This is my understanding of the By-laws as they relate to the Pines Progress Southgate fire station article and some of you comments.

The 5,13(f) provision applies when the proposed debt transaction plus any outstanding debt exceeds 50% of the current income from the annual charges. In that case, a referendum on the proposed debt is required, without regard to the amount (%) of annual charges the proposed debt may be.

If 5.13(f) is not applicable, then 5.13(c), copied below, must be considered. If the proposed debt exceeds 10% of the current annual charges, a referendum is required. The 2022 By-laws referendum amended the prior 20% to the current 10%

(c) The Board may sell, mortgage, encumber, develop or donate any of the Association’s real or personal property or assets, with the affirmative vote of two-thirds(2/3) of the entire Board of Directors, but in the event the value of any such transaction exceeds ten percent (10%) of the current income derived from annual charges, it shall require approval of the members by a referendum.

Debt service approach:

If OPA is committed by contract, not necessarily only to a building contractor, to a complete project for a replacement of a station that it owns, the project cost is a single capital expenditure under under 5,13(d),sub a (copied below)  the debt service approach is not available. If the project cost exceeds the $1,000,000 limit a referendum is required.

a. If the total estimated cost, capitalized in accordance with generally accepted accounting principles, of any single capital expenditure exceeds One Million Dollars ($1,000,000.00), the proposed single capital expenditure SHALL require approval of the members by a referendum.

Jim Trummel