Fiscal Discipline, Smart Investment, and the Future of Big Canoe

From time to time, communities adopt a philosophy of holding assessments flat for years at a time. While this may sound appealing, experience shows that freezing assessments for long periods can lead to deferred maintenance, declining infrastructure, and eventually large one‑time special assessments.

Big Canoe’s approach — and my philosophy — is to keep costs under control while making smart, steady investments in our infrastructure and amenities. This not only helps maintain our quality of life, but also protects and enhances property values.

The following post explains how our governing documents set limits on assessment increases, how those limits compare to our actual history, and why thoughtful financial management matters for the future of Big Canoe.

As Vice Chair of the Finance & Audit Committee, I’ve had a front-row seat to how Big Canoe manages your assessment dollars. I want to explain how we approach budgeting, what drives assessment changes, and why there’s a big difference between simply maintaining the status quo and improving our community.

📊 1. Budgeting: Not Just Numbers on a Page

Every fall, the POA undertakes a line-by-line review of all planned operating and capital expenses. This isn’t a rubber stamp — it’s a deliberate process designed to:
– Challenge assumptions
– Verify that each expense is necessary
– Explore alternative ways to get the same result at lower cost

The Policies & Procedures require:
– Competitive bidding for larger expenditures
– Finance & Audit Committee review of major contracts
– Board approval for significant capital projects
– Property owner approval for capital projects exceeding $1M in 2010 dollars, adjusted annually for inflation (about $1.34M in 2025), except for essential infrastructure like roads, bridges, and dams

In short: every dollar is scrutinized before it’s spent.

🏗️ 2. Status Quo vs. Improvement

Funding the status quo might keep the lights on, but it doesn’t keep Big Canoe competitive. Over time, facilities would age, amenities would lose appeal, and property values could stagnate.

Instead, Big Canoe has been tackling:
– Years of deferred maintenance — addressing projects that were postponed too long
– Facility upgrades — keeping amenities in line with modern expectations
– Infrastructure improvements — roads, drainage, water systems, public safety
– Amenity enhancements — creating a better experience for residents and guests

These are not luxuries — they are investments in maintaining and growing property values.

💵 3. Assessments: Well Below the Maximum Allowed

Our governing documents allow annual assessment increases of up to the greater of CPI or 6% — the so‑called “6% Rule.” This sets a hard legal cap on assessment growth unless a higher amount is approved by a majority of voting property owners.

For lots with dwellings (combined Lot + Dwelling assessment), here’s how the actual numbers compare to the maximum allowed:

Year	Actual Assessment	Max Allowed (6% Rule)
2010	$202	$518.34
2015	$212	$693.66
2021	$306	$983.96
2025	$400	$1,259.87

Even with investments in infrastructure, amenities, and deferred maintenance, actual assessments remain dramatically lower than the legal maximum.

Figure: Historical actual assessments for lots with dwellings compared to the maximum allowed under the 6% Rule. This visual demonstrates that Big Canoe’s approach — maintaining affordability while making strategic investments — has kept assessments well below the legal cap, aligning with the philosophy outlined in the preface.

📈 4. Managing Upward Cost Pressures

Inflation and wage pressures are real, but our job is to:
1. Maximize efficiency before considering any increase
2. Seek savings through competitive bidding and smart outsourcing
3. Make targeted investments that improve the community and protect long-term property values

🌟 5. The Path Forward

I believe we should continue:
– Prudent fiscal oversight — challenging expenses and finding efficiencies
– Strategic investments — addressing deferred maintenance and improving amenities
– Transparency — making it clear how every assessment dollar is put to work

Our assessments are not out of control. They are, in fact, well below what could have been charged under the covenants — and that has been achieved while making Big Canoe a better place to live.