I. POLICY
The POA will establish and maintain procedures for goods/products, services and maintenance/repairs, and capital plan expenditures.
Management will assure that all expenditures are delivered according to authorized orders and contracts and that any warranties provided to the POA are fully enforced. All expenditures will follow the applicable Approval Procedures in this Policy. General Manager and Director of Finance will review all contracts annually and determine if they need to be re-bid. All contracts should be provided to the Board of Directors annually and a schedule of contract terms and expiration and renewal dates should be maintained and available for review at all times by the Board.

Capital Reserve Fund Projects
The 1988 Declaration Article VI Section 13 specifies the Capital Reserve Fund can only be used for  expenditures for a) property identified in the Capital Reserve Study or b) damage from natural disasters, emergencies, et. al. 
These funds shall not be used for capital projects of more than one million dollars ($1,000,000) (as adjusted per the Consumer Price Index for all Urban Consumers (CPI-U) beginning 2010) unless the project is approved by more than fifty percent (50%) of the votes cast by Property Owners. This restriction shall not apply to roads, bridges or dams. The one million dollars ($1,000,000) plus CPI-U amount will include the cost of planning, design and all construction costs including a reasonable contingency. For the purposes of this policy, projects costing more than one million dollars ($1,000,000) plus CPI-U shall not be subdivided into smaller
projects to avoid a Property Owner vote.
Reasonable upfront costs for engineering, planning, or design required to ascertain an estimated cost for a project expected to exceed $1,000,000 plus CPI-U can be incurred without a vote of the Property Owners.



Non-Capital Reserve Fund Projects

Expenditures for new Common Property or expansion of existing Common Property

These funds shall not be used for capital projects of more than one million dollars ($1,000,000) (as adjusted per the Consumer Price Index for all Urban Consumers (CPI-U) beginning 2010) unless the project is approved by more than fifty percent (50%) of the votes cast by Property Owners. The one million dollars ($1,000,000) plus CPI-U amount will include the cost of planning, design and all construction costs including a reasonable contingency. For the purposes of this policy, projects costing more than one million dollars ($1,000,000) plus CPI-U shall not be subdivided into smaller projects to avoid a Property Owner vote. Reasonable upfront costs for engineering, planning, or design required to ascertain an estimated cost for a project expected to exceed $1,000,000 plus CPI-U can be incurred without a vote of the Property Owners. Expenditures to maintain, manage and operate existing Common Property 

The 1988 Declaration Article IV, Section 7 specifies the POA has the fiduciary duty to maintain and operate Common Property in a first class manner in the best interest of all Property Owners, both present and future. These expenditures do not require a Property Owner vote.

II. RESPONSIBILITIES
POA Board, Finance and Audit Committee, and General Manager

III. SCOPE
This policy is to provide guidelines for POA operating and capital plan expenditures including the bid process and contract approvals.

IV. DEFINITIONS
• New Common Property: real or personal property not currently owned by the POA. Examples would be buildings and land purchased in 2016, inflatable Water Park and any future Community Center.
• Expansion of existing Common Property: Significant addition in size and/or purpose. Examples would be Pickleball courts in 2014, Veranda addition in 2014 and Fire Station #3 in 2018.
• Maintenance, management and operation of existing Common Property: Replacing current capital items on the POA’s asset list. Examples would be pontoon boat replacement in 2017, Clubhouse and cart barn roofs in 2019, ClayTech tennis courts conversion in 2020, fire truck replacement in 2020 and Creek rejuvenation (portions that were not enhancements, i.e. pipe replacement, irrigation replacement, etc.) in 2021.

V. RELATED POLICIES OR DOCUMENTS
Article IV, Section 7 Big Canoe Covenants, Development of Big Canoe Article VI, Section 13 Big Canoe Covenants, Capital Reserve Fund.

QUESTIONS?

ADDITIONAL RESOURCES