A thoughtful question about debt, “groupthink,” and how we pay for big projects
I received a thoughtful note from a property owner this week (sharing anonymously). The themes were familiar: fiscal responsibility, confidence in decision-making, and clarity on how we fund major projects.
📩 The question (shared anonymously)
In plain terms, the owner asked whether Big Canoe’s debt level is reasonable, whether Board decisions sometimes feel like “groupthink,” and whether the recent community survey questions signaled more borrowing and/or higher assessments. They also added a personal note: they miss the Friday music nights at the Veranda.
💳 The debt number (plain-English)
As of November 30, 2025, the POA balance sheet shows Long-Term Debt of $13,803,081. You will sometimes hear “about $15M” cited when people include other interest-bearing obligations shown on the balance sheet in an all-in view.
One important piece of context: the primary Wells Fargo credit facility is $15,000,000, fixed at 3.46% for 15 years. That is a very favorable long-term fixed borrowing rate and it materially reduces interest-rate risk versus floating-rate or shorter-term financing.
✅ “Good debt” vs. ⚠️ “bad debt”
I don’t believe all debt is bad. The question is what it funds, whether it is affordable, and whether repayment aligns with the useful life of the asset.
Good debt typically:
- Funds long-lived capital assets that benefit the community over many years.
- Matches repayment term to the useful life of the asset (intergenerational fairness).
- Is supported by a clear plan (scope, cost, schedule, and repayment).
- Fits within financial guardrails so it does not crowd out reserves, maintenance, or core services.
Bad debt typically:
- Backfills operating shortfalls or recurring expenses.
- Delays hard choices without a long-term plan.
- Is hard for owners to track (what was borrowed, why, and how it will be repaid).
- Creates future pressure that forces deferred maintenance, abrupt assessment increases, or service cuts.
🏗️ Capital spending and community value
Capital expenditures are not automatically “extra.” Many are investments that protect the value of the community and reduce long-term risk. Major work on assets like the clubhouse, dams, and golf course infrastructure can protect the Big Canoe experience, reduce lifecycle cost by avoiding emergency failures, and (where applicable) support amenity performance in a more predictable way.
That said, “value” should never be assumed. For any major project, owners deserve to see—plainly—what problem we are solving, alternatives considered (including “do nothing”), lifecycle cost/risk, and what each funding option means for owners.
📊 The survey funding question
I understand why a survey question about how projects should be funded (assessments vs. borrowing vs. defer until cash) could feel like it was steering respondents. My interpretation is that it was intended to capture owner preferences—not announce decisions—but wording and context matter.
If you felt uneasy about it, I’d like to hear the specifics: was it the framing of that question, the broader tone of the survey, or the sense it implied projects were already anticipated?
🗳️ “Groupthink,” promises, and how I view Board decisions
I also agree with the broader point that candidates should be cautious about promising specific outcomes. A director is one voice out of seven. What is fair to promise is strong preparation, clear advocacy, comfort with non-unanimous votes, and—once the Board makes a decision—supporting the outcome while continuing to push for better information, better process, and better transparency.
🎶 A quick note on music nights
I miss the Friday music nights too, and I hope we can find a practical way to bring some version of that tradition back. In the meantime, I’ve really enjoyed the Black Bear Pub Society–sponsored music events, and I’m glad we also have the concerts on the Terraces to keep live music part of the Big Canoe experience.
✉️ Your questions are welcome
If you have questions—about debt, projects, governance, or the survey—send them my way. If I don’t know an answer, I’ll say so. If there’s a document that answers it, I’ll point you to it.
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