February 2024 Towne South Annual Meeting Minutes
TOWNE SOUTH HOMEOWNERS ASSOCIATION
Annual Meeting – February 17, 2024
1. Call to Order – Ryan Storie called the 61st Annual Meeting of Towne South Homeowners Association to order at 2:01 pm.
2. Welcome – 61st Annual Meeting – Ryan welcomed all and asked anyone attending via Zoom to please enter their name and address in the chat box. There were a total of 47 lot owners attending both in person and via Zoom.
3. Introduction of Board members – Ryan asked each board member to introduce themselves. He stated that he is filling in as Chair of the Board since the resignation of Mackenzie Hennekes back in November. Mackenzie had to resign for personal reasons. Ryan introduced Dave Carr as our new Board member. He is filling the vacancy left by Mackenzie, whose term would have expired in February 2025.
4. Approval of the Minutes of the Annual Meeting of February 18, 2023. Ryan stated that the minutes from the last Annual Meeting have been on our website since last year. He asked if anyone had any questions or changes to be made to these minutes. There being none, the minutes of February 18, 2023 were approved as submitted.
5. Election of the Board – Ryan asked Mary Ann to take over this item on our agenda. Mary Ann read the section in our Indentures that deals with Board elections. At this point we have three positions open on our Board of Governors for the term expiring in February 2026. There have been three nominations to date – Jackie Tebbe, Ryan Storie and Hugh McWilliams. She asked if there were any nominations from the floor. There were none. She explained the process of electing these three candidates. She introduced each and gave some information about them. After each introduction, she asked for a show of hands voting yes for that candidate, and a show of hands voting no. Each of the three candidates received all yes votes. Therefore she declared the elections closed and announced that Jackie Tebbe, Ryan Storie and Hugh McWilliams are official members of the Board of Governors until February 2026.
6. Financial Report – There are copies of our financials on the shelf by the bar. Jackie went over the P&L for the year January 1, 2023 thru December 31, 2023. Most of our income came from dues totaling $41,346.79. Other incomes came from Recovered Liens, Late Fees, Trustee Verification fees, Donations and Interest. Donations were from the summer party we had last year from vendors and the raffles. Total income for 2023 was $48,576.08. On the other side, most of our expenses came from Lawn Care totaling $12,160, followed by Tree Removal at $7,100. Other expenses came from Insurance, Liens, Utilities, Rent, Postage, Office Supplies, Party/Annual Meeting, Payment Processing, and Website Maintenance. Total Expenses were $33,239.12. Our net profit from 2023 was $15,336.96. We have put a majority of this into our Money Market Account to help us with what we know will be increased expenses, especially in lawn and tree care. We have budgeted for an increase in those line items of 20%. Additionally you will see a line item called Reserves in the 2025 proposed budget. We have projected that over the next year or two we need to build that account back up to cover expenses for six months. One bad year or storm could eat up our whole budget. In summary, as of January 31, 2024, we have $26,609.49 in our Money Market account, and $25,773.41 in our checking account, giving us a total of $52,382.90. Our income always looks very plush in the beginning of the year, however by November that number will be significantly dwindled. There were several compliments from attendees regarding the details of the budget and the financial reports. Jackie thanked everyone and said it is our job to protect your investments. A question was asked inquiring what interest rate we get on our savings. Jackie was not sure but will look into that and see if we can do any better. She noted that we do get points on our credit card which goes to our account. She asked if there were any further questions. None.
7. Accomplishments from 2023
a. Passed the change to the Indentures regarding procedure for voting on amendments – Ryan stated that this was one of the biggest accomplishments last year. It needed 476 affirmative votes to pass and we got 490 affirmative votes. This amendment has been filed with the St. Louis County Recorder of Deeds and is official. Moving forward we need 2/3 affirmative or negative votes of those voting to carry a vote. This change was accomplished with much effort from the Board members and the Zone Captains who canvassed each zone and knocked on doors to explain this amendment and get a vote.
b. Canvassed homeowners for votes on the proposed amendment – See a) above. Hugh thanked the Zone Captains for their help over the past year and asked them to stand and be recognized. He noted that the mailing in the fall (with a stamped return envelope) was probably the final push to take us over the top. We also want to focus on getting more homes to post their address in a more visible area on their homes. We didn’t realize how important this was until we were canvassing the areas for votes. If emergency services like fire departments, ambulances, and utilities can’t find you, they can’t save your life! Hugh will be calling a meeting of all Zone Captains later this spring. He is looking for their input and advice. We will be updating the Zone Captains Handbook too. Question was asked about how do I find out who my Zone Captain is? Jackie stated that there is a map on our website showing all the zones and a list of who is captain for each zone.
c. Seek bids on landscaping and tree maintenance – Greg chuckled and said this is our worst subject. He is talking to various companies and taking them on a tour of all our common ground that needs to be cut – which comes to more than 30 acres. We are hoping to keep that expense close to what we paid last year, but realize that all pricing is going up, no matter what it’s for. We worked with Trees Unlimited last year and were very pleased with their rates and service. Our trees are 50-60 years old and we have put together a list prioritizing where the greatest needs are. Our creeks continue to erode along the creek beds and this is causing the ground around the tree to fail, causing the tree to topple over. Most of the time when this happens, the tree falls into the creek and not onto homeowners’ properties. We are leaving them in the creeks if they don’t pose a problem. MSD will help only if the creek is 100% clogged. If you have a problem with things backing up, you need to ask for an offset check. This is the drain from your house to the sewer. MSD will pay for this. Greg reported that Missouri American Water will be replacing a collapsed culvert on Towne Centre close to Waringford Drive. They will be tearing up the street to do this repair. Further, Greg reported that all of the brass water mains are being replaced with stainless steel. He has been told that Towne Centre and Ambs will be closed for a few days. The good news is that they are replacing the 18” mains with 24” mains. Many areas have been identified with red marks for replacement. All were in agreement that we want to keep as much green space as we can.
d. Look into better lighting in the subdivision – Greg reported that the good news is everything is working right now. Question was asked about getting more lighting in some areas. Greg noted that we or you can do that. We or you have to petition everyone around you for their permission. Greg thinks it’s like 2-3 homes away from the light in each direction. Our lighting expenses now are a little over $3000 a year. Ameren owns the pole and light, but we have to pay for the wiring and installation and, of course the electricity. In looking around other subdivisions around us, we actually have more lighting than some others. A note to consider is that being electric, more wires will be seen as our subdivision’s power is not underground and it will mean more transformers.
e. Identify areas of our Indentures that need to be updated – Dave reported that everyone received a ballot in their January assessment mailing. The Board is working to bring the Indentures up to date and more meaningful. As we move forward, there will be more suggested changes to amendments.
f. Continue to look for cost-cutting measures – generic signs. Dave stated that the Board continues to look for ways to save money. We have brought some functions of our financial reporting in-house thus we have reduced our bookkeeping and accounting expenses. Every buck we save gives us more money to spend on our subdivision’s and homeowners’ needs. Just cutting back to every other week on grass cutting has saved us a lot of money.
g. Hosted a successful neighborhood party – Jackie asked for a show of hands as to who went to the party this past summer and roasted in the 100+ degree temperature. In spite of the heat, it was a very successful event. If anyone wants to help plan another similar event, please let us know.
h. Increased our Trustee Verification fee to title companies from $75 to $100. – Jackie explained that this is the fee we charge title companies to give them a document stating that there are no liens connected to the Homeowners Association on that property. She noted that based on our Indentures, we are allowed to set these fees to marketable rates. We have determined that $75 was below that so we have increased it to $100. This is still slightly under the market rate.
8. Proposed new amendments to Indentures – Ryan briefly went over the following 6 changes/new amendments.
a. Number of members on Board – We would like to increase the number, possibly from 5 to 7, to help spread out the workload.
b. A majority of the number of Board members will constitute a quorum. – Based on whether the number of Board members changes, we would have to alter the number of what constitutes a quorum. We are suggesting a simple majority as a quorum. We have 5 members now, and 3 constitute a quorum. If we go to 6, the number would still be 3, but if we go to 7, the majority would be 4.
c. Remove the word “five” as it relates to the number on the Board if that change is approved. Our current wording in our Indentures refers to the number “five” as the number on our Board, and if we increase that number, the word “five” would need to be removed. .
d. Change the process for increasing dues to the Board by presenting an official budget for the year and the amount of dues for that next year must be voted on by all the homeowners. – Every year, the Board would submit the proposed budget for the following year and that budget will be mailed to all homeowners with the January assessment fee mailing. Along with that proposed budget, the Board would state what the assessment fee would be for that upcoming year. Each year, all homeowners would have the opportunity to vote on the suggested annual assessment fee.
e. Increase the amount of the dues in 2025 to $75 for the year. – Ryan noted that even if we didn’t make any change, the Indentures allow for an increase in the assessment fee every year that ends in a zero or a five and can increase the fee by 15%. If we follow the current structure the assessment fee for 2025 would have been $66.13. It has been determined by the Board that the assessment fee for 2025 shall be $75 per lot. In doing some investigating, we have found that we are still under market in comparing similar size subdivisions.
f. Put a cap on the number of rental properties within our subdivision to sixty (60). – Ryan noted that this is a new Article we would like to add to our Indentures. Companies are coming in and buying up properties and flipping them to rentals. Much of the improvements are not of a high quality. We currently have about 50 rentals and the Board feels that the appropriate number of rentals should be no more than 60. We are trying to maintain the value of our subdivision as we know it is a very desirable area and the pricing of our homes is very affordable.
Ryan stated that we appreciate all the homeowners who have already voted and that the deadline for voting is March 19, 2024, either post marked or in person or by proxy at the meeting on the 19th. He asked if there were any questions or comments.
Question – how did you come up with the cap number for rentals? We looked at how many we have now, 50, and decided to give everyone a little wiggle room. Question – what if you want to rent to a family member, like my son? If we have reached our cap, that might be something that is decided on a case by case basis. According to our Indentures, the HOA needs to approve all rentals. Agree that it’s hard to accurately track that. However, when a house is sold, the title company sends us a document called a Trustee Verification to complete. On that form we ask if this is an investment property or is the buyer(s) going to actually reside in the house. Our biggest concern is the number of absentee landlords we are having to deal with. They are practically impossible to communicate with and locate. There was much discussion on both sides of the issue. Some residents have had problems with renters, others have not. Some disagree with capping the number at 60. Some wanted higher, some lower. Most agree that they don’t want Airbnbs or short term rentals. Rentals should be at least one year. Some stated that they did not buy in this subdivision for it to become full of rentals. Others stated that they bought their home, knowing that in ten years they would want to move on and would use this home for income. Some older residents stated the same – they would like to have an income source from the rental of their home to help them move into a retirement community. Question – what can we as homeowners do to change this number if the cap of 60 passes? Jackie stated that our newest amendment that passed last November allows for residents to change something in the Indentures by gathering a petition of 20% of all the homeowners and bringing it to the Board. At which time, the Board would send that request for change out to the entire 713 homeowners for approval or rejection. It then takes two-thirds of all those voting to carry the request for change. Prior to this addition to our Indentures, the homeowners had no opportunity to bring anything to the Board for change. Ryan assured everyone in attendance that if this cap on rentals passes, the Board will put it into action and closely monitor it to see how it goes.
9. Number of unsettled liens – Mary Ann reported the last year at this time we had 34 unsettled liens on our books. We currently have 28 unsettled liens, some dating all the way back to 2008. This is a decrease of 6 liens. Of these 28 liens, one property alone has 10 liens, two have 5 liens, and the other 8 liens are split between 5 other properties. It was asked if these homeowners know they have liens. They absolutely do! Mary Ann has communicated repeatedly with them, both via letter and in person, about their lien. They definitely cannot say they didn’t know. It was asked how many homeowners did not pay their fees last year. There were only 4 in 2023 and 6 in 2022.
10. Number of releases filed – We had 17 releases filed during 2023. This number represents 7 properties.
11. Goals for 2024
a. Complete the Welcome Packets for New Residents – Hugh stated that we are working on a welcome package to give to new residents with all the HOA information along with other community info.
b. Expand the number of Zone Captains and define their responsibilities – Hugh reported that a couple of Zone Captains will not be returning this year and he is going to need several more to fill these vacancies. Later this spring he will have a meeting with all captains to talk about what responsibilities they have and listen to what ideas they might have to share.
c. Create a Policy & Procedures Manual – Dave noted that this goal was on last year’s list, however with all the efforts in getting the voting amendment passed, we didn’t get this done. Once completed, it will be posted on our website for all to see. Our hope is that this will be the “how to handle” rule book on issues that come up that are not covered in our Indentures.
d. Create individual committees to work on specific projects –Dave talked about how we have tried to create small work groups for specific projects, but this has not gotten off the ground very well. We are going to try again. This would entail small groups to work on beautification (like the honeysuckle), signs, etc. We want your input and participation.
e. Put up an information lighted sign at the intersection of Towne South and Towne Centre. – Greg reported that the Board would like to be able to erect a nice large lit sign at the intersection of Towne South and Towne Centre that would contain all notices and HOA information. Things like our picnic, monthly meeting, special information. We have run into a little roadblock in that we found out that we need a permit from St. Louis County and that there are pipelines that run through that intersection. We are only allowed to dig down 12 inches even though the pipelines are 40 feet down. We are still investigating other options and hope to have this as a reality during 2024.
f. Continue to look at cost-saving measures for mowing and tree service and any other expenses – Greg reported that we have a bid from Shelton (the company that we have had for a number of years), but he is getting bids from several other landscaping companies to try to reduce our expenses for 2024. He has a couple of bids, but if you know of some company that would like to bid this project, see Greg after the meeting. Greg showed a map that identifies all the common areas. Jackie stated that this map is on the website.
g. Meeting schedule for 2024 – see handout on the table – Jackie noted that there is a handout on the bar with all the dates of our meetings for 2024. Our Indentures state that we must have nine. There is an open homeowners meeting on the third Tuesday of most months, at 7:00 pm right here at Prince of Peace. We would love to see more homeowners at these meetings. All meetings are also offered via Zoom.
12. General Safety Tips/Reminders – Ryan reminded everyone that any improvement to the outside of your house must be approved by the Board In advance – things like fences, pools, decks, driveways, additions, etc. Please email us your request and the Board will review it and make sure it meets all the requirements covered within our Indentures. He reminded people to please lock your cars and do not keep valuables in your cars overnight. We have had reports of several streets being hit by vandals routing through cars and knocking down mailboxes. Greg stated that if you have the ability to turn on more outside lights, do so. And if you see or hear someone breaking into your car, take your remote and hit the panic button. This will run them off very quickly. As previously stated, Mary Ann asked everyone to please see that your address is prominently displayed on your house.
13. Introduce Guest Speaker – Greg introduced Bobby from Trees Unlimited and stated that this company has been taking very good care of us for the past year. Bobby spoke about the trees in our subdivision. Greg and he drove around and surveyed all the trees a few weeks ago and he has put together a list of those trees that are critical and others not so critical. He stated that there are a lot of trees in bad shape, some of which are encroaching on power lines. There is also a ton of honeysuckle that needs to be dealt with. As he works through our priority list, he also plans to clear a lot of our walkways and drainage areas. He noted that we have a lot of erosion to address moving forward. Bobby stated that his company appreciates our business and hopes his pricing and service is what is making a difference. He does not like to take advantage of anyone and will not take down a tree that can be saved. His pricing is based on the complexity of taking down a tree. The more equipment and manpower it needs, the price goes up. His primary goal is the safety of his employees and all the homes around. He likes to think he caters to the customer as much as possible. A question was asked as to who do they call if they see a tree that could potentially be a problem? Ryan responded that these calls should come to the HOA/Board. Ryan stated that Bobby has put together a priority list of trees that need attention and it’s a budgetary issue that we need to work with. We have already spent over $5,000 in tree removal this year. Ameren is no help to us – all they care about is their lines. Someone asked if Bobby’s company was bonded and insured. Bobby stated absolutely. Greg thanked Bobby for attending today and told everyone that Bobby has some of his business cards with him if anyone wants or needs tree service.
14. Questions from the floor – Ryan asked if anyone has a question to please identify yourself and please do not use anyone’s name or address if discussing a complaint or compliance issue, and limit your time to three minutes.
a. Usually there is a police officer at this meeting, but not this year. Who does she call if she has an issue? Jackie stated that the police department district phone number is on our website.
b. Where is the map showing the common ground? It’s on our website, along with a copy of the ballot too.
c. Do you let renters know the expectations or is that up to the owner? Basically it’s up to the owners because we are not privy to the names of the renters. We do send a Welcome Packet to new homeowners, but not renters.
d. How do you know what zone you are in? Again, that map is also on the website, along with the name of your current Zone Captain. Hugh noted that we will be needing more Zone Captains so if you are interested, please see him after the meeting.
15. Closing Remarks – Ryan thanked everyone for coming and invited all to attend our monthly meetings held on the third Tuesday of most months. The Board will remain after if you have any further questions or comments.
16. Refreshments – please help yourself to cookies and a bottle of water.
17. This 61st Annual Meeting of the Towne South Homeowners Association was adjourned at 3:21 pm.
Respectfully submitted,
Mary Ann McWilliams
Administrative Assistant