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Many rumors and false information is circulating; we would like to share with you the facts:
Allegation: “The Board intends to bring a motion prior to the election to shorten the term of the new President to seven months, with a new election for President to be held in March 2025…”
RESPONSE: The reasoning behind the Board-approved recommendation for a one-time seven-month term was that the term was thrown off cycle by the conflicting bylaws that give the president a two-year term from the time of election regardless of the date of election, with no provision for shortened terms.
Because this EM is during off-season, this waiver resets the calendar on the term of office for the President elected at this Extraordinary meeting to end at the 2025 Annual General Meeting, ensuring that the next election in March is to a full two-year term and with the full participation of the membership in nominating the slate of candidates, including potential candidates who are traveling this month and unable to run on short notice. This gives everyone equal time to plan their schedules and promote their candidacies.
Note: Without the amendment for shortened terms passing at this meeting, under the current constitution the new president would be given a two-year term that would end August 20, 2026.
Allegation: “The Board will also be asking the membership to amend the current statutes (Bylaws)… There is nothing so urgent in the proposed changes that they need to be voted on at this EM.”
RESPONSE: The proposed changes to the bylaws are necessary. Important governance issues raised regarding terms of office, authority of the Board, continuity of leadership, and conformance with Mexican law are addressed in the amendments. They can be read in their entirety and in an executive summary at https://lakechapalasociety.com.
The board is also committed to forming a Bylaws/Governance Committee to fully evaluate the current and amended constitution to improve governance and conform with Mexican law without the time constraints of this EM. Any additional amendments could be ratified at an EM scheduled for immediately preceding or following the AGM in March 2025.
Allegation: “Over the last few years, the established separation between day-to-day operations and the Board’s role have been blurred. In fact, the Board has been actively interfering with operations and staff.”
RESPONSE: It is the Board’s responsibility to set budgets, policies, and expectations for the staff. The Board also has the responsibility to hold the Executive Director and staff accountable for meeting those expectations. It is unreasonable to expect that once an Executive Director is hired that they have carte blanche to carry out their position without regular oversight and input from the Board.
Management of any issues with the performance of the Executive Director is a personnel issue requiring confidentiality. When serious performance issues came to light, the Executive Committee acted in closed session to take corrective measures as necessary including implementing a performance management plan.
In another area, the Board has proposed limiting its authority “to authorize the hiring and dismissal of other personnel.” Far from wanting to micro-manage staff, the proposed amendment to Section 9.04(c)(4) would restrict the Board’s authority to senior-level staff positions and for authorizing the hiring of unbudgeted permanent or temporary positions. Positions not falling under the Board’s approval authority would be under the direct authority of the Executive Director.
The LCS Board is committed to providing mentoring, guidance and training to the new Executive Director to ensure her or his success and to thrive in their new position and in leading our organization.
Allegation: “The membership was not openly informed of the $750,000 peso deficit recorded at the end of 2023. In addition, at a recent board meeting, the Treasurer announce that the deficit for 2024 to date is an additional $900,000 pesos. Due to overspending, the financial stability and foundation of the Lake Chapala Society are now at risk.”
RESPONSE: The LCS Executive team recently received the final financial audit report. It has been posted on the LCS webpage (in advance of formal acceptance by the Board, scheduled for its Aug. 15 meeting).
Far from the claim of insolvency and “hemorrhaging money,” the Audit shows that LCS had hugely successful capital campaigns and bequests in 2021 and 2022 to meet our obligations to address major liabilities on the campus that presented physical risk to users and to make necessary improvements to the building and grounds. Spending capital campaign dollars and reserves on planned projects is not putting LCS at financial risk.
The funds recently spent came primarily from the generosity of those who donated capital funds in the past and for a new campaign for the bathroom reconstruction. As with most construction projects world-wide, some did go significantly over budget.
The largest cost overrun was on the new restrooms and sewer system, a fact that was withheld from the Board by the then-Executive Director overseeing the project until it was too late. The Board was repeatedly given assurances that the project was on budget, yet he committed LCS to greatly exceeding the hard budget cap given to the contractor without getting Board approval. LCS ultimately dismissed the architect and consulted with a contractor who generously donated his services because he had been the recipient of an LCS educational grant.
Is LCS on solid financial footing? Not yet, but it is getting closer. During Covid shutdowns, LCS was in dire risk of running out of money. Generous donors – large and small – came forward and kept the organization going, even when doors were closed because of Covid shutdowns.
Allegation: “Steve Balfour has a conflict of interest serving as the Executive Director while operating a business.”
RESPONSE: First, Steve agreed to be the Interim Executive Director as a volunteer and has not taken a peso from LCS since he stepped down as President in June, saving LCS the salary and benefit cost of nearly $3,000 US per month. He also has not taken compensation for the position of President.
Second, Steve has not profited financially from the Concerts in the Park. This is 100% charitable fundraising. All ticket sales and proceeds go through the LCS office, or through the charity benefitting from the event. As promoter not a peso goes into his pockets. This is a generous gift of Steve’s time and talents to LCS and a dozen community charities. Steve donated tens of thousands of his own dollars to purchase the stage, equipment, lights and sound system to begin holding the Concerts in the Park.
Over the past three years more than 65 fundraising concerts with over 13,000 tickets sold, raising more than $7 million pesos for LCS and other Lakeside charities including Cruz Roja, Ninos Incapacitados, Lakeside Little Theatre, Foodbank Lakeside, Escuela de Mariachi Pedro Rey, and Ajijic Cares.
Allegation: “Support for the Mexican Community has declined in the last several years, especially the Wilkes Center.”
RESPONSE: Critics have said that LCS should stop blaming Covid for our problems, saying “It’s been over for two years!” That is a narrow and misleading statement. Many non-profits, restaurants and businesses Lakeside are still hurting deeply. Not just in trying to recover from the pandemic, but also from steep inflation and weaker Canadian and U.S. dollar exchange rates.
Support for the Mexican community has grown. The Wilkes Center is recovering well. The summer conversational classes just concluded, and dozens of returning and new volunteers are preparing for another new school year of classes for all levels.
With other construction projects on the LCS grounds complete, the focus can now turn to other needs, including many years of deferred maintenance on the Wilkes facility. This is important, because it is the hub of connection between LCS and Mexican nationals in our community. They feel comfortable there, in a space where they know they are truly welcomed and will interact with ex-pats who generously donate their time to make a positive difference in their lives.
The Children’s Art Program including the Summer Art Camp, is thriving. Nearly 200 Mexican youth attended a vibrant camp, energized by local artists and volunteers. Some were new, some were returning, but all report great success and happy and engaged children. The children got to choose whether to keep their art or sell it at an art show at LCS.
The rebuilt café is thriving under Casa Linda in the Garden’s operation, and we fully expect them to renew their lease in December. For the first time, we are fortunate to have café operators who are a young Mexican family, highly motivated to employ and train locals, and who have invested more than $20,000 US in the kitchen.
The Mexican community is also financially supported. The application period for higher education student aid just ended, and 40 students will be receiving funds from the Student Aid Program.
LCS also has been collaborating with local firefighters to offer English classes to the members of the department, and the firefighters have agreed to offer CPR classes at LCS in the near future.
Allegation: LCS is “spinning out of control.”
RESPONSE: LCS is not, as alleged, “Spinning out of Control.”
As stated in her campaign announcement, current President Yolanda Martinez says: “Are there still financial issues? Yes. Can communication be improved? Yes. Can the bylaws be amended to provide clearer authority and responsibilities to the Board and allow them to better oversee the day-to-day operations of the organization? Yes. Is LCS going in an “unsustainable direction” as alleged? Absolutely not.”
There is no evidence of misfeasance by the former President or the Board. Most of the valid complaints can be attributed to cutting corners on process for the sake of expediency. Historically, LCS Board minutes have been a broad overview. Board actions and LCS activities are documented in the Conecciones Magazine in the President’s Messages and articles. Monthly Board meetings have always been open to the members to attend. For years members have opted to not attend.
It is time to move on from errors and omissions of the past. All three announced candidates have publicly stated that they are committed to full transparency, adherence to the bylaws, and increased member engagement in LCS governance.
The fact is, the Board’s recommendations for changes to the bylaws to ensure it is the final authority for decision making, and not any standing or ad hoc committee. The amendment reads: “The establishment of committees does not cede authority and control by the Board to that committee. The Board has ultimate responsibility for making decisions recommended by a committee.” This will ensure that decisions are voted upon in open sessions of Board meetings and be properly recorded in the minutes.
Allegation: “As President of LCS, Yoly will be expected to be a key fundraiser for LCS while at the same time raising funds for Cruz Roja’s large construction project.
RESPONSE: From Yolanda Martinez: “Recent posts on Facebook and online regarding my presidency of the Lake Chapala Society include the claim that my ongoing, successful fundraising work for both LCS and Cruz Roja is a “serious conflict of interest.” That is a very serious charge, and it is untrue and insulting.
When I am representing Cruz Roja, I am concentrating on Cruz Roja. Likewise, when I am representing LCS. I have been successfully doing both without conflict or complaint for many years.
The generosity of the Lakeside community is not a finite resource, and I would argue that my extensive community and government connections are an asset to LCS. When I fundraise and solicit donations, people know they can trust me, and I believe those relationships encourage people to dig deeper and give more, not less.
They wrote: “Shame on the LCS Board for tasking her with another major responsibility.” This implies that I am too busy with my other work and volunteering to give my best to LCS. Again, not true. I turned my successful small business over to my former employees so I could concentrate my time and energy into community service. involved and engaged. I have a solid record of successes.
As I wrote in my announcement of my candidacy, I chose to run when I learned of Terry Vidal’s plans for LCS and the terrible things about LCS and the Board being said and written in support of Terry. This was my choice, and my choice alone, and I do not take on commitments I cannot keep.
Allegation: LCS is not welcoming to conservatives.
RESPONSE: The LCS Mission Statement: “The mission of the Lake Chapala Society, A.C. (the “Association”) is to promote the active participation of Lakesides’ inhabitants to improve their quality of life. By making this commitment we signal to the community that our focus is based not just on expatriates but everyone living at Lakeside.”
LCS is welcoming to all, regardless of political affiliation (or non-affiliation), religion, orientation, gender, or nationality. The campus is open to organizations that are politically affiliated, but we do not discriminate among them.
It is disheartening that people are taking sides against each other on issues of personal choice, especially when it comes to those who are in what is protected class status north of the border. If individuals from any group want to schedule an activity or events, they can. If they don’t, they don’t have to take part.
Allegation: The LCS Board is not following the LCS 2.0 Plan
RESPONSE: The Board has worked to implement many aspects of this 2019 long-range plan. The primary variance to the plan is Section 4, “Campus Redevelopment.”
During Covid, LCS was within months of closing its doors. Given the financial crisis that accompanied the pandemic and the responsibility to meet the urgent priority needs for infrastructure and safety improvements, it has not been financially feasible to pursue building a new Grand Sala and a Learning Center as proposed in LCS 2.0. It is time to convene an LCS 3.0 workgroup to evaluate the current status and future needs of the LCS community and our Mexican neighbors to guide planning and decisions in the coming decade.
