2022 Budget ReportAssociation News, Member News
The Tahoe Donner Association Board of Directors approved the 2022 Budget at its October 15 budget workshop. This action came after multiple public workshops and feedback from our membership. The 2022 Annual Assessment is $2,349 per property, an increase of $108, or 4.8%, over 2021. To view the 2022 Budget Report, click here.
The Tahoe Donner Annual Assessment includes:
|Operating Fund||$ 946|
|Replacement Reserve Fund||$ 848|
|New Machinery and Equipment Fund||$ 0|
|Development Fund||$ 555|
|Total Annual Assessment||$2,349|
The 2022 Budget assumes a transition to near-normal operations after the COVID-19-influenced budget of 2021. As in prior years, the budget attempts to balance the provision of high-quality member services with the cost of providing them. Despite continuing significant cost pressures, staff developed a budget that reflects a $50 decrease in the Operating Fund portion of the overall Annual Assessment as compared to 2021.
Staff expects total (non-Assessment) revenues from public and private amenities, food and beverage outlets, lessons and rentals, etc. to increase approximately 6% in 2022 versus the pre-pandemic level of 2019.
The budget reflects increases in employee compensation and benefit costs to remain competitive within the Truckee region to retain our valued staff. With the board’s support, staff implemented salary and wage recommendations put forward by a consulting group that independently undertook a comprehensive compensation study. We were also able to reduce the burden of medical costs on our employees along with making our 401(k) plan more competitive. We saw a further $289,000 increase in our liability insurance premiums (on top of a $327,000 increase in 2021, a 23% rise from 2020) along with modestly higher operating costs to safeguard the $2M+ golf course enhancements completed in 2020 and 2021. The Board of Directors and management continue to strategically invest in defensible space and fire hazard mitigation programs for homeowners and on Association open space.
Member and guest private amenity access fees were increased by $1 (they were not increased last year) while the optional Annual Recreation Pass for private amenity access for up to four persons increased $10 (2.6%) to $395; it remains a terrific value. Next year, the Association Board and staff will carefully review the economic structure of the Annual Recreation Pass to address fairness concerns for members with smaller families.
Management demonstrated creativity and resiliency while effectively operating our amenities in 2020 and 2021 given the ever-changing dynamics of COVID-19. The 2022 Budget is based on being able to operate all amenities without significant COVID-19-related restrictions. If circumstances change in 2022, management will again adjust operations to address COVID-19 limitations on Association operations.
Tahoe Donner’s 50th anniversary in 2021 is a clear reminder that facilities built around our opening in 1971, such as the Downhill Ski Lodge, the Northwoods Clubhouse and the Tennis Center, are nearing the end of their long, useful lives and need to be replaced. Therefore, staff has developed a DRAFT 20-year Capital Improvement Plan (CIP) that will be refined with input from the Board of Directors, the Finance Committee, the newly established Long-Range Planning Committee and members. The refined CIP will allow management to create an appropriate long-term funding schedule to address the many projects that need undertaking in the years to come.
The Board has a responsibility under California law to ensure that there will be funding sources in place for these projects. Accordingly, the 2022 Budget continues to contribute proportionally more of the Annual Assessment to our Capital Funds.
Todd Martyn-Jones | Director of Finance, Accounting and Business Support
Stephen Mahoney | Board Treasurer