Meeting Notice — March 7, 2021
SUMMARY Minutes
NORTH SHORES BOARD OF GOVERNORS
A regular meeting of the Board was held on Sunday, March 7, 2021. Notice of the meeting was announced and posted on the North Shores website. The meeting was called to order and a quorum was declared. Attending the meeting by teleconference, in compliance with the Delaware State of Emergency, were: President Bruce Wilson, Secretary Debbie Director, Treasurer Helen Hoart, Vice President Louisa Hollman and Assistant Secretary Evan Thalenberg. The meeting also included Community Executive, James Allen.
The first item on the Agenda was the review and ratification of votes taken by email taken since February 21, 2021. A complete list of votes was included in the meeting Agenda and reviewed by the directors. President Wilson asked the Board if there were any questions or comments. There were no questions and Mr. Wilson moved to ratify the votes taken by email, the motion was seconded and approved by all.
Review and ratification of votes taken by email:
- Meeting Minutes October 2020 – Approved
- 17 Cedar Road GSA Rental – Approved
- Construction Application (minor) 61 Harbor Road – Approved
The next item of business, the 2021 Proposed Budget, was presented by Treasurer Helen Hoart. Previously the details of the proposed budget had been circulated to all Board members. President Wilson complimented Treasurer Helen Hoart and Bookkeeper Phyllis Donovan on the preparation of the 2021 budget report. He drew attention to the COVID-19 related expenses and their impact on the 2020 Budget. Helen Hoart reported the community finances remain strong despite the loss of beach related revenue, primarily income from beach chair rentals. Several years of operating surplus left us well positioned for the revenue losses and additional expenses associated with COVID-19. Treasurer Hoart recommended holding the annual assessment at its current level of $2400. Many costs that were incurred, as well as the revenue loses, were onetime events. The 2020 paving project was the other budget item that affecting the bottom line. No large paving projects are planned for 2021. $75,000.00 is currently budgeted for a marina dredging project (approximately one-half of the currently projected cost); the remaining expenses for the dredging will be included in the 2022 budget. Treasurer Hoart proposed a special COVID-19 assessment of $250 per household, to cover the COVID-related losses and replenish the reserves.
More frequent reports on the budget will be made to Board, including the use of reserves, new contracts and items not included in the budget for approval. Community Executive James Allen, will develop a monthly financial report for the Board.
President Wilson asked the Board if there were any questions about the budget and proposed special assessment. The budget and the special COVID assessment were approved unanimously and will be included in the annual mailing for approval at the community’s May meeting.
Community Executive James Allen presented two proposals to the Board for generating additional income. The first proposal, to be implemented with respect to rentals for occupancy periods on or after January 1, 2022, would collect a tax on rentals of 2.5%, based on the gross rent. The tax would be collected by the local realtors, based on the rental agreement, and remitted to North Shores. The Board discussed the merits of the proposal and decided to present the proposal to the community for discussion at the Annual Meeting in May. North Shores currently incurs significant costs associated with the administration of property rentals. Mr. Allen continued, the rental tax would generate income for the community and reduce the pressure to raise the annual assessment.
The second proposal presented by Mr. Allen would modify the current construction application fees associated with minor and major projects as well as applications for new homes. The new permitting fees would be based on the square footage of the home. Allowing for significant lead time, changes in construction fees would begin in January of 2022. The fee will start initially at $2.00 per square foot of GFA, slightly less than those generally charged by surrounding communities. The Board discussed the merits of the construction fee proposal and decided to present the proposal to the community for discussion at the Annual Meeting in May.
Both proposals were well accepted by the Board.
The meeting was adjourned.