2025 Assessment Increase ANALYSIS

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04/18:  As of today, it has been 50 days since the Northern Terrace HOA Board passed the 2025 Proposed Budget on February 27th—a budget that, by law and good governance, should have been finalized in November 2024 and ratified by December 2024.  Instead, due to repeated delays and a series of shifting excuses, the Board failed to act in a timely and responsible manner.

Since that delayed approval, homeowners have endured a Budget Ratification Meeting on March 31, a Homeowners Meeting on April 3, and conflicting communications regarding implementation. On April 16, homeowners received an email reversing the budget decision. Just two days later, on April 18, the Board reversed that reversal—once again throwing residents into confusion.

This ongoing inconsistency is not just frustrating—it is a direct reflection of poor leadership, disorganization, and an alarming lack of competence. In the past five months, this Board has:

• Increased assessments,
• Authorized questionable spending without competitive bids,
• Made decisions behind closed doors in unnoticed meetings, and,
• Neglected key common elements such as pool heaters, vehicle gates, and essential community services.

These actions—or lack thereof—demonstrate a fundamental failure to act in the best interest of homeowners. The Board’s response, including a casual “Oops” email sent to 920 unit owners, is completely unacceptable.

It is time for these Board members to take accountability. Their inability to lead, communicate effectively, and follow basic governance standards rises to the level of gross incompetence and negligence. 

Homeowners should strongly consider encouraging their resignation in order to restore integrity and transparency to this community.

04/18 Update E-mail of electronic statements Subject - "Your Documents are Ready":

As of 2:40 PM the Northern Terrace HOA Board has reversed its prior decision made on 04/16 to postpone the assessments increase until June 1, 2025.  Revised statements have now been issued with the following notice:

"REVISED STATEMENT: Please disregard the previous statement you received for May.  The assessment rate is $130.75 beginning May 1, 2025."

The Northern Terrace HOA Board is fully accountable for the actions and communication of CAMCO, the management company they have engaged.  Responsibility for these decisions lies with the Board members: James Klosty, Ped Palmer, Audrey Romero, and Samuel Ever.  Legal and fiduciary duties cannot be delegated to a third party.

Homeowners are strongly encouraged to voice their concerns at the next Board of Directors meeting. This situation represents a serious lapse in judgment and a failure of governance that demands immediate attention and corrective action.

It is also worth questioning why non-HOA-related emails are sent electronically to all unit owners, yet meeting notices—particularly those involving assessment increases—are not communicated with the same urgency or transparency.

When exactly did the vote occur to delay the assessment increase until June 1st?  What were the vote counts, and who authorized the reissuance of the corrected billing statements?

Further, when was the meeting held to overturn this decision, and who called that meeting?  What were the recorded votes of each board member involved?

In the span of just four days, two board meetings occurred where decisions were made and 920 revised statements were printed and mailed a second time contradicting the e-mail just 2 days prior—yet this same urgency is never applied to meeting notices, which are required by Nevada law to be delivered at least 10 days in advance.

This inconsistency raises serious concerns. Where is the accountability?  Why is this level of operational efficiency only exercised when issuing demands for payment, but not when complying with legal obligations to inform homeowners of Board actions?

This pattern reflects a troubling disregard for transparency, process, and the rights of the homeowners.

04/17 Update -  "Northern Terrace HOA - Monthly Assessment UPDATE":

As of 4pm on 04/16  Rosario Orozco, CAMCO Community Manager wrote:

"Oops! Due to a clerical mix-up, you may receive a second May statement showing the new amount of $130.75 — feel free to toss it.

Good news: the Board voted to delay the increase and keep the current rates through May — $104.60 (non-gated) or $131.60 (gated).

If you've already made a payment reflecting the new amount, no worries — a credit will be applied to your account.

The new rate of $130.75 kicks in June 1, with an updated statement arriving mid-May.

Thanks for your patience — and sorry for the mix-up!

CAMCO Management Team"

Editorial comment: 

This raises additional concerns. 

1. Contrary to what homeowners may have been told, association mailings are not free—part of the management fee we pay is allocated for these mailings.
2. We’ve just experienced a $26.15/month assessment increase, and now we’re being told to simply discard the billing statements we receive. Personally, I find that frustrating. Like many of you, I work hard for my money, and I expect it to be handled responsibly.
3. And what about the 211 homeowners in Andover/Emery who are being charged an unlawful reserve assessment for yet another month? How is that fair?

I understand that mistakes happen—it's part of being human.  But the key difference lies in owning those mistakes.  Simply saying “Oops” or “my bad” doesn’t demonstrate true accountability; it minimizes the impact.  When small mistakes are dismissed repeatedly, they accumulate—and now we’re dealing with the consequences.

The Board’s failure to adopt the 2025 Operating and Reserve Budget, effective January 1st, has already resulted in a loss of ~$149,040 in assessment revenue for the association.  If the budget is not implemented by June 1st, this number will continue to rise.  Every month of delay increases the financial shortfall.

Editorial comment: 

This raises additional concerns. 

1. Contrary to what homeowners may have been told, association mailings are not free—part of the management fee we pay is allocated for these mailings.
2. We’ve just experienced a $26.15/month assessment increase, and now we’re being told to simply discard the billing statements we receive. Personally, I find that frustrating. Like many of you, I work hard for my money, and I expect it to be handled responsibly.
3. And what about the 211 homeowners in Andover/Emery who are being charged an unlawful reserve assessment for yet another month? How is that fair?

I understand that mistakes happen—it's part of being human.  But the key difference lies in owning those mistakes.  Simply saying “Oops” or “my bad” doesn’t demonstrate true accountability; it minimizes the impact.  When small mistakes are dismissed repeatedly, they accumulate—and now we’re dealing with the consequences.

The Board’s failure to adopt the 2025 Operating and Reserve Budget, effective January 1st, has already resulted in a loss of ~$149,040 in assessment revenue for the association.  If the budget is not implemented by June 1st, this number will continue to rise.  Every month of delay increases the financial shortfall.

Let’s be clear about what has occurred with the 2025 assessment increase and how the Board of Directors has justified it:

The Board approved a 25% increase—an additional $26.15 per unit, per month—on the previous $104.60 monthly assessment, citing the need to fund reserves.

For reference, the 2024 reserve contribution was $15.22 per unit, per month.

If you add the stated $26.15 increase to the previous reserve contribution of $15.22, the total monthly reserve allocation would be $41.37 per unit—or $471,618.00 annually across all units. Even at that level, the reserve would still reflect a $41,617.67 shortfall, but would be funded at an acceptable ~67% level based on the Reserve Study projections.

However, the 2025 budget approved by the Board reflects a monthly reserve contribution of $42,769.64, totaling $513,235.67 annually.

At the same time, Community Manager Rosario Orozco publicly stated that the current fiscal year's budgeted reserve contribution is only $201,000.00.

This equates to:

• $201,000 ÷ 920 units = $218.48 annually per unit, or
• $18.21 per unit, per month

That’s an increase of just $2.99 per unit, per month from the prior year—not $26.15.

So the question remains:

Why was the assessment increased by $26.15 per unit when only $2.99 of that is actually being allocated to reserve funding?

Where is the rest of this money going?

Adding further concern, on March 10, 2025, Rosario Orozco submitted the Reserve Study Summary Form (Form 609) to the Nevada Real Estate Division—21 days before the March 31, 2025 Budget Ratification Meeting. Why was this form submitted prior to the ratification, and what assumptions was it based on?

This sequence of events and the lack of transparency raise serious questions about financial stewardship, board integrity, and compliance with proper governance processes.

Supporting documentation is included below. Homeowners deserve full clarity and honest answers.

• Form 609 was submitted to the Nevada Real Estate Division prior to the 2025 budget ratification.
• Form 609 states that the budgeted reserve contribution for fiscal year 2025 is $201,000.00.
• However, the Board-approved 2025 budget reflects a reserve contribution of $513,235.67—a discrepancy of $312,235.67.
• Based on Form 609, the reserve contribution increased by only $2.99 per unit, per month.
• Yet homeowners were assessed an increase of $26.15 per unit, per month.
  Where is the remaining $23.16 per unit, per month being allocated?
• These glaring inconsistencies between what the Board and Management are telling homeowners and what is being reported to the Ombudsman’s Office are deeply troubling.
• Homeowners are being misled. The repeated contradictions and lack of transparency amount to a pattern of deception and misrepresentation.
• When questioned at both the March 31st Budget Ratification Meeting and the April 3rd Homeowners Meeting, neither the Board of Directors nor Management offered any explanation or accountability for these discrepancies.

This level of mismanagement and evasiveness is unacceptable. Homeowners deserve honest answers and full financial transparency from those elected to serve their best interests.

FY2022: (72% funded  - based on the  data from Form 562 submitted to NRED in 2022)

Required reserve account balance as of the end of the current fiscal year. per the most recent adopted reserve study: ...... $ 1,476,007.75

Projected reserve account balance as of the end of the association's current fiscal year ........................................................$2,027,883.56

FY2023: (50% funded  - based on the  data from Form 562 submitted to NRED in 2023)

Required reserve account balance as of the end of the current fiscal year, per the most recent adopted reserve study: ...... $2,354,711 24

Projected reserve account balance as of the end of the association's current fiscal year: ........................................ $1,569,077.70

FY2024 (62% funded - based on the data from Form 562 submitted to NRED in 2024)

Required reserve account balance as of the end of the current fiscal year, pet the most recent adopted reserve study: ...... $2,508,992.20

Projected reserve account balance as of the end of the association's current fiscal year: ........................................ $1,544,716.32

FY2025 (projected 57% funded - based on the 2025 Form 609 submitted to NRED in 2025)

Projected fully-funded (100% funded) balance from Reserve Study: $ 3,850,515.00

Projected reserve account balance at end of current fiscal year (subtract line 6 from 5) : $2,080,160.43

Projected percent funded (line 7 divided by line 8): 57.00%

These forms are available for download section below to support these statements and claims.

Reserve Contributions Budgeted from 2017-2025:

2017: $300,000 annual (or $25,000 per month)

2018: $320,400 annual (or $26,700 per month)

2019: $322,140 annual (or $26,845 per month)

2020: $322,140 annual (or $26,845 per month)

*Note: Due to the COVID19 pandemic, the board at this time lowered the Reserve Contribution to $14,000/month mid-year. 2020 Revised: $288,000 (or 24,000) averaged

2021: $168,000 (or $14,000 per month)

2022: $168,000 (or $14,000 per month)

2023: $168,000 (or $14,000 per month)

2024: No Budget Passed; 2023 budget carries.

May 1, 2025: $513,235.67 (or $42,769.64 per month)

* Note: Since the 2025 budget does not take effect until May 1, 2025, it can be assumed revenue will be estimated to be ~$398,157.12 (e.g. 4 months @ $14,000/month and 8 months @ $42,769.64 = $398,157.12)

The table presented above directly contradicts James Klosty's PowerPoint claim that “the 2016 budget was re-adopted for 8 years.”   Rosario Orozco echoed this same claim during both the March 31st and April 3rd meetings.  Let’s call it what it is: a lie.

The actual budgets and financials tell a very different story—this appears to be deliberate fear-mongering to blame prior boards and distract from current leadership's failings.

Even more ironic:  two current Board members now blaming years of underfunded reserves were the same individuals responsible for slashing reserve contributions in 2020—a decision made outside of an open meeting.  That shortsighted move is now being used to justify their own missteps.  So, when do they start taking responsibility for their own decisions?

Ignoring Reserve Study Recommendations

The 2020 Reserve Study called for the following minimum contributions:

• FY2020: $170,000 ($14,167/month)
• FY2021: $200,000 ($16,667/month)
• FY2022: $250,000 ($20,833/month)
• FY2023–2025: $340,000 ($28,333/month)

These figures weren’t pulled from thin air—they are data-driven recommendations. Yet instead of using this Reserve Study as a guide, this Board continues to manipulate the narrative.

Fiction Over Fact: A Budget Built on False Premises

A question in the Budget Packet reads:
“How often do HOA assessments typically increase?”

The answer provided: “Typically annually, with a 3-5% increase. Fortunately, Northern Terrace assessments haven’t increased in 9 years.”

This response is not only misleading—it demonstrates a fundamental misunderstanding of Nevada HOA law.  There is no law or provision in NRS 116 or our governing documents that mentions a “typical increase” of 3-5%. Assessments should be based on actual financial need—not arbitrary inflation numbers or based on what other communities are doing.

Under NRS 116.3115, assessments and budgets must be created in accordance with the funding needs of the association and its reserves, with the Reserve Study acting as a key guide. Similarly, NRS 116.3114 outlines the procedures for managing surplus funds, including any overcharges.

Why Aren’t Delinquent Homeowners in Collections?

According to the December 2024 Aging Report (pages 21–26), 178 delinquent homeowners owe $130,844.93. That’s 742 homeowners covering the cost for those not paying. Why are these delinquent accounts not in collections or foreclosure? Why are they still allowed to use the amenities when they are not members in good standing?

Under NRS 116.3102, homeowners must pay their assessments in full to remain in good standing, and the association is entitled to collect debts through collection procedures outlined in NRS 116.3116.

Legal Fees with No Legal Updates?

The legal budget increased from $22,800 to $40,000—an increase of over 75%—yet no legal matters have been discussed in open meetings. A prior board member disclosed an investigation by the Ombudsman’s Office, yet management continues to deny any legal issues. The financials suggest otherwise. Where is the transparency?

As per NRS 116.31085, the HOA is required to provide updates on legal matters that directly affect homeowners. Failing to do so undermines the fiduciary responsibility of the Board.

Questionable Reserve Spending & Inflated Projects

The 2025 Reserve Study includes three line items for items recently replaced and still within their Remaining Useful Life:

• IT/Camera Overhaul
• IT Monitoring Repairs
• Clubhouse/Gym Upgrades

$50,000 is allocated for equipment that doesn’t need replacing. Why? Who’s getting these contracts—and what relationship might they have with board members or management?

According to NRS 116.3115, reserve funds should be allocated responsibly based on the remaining useful life of assets, and expenditures should align with the Reserve Study's recommendations.

A staged photo presented by Mr. Klosty showing “messy cabling” conveniently had all cabinet doors propped open and wires exposed—visibly different from the clean installations shown in the Reserve Study and prior meetings.   When called out during Open Forum, Mr. Klosty casually said it would “only cost $10,000” to fix.  Why fake a photo if the problem was real?

Services Slashed—But Assessments Increased

Here are just a few of the services eliminated or drastically reduced:

• Street Sweeping cut from $8,400/year to $720/year (eliminated entirely as of April 3rd)
• Porter Service (dog waste removal) eliminated
• Gate Maintenance Contracts canceled—leading to extended Andover gate outages
• Water budget reduced to $67,000, despite 2024 actuals of $85,146
• Clubhouse Hours cut by 25%
• Office Staff reduced to one person—who is enforcing pool and amenity rules?

And despite promises, the pools remain unheated as of April 1st.  The pool equipment was installed in Winter 2022 and previously maintained under a support contract.  That contract was abandoned in favor of bidding repairs—again, outside of a meeting.

$6,236.83 spent on Pool Umbrellas—Without Homeowner Knowledge

At the April 3rd meeting, a slide revealed the Board spent over $6,200 on 10 pool umbrellas outside of an open meeting—$623.68 each. Where were the bids? Where was the emergency? The Budget Ratification occurred on March 31st—why was this money spent beforehand?

As per NRS 116.31083, all contracts and expenditures over a certain threshold must be discussed and approved in open meetings with proper notice provided to homeowners.

Rampant Action Outside of Meetings

Multiple references were made during the April 3rd meeting suggesting the Board holds frequent unnoticed meetings to conduct HOA business and approve spending.  One Board member even bragged about being at the Clubhouse “almost every night that week in meetings.”   Where are the agendas, notices, and minutes?  Are they redefining “emergency” to justify everything from broken umbrellas to major purchases?

According to NRS 116.3108, all meetings of the Board must be properly noticed, and homeowners must be given the opportunity to participate.  NRS 116.31085 also emphasizes that decisions affecting the community must be conducted in a transparent manner.

Are We Repeating History?

Those who were here in 2021–2022 will remember:

• Unheated pools
• Clubhouse disrepair
• Pedestrian gates hanging off hinges
• Deferred maintenance and neglected common areas

We are rapidly returning to that reality—only this time, we’re paying even more.

False Claims. Staged Photos. Closed-Door Decisions.

The April 3rd meeting wasn’t a transparent forum—it was a presentation full of buzzwords, jargon, and PowerPoint theatrics meant to dazzle and distract.  Homeowners deserve facts, not flash.  Decisions should be data-driven, grounded in fiduciary duty, and made in the best interest of the association—not based on optics or ego.

This isn’t transparency—it’s deception and deflection.

Homeowners Have the Right to Know.

Under NRS 116.3118, association records are available for homeowner inspection.   All documentation referenced—including financials, reserve studies, audio recordings, and meeting minutes—are accessible or downloadable via the CAMCO portal or below.