Tellico Village expenses are increasing much faster than CPI / Cost Planning Index (AKA COLA – Cost Of Living Allowance). The following are just a few examples:

• 87% higher average monthly POA dues vs CPI (5.14% average annual POA dues vs 2.75% CPI for last 10 years)

• 48% higher salaries and wages over the last 3 years or 16% average annual salary & wage increase ($5,790,120 POA 2021 vs $8,584,992 POA in 2024 WITHOUT FOOD SERVICE)

• 27% mark up on our water & sewer in the last 3 years or $5.1M ($18,817,705 revenue vs $13,686,402 expense 2021 – 2023)

In one word, ACCOUNTABILITY. Require the POA to provide annual business plans with clear goals and targets, monitor performance monthly while requiring countermeasures when actual performance falls below target.

3 steps annually as follows:

1. POA completes SWOT (Strength Weakness Opportunities Threats) 

2. POA completes business plan:

   1. Develop POA goals

   2. Develop SMART (Specific Measurable Attainable Realistic Trackable) targets

   3. Develop PDCA (Plan Do Check Act) performance monitoring slides

3. POA completes budget supporting business plan

By ensuring the POA business plan takes a balanced approach to managing TV with both financial and non-financial performance measures.

1. Examples of financial goals:

   • Increase voluntary revenue (not more assessments & fees)

   • Decrease operating costs

2. Examples of non-financial goals:

   • Improve customer satisfaction

   • Improve POA employee’s knowledge & skills

Establish clear and simple SMART KPIs (Key Performance Indicators) that will be monitored.

1. Establish labor standards for the majority of repeatable hourly tasks

2. Establish continuous improvement dollar reduction goals

3. Streamline work processes into best practices

4. People react to what you inspect not expect

Many residents have been pushing the POA for annual business plans and accountability for the last 2 years and we are happy to say the POA and board is listening. Once these plans with SMART targets are in place the POA, board, and residents will excel from having a clear roadmap to success for both short term and long-term goals for all Tellico Village including Kahite!