Reston Association board members made more changes to the draft governing documents Thursday, May 5 — this time reworking the rules for new capital acquisitions and the investment of reserves.
At a worksession meeting, the board agreed to make changes that would give the board more discretion for completing new capital acquisitions.
The board approved a change that would trigger referenda when the single capital acquisition is 5 percent or more of the aggregate yearly annual assessments.
The previous trigger was set at $360,000 and tied to incremental changes in the consumer price index (CPI), a format that staff recommended discontinuing.
Using the 5-percent threshold allows the board to initiate a new capital acquisition up to about $400,000 without having to go to referendum, according to Ray Leonhard, RA’s chief financial officer.
There was some disagreement as to what would constitute a “single, new” capital acquisition.
“If we include all the county requirements, it could double the costs,” said William Keefe, an at-large director.
Barbara Aaron agreed that the cost should include only the core costs of the new acquisition. “We have to go into it with good faith,” she said.
Director Robert Poppe and Larry Butler, of RA’s director of parks and recreation, argued that the total cost should include all the costs associated with the core acquisition, including county requirements. “The easiest thing to do is include all those things needed to get [the acquisition] online,” Butler said.
“I still say you need to have it be functionable,” Poppe said.
The board eventually agreed with Butler and Poppe, agreeing to include all the costs required to get a new capital acquisition “online.”
“That’s consistent with what we’ve done in the past,” Leonhard said.
IN THE LATER PART of the session, the board turned its attention to investment options for reserves.
The board agreed to change the draft governing documents to provide for the ability to invest in stocks.
South Lakes director Joe Leighton was the only board member to vote against the measure. Bob Diamond, an attorney with ReedSmith LLP who was hired to prepare the draft document, endorsed the measure.
“The goal of the board shouldn’t be that we want to make a profit. The goal of the board also should not be that we don’t want to lose money. The goal of the board should be that when the time comes to spend money, it has enough,” Diamond said.
The change in the draft governing documents doesn’t mean the board will decide to invest the reserves in stocks, but provides it with the ability to do so when they set investment policy.
Ballots for the governing documents referendum are scheduled to be mailed to RA members October 7.