Proposed Ballot Measures

Along with the Election of Directors there were seven ballot measures included with this year's ballot. The Annual Election took place on May 13, 2021. Ballot measures are listed below and have been updated with the status of votes for or against each measure.  In order for a measure to pass, it needed 934 votes. 

Proposed Ballot Measure #2: IRS Tax Measure
Results: 1,467 in favor, 205 against. The majority voted in favor of this measure. 

If approved, the Canyon Lake POA can apply excess income from the previous fiscal year to the following year’s assessments/operational budget.

Background
The proposed IRS Ballot Measure is considered an annual industry standard to allow for clear tax filing authorization. The IRS Revenue Tax Ruling 70-604 allows associations to avoid a tax consequence on any inadvertent excess member income that is applied to the following fiscal year assessment when filing a tax return Federal Form 1120. Failure to allow the IRS measure on the ballot, and failure of the membership to approve the measure, may result in the Canyon Lake POA being subject to additional federal income taxes. This is always on the ballot for approval, and it has passed in recent years.
Proposed Ballot Measure #3: Board of Director Terms
Results: 385 in favor, 1,320 against. The majority voted against this measure. 

If approved, the years for Board Director terms would double to four-year terms. The Canyon Lake POA would hold elections eve The Canyon Lake POA would hold elections every two years, rather than annually.

Background
Annual Board turn-over is a very disruptive practice to the Canyon Lake POA's operations. Staff spends a minimum of six months of every term educating the new Board members on the functions of the Canyon Lake POA. Many community projects that may be close to fruition are often delayed due to Board turn-over. This change could significantly improve governance consistency and long-term continuity by reducing the chance of dramatic fluctuation in planning, focus, expenditures, and budgeting. Staff is supportive of this measure. This change would also reduce election costs by half with bi-yearly elections rather than annual.

Proposed Ballot Measure #4: General Manager Designation
Results: 690 voted in favor, 957 against. The majority voted against this measure. 

If approved, this measure would document and formalize the roles for the Board and General Manager that are currently in place. There would be no authority or compensation changes. 

Background
This measure proposes the documentation and formalization of the current style of Canyon Lake POA operations. Further, it clarifies the relationship between the Board President and the General Manager. The volunteer Board President of the Canyon Lake POA generally acts as Chairman/President of the elected Board of Directors, and the Board of Directors then delegates the day-to-day management of employees and operations to the paid position of General Manager, who operates as the CEO of any corporation would. The Canyon Lake POA Board of Directors has one paid employee that reports to them, the General Manager. The remaining 130+ employees of the Canyon Lake POA report to the General Manager. This measure is to document and formalize the roles of the Board and Management that are currently in place. The General Manager would continue to take direction from the Board of Directors as always. 

Proposed Ballot Measure #5: Capital Improvement Spending
Results: 546 in favor, 1,139 against. The majority voted against this measure. 

If approved, this would permanently change Capital Improvement spending authority from $800,000 every two years to $1,000,000 every year.

Background
The current Capital Improvement spending authority of $800,000 was first declared in the 1990s. Increasing the spending authority to $2,000,000 over a two-year period is consistent with the inflationary increase that has occurred since the 1990s. It is this spending authority that permits the Board to make appropriate decisions to support the interests and activities of specific communities within the Canyon Lake POA. The increase amount is more closely aligned with the cost of projects now being implemented and planned and will likely increase spending on new projects within a one-year period. If Ballot Measure #8 does not pass, this ballot measure would allow the Canyon Lake POA to develop Sierra Park North in two years instead of six years.

Proposed Ballot Measure #6: Purchase Limitation
Results: 573 voted in favor of this measure, 1,098 against. This majority voted against this measure. 

If approved, this would double the Bylaw limitation from $200,000 to $400,000 rent/lease/purchase because of inflation.

Background
If approved, the spending authority for the purchase, sale or rent of real property would increase to $400,000, which is consistent with the inflationary rise since the value was first introduced in the 1990‘s. It may result in increased spending on individual projects within a one-year period.

Proposed Ballot Measure #7: Capital Improvement Funding
Results: 424 voted in favor of this measure, 1,213 against. The majority voted against this measure. 

If approved, this raises the ability to borrow money from 5% of the annual budget to 15% and would allow us to do our long-planned projects like solar carports and the development of Sierra Park North.

Background
The current limitations require annual member assessments to increase the CIP reserve to fund projects that benefit only the members when they are completed. It will also remove outdated and inapplicable language from the original Bylaws, permitting the Canyon Lake POA to lease its amenities from the developer – no such leases exist. This would allow the Canyon Lake POA to pursue a solar project that has been under consideration.

Proposed Ballot Measure #8: Sierra Park North
Results: 956 voted in favor of this measure, 734 voted against. This majority voted in favor of this measure. 

If approved, Sierra Park North can be completed under a single contract within one year. 

Background
Four Boards have supported this project as a significant addition to our amenities that will directly support the growing number of families in the community that seek recreational opportunities for their children. It would be an appropriate use of an unimproved section of the community located such that it has the least impact on neighbors.