From The Blog
Board Seeks Approval for Spending on Habitat Preservation
The contribution to reserves fund, through careful management, had grown to $7.4 million by the end of 2006. As the covenants are currently written, these funds can be spent for the following specific purposes: major repair, replacement and periodic maintenance of the association’s infrastructure; emergency repairs due to natural disasters; initial costs incurred by a new service; and major repairs and renovations to the Sandcastle Community Center.
The board feels that the numerous infrastructure projects planned for the next ten years will not deplete the fund. Further, the association has adequate insurance to cover any property, casualty and liability losses and the funds will not be exhausted in the event of a natural disaster.
The question is then, what should be done with these funds that addresses the needs and best interests of the membership? Further, as the covenants now stand, will changes need to be made in order to meet members’ needs? According to the 2006 member survey, 83% of the respondents cited the island’s natural environment as one of the top three reasons they purchased property on Kiawah. The Board of Directors feels that one of the best possible uses of the reserve funds is to support the members’ desire to preserve Kiawah’s unique natural environment.
A proposal to amend the community association’s covenants in two ways to accomplish this goal will be voted on by the members at this year’s annual meeting on Sunday, March 18, 2007 to address these issues. First, the covenants would redefine the permitted expendtures of the contribution to reserves fund. Second, one of the permitted expenditures would be donations to tax exempt organizations whose purpose is the conservation of natural lands and habitat on Kiawah Island.
For more information on KICA Proposal PV07-1, please review your annual meeting packet that was mailed on January 31, 200