The commentary below comes from one Board Director, Bruce Caverly, and may or may not be the stance of any of the other Hot Springs Village Board Directors or the Board as a whole. In other words, in the context of this article, Mr. Caverly only speaks for himself. The 24-year Village resident shared recent Board accomplishments, an upcoming community challenge, his relationship with staff, issues he feels the Board needs to address in the upcoming year, and much more. Caverly asserted, “We need to stay focused on our future.”
What recent Board/Staff accomplishments are you most proud of?
The Board of Directors oversees one employee, the General Manager. Through close collaboration and support, the Board has helped the General Manager meet the community’s needs and restructure the POA to function more efficiently and effectively. Caverly noted that General Manager Kelly Hale has achieved a great deal in his three-year tenure. “Staff has achieved many goals, and the Board has fostered a supportive atmosphere to facilitate these accomplishments,” he said.
Caverly believes that stabilizing the organization after the instability caused by having four or five different managers over a five-year period was one of the organization’s most significant achievements since he joined the Board. “In doing so, several other improvements followed,” he added.
One major challenge was in our Accounting Department. At the time Kelly came on
board, we had 3 different controllers, and much of the department was ready to leave. At that point, Jama Lopez, a former Board Director and CPA, and Phyllis Shaddix were brought in to restructure the department. “They had to rebuild the entire department,” Caverly explained. This effort led to the development of job descriptions for all positions in the accounting department and throughout the POA organization.
In addition, a cross-training initiative was implemented so that employees could quickly step into vacant roles if needed. This mentoring program not only improved the efficiency of the POA but also provided staff with new skills and career advancement opportunities.
To attract talented and motivated young people, staff visited local schools—Jessieville, Fountain Lake, and Mountain Pine—to establish a mentoring program and promote Hot Springs Village career opportunities. While students typically start in entry-level positions, there are opportunities for growth and career advancement.
The Board also supported the General Manager’s implementation of a purchasing and procedures policy that includes a cost-benefit analysis. This initiative helped ensure that large purchases were essential rather than optional and that the best possible prices were secured. “It made staff think more like a business,” Caverly remarked. “Before buying something, they had to ask, ‘What is it for? Is it necessary? Is it good for the business?’” The policy requires sign-offs on all purchase requests by the requestor, the overseeing manager, the Controller, and the General Manager. As a result, the POA has been able to make better purchasing decisions and acquire needed items at a more economical price.
The Board has also completed extensive work on the Policy Guide to ensure alignment with the other governing documents. These documents include the Declaration, Protective Covenants, Bylaws, Policy Guide, and Residential and Commercial Rules and Regulations, all of which must be consistent.
Another key achievement during Caverly’s time on the Board was the creation of five strategic reserve accounts to prepare for future needs and emergencies, as recommended by the Finance and Planning Committee. These accounts include a Utility Emergency Reserve Account, General Emergency Reserve Account, Operations Emergency Reserve Account, Utilities Fixed Asset Fund, Fixed Asset Fund, and the Golf Reserve Fund.
What Are the biggest challenges facing Hot Springs Village, and how is the Board responding?
Caverly believes Act 605 will significantly impact Hot Springs Village. As previously reported, “Act 605 imposes additional responsibilities on retail water providers (excluding those regulated by the Arkansas Public Service Commission) in managing and operating their water systems. These responsibilities include:
- Provisions for retail water providers under fiscal stress
- Annual rate studies
- Filing rate studies with the Arkansas Legislative Audit
- Training requirements for governing boards of retail water providers”
The Hot Springs Village water system is also subject to Act 605 requirements, as the sewer and water facilities are operated together and are included in a single audit.
Caverly stated that Hot Springs Village will see rate increases for water and sewer services due to Act 605. “At this point, we do not expect a significant increase because we’ve already accounted for the costs of necessary improvements in our current bills.” Many providers only charge for water production and delivery, overlooking needed upgrades to the plant or distribution systems.
Wastewater treatment upgrades are essential due to system overflows. The older Mill Creek infrastructure can no longer effectively manage the increasing wastewater volume of our community, particularly during heavy rain storms.
These upgrades will necessitate a bond proposal to fund improvements to the wastewater treatment system. Plans include decommissioning the Mill Creek Wastewater Treatment Plant within the next three years and upgrading the Cedar Creek Wastewater Treatment Plant. Engineers have determined that consolidating wastewater treatment into one facility is the most cost-effective solution.
Caverly explained, “Phase one involves designing the new wastewater piping system and redesigning the Cedar Creek Plant, which is underway now. Phase two includes the installation of new piping. Currently, the piping is 14 inches in diameter, but it will be upgraded to 16 inches, bypassing Mill Creek and connecting the west side to Cedar Creek. Public Services will handle the piping work internally, having recently purchased an excavator, allowing us to complete this phase without outsourcing.”
The engineering study also calls for an upgrade of the Cedar Creek Wastewater Treatment Plant, which includes a new electrical system, a building for electronics, and a generator building for power outages. Phase three involves the construction of these sewer plant upgrades.
Caverly added, “Aside from housing and food, there are three basic essentials we all expect in life—water, sewer, and electricity.”
How do you ensure that the Board remains effective and accountable to the community?
“First, elected Board Members must join the Board without any personal agenda.”
“Second, Board Members should carefully consider the impact of their decisions, not just on themselves as members of the community, but on everyone in their immediate area and the community as a whole. A Board Member should ask themselves, ‘Is this decision good for my neighbors? Yes or no? If it’s not good for the neighbors, it may not be a good decision.'”
“Third, it is crucial for a Board Member to ensure that public funds are spent wisely and responsibly.”
What key issues should the Board address in the coming year?
The Board’s top priority must be to ensure that the Village continues on its current path regarding updating deferred infrastructure.
“ Many in the Village may not realize that the POA’s 2025 total budget is $53 million. Our
projected operating expenses are $42 million, of which half of that is employee compensation, and the remaining funds are for deferred maintenance and capital improvements.” Caverly explained. The POA is funded through assessments, fees, and amenity use, and this is a large business and needs to be run similarly.
In the Golf Department, the main costs of doing business include salaries, chemicals, mowing, and course maintenance. “Our golf expenses exceed the total income generated from golf. I once calculated that it costs about $1 million per course annually to maintain. Yet, we subsidize golf by $1.2 million per year, which comes out of our assessments. Our goal is to close this gap. While it won’t happen overnight or in one year, we aim to reduce or even eliminate the golf subsidy within the next two to three years. Golf should become self-sustaining.”
A third issue Caverly would like to address is delinquent accounts.
He also mentioned that there will be proposed Declaration changes next year. The proposals will be put out for a vote by property owners. The Board will work closely with the Developer, CCI (Cooper Communities, Inc.), to move this forward.
Caverly also expressed a desire to refine and simplify the fee schedule. “We still face issues with NorthStar; the system is not running as smoothly as we had expected.” NorthStar is the software system the POA uses for accounting, golf, and developing historical data.
He also emphasized the need for better marketing of the organization, noting, “Currently, we don’t even have a dedicated marketing department.”
Furthermore, Caverly highlighted the importance of consistent communication with the community. “We should aim to provide a summary of each Board meeting, including what transpired during Board Discussion Sessions.”
Lastly, Caverly hopes to reinstate the first public comment period during Regular Board Meetings, which would allow Property Owners to address items on the agenda that will be voted on. Reinstating this commenting period would require approval from a majority of the Board.
Can you describe your relationship with the management team and how you collaborate to achieve the association’s goals?
Caverly explained, “I maintain an open-door policy with all staff, including both management and employees. If I have a question about common property, I reach out directly to Bev Ellison [Supervisor of Permitting and Inspections] or Karen. For matters related to human resources, I speak with Duane Tarbett [Director of H.R.]. I can contact any of them at any time. I have a comfortable and open relationship with the staff.”
What inspired you to join the Hot Springs Village POA Board?
Caverly shared, “For ten to fifteen years, people like John Hollansworth had encouraged me to run for the Board. A group of associates kept asking me to run, but I felt that as long as I was on the Common Property Committee, I could do more for the Village in that role than I could as a Board Member. That was my guiding principle for all those years.”
“Eventually, we found ourselves in a situation where our former Golf Director, John Paul, had served as Interim General Manager several times. John Paul helped keep the organization stable, but he wasn’t interested in a permanent GM position. At that point, there was a risk of staff leaving in large numbers, and we were struggling to find someone to take the lead. John Hollansworth and John Tidquist recommended Kelly Hale for the General Manager role. Initially, Mr. Hale wasn’t interested in the position.”
What type of community work have you been involved in, and what were your roles?
- Caverly has served on the Board for three years and is seeking reelection in the upcoming 2025 Board election.
- He has been heavily invested in the Common Property Committee, now known as Common Property, Forestry, and Wildlife, as a member from 2001 to 2022.
- Ten-year and charter member of the Citizens Police Academy Alumni Association
- An eight-year member of the Mercy St Joseph Hospital Advisory Board
- An eight-year member of the Sons of the American Revolution
- Tri-Lakes Metro Planning Organization – Roads and Transportation
- Member of a number of POA sub-committees
What do you enjoy most about being a Board Director?
Caverly shared that what he enjoys most about serving as a Board Director is having a deep understanding of what’s happening in the community. “You gain insight into why things are happening the way they are. To someone not on the Board, it may not make sense, but they don’t see all the smaller details that contribute to the bigger picture.”
What advice would you offer to someone aspiring to join the Board of Directors?
In addition to not having a personal agenda, Caverly encourages potential Board Directors first to get involved at the committee level. Serving on a committee provides the chance to see how a group works together and offers direct interaction with both POA staff and the Board (primarily through the Board Liaison to the committee). This experience helps individuals gain a deeper understanding of the POA’s organization and structure. Once you have that understanding, it becomes easier to grasp the commitment and effort required to serve on the Board of Directors.
“This Village is unlike any other; it functions like a municipality. Municipalities provide water, sewer, trash, fire, and police services, but private, gated communities rarely offer those services in-house.”
In conclusion
Caverly, a self-described “Connecticut Yankee,” was born and raised in New England. After completing his schooling and college education, he served five years in the Air Force. His 33-year business career was with 3M, starting as a Sales Representative in Alaska, where he covered the entire state. In 1983, Caverly was promoted to International Business Development Manager and transferred to 3M’s headquarters in St. Paul, Minnesota. In this role, he helped develop one of 3M’s key business units within its international subsidiary operations, traveling extensively to 48 countries across Asia, Canada, Europe, and Latin America. He explained, “My mission was to identify and staff new business opportunities worldwide, including overseeing marketing, sales, training, business plan development, and profit and loss management with our subsidiary teams.”
Caverly’s term on the HSVPOA Board of Directors will expire in April, but he is seeking reelection due to his passion for the Village and his desire to continue the positive progress the Board has made over the past few years. He is committed to upholding the Board’s promise to property owners to spend assessment dollars solely on roads, culverts, sewer, water, and the repair of buildings and amenities. He also values fiscal responsibility and transparency with the community.
Caverly is dedicated to helping transform the Village into a world-class community. As he put it, “If you like where we’re headed, I’ll help keep the momentum going.”
By Cheryl Dowden
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Finally, someone actually mentioning the Golf problem. But where is the emphasis on When? Where is the emphasis on How? Where is the emphasis on the Millions and Tens of Millions of dollars lost over the last 25 plus years thanks to the overbuilding of golf courses in the early 2000’s and total mismanagement over the whole time frame since? And this mismanagement problem includes those Boards and GM’s (some named in this article) and other Luminaries who have been running things the whole time. I’ve said it many times before in print and in letters to present and past Boards of directors: Golf needs to be not only self sufficient but to THROW OFF CASH to support other amenities and needs of the Village which cannot – will not ever – be able to support themselves. And, it needs to do it NOW – NOT IN TWO OR THREE YEARS DOWN THE ROAD, MAYBE. Yes, the infrastructure problem is a big one and it does appear to be getting solved, slowly but surely. But the Money is the problem. Villagers are Maxed out with Fees and Price Increases for everything and anything, not to mention the inflation of the last four years and jacking up of the assessments, buy-in fees and the like. And while I’m on the Podium here let me mention also that changing the Declarations to further enable Boards to further jack up the assessments IS NOT THE SOLUTION – never has been and never will be. Solving GOLF is the solution to the longevity and prosperity of this Village we all claim to love so much. So let’s get with the program. The new GM has mentioned this all in his recent interview. Now is the time for the Board to step up to the plate and DEMAND things be done differently, radically different, than they have been done for the last 25 years plus. And guess what? We cannot wait till next year because last year’s board already approved the “Budget” for 2025.