# Bonnet Creek Annual Meeting



## FL Guy (Oct 16, 2013)

I recieved my notification of the annual meeting of the VCA.  Included was a proposed budget for 2014.  It's amazing their annual budget is $46M!    It's a zero-based budget against the Maintenance Fees Revenues, so it's likely some of the expenses (like Management Fees, General & Administrative expenses) are bogus expenses just to zero budget to the revenues.  

Something I am surprised by is there is nothing listed for Real Estate & Property Taxes.  It is listed as an expense, but $0 on the line.  I thought the HOA fees were inclusive of all costs, including Real Estate Taxes.  Wonder why there would be no RET listed?


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## 55plus (Oct 17, 2013)

Property taxes should be listed somewhere in there if it's a legit document. That's an item listed on the recent financial documents received from a few resorts.


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## luvNMB52 (Oct 17, 2013)

*Florida property taxes*

I don't own a TS in Florida, but I think I remember hearing that property taxes are paid directly to the state by owners and that it doesn't go through Wyndham... so thinking that might be why it's not shown in the Bonnet Creek budget.  Someone else probably knows more about this that I do....


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## 55plus (Oct 18, 2013)

luvNMB52 said:


> I don't own a TS in Florida, but I think I remember hearing that property taxes are paid directly to the state by owners and that it doesn't go through Wyndham... so thinking that might be why it's not shown in the Bonnet Creek budget.  Someone else probably knows more about this that I do....



That didn't work very well so it changes back several years ago. It generated a lot of paperwork for the state. I didn't like it and was happy that the resorts paid the taxes from our maintenance fees...


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## FL Guy (Oct 18, 2013)

morrisjim said:


> Property taxes should be listed somewhere in there if it's a legit document. That's an item listed on the recent financial documents received from a few resorts.



It certainly looks like an official document.  It is the notification of the annual meeting, a proxy voting ballot with a slate of candidates for the directors, and the proposed budget.  As I said, there is a "Real Estate and Property Taxes" line showing on the budget report, but the amount is $0.  I also received an email from the Resort Manager of Bonnet Creek, a couple of days after receiving this notice snail-mail, stating essentially the same information contained in the notice and urging me to vote so they have a quorum.  I certainly hope I am not going to receive a RET bill on top of my MF.


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## timeos2 (Oct 18, 2013)

FL Guy said:


> It certainly looks like an official document.  It is the notification of the annual meeting, a proxy voting ballot with a slate of candidates for the directors, and the proposed budget.  As I said, there is a "Real Estate and Property Taxes" line showing on the budget report, but the amount is $0.  I also received an email from the Resort Manager of Bonnet Creek, a couple of days after receiving this notice snail-mail, stating essentially the same information contained in the notice and urging me to vote so they have a quorum.  I certainly hope I am not going to receive a RET bill on top of my MF.



In Florida real estate taxes are billed independently from other fees due. As it is just a pass through they may not list it as a fee (but you'll get a billing when they have the number).


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## Ron2 (Oct 19, 2013)

I have owned at Bonnet Creek for several years and have never been billed separately for real estate taxes. It has always been part of the HOA fee which incidentally for 2013 can be viewed in the Assessment Information on your Club Wyndham Membership website. As for the 2014 Budget they are planning to change to what they call “Pooling Accounting Methodology”.  If you look at the voting ballot you’ll see this explanation:
2. 2014 RESERVES FUNDING:  
Florida Statutes require Reserves accounts to be funded based on either a straight-line formula, which provides for contributing a fixed amount of money into the Reserves account, not taking into consideration maintenance and other conditions which may extend the useful remaining life of an asset, or a pooled analysis of two or more of the reserve categories using the pooling accounting method. The Board has determined it to be in the best interest of the Association to use a pooling accounting methodology based on a Reserves Analysis to determine the required funding of one overall Reserves account for the next fiscal year. The Reserves Analysis is conducted every three years by an independent firm and is updated annually based on continuing maintenance and other conditions that may extend or lessen the useful life of an asset. (Members wishing to review the Reserves Analysis may contact the Resort Manager.) 

A vote of the membership is requested to authorize the Board to use the pooling accounting methodology to fund Reserves. Vote “YES” to the following question to approve the pooling accounting methodology. 

Quite frankly I don’t understand it either so I sent an email to the resort manager asking him to explain it. If I don’t get a response in the next few days I will call him. If you were a Bonnet Creek owner earlier this year you would have received a notice of a special meeting held  May 10, 2013 to waive funding of reserves. I never did hear if that vote passed or failed. It had something to do with a very large bond that they proposed to pay off early which they claimed would keep our fees from rising. Most likely this proposed accounting method and what was decided at that special meeting are connected.


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## JimMIA (Oct 19, 2013)

Does anyone know the annual amount of the Disney shuttle cost to the HA?  

And how much shuttle revenue they are actually _getting_?

Also, does Wyndham itself pay any part of the shuttle cost?

Given the slow-motion train wreck they've had implementing charging for that shuttle, it would be interesting to see the numbers.


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## Joe33426 (Oct 19, 2013)

Funding reserves using a straight-line method is very simple-- Estimated cost to replace (less) how much you have saved (divided by) how many years you have left before you have to replace the asset.   

So for example, under the straight line method if the roofs cost 1,000,000 to replace and if the Association has 500,000 saved, you need $500,000 remaining and you estimated 5 years left on the roofs, $100,000 is the required annual funding.  This calculation would be completed for each component of common property greater than $10,000.   The money put into each of these components is specifically restricted for that component.  Money reserved for the roof can't be used for other purposes. 

Under the pooling method, all reserve funds are pooled together and the annual requirement is not computed in the same manner as above.  To put the process in simple terms, the Association would prepare a spreadsheet listing all reserve items and the cost and years the items would be replaced.  The required reserve funding is the amount required to keep no year's cash balance less than zero.  So in other words, the funding makes sure that the Association always has sufficient balance in the reserve fund to make necessary repairs.  Funds accumulated are in a "pooled" reserve and can be used on any component of common element included in the "pool".   

From what you say in the post, I'd bet money that one of the reserve components (most likely furniture and fixtures) is due to be replaced in the next few years and not enough money has been accumulated to make the replacement.  When that happens, the amount required to be funded under Florida Statutes increases dramatically and maintenance fees increase dramatically.  

The Board (Wyndham) is likely asking for permission to change the method of calculating the reserve requirement because it will result in a lower annual contribution to the reserve fund.  The Board tried earlier in the year to waive funded the reserves completely, which is probably not a good sign.  








Ron2 said:


> I have owned at Bonnet Creek for several years and have never been billed separately for real estate taxes. It has always been part of the HOA fee which incidentally for 2013 can be viewed in the Assessment Information on your Club Wyndham Membership website. As for the 2014 Budget they are planning to change to what they call “Pooling Accounting Methodology”.  If you look at the voting ballot you’ll see this explanation:
> 2. 2014 RESERVES FUNDING:
> Florida Statutes require Reserves accounts to be funded based on either a straight-line formula, which provides for contributing a fixed amount of money into the Reserves account, not taking into consideration maintenance and other conditions which may extend the useful remaining life of an asset, or a pooled analysis of two or more of the reserve categories using the pooling accounting method. The Board has determined it to be in the best interest of the Association to use a pooling accounting methodology based on a Reserves Analysis to determine the required funding of one overall Reserves account for the next fiscal year. The Reserves Analysis is conducted every three years by an independent firm and is updated annually based on continuing maintenance and other conditions that may extend or lessen the useful life of an asset. (Members wishing to review the Reserves Analysis may contact the Resort Manager.)
> 
> ...


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## Vacationfuntips (Oct 31, 2013)

*Wyndham Bonnet Creek Resort Annual Meeting*

There will be an annual board meeting to determine the 2014 fees held on Nov 9, 2013 at 9:00 am at the Hilton Orlando at Bonnet Creek. 14100 Bonnet Creek Resort Lane, Orlando, FL 32821. Parking free at Wyndham Bonnet Creek a free shuttle over to the Hilton Hotel will be provided. 1. to elect four (4) Directors of the Association; and 2. To transact such business as may properly come before the meeting and any adjournments thereof. The agenda for the meeting is as follows: 1. Call to Order/Certification of Quorum/Proof of Notice 2. Approval of Prior Minutes 3. Election Collection of Ballots, 4. President's Message, 5. Reports, 6. New Business, 7. Election Results, 8. Adjournment.

TBD on the proposed 2014 budget : $4.39 - (0.38 Revenue) = $4.01 for standard VOI Units cost per 1,000 points
$4.54 - (0.38 Revenue) = $4.16 for designated VOI Units cost per 1,000 points. These are the numbers sent for the proposed budget but there are many blanks left on the worksheet that may change things budget wise...? I don't see the amount for real estate and property taxes, professional fees, master association dues, food and beverage , designated unit services or for replacement reserves etc...?

They sent out proxy forms where owners can vote online, mail their ballot or attend the meeting. It says a vote of YES to the Reserves question(s) on the proxy form will indicate your approval of the pooling accounting methodology. A vote of NO may result in higher annual maintenance fees. Owners can vote to elect (4) directors of the association and biographies of the candidates are posted once logged into the election website.

All proxies wheter submitted online or on paper, must be submitted no later then 5:00PM EST on November 6, 2013 in order to be counted.

This is all I know right now. Once decisions are finalized regarding 2014 maintenance fees, I will post again and update.
Cynthia T.


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## Ron2 (Nov 1, 2013)

I recently sent an email to Carmen Morrow, Administrative Coordinator, at Bonnet Creek Resort concerning the 2014 Budget and the upcoming Annual Meeting of the Owners Association. I posed the following questions:

1. Why is the Real Estate and Property Tax line item left blank?
2. Since the Replacement Reserves line items are all blank, does that mean that no funds will be appropriated to the Reserves in 2014?
3. If the Pooled Accounting Methodology is approved is there a large enough Reserve Account balance to cover expenses and to comply with Florida Statutes?
4. Is the CDD Bond line item the reason for the change to Pooled Accounting? Also, is this the bond that was referred to in the request to waive funding of reserves this year at the May 10th Special Meeting? What was the outcome of that Special Meeting vote?
5. In the electronic notice of the Annual Meeting, there was an "Important Announcement" referring to Florida Statute §718.112(2)(d)2 which eliminates the need for an owner vote for two-year staggered terms of board members. Does this mean that after this year owners will no longer be voting for board members?  

Ms. Morrow promptly replied with the message that the Assistant Resort Manager would get back to me. If and when that happens, I’ll post the response in this thread.


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## Vacationfuntips (Nov 1, 2013)

*Bonnet Creek Annual Meeting Letter Nov 1*

Hi All,

I just received this message regarding the Annual Meeting for Bonnet Creek.  You need a password to vote on-line.  I have omitted mine from the letter.  It is important that we all vote online or attend. (See below for the letter)

Dear Bonnet Creek Owner:

The date for the Annual Meeting, Saturday, November 9, 2013, is approaching fast. By now, you should have received the mailed notice packet.  Our documents require that 15% of the total voting interest be represented in person or by proxy in order for the meeting to proceed. Therefore, I urge you to return your proxy as quickly as possible, so that the meeting can proceed as planned.

Included within the notice package is a Proxy with Voting Direction.  Due to an administrative error, a candidate name, Tim Pruitt, was inadvertently omitted on the proxy under Election of Directors.  The document has been corrected online.  If you completed your proxy, whether on paper or online, and wish to change or update your vote, you may do so at this time.  If you have not yet submitted a proxy, I encourage you to do so.

To access the secure proxy voting site, please click on the link below and enter the password below where prompted:


All proxies must be returned by: 5:00 PM ET on Wednesday, November 6, 2013.

Thank you so much for taking time to participate in the 2013 Annual Meeting and Election of Directors of the Bonnet Creek Resort Vacation Condominium Association, Inc.


Cynthia T


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## Ron2 (Nov 1, 2013)

Cynthia,
Apparently they are not getting the necessary 15% response for a quorum at the annual meeting. I haven’t voted yet but plan to in the next day or so. I was really hoping they would get back to me with answers to my questions before I send my vote. (see post #11).  What is your take on the omissions in the proposed budget and their proposal for handling the Reserves Account? Since they haven’t been very forthright with answers makes me suspicious as to their motives. If they would be a little more willing to keep owners informed, they might be able to have a quorum at their meetings. Hopefully these new accounting procedures don’t end up triggering a special assessment.


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## Vacationfuntips (Nov 1, 2013)

Hi Ron,

I voted for 4 members as instructed from the list.  I am a bit worried about missing areas of the budget.  I hope the people I voted for will help figure this out.  I am hoping that fees might go down with the added revenue coming in from $6 pp RT shuttle buses.  

Honestly, I have no idea what to expect?  I do know that the resort needs owners and properly qualified people to figure out the annual budget.  

I hope if someone goes to the meeting that they will post here what was discussed.  All I know is that with the maintenance fees + program fee in place I am already paying $5.12/ per 1000K!  

Cynthia T.


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## jebloomquist (Nov 3, 2013)

I think that they are getting desperate to get the 15%. 

I received an email with instructions how to vote my Bonnet Creek shares, and I don't even own anything at Bonnet creek. The password and everything was there. 

I logged in and could have voted the shares that were indicated that I owned. I didn't vote, I just wanted to see if I actually could get to the voting place.

Jim


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## Vacationfuntips (Nov 16, 2013)

Has anyone here heard any news or have any information from the meeting?

Cynthia T.


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## Ron2 (Nov 16, 2013)

I didn't attend the meeting but I did get answers to a few questions that I had sent. It appears that the proposed accounting method was approved. From the answer that I received concerning property taxes, I'm not sure if anything has changed. I guess we'll just have to wait until the MF notice is delivered next month. They claim that the Reserves Fund is in good shape and that the CDD Bond will be paid off using the pooled accounting method and thus save $10 million in interest.


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## Vacationfuntips (Nov 17, 2013)

Ron2 said:


> I didn't attend the meeting but I did get answers to a few questions that I had sent. It appears that the proposed accounting method was approved. From the answer that I received concerning property taxes, I'm not sure if anything has changed. I guess we'll just have to wait until the MF notice is delivered next month. They claim that the Reserves Fund is in good shape and that the CDD Bond will be paid off using the pooled accounting method and thus save $10 million in interest.



Hi Ron 2,
Thank you for posting!  Sounds good so far!  I wonder if they will make an announcement of who was elected for the board? 

Soon the financial statement will come. Hopefully there will not be to many changes with maintenance fees...???

Cynthia T.


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## Ron2 (Nov 18, 2013)

Vacationfuntips said:


> Hi Ron 2,
> Thank you for posting!  Sounds good so far!  I wonder if they will make an announcement of who was elected for the board?
> 
> Soon the financial statement will come. Hopefully there will not be to many changes with maintenance fees...???
> ...



Don’t expect any announcement from Bonnet Creek regarding the recent meeting. In all the years I’ve been a Wyndham/Fairfield owner, I’ve  never received any such information without specifically asking for it. I suggest that you contact Carmen Morrow at BC and request that they send you the Minutes from the meeting. I have requested the Minutes but they haven’t arrived yet.


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