Sunshine Country Club Estates

SUMMARY OF KEY POINTS FROM 2026-06-09 BOARD MEETING

Sent 2026-06-15: June 9, 2026 HOA Board Meeting — What residents need to know -  

June 9, 2026 HOA Board Meeting — What residents need to know

The June 9, 2026 HOA Board meeting focused heavily on two major issues: approved road work and the Association’s financial position going into 2027.

Road Work Approved

• The Board approved moving forward with the Five-Year Planning Committee’s road recommendations. The approved road work is expected to cost approximately $145,000.

• This work includes:

  • Reclamite pavement preservation treatment.

  • Asphalt patching in the most deteriorated areas.

  • Work on the Grace Avenue access road/intersection.

• Reclamite was recommended because it helps preserve existing asphalt and may extend the useful life of the roads.

• The Board discussed that traditional road reconstruction is becoming extremely expensive. Initial estimates for some road work were much lower than the bids received. What was originally expected to cost approximately $42,000 came back closer to $100,000.

• Because of these rising costs, the Board chose a preservation-and-patching approach now rather than waiting until the roads require more extensive reconstruction.

• The Grace Avenue access road is included in the approved project, but the Board plans to contact Encore to discuss possible cost-sharing because that road may also benefit Encore residents.
   

Why This Road Work Matters

• Roads are one of the Association’s largest long-term infrastructure expenses.

• The Board discussed that future road reconstruction could cost hundreds of thousands of dollars.

• The current road project is intended to protect the roads now, extend their life, and delay more expensive reconstruction.

• The Board emphasized that delaying necessary maintenance can make future repairs much more costly.
   

Current Financial Situation

• The Association is facing serious financial pressure.

• The Board stated clearly that the Association does not have the large reserve balance some residents may believe it has. After the road project, roof work, likely air conditioning replacement, and other capital needs, the reserve fund is expected to drop to approximately $75,000. We should have a reserve fund of at least $500,000.

• Current HOA fees do not fully cover the Association’s annual operating budget.

• The Association has been relying on other income sources, such as storage lot revenue and interest income, to help cover annual operating expenses.

• The Board also discussed that costs have increased significantly over the past several years, while the Association’s ability to raise revenue is limited.
   

Budgeting Limitations

• Under current rules, the annual HOA fee increase is limited to $45 per home per year.

• That increase generates only about $14,000 in additional annual revenue.

• The Board explained that this amount is not enough to cover rising costs, rebuild reserves, or prepare for future major road expenses.

• In addition, Association policy requires a portion of HOA revenue to be placed into the reserve contingency fund.

• The reserve contingency fund is intended for major needs such as:

  • Roads.

  • Irrigation.

  • Emergency building expenses.

• Because of this, the HOA fee increase cannot simply be used to cover regular operating expenses.
   

How the Board Plans to Approach the 2027 Budget

• The Treasurer will work on the 2027 budget over the summer.

• The Board expects to review and discuss the proposed 2027 budget at the October Board meeting.

• One budgeting approach discussed was to use HOA fees only for regular operating expenses. We will have to cut our budget to $455,000 for the next year and likely future years. This will have to look at all expenses, including employees and seasonal adjustments.

• Under that approach, other revenue sources would be directed toward rebuilding reserves and funding future capital needs.

• Possible reserve-building revenue sources discussed included:

  • Storage lot fee increases.

  • Golf cart or golf course-related fees.

  • Green fees or golf memberships.

  • Other amenity or user fees.

  • Sponsorships, such as benches or golf hole sponsorships.

  • A possible buy-in fee for new home buyers.

• The Board also discussed the need to review expenses carefully and not rely only on asking residents to pay more.

• The goal for 2027 budgeting is to identify both:

  • Reasonable cost-saving measures.

  • Responsible ways to increase revenue and rebuild reserves.
     

Special Assessment Discussion

• A special assessment was discussed as a last resort, not the first option.

• A special assessment would require approval from 51% of all homeowners.

• That means 157 yes votes would be needed.

• The Board recognized that this would be difficult and that residents do not want a special assessment unless absolutely necessary.
   

Bottom Line

• The Board approved approximately $145,000 in road preservation and repair work because road conditions and future road costs are a major concern.

• The Association’s reserves are expected to drop to approximately $75,000 after major capital projects.

• Current HOA fees do not fully cover annual operating expenses, and the allowed annual increase of $45 per home generates only about $14,000.

• The 2027 budget process will focus on controlling expenses, identifying new revenue sources, and rebuilding reserves for future road, irrigation, and emergency building needs.

• Residents should expect continued discussion this fall about the 2027 budget, reserve planning, and possible revenue or fee changes.
   

If anyone has any suggestions or ideas they have observed work in other HOAs, please let us know. We are open to anything at this point. We just want to ensure this community is in a good financial position moving forward. Thank you for your attention.

- Lisa Seiser     Board President   SEPO