Dear La Cresta Property Owners,                                   August 21, 2023

                                                                               

This is Director Michael Ghafouri, and I am writing to you again because I’m still very concerned about the continued wasteful spending of your money based on untenable decisions made by the Board Majority, President Cal Westra, Vice President Rick DeAndero, who is running for his fourth term as a director, and Treasurer, James Kramer. 

 

Over the past year, I have endeavored to help resolve several financial issues that directly affect you, some involving what I strongly believe is a fundamental misuse of your funds.

 

1. THE LCPOA CONTINUES TO HAVE TOO MUCH MONEY

  

Per Treasurer James Kramer's financial report, provided to the board at the August 2, 2023, Open Session meeting, LCPOA has available cash as of June 30,2023, . Pursuant to the approved budget you will be receiving shortly, the association will be another Million Dollars) from you in Assessments, due October 1, 2023. This will bring our total available cash for 2024 operations to ?????

 

Intended uses is to ?? , the membership, that the LCPOA has a financial shortfall and/or will be on the verge of bankruptcy in the, “… next four to five years.”

 

I have repeatedly asked the Board Majority the question, the excuse given is that “…,” although this is not the reality. Keep in mind that we just went through one of the most serious rainy seasons California has experienced, without a failed culvert collapse.

 

Perhaps the real reason for the Board Majority’s aggressiveness to hold onto your money, and the need to hide the “excess” money in our reserve accounts, is their hidden agenda projects, such as Cal Westra and Rick DeAndero’s proposed buildout of a horse trail alongside of approximately six miles of Avenida La Cresta (ALC) at the literal expense of the membership.

 

1. THE BOARD MAJORITY FY 2023-24 APPROVED BUDGET

 

The Board Majority proposed and approved the budget for the at the June 20, 2023, Open Session meeting and it was prepared solely by President Cal Westra and Treasurer James Kramer. Both directors sit on the ,” created solely to exclude Director Scarpino and I from participating.Historically, the board has worked together on annual budgets during its “regular” monthly Executive board meetings. The proposed budget will be mailed to you shortly, for your review and comments, as required by the Civil Code. and send any comments or concerns to the board.

 

The budget represents in the total expenditure currently needed to with a contribution of to be deposited in our Reserve Account(s), that already has cash in the bank. Please keep in mind that contrary to what reserve funds is for, we do not own assets such as pools, parks, landscaping, club house, fitness center, etc.).

 

The current Budget Reserve contribution of is of our totalAnnual Budget of .Why? Where is the excess money going? What will it be spent on? Again, the reason initially provided is that our culverts are in very poor condition, and they may or may-not ALL collapse soon or at one time.

 

If the above scenario is the reality, and we really do need the money for our roads and culverts, as repeatedly emphasized by Rick DeAndero, then how can he justify recently spending plus on installing a lighted “horse crosswalk?” The horse crosswalk installed on Avenida La Cresta, sees little to no use, due to its location and dangerous conditions.

 

Once again, it is important that you take time to review the submitted Budget Report being mailed to the membership by Avalon Management.I believe the budget document format as written does not accurately reflect how your dues are being applied and allocated.Currently our budget format fails to properly identify expenditures in the proper category under which it was actually spent.

 

I have made several requests for changes in our accounting practices and requests to make additions to the General Ledger (GL) account categories, asking that some be combined.Each request was denied every time by the Board Majority, citing that adding a few new categories would make the budget more cumbersome.The real reason is they don’t want you to know where specific amounts of money are being spent.

 

The word appears to be used as an open-ended term throughout the budget document .The current format is a means of being able to conceal specifically what your funds are being used for.Last year’s budget (2022-23) the plus expenditure on the project recently completed, as a project. This substantial expenditure took place without member involvement. Please see the

 

1. THE BOARD MAJORITY SHOULD WAIVE YOUR DUES FOR FY 2023-24

 

Last year I again recommended to the Board to waive assessments and collection of annual dues on behalf of all LCPOA Members. Although Director Scarpino and I voted to suspend dues collections for “one year,” Board Majority , and again voted against the motion. As a result, you are still obligated to pay the assessed dues, even though we will soon have approximately in our account(s). Your assessment of per acre, times the number of acres you own, is due by Saturday, September 30, 2023.

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1. What The Board Majority Wants You to Believe About Our Reserve Account:

 

Director Scarpino and I believe that the board must adhere to and Civil Code Sections 5515 (a) (b)(c)(d) and (e) that allows for boards to “borrow money” from the reserve accounts in times of disaster, if the board follows ALL statutory notifications and provisions associated with “borrowing” money from reserves.

 

Although the Board Majority believes otherwise, the short explanation is that we cannot spend the Reserve money for .We can temporarily from our Reserve account(s) to pay for emergency and replacement of assets, and roads, we are obligated by our governing document to maintain, however, the borrowed money must be paid back in one (1) year, unless an extension of time is needed.Please view the video“Borrowing from Reserves” and make up your own mind what the Reserve account is for.

 

The Board Majority refuses to accept these facts and continues to collect funds and move sizable amounts of your money into our reserve account(s).  Using “Reserve Funds” in place of our “Operation Funds” actually creates a false impression and is problematic.   

 

Rick DeAndero, Cal Westra, and James Kramer all believe the board can use Reserve funds to pay any expenses, such as their special equestrian lighted crosswalk project, just completed, at the expense of $100,000.00 plus.

 

I have seen an increase in expenditures under the heading of “weed abatement” on properties adjacent to ALC.  Those costs have been paid out at the expense of all other members who do not reside on ALC, and who do not receive the same services for the alleged fire protection and safety reasons recently cited by Rick DeAndero during the August 2023 meet the candidate forum.  

 

Our Governing Documents specifically prohibit the LCPOA from owning any assets, yet, the Board Majority approved all recommendations found in the 2nd Reserve Study, including for equestrian trail fencing. Keep in mind, the 2021-2022 FY reserve This is an increase of ?????

 

The information provided is just a few examples. There are several other items of concern that I’ll soon be writing to you about in more detail, as I believe you should be made aware of such matters.

 

Fortunately, there is hope for our community to remain a desirable neighborhood to live in for all members and not just a few. I believe the real power is in the hands of the members not the Board Majority.

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On the LCPOA will hold its Annual Member Meeting to discuss Members issues and to elect three new directors to the Board.By electing the three (3) individuals who hold sound fiscal views, and who will work for membership, you can send a clear message of change to the Board Majority that these injustices committed against the corporate membership will no longer be tolerated, or allowed.

 

The new directors will serve for a two-year term and because of this, Please see the past performance records and flawed decisions made by Director Rick DeAndero, and make your voice heard.!

 

La Cresta deserves Directors who are committed to serving in the best interest of the entire membership and not a few. This can only be accomplished through your voting power.

 

Please feel free to contact me with any questions or suggestions you may have.I can be reached via my direct contact number of or you can e-mail me at lacrestamembers21@adexmed.com. 

 

To help you, I need your involvement and your support!

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Michael Ghafouri

LCPOA, Director

(951) 704-9900 / Mobile

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