Messages: Misrepresentation of Information
The definition of Misrepresentation as taken from Black’s Law Dictionary:
“Any manifestation by words or other conduct by one person to another that, under the circumstances, amounts to an assertion not in accordance with the facts. An untrue statement of fact. An incorrect or false representation. That which, if accepted, leads the mind to an apprehension of a condition other and different from that which exists. Colloquially it is understood to mean a statement made to deceive or mislead.
In a limited sense, an intentional false statement respecting a matter of fact, made by one of the parties to a contract, which is material to the contract and
influential in producing it. A ‘misrepresentation,’ which justifies the rescission of a contract, is a false statement of a substantive fact, or any conduct which leads to a belief of a substantive fact material to proper understanding of the matter in hand, made with intent to deceive or mislead.”
It is my opinion that many of the statements made by our board of directors appear to meet the above definition.
The latest example was Mr. Singer’s declaration at a property owners meeting that the POA is, “in good financial shape.” If one were to listen to the numbers
presented at our meeting by the board and Omni Management that statement would appear to be true. We routinely hear management and the board refer to “budget” when reporting our numbers. Mr. Salone along with a property owner even appeared to orchestrate a challenge Q&A session to distract a board member (Mr. Yoha) and the audience from the financial reality that is facing the POA. Mr. Yoha was known for asking tough questions pertaining to our finances. Why does our board appear to intentionally want to deceive the property owners by not reporting (concealing) the actual numbers.
The fact is that we are not in “good financial shape.” Reporting how the POA is doing to budget is an insult to the intelligence of the property owners and quite frankly, makes the members of our board and Omni Manage appear very incompetent.
What would be even more disturbing is the possibility that they have convinced themselves and now believe their own deceit!
Here are the facts as I see them through the actual numbers based on the TLPOA Balance Sheet of 12/31/2017
Deferred projects – $5.75 million
Lake Dredging – $3-5 million
Cayman upgrade to include KOA project – $2 million—this should include meeting ADA requirements.
Ski Lodge repairs – $300,000—Don’t know if this includes meeting ADA requirements.
LVL AC replacement – $250,000
Storm Water Management – $1 million (conservative estimate)
Total – $11,300,000 – $13,300,000 in deferred projects that cannot be ignored! That is $2,628 – $3,093 per lot!
Now, here is where we are financially through December 31, 2017:
We have approximately 3 million left to pay on the 5 million dollar loan from the bank. This loan costs the POA roughly $255,000 per year in interest ($60.00 out of every paying assessment).
Through 12/31/17, Actual YTD income is negative – ($46,378.62)
Through 12/31/17, Our reserve account is also negative – ($366,691.79)
I asked the board and management to clarify Mr. Singer’s financial stability
statement based on these numbers. The response from our General Manager was once again a comparison to budget. Ms. Mouthrop said I was only focusing on certain cost centers in her response. When I pointed out that it was an overall report, not by cost center, she said, “I’m done with this”. The response did not address my concerns.
Remember, we have ongoing maintenance costs that are constantly going up.
Some will immediately call this post negative; I would challenge them to find a way to present this information in a more positive form!