Shadow Run Dam Corporation - Riverview, FL

1.  There seems to be a lot of controversy.  What's the problem?

Many of the issues that have been raised in the past were found to be unsubstantiated or without merit.  Questions were raised as to the financial dealings of the SRDC.  Our books were made available to two members of the SRHA for a thorough inspection.  Although there were some minor issues and concerns, it was determined that there were no illegal or questionable financial practices.  This was a valuable exercise, as it exposed some areas of improvement for the SRDC, which have and are continually being addressed.  The SRDC publishes a budget and financial report each year, which is available on this website to registered users who are members of the corporation.

2.  Does the SRHA own or control the SRDC?

No.  The SRHA and SRDC are totally separate entities. They have common ownership by the residents of Shadow Run, but the SRDC was formed with the intention that there would be no cross management or oversight.  The SRHA has not been granted any oversight responsibilities over the SRDC by any authority. 

3.  Who can dissolve the SRDC?

Only the SRDC by vote of its members.  If the SRDC is dissolved either by itself or the State, then its business (dam maintenance and operation) would revert to a successor corporation, and if none, then to the SRHA if the SRHA wants to accept it, and then to the Hillsborough County Commissioners. The SRDC is in no danger of going out of business at this time.

4.  Has the SRDC ever refused anyone for nomination to serve on the Board of Directors?

No one has ever kept or discouraged members of the SRDC from electing directors. There has never been anyone who has shown interest in the SRDC and/or serving on the Board who has been excluded from serving or participating, and in fact, we have had to actively recruit Board members who were duly appointed by the President to fill vacancies, as is provided for in our Articles of Incorporation and By Laws.

5.  Can two co-owners of the same land parcel serve on the SRDC Board of Directors?

While not explicitly stated in the Articles of Incorporation or the By-Laws, only one person representing a parcel may vote in elections or on the business of the Corporation.  Having two owners of the same parcel serving on the board effectively gives that property two votes, which is in violation of what is stated in the Articles of Incorporation and By Laws.

6.  Who requires dam inspections? 

The dam inspections are not required by SRHA, Hillsborough County, or any binding legal requirements from incorporation.  SRHA has assumed responsibility on its own to assure that the integrity of the dam adheres to the original design standards.  SRHA conducts quarterly inspections on its own, and employs the services of a professional engineering firm on a periodic basis.

7.  I've heard that there is a sizeable amount of money that SRDC has in its account. 

The money that the SRDC started with (around $100,000, now just over $90,000) has been used wisely and frugally. This fund was originally established as an emergency fund to address major impacts to the dam and for maintenance expense.  The SRDC is a not-for-profit Florida corporation and has limited means of generating income. It has no authority to assess member property owners as the SRHA does. The money has been conservatively placed in money market certificates and CDs. Money has been spent only for necessary expenses in connection with the maintenance and protection of the dam and for required expenditures connected with operating the corporation. Overall, interest income has struggled to keep pace with expenses, which is why the Board of Directors has scheduled revenue generating activities for the first time ever in the 2007 proposed budget.

8.  Is there a need for a financial audit?

Since our transaction activity is low, and due to the limited financial resources of the SRDC, it is not considered to be a high priority at this time.  The SRDC has had an accountant prepare its tax returns annually and has had no issue raised about fiscal mismanagement. The services of a CPA were sought and an estimate of about $10,000 was given for a certified audit. The books of the corporation have been open to all members subject to the busy schedule of the Treasurer. Until recently, there has been no interest shown in the financial records of the corporation, which have been found to be in reasonably good shape.

The SRDC Board has never willingly failed to obtain a quorum for an annual meeting. Unfortunately, the members have not seen fit to show the interest to exercise their oversight and direction in corporation elections and business. In fact, and if not for the diligent work of the Board's members, particularly David DeVelder, Scott Cutler, and Jim Otte before him, the corporation would have died for lack of interest long ago.