We invite all Villagers to a town hall meeting on Wednesday May 28 at 5 p.m. in the Cribari Auditorium. The General Manager’s office will present information on next fiscal year’s budget. Much confusion abounds about the FY26 Budget, Club Dues and The Villages investment policy. It is necessary to address the myths and misconceptions that we’ve heard or read about and face the facts of our financial situation. The following are some examples.
Myth: Revising the Club investment policy will result in very risky stock manipulation and huge losses.
Fact: A prudent investment policy includes conservative investments like CDs and Treasuries and a minority of Conservative Broad Based Index Exchange Traded Funds (EFT’s). The best approach to maintain the purchasing power of our Club investments is to invest a minority of assets in low-risk stock. The revised policy allows, but does not require, investing in not more that 30% of our assets in equities. The actual investment mix will be recommended by our advisors, approved by our CFO, performance reported every quarter and monitored by the Club Board. The real risk is being so conservative that we lose purchasing power through inflation.
Myth: The FY26 increase in Club Dues is unneeded, unrealistic and will be repeated for several years.
Fact: The FY26 budget is detailed, carefully built and analyzed. We are addressing current and future needs to assure the quality and services we provide meet the VGCC vision and mission. The dues increase corrects years of misallocations of expenses and under-funding capital needs. We cannot guarantee future year’s needs, however, we are not ‘kicking the can down the road’. Future dues increase should address only inflation or approved community projects and therefore avoiding special assessments.
Myth: Revising Club policies and bylaws will eliminate all governance check and balances. The ‘Guard Rails’ of the current bylaws will be eliminated giving the Board dictatorial powers.
Fact: Club bylaws were last updated in 2006. The 2026 update, which we will be working on this year, will address current law and financial conditions and be based on industry best practices that include limits on Board duties and Membership votes on major expenses and decisions. Club policies will be updated in accordance with the new bylaws. No one plans to eliminate good governance.
Myth: Revising the Club Bylaws will result in repeated higher dues and future major assessments.
Fact: The 2026 bylaws have not yet been drafted. No one can say they know what the dues will be. Best practices include an annual Board approval of a detailed Capital Project Plan and a full Membership vote on major projects. Special assessments can be avoided by good planning and timely implementation.
Myth: The Club Board will have a ‘Blank Check’ to spend all they want on projects with no input from Villagers.
Fact: The 2026 bylaws will be based on best practices and will include a Membership vote on all major projects with criteria yet to be defined. The current bylaws require a Membership vote just to update it, so everyone will have their say.
Please be informed and attend the Town Hall meeting at 5PM Wednesday the 28th at Cribari Auditorium.
This coming year will be an important turning point in the history of The Villages. We can invest in a vibrant future or rest on our laurels. The Facts lead to a brighter future.
Please direct comments or questions to: rrzcbod@gmail.com
