October 28th, 2025

 

To the Members of the Association,  

​

Thank you for following our website. A regularly scheduled board meeting was held on October 14th, our third meeting since you elected a new board of directors on September 7th, 2025. The work with the transition, accounting review, and bankruptcy continues to dominate over normal operations.

 

BANKRUPTCY. On October 7th, the judge issued an order dismissing the Chapter 11 bankruptcy as “not a legitimate bankruptcy purpose”. The bankruptcy has accrued legal costs of $83,792 so far. Unfortunately, a former board member has filed, as an individual, a motion with the court to reconsider the dismissal; that is, seeking to continue the bankruptcy case. This is despite the members having voted 91 to 32 against the bankruptcy reorganization plan. There is another hearing scheduled for November 10th. As a result of this filing, your POA will now incur additional legal expenses.

 

FINANCES. Considerable work has been done to review the financial records, which were in disarray. It will take months to complete the internal audit and bring the accounts close to generally accepted accounting practice standards. On September 1st, the POA’s checking account balance was $43,864; on September 22nd it was down to $8,863. As previously reported, the main reason for the difference was checks for $30,163 issued to attorneys on September 8th, just before the new board was seated. We have negotiated deferred payment for certain expenses and a payment plan for our insurance. Nevertheless, our financial situation is severely stressed by bankruptcy-related costs.

 

A review of the prepaid accounts’ accrual is ongoing. The Finance Committee is working on establishing a credible balance sheet and interim operating budget. The new board intends to keep the operating budget in line with prior years as far as possible. We will start posting monthly financial statements next month.

 

OPERATIONS. There was an insurance inspection in July, and another inspection relating to our buildings was done in September. Both reports are posted to the website. We have to clear accumulated material from the grounds and address some other maintenance items. We do need help to remove old pallets, lumber and scrap from around the storage sheds: if you remove something valuable, please make a donation, if it’s trash, we thank you. We have some skeletons in the closet – actually in the shed – for Halloween which we will not be using. Again, they are available to a good home, for a donation.

 

We are in discussion with our insurers about opening the pool. We will be treating the pool to bring the water in compliance and start a daily testing program. If we are able, we will open the pool for a few weeks before winter. We appreciate the volunteers who have maintained it while it was closed. There will not be a haunted house this year; however, we are pleased to announce that a Holiday Bazaar is set for December 6th as posted.

 

We continue to provide resale packages for property transactions in the subdivision, and we welcome several new owners to the Association.

 

COMMUNICATIONS. Access to the canyonspringsresortpoa@gmail.com account has finally been obtained, so expect communications over that channel again, soon. Please sign up for email communications as we need to limit USPS mail costs. I reiterate that POA communication will be through this website, official email, and USPS mail. Social media should be engaged with appropriate caution; noting that moderation is not always impartial. Unaffiliated websites, particularly those parading as “csrpoa”, are just that, unaffiliated.

 

OUTLOOK. As soon as we can get past the bankruptcy, we will return focus to operations and serving the community. Operations continue because of the time, effort, and funds that members give to the Association. The issue of giving is central to our history and to our future. In 2024, 60% of our revenue was from voluntary contributions. Operationally, we were financially sound in 2024 and we would have been in 2025 if we had followed similar fiscal policy, and that is what we plan for 2026. However, if you want to volunteer, contribute or donate, please don’t wait till 2026; reach out to your board. As president of the Association, I can tell you that I have restructured businesses in the past; it’s neither easy nor assured. In our case, as a member-owned and funded entity, our community’s future depends on the members it serves.

 

Respectfully,

 

Chris Payton, President