March 2015

First, I want to thank those members who turned out for meetings as well as those who provided written feedback regarding the board of director’s review of potential snowmaking operations for the learning area of the Downhill Ski Area. Following three articles in the Tahoe Donner News, three board meeting discussions, one town hall meeting, a weekend of snowmaking sound demonstrations, and countless general plan committee meetings on the subject over the past year, the board is scheduled to potentially act on the subject at the March 28 regular board meeting. I will not try to repeat the plethora of established information on this proposed project here, as those details are still readily available on the association’s website. However, I thought it worthwhile to point out that the association’s current insurance policies (property and casualty as well as workers’ compensation) cost the association over $1.3 million annually. A one-time capital investment (snowmaking, akin to snow insurance) in our downhill learning area offers a great deal of benefits for our association. These are tangible revenue benefits significantly outweighing the investment cost, not to mention the importance of membership service level satisfaction at the Downhill Ski Area, and fits perfectly with our association’s mission statement:

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.    

In the continuing process of developing amenity improvement plans with our volunteer general plan committee, some members have asked for clarification on what type of organization Tahoe Donner is, and why we reinvest in our amenities and support facility infrastructure. Tahoe Donner is a 501(c)(4) federally tax exempt social welfare organization, and a California mutual benefit corporation focused on providing recreational facilities and architectural standards for our community; amenities like the Downhill Ski Area make a significant contribution to not only the membership’s recreational needs, but also to the local economy as well as the financial viability of our homeowner association business model – which helps mitigate the annual assessment. Tahoe Donner is not your typical homeowners association, nor should it be confused with other private clubs or tax-based funding institutions. Tahoe Donner was created in the early 1970s as a recreation homeowner community with the majority of its amenities and programs open to the public. Our mutual benefit association business model is focused on providing a vast array of recreational facilities for our membership, guests, and public in keeping with our covenants and restrictions, bylaws, California mutual benefit corporation status, regulatory use permits, and our federal 501(c)(4) social welfare status. These services are provided for in each year’s budget; the 2015 operating budget is $15.6 million, with an individual property annual assessment of $1,800 ($994 for the operating portion of the assessment) contributing $6.4 million of the annual operating budget. Of this $15.6 million, 41 percent is comprised of annual assessment operating funds, and 59 percent ($9.2 million) of annual revenue is generated by our operations (non-assessed). Over the last six years (2009-2015), the compounded annual growth rate of the operating assessment is 6.1 percent. The 2015 budget report covered the change in operating revenue assumptions given low snow year averaging along with increased workers’ compensation costs. The annual compounded growth rate of the annual operating assessment prior to 2015 was only 3.9 percent. The employer mandate portion of the affordable care act will likely have a significant impact on the 2016 budget along with the new California minimum wage laws. During the period of 2009-2014 the number of full-time benefited employees has only grown from 59 to 64 (measured as of Dec. 31 annually). Total association employees have ranged from 620–801 during this time period, with seasonal fluctuation based mostly on weather and operating amenity volume.

The capital fund expenditures and portion of the assessment is a direct reflection of the age of the community, i.e., the replacement schedule of aging equipment components (Replacement Reserve) and the replacement of outdated or undersized facilities (Development Fund), all guided by the general plan. The operating portion of the annual assessment is directly influenced by amenity operations and the successful generation of non-assessed revenue ahead of expenses. While we have seen extremely strong membership utilization for the last several years at almost all of our amenities, we have also been fortunate to have enough excess capacity in our public amenities to invite the public to share in our Tahoe Donner programs and services, which significantly augments our revenue and keeps our operating assessment low to benefit our members as well as the greater Truckee community.

Summer program and camp registration will be available starting March 9! This is the third year in a row we have had our programs online and ready for early registration. After excellent past member feedback indicating a desire to open our summer program registration earlier in order to allow members to plan their summer activities and vacations, we have moved up our entire registration program. We also expect to publish our Summer Fun Guide early enough to further allow members to plan their summer fun.

Lastly, I wanted to share our draft Strategic Plan Goals the board of directors will be reviewing and finalizing at their March 28 board meeting. Your feedback on this article, association issues, and our future goals is always welcome. Please send that feedback to myself or the board of directors.

2015-2020 Tahoe Donner Association Goals (Draft)
1.  Execute the board-approved Capital Plan on time and within budget.
1.1.    Development Fund
1.1.1.    Implement the 2030 General Plan
1.1.2.    Work with the General Plan Committee to draft the 2035 General Plan
1.2.    Replacement Reserve Fund
1.2.1.    Execute a replacement reserve program in concert with the reserve study
1.2.2.    Ensure the Reserve Fund is adequately funded.
Board Resolution 2013-3, Reserve Fund Policy “The annual Replacement Reserve Fund allocation shall be increased by a minimum of 4% each year until such time as the Percent Funded level exceeds 25% and until the Replacement Reserve Fund balance is equal to or exceeds 10% of Net Replacement Reserve Assets.”
1.3.    New Machinery and Equipment Fund
1.3.1.    Ensure adequate funding supports Goal No. 2
2.  Balance operating revenue and expenses with the need to provide first class services for members, member guests, and where appropriate, the public.
2.1.    Maintain an equitable relationship between operating revenue and assessed revenue
while not sacrificing membership service level expectations.
2.2.    Establish outstanding year-round association programs and special events to benefit
the membership.
2.3.    Employ and retain knowledgeable and dedicated full-time and seasonal employees
who are willing to serve member needs.
2.4.    Continue to improve information technology services to support and integrate resort
and member operations.
2.5.    Ensure employee and customer health and safety are first and foremost in our
planning and operations, while encouraging individual responsibility, given the
inherent assumption of risk in resort activities.
3.  Execute effective approaches to maintaining the association’s architectural, covenants, and communication standards.
3.1.    Execute the long-term architectural standards homeowner inspection program as
approved by the board of directors.
3.2.    Continue to improve the communication vehicles to the membership with regard to
resort activities, while also emphasizing our unique large scale common interest
development budgetary model.
3.3.    Update the association’s governing documents to align with
the California Corporation’s Code and current Davis-Stirling Act.
4.  Establish a proactive approach to maintaining the health of our natural resources and defensible space.
4.1.    Implement the ten-year forest management plan
4.2.    Continue to emphasize and execute the eight-year home
owner lot defensible space inspection program.
4.3.    Promote efficiencies in energy and water use for greater
self-reliance and energy independence while properly
maintaining our amenities.
4.4.    Develop an association-wide amenity recycling program.
4.5.    Continue to develop a land management plan in cooperation
with the board-established Land Management Working Group.
4.6.    Implement the Trails Master Plan as approved by the board
of directors.

Robb Etnyre | General Manager