October 2016

“The most important decision we make is whether we believe we live in a friendly or hostile universe.” — Albert Einstein

Fall in the mountains with brisk mornings, warm afternoons, and cool evenings continues to be one of my favorite times of year here in Tahoe Donner. For our association, it also marks the start of our annual budget planning cycle leading toward a solid map for next year’s membership resort programs and activities, which impacts the annual assessment and is conducted with the board of director’s annual guidance, finance committee review, member feedback, and much internal staff review. The 2017 budget process reviews the existing program offerings, along with board approved strategic initiatives — all primarily designed to benefit the membership. Our primary objective as an association remains to accomplish our stated mission while continuing to pursue our vision by focusing on our strategic plan goals.

Mission: Tahoe Donner is a recreational-oriented mountain residential community, whose mutual benefit association of 6,500 owners provides for the standards, regular operation and long term maintenance of programs, facilities and open space. Through continuous improvement, customer service, and fiscal accountability, the association maintains leading standards of natural resource stewardship, facilities, programs and services to benefit the owners/members. Organizational effectiveness and innovation within the association is sustained by maintaining a highly professional board of directors, staff, and homeowner committee volunteers, while also engaging the local community in an effective and collaborative relationship.

Vision: Tahoe Donner is a vibrant and desirable mountain community, providing attractive and well-maintained facilities, events, programs, and leading customer service to its members, guests, and public, all while maintaining accessible and healthy natural surroundings.

Strategic Plan Goals:

1. Execute the board-approved Capital Plan on time and within budget.
2. Balance operating revenue and expenses with the need to provide first class services for members, member guests, and where appropriate, the public.
3. Execute effective approaches to maintaining the association’s architectural, covenants, and communication standards.
4. Establish a proactive approach to maintaining the health of our natural resources and defensible space.

Our board of director approved planning guidance for the 2017 annual budget is:

1. Address the excess member’s equity operating fund balance as a result of positive operating results to budget
2. No increase in 2017 annual assessment, which may require more aggressive revenue assumptions and or cost control service level impacts
3. With approximately 25 percent funded reserve, hold Replacement Reserve portion of annual assessment
4. Strategic plan priorities are still valid
5. Development Fund values time over increasing funding level
6. Identify Replacement Reserve major improvement plans for board validation
7. No modification to calendar fiscal year
8. No change for 2017: Transfer fee, recreation fee, or daily member guest $6/$8
9. Public amenities: target public prices for greater increases, minimize member prices increases where practical
10. Private amenities: minimize member price increases where practical

The board of directors are scheduled to review the final 2017 budget at their next regular board meeting on Oct. 7. Currently, in keeping with board guidance, it appears that the 2017 annual assessment will not need to increase from the current $1,900. Regards the end financial result of our association operations and capital investment, utilizing the measurement of the annual assessment, we see the following compounded annual growth rate (CAGR) with this currently drafted 2017 budget.

While each annual assessment and calendar year has had its own successes and challenges over these years, the end measurable result is often the annual assessment. Of course, there are many ways to analyze the components of the annual assessment, from customer service satisfaction, to ratios and relationships of revenue to expense, or even property values. Many of those aspects of value are reviewed in our annual budget process and throughout the year utilizing a variety of methods. As a common interest development, California Mutual Benefit Corporation, and federal Social Welfare Organization with almost 6,500 owners and approximately 25,000 members, we have a diverse series of interests to address while achieving our mission and effectively reaching for our vision. With 2016 being an election year for public offices, there seems to be an increased level of interest in our association from a variety of the membership. While we do have a diverse membership, an annual association election process, board authorized committees, and management structure to provide for governance, we also have several very organized interested groups in the form of our mostly outdoor activity-based clubs. Aside from these recognized association groups with different roles and interests, we have a variety of other methods of gauging membership interest, which includes comment card feedback, letters to the editor posted on the association website, membership comments on various social media platforms, direct membership feedback via email or in person at scheduled meetings, membership surveys, and feedback associated with specifically developed long range plans like the association master plan currently being developed for capital project re-investment in our association infrastructure. In addition to these various items, the board is also reviewing two of our governing documents needing to be updated, to better reflect current California common interest development law. These draft updates to the associations covenants and restrictions and bylaws will be the subject of future board meetings and ultimately ultimately be brought to a membership vote to approve required updates to these documents.

Winter 2015/2016 and Summer 2016 have reached new benchmarks for association success from member utilization to record revenues from operations as reviewed and covered monthly with the board of directors. While these successes have come on the heels of several very difficult winter impacted drought and increased regulatory operating costs, we still see tremendous membership capital investment satisfaction survey results. It’s always a great pleasure to work with such a dedicated and talented team here at the association, along with our volunteer board, committees, and, of course, our engaged clubs. Tahoe Donner is indeed a friendly and desirable mountain community.

Lastly, the Town of Truckee Trails and Bikeway Master Plan trail #13 from Tahoe Donner to downtown, known as the Trout Creek Trail, is complete! My appreciation the entire Town of Truckee team who has led the planning, implementation, and oversight efforts on this amazing project for our community. Thank you!

Robb Etnyre | General Manager