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Shelter Bay Rules and Regulations — Part II
Chapter 60 Financial Management

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60.010    Definitions

“Accounts receivable” is defined as any amount owed the community, in the nature of a fee, fine or charge, including but not limited to water, sewer, dues, assessments, fines and other fees or charges that are imposed according to schedules approved by the board and including any legal and collections fees imposed. (Res. 05-04 am, 4/20/05)
“Appropriate person” is the person representing the authorizing agents, either the manager or his designee, in the case of invoices relevant to the operations of the community, or the president or his designee, in the case of invoices relevant to board and committee activities. (Res. 05-04 am, 4/20/05)
A “bid request” or “request for proposal (RFP)” is an announcement that the community is interested in receiving proposals for a particular project, service and/or equipment. (Res. 05-04 am, 4/20/05)
“Billing cycle” is defined as the billing period for which a bill is prepared for a member that may include any combination of water, sewer, assessment, legal assessment, fines, lot mows, storage lot fees or other fees and charges as may be imposed by the community. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
“Capital reserves”, is a replacement fund, used for the specific purpose of accumulating monies for replacement of fixed assets of the community. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
“Chart of Accounts” is a listing of accounts and associated account numbers. (Res. 05-04 am, 4/20/05)
“Chart of Accounts description” is a narrative describing the items that can be charged to a line-item in the chart of accounts. (Res. 05-04 am, 4/20/05)
“Fund” is used to identify and separate operating activities from replacement activities. Examples of funds would be: operating fund, capital improvement projects fund, water operations fund, or replacement fund. (Res. 05-04 am, 4/20/05)
“Funding authorization” is the budget approval level for the operating and capital improvement projects (CIP) budget. (Res. 05-04 am, 4/20/05)
“Incoming Invoice Stamp” is a stamp that contains provision for the completion of the following or appropriate information: department, budget item, verified, approval, paid date, account, approved, amount, and check no. (Res. 05-04 am, 4/20/05)
“Liability” is an accounting term that represents an obligation to pay for goods for a purchase order or other contractual agreement. (Res. 05-04 am, 4/20/05)
“Member” is defined as any person or persons who are sublease holders, fee simple owners, property owners or lot owners. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
“Notification” is the date of the mailing. (Res. 05-04 am, 4/20/05) “Petty cash custodian” is the manager’s appointee who is in charge of maintenance, including disbursement with proper documentation, of the petty cash fund. (Res. 05-04 am, 4/20/05)
“Payment date” is the business date on which a payment is received in the community office. (Res. 05-04 am, 4/20/05)
“Principal amount of the delinquent account” is the amount due including previously imposed interest, excluding late fee. (Res. 05-04 am, 4/20/05)
“Unrestricted reserves”, “unrestricted reserve balance” or “undesignated reserves” are accumulated revenues in excess of expenditures from the prior fiscal year. (Res. 05-04 am, 4/20/05)

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60.020    Accounting

60.020.010     Accounting basis

The community accounting records are kept on an accrual basis. (Res. 05-04 am, 4/20/05)

60.020.020     Established funds
  1. The general operating fund shall be the primary operating account of the community and unless otherwise provided for, all revenue and expenses of the community shall be accounted for through this fund. (Res. 05-04 am, 4/20/05)
  2. Capital projects funds are used for accounting of the capital improvement projects for specific years. Assessments, reserves, transfers from other funds, and expenditures for capital projects shall be accounted for to these funds. (Res. 05-04 am, 4/20/05)
  3. Water and Sewer Funds are established to account for all revenue and expenses pertaining to the operation of the water and sewer systems. (Res. 05-04 am, 4/20/05)
  4. The board may, by resolution, establish other funds of the community as required. Any fund established, and the management of that fund, shall conform substantially to generally accepted accounting principles. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.020.030     Expenditure authority
  1. No person shall obligate, or expend community monies except in accordance with an expenditure authorization. Obligations and expenditures of community monies in violation of this provision are invalid. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  2. Except as specified in subsection C of this section, no person shall obligate, or expend community monies except in accordance with an approved budget and amendments thereto. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  3. Notwithstanding the provisions of subsection A of this section, the manager of the community may expend monies for: (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
    1. Investment of monies as authorized by the board. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
    2. Reallocation of cash between established accounts in a board designated financial institution. (Res. 05-04 am, 4/20/05)
    3. Establishment of a petty cash fund. (Res. 05-04 am, 4/20/05)
    4. Reimbursement of monies erroneously paid to the community. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
    5. Refund of deposits upon certification the refund is warranted. (Res. 05-04 am, 4/20/05)
  4. Consistent with the provisions of this chapter, the manager shall establish procedures for authorizing the expenditures and/or disbursements of monies authorized in the approved budget and amendments thereto. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.020.040     Administration of financial records
  1. The manager or his/her designee shall supervise posting of transaction to all funds of the community.
  2. The accounts of the community shall show in detail the financial transactions of all funds, expenditure authorizations, and departments.
  3. The manager shall furnish a monthly financial statement to the treasurer and board. These statements shall include a standard income statement, year-to-date revenues and expenditures of each department for each fund compared to the budget. These statements shall also include a community balance sheet.

(Res. 05-04 am, 4/20/05)


60.020.050     Accounts payable

Accounts payable will be processed when supported with proper documentation, and payment shall be made in a timely manner. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

60.020.051     Receipt of invoices

Upon receipt of an invoice, it will be stamped with a date and an Incoming Invoice Stamp. Then the invoice will be forwarded to the appropriate person for verification and return to the manager for timely payment. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

60.020.052     Independent contractors

Businesses, organizations or individuals, who are not Shelter Bay employees, providing services to the community are considered independent contractors. The community must report their annual cumulative payments to the Internal Revenue Service on Form 1099, or as required by law. First time invoices for services, payable to individuals, businesses or other professional organizations must have an IRS number W-9 attached. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.020.053     Verification of invoice

All invoices will be verified against the supporting documentation, for example, purchase order, blanket purchase order, contract, receipt, or Business & Travel Expense Form to determine if properly authorized and that the amount is appropriate. Such verification will attest that the invoice is legal, proper and is made for an amount as listed in the supporting documentation. Upon verification, the appropriate person will initial the Incoming Invoice imprint and return the invoice, with supporting documentation attached, to the manager for processing. Invoices in amounts under $2,500 that exceed the original authorization by not more than 10% may be approved without amending the originating documentation. Otherwise, the original documentation is required to be appropriately amended prior to the invoice being approved for processing. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.020.054     Prompt payment
  1. An invoice is to be processed for payment within thirty (30) calendar days of receipt in the community office. Upon approval of the invoice, the treasurer or designee shall draw a check on the community treasury for the amount specified. Every effort is to be made to take advantage of discounts for early payments such as net 10-day, net 20-day discounts. (Res. 05-04 am, 4/20/05)
  2. Payments to individuals are to be made payable to the legal name, as shown on the Social Security card, not to a nickname or alias. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  3. The treasurer or designee shall issue all checks, and each check shall set forth on its face a number, the date of issue, and the name of the party to whom payable, the account to be charged therewith, and the amount thereof. Checks issued shall be signed by the officers or persons designated in a resolution adopted for that purpose. The supporting documentation / invoice being processed for payment must be initialed or marked by the manager in order to indicate expenditure is being authorized for payment. No person shall draw, issue or sign a community check payable to cash unless said check is for the purpose of replenishing the petty cash fund, in accordance with the petty cash policy and procedure. (Res. 05-04 am, 4/20/05)

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60.020.060     Audit
  1. The board will retain annually an independent certified public accounting firm to perform an audit, or review, if an audit is waived by the community membership according to RCW 64.38.045(3). The firm retained shall be familiar with and have experience with auditing homeowners’ associations in the State of Washington. The financial statements and auditor’s opinion shall be presented to the board no later than the end of December following the fiscal year for which the audit was performed. (Reference corrected 10/28/08)
  2. Upon completion of the annual audit, or annual review, the board will notify the community members through the newsletter that a copy of the auditor’s report is available for inspection.
    (Res. 05-04 am, 4/20/05)

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60.020.070     Business and travel expense

The community shall reimburse its members and employees for expenses incurred on official business or travel that are properly authorized, reasonable and appropriately documented. Board members, committee members, and employees incurring business expenses or traveling on authorized business shall do so as economically and efficiently as feasible. (Res. 05-04 am, 4/20/05)

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60.020.071     Travel authorization
  1. Those persons authorized to travel on behalf of the community must complete the first portion of a Business and Travel Expense Form and submit the form to the appropriate person for authorization. (Res. 05-04 am, 4/20/05)
  2. Unless directed by the board, board and committee members are not eligible for travel expenses to attend regular or special community meetings. (Res. 05-04 am, 4/20/05)
  3. The manager or designated officer is to exercise prudent judgment in approving travel-related costs and shall ensure that any travel costs to be incurred are: (Res. 05-04 am, 4/20/05)
    1. Obtained at the most economical price. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
    2. Both critical and necessary for community business. (Res. 05-04 am, 4/20/05)
  4. These criteria must be used for selecting and approving travel:
    1. Travel alternative that is most economical.
    2. Travel alternative that is most advantageous.
    3. The itinerary is planned to eliminate unnecessary travel in the performance of work assignments.
    (Res. 05-04 am, 4/20/05)

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60.020.072     Authorizing travel
  1. For employee travel, budgeted funds must be available, and the manager or the treasurer must approve and authorize it by signing the Business and Travel Expense Form.
  2. For board or committee member travel, budgeted funds must be available, and the president or vice president must approve and authorize it by signing the Business and Travel Expense Form.

(Res. 05-04 am, 4/20/05)

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60.020.073     Types of travel costs that are eligible for reimbursement
  1. An employee may request reimbursement for travel related expenses by completing the remainder of the Business and Travel Expense Form and submitting it to the manager or treasurer for reimbursement. Board members and committee members must first complete and submit their Business and Travel Expense Form to the treasurer. Upon approval by the treasurer with his/her initials, the form is to be submitted to the manager for reimbursement.
    Lodging – The actual cost of lodging up to the amount approved on the Business and Travel Expense Form which is not to exceed the amount in the most current U.S. General Services Administration (GSA) per diem schedule. An original receipt is required.
    Meals – Actual expenses up to the allowable rate for meal reimbursement according to the U.S. GSA currently published per diem rates, or for part-days, actual expenses up to the allowable rate for breakfast, lunch, and dinner at that particular location.
    Transportation – Actual costs of necessary official business travel on railroads, airlines, ships, or buses, taxis and other means of conveyance. Original receipts are required.
    Travel – Reimbursement for official business travel by private motor vehicles shall be at the current IRS rate.
    Miscellaneous travel expenses – Other expenses essential to the transaction of official business are reimbursable to the traveler. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  2. The following types of travel-related costs shall not be reimbursed:
    1. Alcoholic beverage expenses. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
    2. Movies. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
    3. Health club use. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
    4. Other travel expenses considered as personal and not essential to the transaction of official business. (Res. 05-04 am, 4/20/05)

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60.020.074     Responsibilities of travelers

A traveler onofficial business is responsible for being familiar with travel and transportation regulations before embarking on travel. A traveler must exercise the same care in incurring expenses and accomplishing the purposes of the travel that a prudent person would exercise if traveling on personal business. Excess costs, circuitous routes, delays, or luxury accommodations unnecessary or unjustified in the performance of official community business travel are not acceptable. The traveler must pay any excess costs and any additional expenses incurred for personal preference or convenience. (Res. 05-04 am, 4/20/05)

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60.020.075     Leave of absence during travel
  1. When a traveler takes leave of absence due to illness or injury not caused by the traveler’s own misconduct, certain benefits, if not covered by the traveler’s own health insurance, may be continued subject to submittal of a physician’s statement: (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
    1. The authorized reimbursement for meals and lodging may be continued for a leave period not to exceed 15 days. (Res. 05-04 am, 4/20/05)
    2. Reimbursement for lodging and meals shall not exceed the average daily reimbursement authorized in the Business and Travel Expenses Form and shall not include any medical or hospitalization services. (Res. 05-04 am, 4/20/05)
    3. Providing the traveler is able to travel, reimbursement is not to exceed in total the cost authorized for motor vehicle car mileage or common carrier in returning the traveler to Shelter Bay. (Res. 05-04 am, 4/20/05)
  2. When a traveler takes leave of absence as a result of illness or injury that is due to the traveler’s own misconduct, the authorized reimbursement for meals, lodging, transportation, and all other travel expenditures may not be continued during the leave period. (Res. 05-04 am, 4/20/05)
  3. If a traveler with prior approval combines personal business with a business trip, the additional expense resulting for the extension of the trip for personal reasons shall not be reimbursed by the community. Should a spouse or family member accompany a traveler whose expenses are being paid by the community, any expenses in excess of those incurred had the traveler traveled alone shall not be reimbursed. Such expenses include upgrading from single to double accommodations, additional transportation costs, and meals. (Res. 05-04 am, 4/20/05)

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60.020.076     Business expenses

Business expenses are pre-authorized on the Travel and Business Expense Form. Business expenses may include meals for the purpose of attending or holding a meeting, business cards, books, tapes, or other expenses directly associated with community business. Pre-authorization and reimbursement requests shall follow the same procedure as established for business travel. Actual costs will be reimbursed for business expenses, except for the use of a private motor vehicle, which will be reimbursed in accordance with this policy. Receipts for the expenses shall be submitted with the request for reimbursement, and the documentation must include:

  1. Date.
  2. Place.
  3. Nature of business conducted.
  4. Business affiliation of guests.
  5. Amount.

(Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.020.080     Cash balances

It is the goal to maintain an operating cash balance in the treasury equal to the two consecutive months of the previous fiscal year’s highest expenditures in an interest bearing account. (Res. 05-04 am, 4/20/05)

60.020.090     Chart of accounts and definitions

The manager will maintain a written chart of accounts that clearly define and describe the accounts as to type (asset, liability, equity, revenue, expenditures) and as to the separate established funds. Narrative definitions of each item in the chart of accounts will be maintained to be used to post accurately expenditures and revenues, and maintain the accounting records of the community. The chart of accounts and the definitions will be reviewed annually and updated as needed. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.020.100     Lapsing of net increases within funds
  1. At the close of the fiscal year, any excess revenue over expenditures (net income) in an operating fund shall lapse to unrestricted reserves to be used in future operations as authorized by the board.
  2. A funding authorization for the capital improvements projects budget (CIP) shall not lapse until the purpose of the authorization has been accomplished.
  3. Upon the completion or abandonment of all CIP projects, as determined by the manager, within a fiscal year’s capital improvement projects budget, the revenues in excess of expenditures remaining shall lapse, in proportion to the project balances, and revert to undesignated reserves of the funds from which the excess revenues originated.
(Res. 05-04 am, 4/20/05)

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60.020.110     Petty cash
  1. A petty cash fund shall be maintained for reimbursement of approved small out-of-pocket items for community use. Justification for the expense, a cost estimate and prior written approval of the manager is required before any purchase may be made. (Res. 05-04 am, 4/20/05)
  2. Petty cash transactions shall be limited to $100 per transaction, and transactions may not be split to avoid the $100 limitation. Petty cash has an authorized level of $300. Personal checks and payroll checks may not be cashed from the petty cash fund. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  3. Original receipts and supporting documentation must be submitted with each petty cash reimbursement request. (Res. 05-04 am, 4/20/05)
  4. Upon review and approval of the petty cash reimbursement request, the petty cash custodian shall reimburse the requestor. The requestor must sign for receipt of the money. (Res. 05-04 am, 4/20/05)
  5. The petty cash fund shall be replenished when 60 percent of the funds have been expended. (Res. 05-04 am, 4/20/05)
  6. The petty cash fund must be in the control of the custodian. Only the custodian should be allowed access to the fund. The cash shall be kept in a locked drawer, file cabinet, or safe. (Res. 05-04 am, 4/20/05)
  7. The custodian of the petty cash fund must reconcile the cash and disbursements receipts and make them available to any member of the finance committee at any time for inspection. (Res. 05-04 am, 4/20/05)

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60.020.120     Cash register
  1. A cash register fund shall be maintained for “over-the-counter” collections of money for incidental purchases and bill payments, and for small refunds for returned items. All cash register transactions must be supported by cash register tapes, which are used for balancing with cash depositions and for audit purposes.
  2. The cash register fund balance is $200. Daily cash reports shall be prepared by the cash register custodian. These reports are used to reconcile cash to receipts and for accounting for overages and shortages. The custodian must make cash receipt reconciliations available to any member of the finance committee at any time for inspection.
  3. Cash and checks in amount over $200 shall be deposited within 24 business hours. Smaller deposits may be made as frequently as desired. Deposits are prepared by the custodian, and are documented with an itemized listing of the various financial system accounts into which the funds are to be recorded.
  4. Personal checks and payroll checks may not be cashed from the cash register fund.
  5. After business hours, the cash from the cash register shall be kept in a locked drawer, file cabinet, or safe.
(Res. 08-17, 10/15/08)

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60.030    Budgeting

60.030.010     Budget preparation
  1. The manager will prepare and submit to the board, or a committee assigned by the board to review the budget, a recommended annual budget, operating and capital, for the ensuring fiscal year. This recommended budget shall be submitted no later than the first work day of February. (Res. 05-04 am, 4/20/05)
  2. This recommended budget will be a detailed budget, by line-item, by department and by account. It will include the specific revenue and expenditure options being proposed. For each line item, the budget recommendation shall show the actuals for the preceding fiscal year, the current fiscal year approved budget, as amended, and an explanation of proposed changes in the recommended budget. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  3. All budgets shall be balanced, i.e., expenditures must equal revenues. (Res. 05-04 am, 4/20/05)
  4. The capital improvement projects (CIP) budget shall identify the specific projects sought to be authorized, including project description and justification, and shall identify the funding sources. (Res. 05-04 am, 4/20/05)

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60.030.020    Budget review and adoption
  1. The board will meet with the manager to review the recommended budget and receive a report from any committee appointed to review the budget. During the review process, the board will hold at least one regular or special meeting at which time the community members will have an opportunity to comment on the budget under board consideration. A copy of the budget under consideration will be available for review in the business office to the community members at least 5 days prior to the date of the meeting scheduled for community comment. The board will then finalize the budget and adopt the budget by resolution. (Res. 05-04 am, 4/20/05)
  2. The board’s budget authorization for operating funds is at the fund level. The adopted budget, as summarized in the resolution, will be forwarded to the community members for ratification at the May annual meeting, accompanied with a current-year budget comparison and an explanation of the changes. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.030.030    Budget control
  1. The manager shall not exceed the expenditure authorization levels as adopted by the board without prior authorization from the board. If the manager cannot avoid exceeding an expenditure authorization level, the manager shall report this to the board as soon as practical and seek either a board authorized budget transfer or a budget amendment, whichever is appropriate. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  2. The board’s budget authorization for operating funds is at the fund level. The manager has budget control at the line-item level, with the following exceptions:
    1. Non-budgeted, non-recurring expenditures exceeding $5,000.00 must receive prior approval of the board.
    2. Transferring personnel services funds to other line-items must receive prior approval of the board.
    3. Transferring funds from one fund to another must receive prior approval of the board.
    (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  3. The board’s budget authorization for capital funds is at the project level.
    1. The manager may determine if a project has been completed and may be closed. Upon project completion and closure, the manager will flag the excess funds as undesignated.
    2. The board may authorize capital budget undesignated funds for use for another board authorized capital project or may allocate these undesignated funds to another year’s capital budget.
    (Res. 08-17, 10/15/08)

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60.040    Miscellaneous fiscal management

60.040.010 Asset management (reserved)

60.040.015 Reserves
  1. Capital reserves (reserved)
  2. Capital reserves – replacement funding study.

The board will commission a reserve study and/or update the current reserve study at least every five years and review the report annually. The board will consider the recommendations of the reserve study in making its long-term financial plan, in establishing designated reserve monies, and in determining its capital budget.
(Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

60.040.020 Employee bonding

At levels as determined annually by the board, the manager, and employees shall be covered by fidelity insurance to protect the community from loss due to theft. The board shall secure and have in force a faithful performance bond in the amount of $100,000 for the named manager. (Res. 05-04 am, 4/20/05)

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60.040.030 Fiscal plan

The board will draft a long-term financial plan setting out its goals in maintaining its cash position, collection of receivables, position of the reserves, plans and costs of replacement and upkeep of its fixed assets, its investment plan, projected changes in assessments, utility charges, and other items the board determines are essential. The board will review and revise the long-term financial plan annually. The board will submit the original and proposed revisions to the long-term financial plan to the community, in writing, at a town meeting to be held prior to the annual meeting. Following the community review and comment, the board shall adopt or revise the long-term financial plan, by resolution. Copies of the long-term financial plan will be available to community members. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.040.030 Fiscal year

The fiscal year shall begin on July 1st and end on June 30th. (Res. 05-04 am, 4/20/05)

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60.050    Purchasing

60.050.010 Purchasing

Purchasing, where feasible, is intended to be based on a competitive process, and the purchase will be based on best value as determined by the manager or board. Board authorization is required for all expenditures in excess of $5,000. (Res. 05-04 am, 4/20/05)

  1. The manager shall solicit written quotes for the purchase of goods, equipment and services where the cost is expected to exceed $1,000 and be less than $5,000. Routine services such as utilities and services where vendors are very limited are exempt from the requirement of written quotes. Records of quotes shall be maintained and made available to the finance committee, board and/or auditor upon request. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  2. The manager will solicit competitive bids or proposals, in accordance with this section, for services, projects and/or equipment where the cost is expected to be or exceed $5,000. (Res. 05-04 am, 4/20/05)
  3. An informal bid request shall be used to solicit bids for goods, equipment or services, other than specified professional services, where the cost is expected to be or exceed $5,000. Informal bid requests will be delivered or mailed to at least three prospective bidders. Informal bid may be called within 72 hours following delivery of the bid request to the prospective bidders. Informal bid requests may be delivered by email, in person, fax, or by mail. Documentation of the bid requests and the bids is mandatory, and shall be made available to the board and/or auditor upon request. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  4. For projects expected to cost in excess of $20,000 a contractor’s performance bond or a materials guarantee is required. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  5. Letters of interest and requests for proposals will be advertised according to paragraph C of this section, as appropriate, for prospective firms for professional services, including but not limited to land surveying, engineering, architectural, planning, accounting and legal services. Selection of firms for professional services will be based on the ability of the firm to perform services being requested. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  6. In case of an emergency and/or where sole source purchasing is essential, the manager, with the concurrence of at least one board officer, may authorize purchases that are not in compliance with the competitive requirements of this section. The manager and the concurring board officer shall document any commitments made under the provisions of this subsection. (Res. 05-04 am, 4/20/05)
  7. The board, if it determines that it is in the best interest of Shelter Bay Community, Inc., may waive the requirements of this section. (Res. 08-17, 10/15/08)

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60.060    Treasury and revenue

60.060.010 Accounts receivable

All members shall be treated fairly and equitably in the billing and accounts receivable process. Billings shall be accurate and timely and accounts receivable collections shall be actively pursued. (Res. 05-04 am, 4/20/05)

60.060.011 Billing cycle, account due and delinquent

The billing period, due date, and delinquent date for assessments, fees and charges are as follows:

  1. Water and sewer – billed monthly, within 5 working days of the beginning of the month, due on the first day of the month and delinquent on the last day of the billing cycle in the month in which billed or the date printed on the notification, whichever is later. (Res. 05-04 am, 4/20/05)
  2. Storage Lot Leases – annual fee, billed annually, due upon notification and delinquent on the 31st day following billing or date printed on the notification, whichever is later. (Res. 05-04 am, 4/20/05)
  3. Annual assessment – due on July 1 and payable in 12 monthly installments, billed within 5 working days of the beginning of each month, and delinquent on the last day of the billing cycle in the month in which billed or the date printed on the notification, whichever is later. (Res. 05-04 am, 4/20/05)
  4. Special assessment(s) – due and payable as specified by the board. A special assessment billing will become delinquent on the 31st day following billing or date printed on the notification, whichever is later. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  5. All other fees and charges are due upon notification and delinquent on the 31st day following billing or date printed on the notification, whichever is later. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.060.012 Payments, late fees and interest
  1. Payments shall first be applied to any accrued interest, then to collections and legal fees, then to the late fee, then to the principal of the fee or charge. Principal payments shall first be applied to water, sewer and any related utility taxes, then to the oldest delinquent account, then to the next most recent, until the most recent is paid in full.
  2. A late fee of twenty-five dollars ($25.00) will be imposed at the beginning of the new billing cycle on accounts which become delinquent during the preceding billing cycle and have a balance of fifty dollars ($50,00) or more. Upon delinquency, interest at a rate of one and one-half percent (1.5%) per month shall accrue on the principal amount of the delinquent account, from the date the account was due until paid in full.
(Res. 05-04 am, 4/20/05; Res. 09-01, 1/21/09)

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60.060.013 Method of payment
  1. Cash payments will be accepted for billings and miscellaneous items. Payments shall be made in lawful money of the United States. Cash payments for the exact amount shall be accepted. Payments can also be accepted by bank drafts, checks, cashier's checks or money orders. No payment larger than $10.00 shall be paid with coin. A charge of $25.00 shall be imposed for a check returned for insufficient funds or other reasons, and the status of the account for which the returned check was to have paid shall be delinquent and subject to all the collections actions provided herein. If the bank returns two or more of a member’s checks unpaid within any (fiscal) year, the community may require that all of the member’s future payments, for a period of one year, be made by certified check or money order. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  2. When procedures are in place, recurring payments may be accepted using a bank draft authorization. The automatic ban draft authorization form shall be available in the office. (Res. 05-04 am, 4/20/05)
  3. Nothing in this policy limits the board’s ability to consider and determine hardship cases, as revealed through full disclosure of all facts and relevant data, before the board makes its decision. (Res. 05-04 am, 4/20/05)

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60.060.014 Account collections and water disconnect policy
  1. If an account is delinquent, the manager or his/her designee shall initiate a phone call or reminder letter to be sent to the member requesting prompt payment, else official collections action shall commence on a specified date. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  2. If an account is 90 days delinquent, the manager or his/her designee shall mail by U. S. mail, by both regular and certified return receipt, a collections’ letter to the member, at the last address on file in the community office, detailing the amount of the delinquency, late fee, interest and other charges that have been imposed. If deemed necessary by the manager, the member shall be notified that payment in full is required in lieu of monthly installment payments and that the community will add legal fees to the account balance if the matter is referred to an attorney. If the lender is advised by letter of the delinquency and the total amount due, a copy of this lender notice will be sent to the member. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08; Res. 09-01, 1/21/09)
  3. The manager or his/her designee may cause legal action to commence for the collection of delinquent accounts where appropriate collection remedies have not been successful. The manager or his/her designee is authorized to forward to the appropriate escrow company information pertaining to the outstanding balances on any account where an ownership transfer or other escrow proceedings are in process in order that all outstanding account balances due to the community are collected at time of closing. The manager or his/her designee is authorized, but not required, to notify the lender of any amounts delinquent, with a copy of such notification being mailed to the member. The board, at its discretion, may pursue personal judgments against the member(s), or secure a lien against property that is 90-days delinquent on accounts. The manager or his/her designee is required to send a copy of any recorded notice of assessment lien to the delinquent member. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  4. Notwithstanding the previous provisions for filing a lien for a delinquency, upon the community receiving notice of a foreclosure, the manager or designee may immediately file a recorded notice of claim of lien for outstanding assessment and other fees and charges, without having mailed previous demand letter. The member will also be mailed a copy of the notice of claim of lien. (Res. 08-17, 10/15/08)
  5. For purposes of collection action, the late fee, interest and all fees imposed shall be applied to the delinquent account. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  6. If an account for water, sewer and related utility taxes is more than ninety (90) days delinquent, then, at the discretion of the Manager, a water service disconnect/shutoff process will commence as follows:
    1. At least fifteen (15) days prior to disconnection of water service, the Manager shall notify the member by causing to be mailed via U.S. regular and certified/return receipt mail and by causing a Disconnect Notice to be posted on the property setting forth the member name, the reason for the disconnection of water service and the date on or after which such service will cease.
    2. At least three (3) days prior to the disconnection of water service, a door-hanger will be placed on the property, as final notification, stipulating the date/time of the intended disconnection of water and setting the deadline for payment in full of the overdue account.
    (Res. 09-01, 1/21/09)
  7. The deadline for payment is 3:00 p.m. on the day prior to the scheduled disconnect. In order to avoid disconnect, payment in full of the delinquent balance on the member’s account must be made in cash, money order, and/or cashier’s check at the business office. If payment is not received, water disconnects will begin at 10:00 a.m. on the date established in the Disconnect Notice, or, at the discretion of the Manager, at anytime thereafter within the next three business days. Immediately following the disconnection of water service, an administrative fee of $25.00 will be added to the overdue account for recovery of the associated administrative/disconnect costs. (Res. 09-01, 1/21/09)
  8. A $50.00 Water Reconnect Fee will be charged and must be paid along with payment in full of the delinquent balance on the member’s water/sewer account prior to the re-establishment of water service. Such payment must be made at the business office between the business hours of 8:00 a.m. and 3:00 p.m., Monday through Friday. Such payment must be made in cash, money order, and/or cashier’s check before the water service will be scheduled for reconnection. Reconnection will be accomplished the next business day following payment in full. Reconnections will not be performed after the above stated business hours, on weekends, or on holidays which the business office is closed. (Res. 09-01, 1/21/09)
  9. Once a member’s water service has been disconnected/shut-off, all charges for such water and/or sewer service shall be discontinued. Service charges accumulated up to date of the disconnection of service will be billed in the next regular billing period. Water and sewer charges will resume once water service has been reconnected. (Res. 09-01, 1/21/09)

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60.060.015 Member responsibilities

(Refer to Rules and Regulations, Part I – General) (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

60.060.016 Attorney’s fees on delinquent account

As an additional expense permitted under the declaration, articles, bylaws and statutes, the community shall be entitled to recover its reasonable attorney’s fees and collection costs incurred in the collection of assessments or other charges due the community from a delinquent member. The reasonable attorney’s fees incurred by the community shall be due and payable immediately when incurred, upon demand. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

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60.060.017 Abatement of receivables

(Refer to Rules and Regulations, Part I – General) (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

60.060.018 Denial of privileges

(Refer to Rules and Regulations, Part I – General) (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

60.060.019 Removal of receivables from financial records

Accounts deemed uncollectible may be removed from the billing system by action of the board. (Res. 05-04 am, 4/20/05)

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60.060.020 Right of off-set

Disbursement of monies to a person, firm or corporation shall be made only after all the various receivable accounts of the community have been reviewed for outstanding balances owed to the community, by said person, firm or corporation, and the disbursement may be reduced by off-setting the amount of an indebtedness due the community, from such person, firm or corporation. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

60.060.030 Assessments
  1. Consistent with law and the By-Laws, separate regular and special assessments may be imposed by action of the board.  The types of separate assessments shall be for these purposes:
    1. Annual operations and capital improvement projects expenditures, with the exception of utilities, as approved by the membership.
    2. Special expenses as defined by the board.
  2. Annual assessment notices, except special assessments, will be mailed to the members, owners, contract owners, or subleasees on or before July 1, and shall be due in accordance with the By-Laws and the provisions of policies and procedures adopted by the board for the payment of assessments. Special assessments will be billed and payable as determined by the board on a case-by-case basis.
(Res. 05-04 am, 4/20/05)

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60.060.040 Fees and charges

Fees and charges, including but not limited to, fees for utility service, fines, penalties, charges for services, permit fees, inspection fees, and all other fees will be established by action of the board. A current schedule of fees and charges will be maintained by the manager and will be available upon request at the business office.(Res. 05-04 am, 4/20/05)

60.060.050 Interest

The manager shall deposit all interest earned by community investments into the general operating fund. At the end of the fiscal year, interest earnings will be allocated to the operating and capital projects funds according to the month-end cash balances of those funds. (Res. 05-04 am, 4/20/05)

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60.060.060 Investments
  1. The board may authorize the investment of monies in excess of those that are required for current expenditures. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  2. Investments must be backed by the FDIC or FSLIC, or investments must be made in obligations of the US Government and/or its agencies. Not more than the maximum federally insured amount will be invested in any one financial institution so that the monies are fully backed, unless the board provides otherwise. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  3. Investment income must be optimized without any risk of loss to the principal (amount of the original investment). (Res. 05-04 am, 4/20/05)
  4. Investment maturities should meet projected cash flow needs. (Res. 05-04 am, 4/20/05)
  5. Where practical, the manager is to deposit all payments received on a daily basis. If held overnight, cash and/or checks are to be placed in a secure location. (Res. 05-04 am, 4/20/05)
  6. Transfers of budgeted additions to reserves are to be made in a timely manner. (Res. 05-04 am, 4/20/05)
  7. Certificates of deposit, passbooks, bonds, and other investment documents shall be under direct control of the treasurer. (Res. 05-04 am, 4/20/05)
  8. The manager shall prepare a quarterly report of earnings on investments for the board. (Res. 05-04 am, 4/20/05)

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60.060.070 Signatory to checks

Board officers, as designated by resolution, are to be named signatories to community accounts, except for revolving checking accounts established for committee functions. Two named signatories are required on community checks, except for revolving checking accounts established for committee functions. (Res. 05-04 am, 4/20/05; Res. 05-11, 10/19/05; Res. 08-17, 10/15/08)

Board officers and the committee’s officers are to be named signatories to committee revolving-account checks, as designated by resolution. One named signatory is required on committee revolving-account checks. (Res. 05-04 am, 4/20/05; Res. 05-11, 10/19/05; Res. 08-17, 10/15/08, Res 09-20, 8/19/09)

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60.060.080 Treasury

The community treasury consists of all monies of the community, both investments and cash in designated financial institutions. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)

  1. The manager shall deposit all money collected and received by the community into the treasury. The manager is the agent of the treasurer, who is the custodian of the treasury. (Res. 05-04 am, 4/20/05; Res. 08-17, 10/15/08)
  2. The manager may make on-line transfers of funds between established community bank accounts as long as there is a net-zero impact on cumulative cash balances. (Res. 08-17, 10/15/08)

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