Finance Policy

In order to operate and maintain the infrastructure and to fulfill the obligations of the LRAA in accordance with By-Laws and Articles of Incorporation, the LRAA board of trustees and LRAA members realize that a predictable and reliable source of revenue is necessary to meet those obligations.

1. Definition of Terms
   1. Membership - An ownership interest in any property located within the Lost River Airport Tracts situated in Okanogan County, Washington and consisting of properties in the original plat recorded in 1961, the First Addition recorded in 1969 and the Second Addition recorded in 1973.
      1. The determination of a single membership for the purpose of assessing general membership dues shall be made as follows:
         1. A single membership will be found where title to a parcel or parcels is vested as a result of one or more recorded deeds in the same ownership and the properties are contiguous.
         2. A single membership will be found where title to two or more parcels is vested as a result of one or more recorded deeds in the same ownership, or in the separate ownership of a husband and wife, and the parcels are not contiguous.
         3. A single membership will be found where title to two or more parcels is vested as a result of one or more recorded deeds and the ownership is in individuals in one deed, but in a legal entity ( partnership, limited liability company or corporation) in another deed and the owners of the entity are exactly the same as the individuals in the other recorded deed.
      2. The determination of a membership for purposes of assessing dues for the water share will be as follows:
         1. A determination of a single membership due to the ownership of one water share shall not be impacted by the fact that more than one property is served by the water.
         2. If the same owner has more than one water share they shall be considered separate memberships even if the properties served by the separate water shares are contiguous.
   2. Member in good standing - A property owner current with their dues and fees.
   3. Member past due - A property owner or owners not current with their dues and fees. These members may not vote at the annual meeting or serve on the board of trustees.
   4. Road access member - A property owner owning property adjacent to LRAA. This agreement is tied to the parcel, with the use of LRAA roads and airstrip allowed.
   5. Water right - A right to connect to and use water from LRAA system.
   6. Annual water fee - The cost to keep water system operating properly.
   7. Super majority - A vote of 75% of board of trustees. Example 7 of 9 or 5 of 7.
2. Policies
   1. Fiscal/Budget Year: The fiscal year for accounting records of the association shall be the calendar year, Jan. 1st to Dec. 31st. The budget year shall be the same.
   2. Budget: The budget, after approval by the board, shall be mailed to the members 14 days before the annual Memorial Day week-end meeting, and made available for review and approval at the meeting.
   3. Banking: The banking of the LRAA shall be maintained at Farmers State Bank in Winthrop, Wa. or any FDIC insured bank approved by the board of trustees. The Treasurer or President shall be the authorized signers on checks and/or other payments required to fulfill the obligations of LRAA, in accordance with the Articles of Incorporation and By-Laws of LRAA.
   4. Dues, Fees, and Assessments: The term dues, fees and assessments shall be used as money collected for the purpose of providing LRAA with the funds needed to operate and maintain infrastructure and provide services as authorized and required by the Articles of Incorporation and By-Laws.
      1. The board may amend these dues, fees and assessments as needed to meet the obligations of LRAA.
      2. Membership dues, water fees and road access fees shall be invoiced on Jan.1st of each calendar year and payment is due on or before March 31st of the same year. Postmarks on payments, or actual date if hand delivered to LRAA shall be deemed the payment receipt date of payment of dues. Upon receipt, a record will be made. Should there be a disagreement between a member and LRAA concerning the date of payment being received, the burden of providing timeliness shall be with the member. Special Assessments shall be due 180 days from date of invoice, unless otherwise specified.
      3. Membership dues shall be assessed on a per membership basis as recorded on the parcel deed, without regard as to the number of parcels owned. If a member is on more than one deed with someone other than a spouse then separate dues, fees and assessments will apply.
      4. Road access fees shall be assessed on the basis of one fee for each parcel which is outside the boundaries of LRAA and has made an agreement with LRAA and recorded with parcel thus allowing access to their property by means of LRAA roads.
      5. Annual water fees shall be assessed on the basis of one fee for each actual water connection or water connection right, regardless of whether the water has actually been connected to the LRAA water system.
   5. Separate funds: Membership dues and water fees shall be tracked as separate funds. Money may be combined in the same bank account ( for simplicity or higher interest rate ) These combined funds will not exceed FDIC insurance balance limits. The board of trustees has the right to borrow from one fund to meet the authorized expenses of the other. Any loan must be tracked and paid back at a time period approved by the board and recorded in the minutes. Interest will not be charged.
   6. New Members: The annual dues and fees assessed to a member of the current year shall be considered the money owed for that parcel sold during that year. Any proration of dues and fees will be made between buyer and seller. Any proration of dues and fees will be at closing of sale or transaction. No dues or fees will be refunded by LRAA.
   7. Delinquent Dues and Fees: Any disputes or billing discrepancies must be brought to the attention of the board as promptly as possible. In the event a dispute arises, only the part of your account in dispute may be withheld from payment. The balance not in dispute must be paid according to the standard terms. Past due invoices will be mailed each quarter. The board may take additional action to collect past due amounts as it deems necessary.   As per LRAA By-laws the delinquent member is responsible for paying not only the past due amounts plus lawful interest, but all fees associated with collecting the delinquent balance including attorney fees and court costs.
      1. Late Payment Fee: Members who have not fully paid their LRAA dues and fees by the last day of March will be charged a late payment fee of $50. The fee will recur quarterly until payment in full is made.
      2. Demand Letter/Lien Filing: A demand letter will be sent to, or a lien will be filed against the property of, any Member with an unpaid balance on October 1st of $1000 or more. A demand letter may also be sent to, or a lien may also be filed against the property of, any Member with any unpaid balance for 24 months. All costs and fees associated with the demand letter or lien will be added to the amount due from the Member.
      3. Personal Legal Action/Foreclosure: A personal legal action or foreclosure will be initiated against any Member, or property of any Member, as applicable, whose unpaid balance reaches $2000. A personal legal action or foreclosure may also be initiated against any Member, or property of any Member, as applicable, who has an unpaid balance of any amount for 24 months. Association court costs and legal fees incurred during the personal judgment or foreclosure process will be added to the amount due from the Member.
      4. Interest on unpaid amounts: Interest shall be charged on all unpaid amounts, including fees, costs and outstanding interest, at a rate of 12% per annum, compounded monthly beginning April 1st, until the account balance is paid in full.
   8. Water connection fee shall be assessed of a member in good standing (all dues and fees paid), to connect to the LRAA water system. Payment entitles the member to a signature on the Water Adequacy document required by Okanogan County before a new connection is made. NOTE, this fee does not cover the construction cost to physically connect to the LRAA water system, which remains the members responsibility and must comply with LRAA and Okanogan County requirements. If a member still wants to purchase a water right and not connect to the LRAA system, the Annual Water Fee will be the same.
      1. Non payment of the Annual Water Fee may result in the members water connection being disconnected from the LRAA water system. In such case all of the costs to disconnect the service will be borne by the member. The member must be in good standing including the disconnect costs before reconnecting can be considered. All costs to reconnect the water service will be borne by the member. Reconnection will be done to the water system standards in place at the time of the reconnection. Inspection will be accomplished as a new connection.
      2. An unauthorized water connection will be removed by the LRAA. In such case all of the costs to disconnect the service will be borne by the member. The member must be in good standing including the disconnect costs, and appropriate water rights in place before reconnecting can be considered. All costs to reconnect the water service will be borne by the member. Reconnection will be done to the water system standards in place at the time of the reconnection. Inspection will be accomplished as a new connection.
   9. Dues and fees are determined by the board and are voted on by the membership at the annual meeting. Dues and fees may change every year. The dues and fees are the following catagories. The current amounts of the dues and fees are maintained on the LRAA website.
      1. General Membership Dues
      2. Annual Water Fee
      3. Road Access Fees
      4. Water Right Purchase Fee
   10. Reserve Funds; LRAA maintains two separate reserve funds for emergency, unexpected, unbudgeted needs.
       1. The General Fund Reserve Fund is maintained with a target level of $25,000.
       2. The Water Fund Reserve Fund is maintained with a target level of $50,000.
       3. Funds from one fund may be loaned to the other fund for emergencies. A loan from one fund to the other must be repaid from the fund originating the debt.
       4. Reserve funds may be used only to maintain or improve existing infrastructure. Without membership approval, Reserve funds may not be used to expand existing infrastructure.
       5. The board may approve utilizing reserve funds in the event of an emergency. Board approval for expenditure of reserve monies requires a 2/3 majority vote of the board.
       6. Contribution to Reserve Funds
          1. Contributions to the reserve funds are made through the annual budgets. The water budget contributing to the water reserve fund and the general fund budget contributing to the general fund reserve budget.
          2. No contributions from the annual budget shall be made that will grow a reserve fund beyond the target limits set without membership approval.
          3. If a reserve fund is depleted then monies must be budgeted to re-build the reserve. The period to build the reserve back to 100% should be no more than 3-years.
          4. Water right purchase fees will contribute to the water system reserve fund.
          5. Reserve funds may, at the discretion of the membership grow beyond the target limits set, from the effects of interest and water right purchases.