The CotoBuzz Journal

Community Journalism, Newsletters and  Blogs Covering South Orange County, CA

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April  2007 Issue

We do not make jokes, we simply watch the LA Times, the Orange County Register and the Coto de Caza Board of directors and report the facts!

 

The CZ Master Association Piggies are Still Fat and Happy and the Chinese V-Factor

Joseph Morabito, former member CZ Master Association BOD

March 17, 2007  

Hello All:  The good news is that CZ is finally charging non-CZ Members an annual transponder fee.  While it is a start, the bad news is that the fee is apparently only $35 a year per car.  Let me do the math for all.  If the average household in the Estates or Villages has three cars, which is not unusual, that means that we are collecting just $115 a year from these freeloaders who get all the advantages of living in Coto and pay nothing to support expenses.  There are about 800 households in the Estates and Villages combined so that means that this tiny revenue producer will bring in about $84,000 a year.  I would bet there are probably another 500 non-CZ member cars using our transponders specific to the golf/equestrian club so that revenue amounts to about $17,500.  So, together this new initiative, which again is better than nothing, will bring in about $101,500 a year.

 

Of course, CZ Members have experienced two dues increases in just two years to support all these piggies feeding at the trough.  We have coughed up an additional $852,000 in annual dues to support all the Varo/Mezger fiascos and their country club friends.  To put this in perspective, it is likely that the Estates, Villages, Golf and Equestrian Clubs are probably contributing about 4,000 cars including themselves, their guests, their household help, a day going through our gates.  That is 1,460,000 cars coming through our gates a year from these freeloaders.  Obviously, in paying just $101,500 a year, these non-CZ Members are not paying anywhere near their fair share of our security and road maintenance expenses which is the reason CZ Members have experienced two dues increases in just two years. At a minimum, the direct proportional cost to support the freeloaders in our midst for security and road maintenance which includes Reserves should be allocated to them in annual transponder fees.  I suspect we would see an annual fee of 5 – 10 times the $35 per car if a proper assessment was implemented.  And, why not???

We continue to subsidize outsiders like the Sports Leagues, CotoCAN and the freeloaders living in our midst who by the way are among the wealthiest people living in Coto.   These are Varo and Mezger’s country club friends which is the reason we don’t see appropriate fees and charges for all non-CZ Members to help properly share in CZ expenses.   CZ Members need to wake up and get rid of Varo and Mezger in this next election so we can bring sound management back to Coto.  We will not have proper fiscal management as long as these two incompetent characters remain in office.  We need a fresh start and quick.  Joe Morabito

P.S.  Now the CZ Board needs to focus on the Sports Leagues, 50% of whom are composed of outsiders, who are paying practically nothing to use of our Sports Fields.   Remember, we pay taxes to use the fields outside of Coto so CZ Members should feel no guilt in charging the Sports Leagues more to use our fields since there is no tax money supporting them.      

 

Hi Joe:

Your math puts things in perspective.  To continue with your line of thinking and assuming the new transponder initiative does bring in an added $101,500 a year, guess how much the “free” online registration services is costing the association – just to print passes?  Remember, this is the second transponder initiative in two years!

There are other similarities between China and Coto – for example, the “hidden” tax – this is a tax that is not documented anywhere, and no one ever knows who the beneficiaries really are.  We do know of course who pays! –Just ask the millions of displaced Chinese workers who have not gotten paid in months for the construction work they have done in places such as Beijing or Shanghai !

Then there is the Communist obsession with the V-Factor (visibility)  – drive a few hours outside a major city and chances are you will see what at first sight seem like high-rise buildings – in reality, these are just walls made to look like high-rise building,  to make the peasants invisible to the tourists!

- Buzz

Here is the deal.   There are about 3,550 CZ Members.   There are about 800 households in the Estates and Villages.  If we add in the 500 or so people who are probably non-CZ Members entering our gates for the Golf Club and Equestrian Center with transponders, that means that there are approximately 4,850 households impacting our security and road maintenance expense each year.  CZ Members already pay $2,520 a year in dues as a result of the two Varo/Mezger recent dues increases.  What should be happening is that the cost of security and road maintenance including Reserves should be spread over the 4,850 households not the 3,550 CZ Members alone by charging Non-CZ Members an appropriate annual transponder fee per car.   It would not take a CPA to figure out what this fee should be for Non-CZ Members. 

I can tell you it would be far more than $35 per car per year.  And, again so what if we need to charge more???  The people we are talking about are among the wealthiest in Coto.   We would not be taking bread out of their children’s mouths by charging them an appropriate annual transponder fee that represents their fair share of our costs.   And, then, perhaps we can get our landscaping renovation budget line item up where it needs to be which is at least 5% of revenues each year and additional monies going into Reserves for future landscaping renovation.  I don’t expect Varo & Mezger to get this because they don’t have a clue concerning sound fiscal management and they are more concerned about their Non-Member friends than CZ Members; but there are three other Members of the CZ Board who should get it because what I am pitching is just good old fashioned common sense and sound business management principles. 

Obviously, we have just experienced two dues increases in two years because Varo & Mezger do not understand their fiduciary responsibility to our Members and they lack business management skills.  Varo & Mezger just don’t know how to manage a buck.  If CZ does not begin to take reasonable and fair actions to end all the piggies feeding at the trough, we will continue to see our dues go up and up with little to show for it.  It really is that simple.  Joe Morabito

 

 

 

 

 

 

 

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