Tim O’Keefe
Valley Vista Neighborhood
How well do you know where you live?
1) Which of the following statements is true about the VCA budgeting process?
A. Input is received from committees.
B. The Town of Oro Valley Town Council must review it.
C. The majority of VCA Board of Directors (BOD) must vote to approve it.
D. Information from the Reserve Study is included.
E. The BOD must consider any surplus funds from the previous year before considering an increase in assessments.
2) Which of the following statements is NOT true about the VCA Reserve Study (You can view the 2022 Reserve Study here)?
A. A Reserve Study is long-term capital budget planning tool which identifies the current status of the reserve fund, a 30-year plan to replenish deteriorated reserve assets, and helps ensure sufficient funds are available when needed.
B. There are specific criteria that must be met for an asset to be deemed a reserve asset.
C. Reserve funds must be spent on reserve assets or components.
D. A Reserve fund is like having a savings account: you set aside funds today to cover future expenses.
E. Reserve funds can be used at the discretion of the BOD to make enhancements in the community.
3) What is the maximum increase in assessments that can be imposed without a 2/3 vote of the majority of members?
A. Depends on what the needs of the community.
B. The BOD has the right to increase assessments to the level necessary to cover expenses.
C. 5% or the rate of inflation, whatever is higher.
D. 5% or $4/quarter in 2023.
E. Surplus funds must be taken into account before an assessment increase is considered.
4) Which of the following are items in the operating budget.
A. Legal fees
B. Assessments
C. Landscaping
D. Painting Common Area Walls
E. Interest on Investments
5) The VCA has spent or will be under contract to spend nearly $1,000,000 replacing aged reserve assets in 2022. Which items are included?
A. $360,000 Irrigation Systems
B. $65,000 Shade Sails in Parks
C. $666,400 Granite Rock Replacement
D. $170,000 Park Furniture
E. $111,000 Drainage Mitigation
Answers:
1) B is false – The Town of Oro Valley is not engaged in the VCA budgeting process.
2) E is false – the BOD can only spend reserve funds on reserve assets.
3) D – Any increase in assessment above 5% requires a 2/3 vote of all members to approve. It is also true that surplus funds must be taken into account before an assessment increase is considered
4) A, B, C, E – Painting common area walls is a reserve expense.
5) B, D, E – Items A is slated for 2024 and item C for 2025.