On August 4, 2015, the Board of Directors of the POA passed a resolution recommending the adoption of an amendment to Article III of the Declaration. Every member of the Association will be receiving a ballot in the mail. The purpose of the ballot is to vote on the proposed amendments (click here to view amendments) to Article III of the Declaration of Covenants, Conditions, Assessments, Charges, Servitudes, Liens, Reservations, and Easements for McCormick Ranch, as amended (“Declaration”) to cause the Declaration provisions regarding assessments for residential and commercial lots to reflect how the Association has operated for over thirty (30) years.
The Board of Directors is requesting that you Vote YES, to continue current annual assessment methods.
If you do not find answers to your questions below, please call the office at 480.860.1122, ext. 200, or email admin@mrpoa.com. MRPOA staff will assist in getting your questions answered.
Q&A
If the CC&Rs say we have to calculate assessments on the property’s full cash value, why haven’t we been doing that for the past 30 years, and why do we have to change now? The original CC&Rs dictated that assessments would be determined based on each property’s full cash value. An amendment to the CC&Rs established the flat fee method, but it was temporary in nature. If we don’t vote to change the CC&Rs permanently, we will be forced to use the full-cash value assessment method.
Why is the board recommending a “YES” vote? The POA Board of Directors (who are also property owners) do not want assessments calculated on tax valuations for several reasons. The primary reason is the administrative nightmare this change creates. Additional POA staff would be needed to do nothing but manage the assessment process. Second, the board has concerns about how this change affects the annual budget process. And last, board members are also concerned about how assessment rates will be impacted.
How much is the current annual assessment? Residential POA members paid $200 in 2015.
How will my assessment amount change if the POA is required to adopt the tax valuation method? The amount for each homeowner will vary based on the individual’s 2015 tax valuation statement. At present, we’re not certain how many members’ assessments would increase or decrease, and by how much.
Why does the change affect only residential properties? The MRPOA CC&Rs stated from the beginning that commercial properties will be assessed based on their tax valuation and the CC&R amendment did not change the rate of assessments for commercial properties.
What percentage rate will be factored into the assessment rate if we change to the valuation method? For 2015, commercial properties are assessed from 16.67 to 33.33 cents per $100 of value, depending on how the commercial property is categorized. It is possible that residential percentages would be within this range, although that has not been determined.
Does state law allow this type of assessment rate change? Arizona law defers to MRPOA’s documents for the method of determining assessments. However, assessment increases would be limited as provided by state law. This could result in the POA raising the assessment by 20% every year until the total assessed value amount is reached.
Does this the full-cash value method impact the POA’s budget? We don’t know the consequence or the magnitude of how a full-cash value method would impact the budget. We do know that additional staff will be required.
Why do we have annual assessments? Assessments pay for maintaining the community’s common areas, including lakes, parks, signage, landscaping, and all other costs association with maintaining a community like McCormick Ranch. For details on the various expenses MRPOA incurs, please see the 2015 Operating Budget here.
Why does changing our documents require a vote? The McCormick Ranch CC&Rs state that to amend the Declarations of Covenants, Conditions, Assessments, Charges, Servitudes, Liens, Reservations, and Easements for McCormick Ranch (aka, CC&Rs) requires an 80% approval by members voting on the matter.