Annual meeting season is upon us! Every community holds an annual meeting of the members. It is the one time a year meeting where homeowners get their chance to vote on matters that impact their community! The purpose for the annual meeting is to elect the board members to serve the community, vote on next year’s budget and to ratify the meeting minutes from the previous year. One key factor for these meetings is to have a quorum of the members either present or by proxy for the vote to be held. Every community has governing documents that will establish how many homes must be represented in order to hold an official meeting. Once the quorum is reached, the homeowners will be able to vote on the matters at hand.
The election portion of the meeting is an opportunity for any homeowner to volunteer to join the board. There are a specific number of seats on the board which is listed in the community bylaws. Every year there will be terms that expire. The current board member serving can choose to rerun or step down. We always welcome new faces to join the Board and have an opportunity to make decisions on behalf of the community. If there are no volunteers, then the seat may stay vacant.
Another voting matter will be the ratification of the approved budget for the upcoming year. Most bylaws allow for the Board to create a budget which will determine how much assessments should be for the coming year. The Board works closely with the management company to evaluate what expenses are anticipated and how much income is needed to cover those expenses. At the annual meeting homeowners have the chance to review the budget and ask any questions they may have. On the voting ballot owners will vote to accept or veto the budget. The budget and assessment change will then go into effect at the first of the year.
The last thing listed on the ballot is the approval of the prior year’s annual meeting minutes. The meeting minutes are only recorded if the quorum was held at the meeting. It is crucial to have a quorum every year so the minutes can be approved and officially recorded. Some communities will go years without a quorum which will delay the approval of the minutes.
Annual meetings are a meeting of the members. It is a crucial time to have your voice heard and participate in the decisions made for your community. Keep a look out for the annual meeting notice that is mailed out to each owner. If you are unable to attend the meeting, make sure to sign your proxy and send it in to the management company or give to a neighbor. A proxy will count towards quorum, so it is very beneficial that you submit it by the time of the meeting.
As a management company, we enjoy the chance to bring the community together and discuss the community needs at the annual meeting. We don’t often see participants at the regular board meetings so it’s a great opportunity to have your voice heard.
Amanda Mulnix - Lead Community Manager