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My experience (several years as a board member in a HOA) was that the
Management company was supposed to bulldog collections issues, monitor legal
issues, report on certain things around the neighborhood (compliance with
covenants, for instance), and offer suggestions to the board since the
management company should have more collective experience than most HOA
boards. In addition, the Management company was supposed to offer a buffer
so PO'd homeowners didn't start fistfights in the street with board members.
Of course, there is a fee associated with this, and it is substantial. In
our association, the Management company did a truly horrible job and we
fired them. If all Management companies were as bad as the one we hired, I
don't think the management company industry would last very long.

I haven't followed this thread blow by blow, but mgt. companies are
worth every nickel. They can do the really unpleasant stuff, but can't
make board decisions. Can help keep boards out of legal trouble. That
said, the issue in this thread may represent a good decision. In
Florida, boards are legally required to maintain the property. Not
optional, not based on cost. Potholes obviously represent a maintenance
need. At some point it is wise to stop throwing good money after bad
and put down a good road. The total $ is big money, but the owner share
is far from hardship. It gets real tiresome to have folks coming to the
door about maintenance deficits when boards don't do their job. We just
fixed a sagging roof - wood beam rotted entirely through - that was held
up for years with two sections of downspout. Makes for some good jokes
with the contractor crew )