2020 has been an unusual year by all measures. Even though the sale’s net proceeds were less than budgeted, we had a couple of unexpected but helpful surprises this year budget-wise.
The first was a legal judgment in our favor against TKM&YC, reimbursing us for a portion of three years of legal action related to the enforcement of the 1991 Stipulated Judgement that established, amongst other things, our right to launch our boats for free. We were awarded by the Court $98,006 in legal fees (versus $181,466 that we spent), and TKM&YC finally paid us $105,789.55 in 2020, which included late fees and additional court costs. We used this payment to repay a good portion of the money owed to our Common Reserve, leaving an outstanding balance of $61,486 to be repaid.
The second is unfortunate, but due to COVID-19 safety measures resulting in the closure of our indoor pool and front office, among other things, our operating expenses have been tracking significantly under budget.
These two things combined meant that less of the Lake Tallac lot’s sale proceeds were required to repay what was owed to our Common Reserve and fund our 2020 operations.
After careful review, the Finance Committee unanimously recommended that $126,784 of the Lake Tallac lot sale be returned to homeowners as an $82.97 credit to their accounts. On December 16th at the Board of Directors Regular Board Meeting, the Board approved this credit.
It was the opinion of the Board that these funds should be distributed to homeowners in light of the original ballot to purchase the Lake Tallac Lagoon Property, which stated:
“…any funds recovered will be returned to the TKPOA members either as a credit against future assessments or by check to TKPOA members of record at the time a distribution is made.”Lake Tallac Ballot
Your December billing statement will detail the credit added to your account for you to use against your future quarterly assessment fees.