tres valles west property owners annual...

TRES VALLES WEST PROPERTY OWNERS ANNUAL MEETING August 2, 2014 1:30 PM La Veta Community Center

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Agenda

•  Call to Order – 1:30 •  Proof of Notice of Meeting •  Determination of Quorum •  Introductions •  Approval of 2013 POA

Meeting Minutes •  Highlights and

Accomplishments •  Common Area •  Architectural Review •  Water Decree/Pond

Augmentation Final Result •  Communications •  Governing Documents

•  TVW Water System •  System Review •  Special Assessment Update

•  Long Range Plan •  Update •  Proposal – Ranch Maintenance

Assistant •  Financial Presentation

•  2013 Financial Report •  2014 Year-to-Date Report •  2015 Budget Presentation •  Vote on 2015 Budget

•  Board of Directors Election •  Other Business •  Adjourn

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TVW Board of Directors and Officers ! President – Maria Smith ! Vice-President – Larry Goldman ! Secretary – Rod Gerik ! Director – Forrest Dykstra ! Director – Mike Smith ! Officer (non-director) – Steve Keppers, Treasurer

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Property Owners

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COMMON AREA Forrest Dykstra

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Common Area

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! Common Area Committee Members •  Forrest Dykstra– Chair •  Greg Woods •  Brian Chiquette •  Steve Keppers

! Common Area Tasks •  Maintain Roads including snow removal and grading •  Manage Common Area uses and appearance (grazing, weeds,

front gate and entrance area) •  Provide recreation opportunities for residents (trails and ponds) •  Coordinate with outside entities (San Isabel Electric, Tabula Rasa)

Common Area

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Road Maintenance – Always a Challenge ! Snow Removal - Coordinated by Brian Chiquette – Plow when we

get 6” at gate or as needed due to drifts

!  Road Grading and Improvement – Trying to use existing material as much as possible. We are doing test section of adding imported road base. Want to do during wet weather since this helps compaction of material to keep it in place

! Culvert maintenance – This helps keep storm flows off road and in ditches. Routine but important

! Last September storms caused a lot of road washouts

Common Area

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Common Area Maintenance – Lots of Different Things ! Weed Management- Coordinated by Greg and RJ – Helps control

noxious invasive weeds that could take over common area if not managed – Huerfano County assists in costs

! Cattle grazing- source of revenue and allows us to maintain agricultural zoning status

! Front gate maintenance – Keeps gate and keypad operational – helps control access

! Entry appearance – Busy McLean has worked hard to improve front entry upgrades. It’s taking time to control weeds and rodents but it’s looking better.

Common Area

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Recreation Opportunities - The Fun Part ATV and Hiking Trails - Opportunities for residents to enjoy views and wildlife in Common Area – Trails maintained by volunteers – Keeps trails marked and clear of grass/brush Ponds – Fish stocked in both ponds this year – Small rainbow trout but they will grow! Catch and release for now until they get some size

ARCHITECTURAL REVIEW COMMITTEE AND BOARD ARCHITECTURAL APPROVAL COMMITTEE John Frederick Mike Smith

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Architectural Committees ! Architectural Review Committee (ARC) Members

•  John Frederick – Chair •  Tom Coseno •  Greg Woods

! Board Architectural Approval Committee (BAC) Members •  Mike Smith – Chair •  Larry Goldman •  Rod Gerik

! BAC Provides final approval of applications filed with, and reviewed and recommended by, the Architectural Review Committee

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Architectural Submissions August 2013 – July 2014 •  Electric Fence – ARC approved in principal, request to Owner to flag

area, no Owner action. Status: pending Owner Action •  Deck Extension – ARC/BAC approved •  Snow fence ARC/BAC approved •  Construction of multiple RV sites on one Lot. ARC/BAC did not

approve multiple sites. (Covenants 6.3 & 6.8) Owner notified single RV site would be considered. Status: No revised application submitted

•  Relocation/expansion existing electric fence – ARC/BAC approved •  Installation small free-standing greenhouse kit building – ARC/BAC

approved •  Construction patio/courtyard extension – ARC/BAC approved •  Driveway excavation/construction – Owner notified location needs to

be flagged for inspection. Status: pending Owner action.

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WATER DECREE/POND AUGMENTATION FINAL RESULT John Frederick

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Water Decree/Pond Augmentation September 11, 2013 – Closed on Water Right Purchase ! 1/60 interest in the Coler System (9.25 acre-ft) 2009 Annual POA Meeting ! $240,000 Special Assessment approved by Owners as

the estimated cost of the water right including legal and engineering expenses

Final Accounting (Actual) ! $247,540 Income (Assessment plus Interest) ! $288,233 Expense (Legal, engineering, construction,

water right purchase) ! Expense over Income - $40,692.78 (17%)

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GOVERNING DOCUMENTS Rod Gerik

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Governing Documents Revised: Parking/Storage Guidelines

! Applies to RVs, travel trailers and utility trailers stored at quarry ! 2013 changes revised and updated a 2012 proposed Guideline

Revised: Collection of Unpaid Assessments Policy ! New statue – Associations must offer repayment plans prior to

turning account over to Collection Agency or Attorney

New: Colorado Homeowner Association Statues ! Jan 2013 – statute delineates and clarifies what Association

records an Owner is entitled to inspect ! Associations were required to withhold Owners’ e-mail addresses and

telephone numbers ! Aug 6, 2014 – statute allows Associations to disclose e-mail

addresses and telephone numbers with Owners’ written consent

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TVW WATER SYSTEM Maria Smith

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Water System Advisory Committee Committee members

•  Maria Smith - Chair •  Forrest Dykstra •  John Frederick •  Greg Woods •  Mike Smith

Contributors •  Bob Northup – System ORC •  Ragan Jacquart – Water Plant Assistant Plant

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Water System Advisory Committee Purpose: ! To ensure that the decisions relative to our TVW Public

Water System are compliant with the State of Colorado requirements and are appropriate for the Tres Valles West Owners Association.

! To ensure that the decisions regarding the entire TVW water system are compliant with the various decrees, agreements and Quitclaim deed which govern portions of the system.

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TVW Water System State controlled Public Water System

• Water Plant with filtration system •  Process control and data acquisition system •  State requires communities with over 15 residences or 25 people

in residence to have a water filtration system

• Water Sources •  Spring 2 (main source) •  Spring 1 (supplemental source)

• Distribution System •  Piping, meters, distribution tank, pressure reducing valves

• Reservoir (C T Ritchey) •  Lining, ballasts, gauges, piping, fencing

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Water Plant Filtration System • Process Control

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Water Plant – Tank Levels

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•  Spring 2 (main source) •  Spring 1 (supplemental source)



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Water Sources

Spring 1 ! Supplemental water source ! Important as TVW grows ! Important should spring 2 need re-development

Spring 2 ! Main Water source ! Flow is excellent with adequate moisture ! Can be a concern during draught times

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•  Piping, meters, distribution tank, pressure reducing valves


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Distribution System Piping

26

To#Crawford#

Replaced#2010#2440#3#

Pond%2'1%

Exis8ng#Spring##3#Water#Line?#

Scale:#1”#=#1100#3.#

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•  Lining, ballasts, gauges, piping, fencing

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CT Ritchey Reservoir

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C T Ritchey Reservoir What…..

•  Reservoir 27.5 Acre Feet •  Fencing, piping, liner, valves, gauges •  Water is stored in early spring, and released for downstream use in

late summer and fall as directed by the Division Water Commissioner

•  The TVW Owners Association is responsible for the C T Ritchey Reservoir.

…And Why •  The water rights for Tres Valles West residential use •  Under a 2001 Water Court Decree TVW must replace the water

used from the three TVW springs and thus depleted from downstream use. (on a consumptive use basis).

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TVW Water System - Activity Review

Erratic Tank Level Readings Normal Tank Levels

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Spring 1 – Last Year Began serious evaluation summer 2013

•  Spring box, piping and pump installed and tested in 2004. •  Question relative to the viability of the spring and the status of the pump •  2013 Pump repositioned, pump saver installed, logs of flow and depth of

water in spring box, new access to spring box

Result during 2013 •  Testing showed viable spring and functioning pump •  Reconnected the pump to the piping over the ridge to Filtration Plant •  No water flow •  Began effort to determine problem – valves, leak, pump not adequate

for required psi??? •  Other priorities and weather Dig at Spring 1 abandoned until

Spring 2014

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Spring 1 - 2014 May 2014 – Resume work on Spring 1

•  Big dig at spring box, repair valve and piping •  May 9 – successful flow from spring 1 to Water Plant •  Problems with debris in line – clogged meter and pressure valve at

water plant •  May 28 – water flowing successfully – then stopped!

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Spring 1 Water at Filtration Plant May 9 – successful flow from spring 1 to Water Plant Problems with debris in line – clogged meter and pressure valve at water plant May 28 – water flowing successfully – then stopped!

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Spring 1 – Pressure Test Pump June 6 – OJO Spring Drilling tested pump, installed dole valve and recalibrated pump saver

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Spring 1 – Puzzle

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• Pump runs – pressure tested • Water outflow at low point drain (when opened) • No water gets “over the hill” to the Filter Plant • No visible leakage found

8/11/14

Spring 1 – Bigger Dig July 3 – after numerous tests to determine problem ----- Bigger Dig at spring 1

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Spring 1 – Bigger Dig

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Spring 1 Today 270 feet of faulty piping being replaced with continuous flexible piping Completion scheduled for Aug 4-9

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Major Issues 2013-2014

Issues

• Erratic Tank Level readings – cause Process control to fail

• Distribution Piping leaks/blowouts – repairs costly

•  Turbidity in finished water – can cause system shut-down

• Spring 1 – necessary water source

Result/resolution

• Replace Transducers, upgrade Multiranger software

• Repair leaks, install “Y” trap for debris

• Chemical Adjustments • Work to bring Spring 1

online

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Special Assessment Update

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March&2013&Special&Assessment&&&

Use&of&Funds&&&&& 2013& 2014& 2015& Total&

&& && Actual& Budget&

Actual&to&Date&6/30& Forecast& Budget& &&

&& Piping&Leak&DetecFon& 13,900& 0& 5,800& 0& 0& 2,700& 2,700&&& Backflow&Assemblies& 7,000& 1,926& 1,474& 0& 0& 1,800& 3,726&&& Equipment&Fund&for&2013& 4,000& 2,854& 1,146& 1,905& 1,905& 0& 4,759&

&&DistribuFon&Tank&InspecFon& 1,900& 0& 2,500& 0& 400& 0& 400&

&& Add"l&State&Reqs& 3,200& 0& 0& 0& 8,000& 0& 8,000&&& ConFngency& 0& 0& 4,000& 0& 1,300& 1,000& 2,300&&& Spring&1& 0& 2,794& 206& 2,553& 5,353& 0& 8,147&Total&Assessment& 30,000& && && && && && &&&& && && 15,126& 4,458& 16,958&&& &&Total&per&year& && 7,574& 16,958& 5,500& 30,032&

8/11/14

TVW Water System Known issues going forward

•  Restructure of disinfection process – State Requirement •  UV System proposed

•  Finished water leak – to be resolved during restructuring process

•  Spring 1 on line

•  Backflow assembly testing, cross connection control measures – in process

•  Distribution tank inspection – visual inspection •  Distribution System leakage - Isolation to determine worse stretch

of leak –

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LONG RANGE PLAN UPDATE Larry Goldman

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Long Range Plan - Update Timeline ! Aug 2011 – Committee formed to establish a vision and Plan for TVW

"  Gary Babbitt, John Frederick, Steve Keppers, Angie Chiquette, Mike Smith "  Larry Goldman, Maria Smith

! Aug 2012 - Draft plan presented Annual POA Meeting ! Nov 2012 - Revised plan presented via Webinar ! Dec 2012 – POA Special Meeting to vote on Business Plan – Quorum of

Owners not achieved ! Jan 2013 – TVW Owner survey ! Mar 2013 – POA Special Meeting to approve Special Assessment for the

TVW Water System – passed with 90% approval ! Aug 2013 – POA Annual Meeting

! Present Long Range Plan update ! Discuss potential help for volunteers ! Discuss ways to increase community population of those that “want to

be here”

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Long Range Plan - Update Long Range Plan – Ongoing Initiative for TVW Areas for Investment and Improvement

!  TVW Water System !  Ranch Road System !  Snow Drift Control !  Wildfire Mitigation !  Management by Volunteers

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Long Range Plan - Roads

!  As discussed at last meeting - test case from operating budget No request for special funds !  Test areas

!  From Front gate area to 1st ‘S’ Turn !  Narrow the Road – it has expanded over time !  Pull material back onto road !  Resurface using fines

!  Results !  Performance some better !  Resurfacing has not occurred !  Will use existing budget

!  Lower speeds will help

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Long Range Plan – Snow Drift control Planned work for 2014 - Improve critical drift areas with better placement and higher quality fencing …..(see map)

! Operational budget expenditure Result

! Higher quality fencing installed by professional company in several places – did not stand up to the winter winds

! Still part of Long Range Plan – but to do it right will be

expensive ! Discussion and approval from property owners a requirement

(some snow fencing would be located on individual Lots for effective control)

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Long Range Plan – Snow Drift control ! Potential long term solutions still on the radar ! Colorado State Highway Department currently testing 4 mile stretch

on 160 West of La Veta

!  Snow Predator with 8’ rail

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Long Range Plan – Wildfire Mitigation Wildfire Mitigation

!  2013 Effort to get rid of the large scrub oak and dead wood piles on Owners property and in the Common Area

!  Much improvement – Thank you to Owners who responded with action!

!  Area designated for debris from clearings !  New Committee established to head the effort Firewise Committee

!  Steve Keppers - Chair !  Members - Robin Keppers, Jane Gerik, Greg Woods !  Firewise Community Event – August 2

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Firewise Community Update ! Advantages of FireWise Community designation

! Awareness of the problem and preventive actions ! Community assessment and recommendations ! Development of a plan of action ! Opportunity for matching funds ! Potential insurance benefits

! FireWise USA designation process # Contact FireWise / site visit # Community representatives / FireWise committee # Community Assessment and Plan # Conduct a FireWise Event Day ! Apply for recognition ! Invest $2.00 annually per capita (~$100) ! Conduct annual FireWise event ! Submit an annual report

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Long Range Plan – Property Ownership

Everyone benefits when the great majority of property Owners are pleased with their ownership ! Additional Area for Long Range Focus and Improvement ! A number of Lots are currently up for sale – various reasons

! Financial problems ! Bought property elsewhere ! Legacy property ! Change in family situation

! Promote our TVW Community ! Website page ! Brochure ! Appropriate information for local realtors ! Sign – announce our existence!

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Management by Volunteers ! A lot needs to be done with few people ! Maintenance has historically been handled by volunteers

(except for big equipment tasks) " People not here all the time " People have lives, like to travel " All getting older – difficult to do " People who are here infrequently don’t want to spend all

the time working on Ranch

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Water System Tasks Water System Tasks $  Provide monthly reports for all measured elements of

the system for our Operator in Responsible Charge and the district commissioner

$  Interface with Operator in Responsible Charge $  Ensure monthly Coliform Bacteria sample is collected

and delivered to the Lab within 30 hours $  Monitor and ensure the quarterly and yearly tests are

performed according to state schedule $  Produce and maintain a comprehensive Water

System Procedures document $  Provide detailed instructions for backwashing and

chemical operations $  Produce a General Monitoring plan according to state

specifications $  Produce an Emergency plan according to state

specifications $  Schedule and manage Distribution Tank structural

inspection and yearly inspection as well as the various yearly tests

$  Provide programming support for the Process Control System- making the changes as required and verifying with the vendor before implementation

$  Trouble shoot when anything goes $  Set up and manage equipment maintenance contracts $  Provide commitment responses back to the state $  Work with engineer and/or licensed system repair

people for required changes $  Order parts and supplies $  Determine and justify spare parts requirement $  Periodic monitoring to check point daily maintenance $  Interface with system repair on electronics side as

needed $  Handle pump repair, motor repair with shops in Pueblo

and Colorado Springs $  Coordinate emergency and routine water leak repairs

on main lines $  Coordinate with District regarding CTR issues $  Open and close CTR with bolt on plate $  Coordinate and ensure installation of new water

service $  Bids and coordination – piping and leak identification $  Bids and coordination – distribution tank structural

inspection and repairs

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Water System

Water System Assistant ! Since 2012 ! Provides expert assistance in maintaining the Water

Plant ! On call 24/7

! Responsibilities to increase in 2015 ! Distribution System maintenance tasks ! Oversee requirements at CT Ritchey

! Has taken a portion of the burden which was previously on volunteers

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Common Area Tasks

Common Area Tasks $ Coordinate road maintenance –

adding gravel and grading, culverts

$ Coordinate snow plowing – multiple phone calls and follow-up

$ Cattle leasing – water and fencing issues overall monitoring

$ Coordinate with Crawford on 5 gpm water flow

$ Manage evaluation of Spring 3 $ Handle Main Gate Maintenance

mechanical/electrical/electronic $ Mountain disposal – trash

collection

$ Coordinate weed spraying efforts

$ Coordinate ranch excavations and upgrades

$ Work with and provide manpower for Enhancement Committee on trails, ponds, front gate area, kiosk, road signs

$ Snowfencing – bids, installation, evaluation

$ Road maintenance bids for to be work done

$ Determine best rehabilitation procedures and contract provider

$ Coordinate with San Isabel Electric and Tabula Rasa

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Management By Volunteers – Common Area

Ranch Maintenance Assistant (RMA) ! Proposed for 2015 ! Test/Trial May through July ! Detailed Scope of Work includes:

! Plan and manage the maintenance of the common area roads working with outside contractors

! Snow Fence installation/drift control ! Weed Control ! Monitor and control condition of ponds and dams ! Front Gate Maintenance ! Coordinate with outside entities (electric and gas company) ! Monitor water distribution system (leaks, etc)

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Ranch Maintenance Assistant Results from work accomplished May through July

• RMA time was over 180 hours in the 4 month period

• Accomplishments that would not have otherwise been done • Culvert to gas pad replaced by gas company –

protects our roads • Tree trimming by San Isabel – fire safety issue

• Front gate repair done more expediently • Better management of road and culvert maintenance – protecting roads and saving costs

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Ranch Maintenance Assistant

Culvert Maintenance

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Results from work accomplished May through July • Snow fence repair is quicker saving costs " Leak responses are also

dealt with quicker minimizing damage and water loss

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Conclusions from test period " RMA accomplishes things that might not otherwise be

done, or would take a lot longer. " Helps TVW operate more effectively and can save costs.

" Quicker response for problems and repairs " Presents a well run community to residents, visitors and

buyers " Volunteers will still be an important part of maintaining

TVW "  Intent is not to turn everything over to RMA " Continue to use volunteers for many things - particulary

those that aren’t time sensitive

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FINANCE STEVE KEPPERS - TREASURER

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Financial Report – Balance Sheet 6/30/14 Jun 30, 14

ASSETSCurrent Assets

Checking/SavingsCD-FNB #2003971 Water Reserves 25,016.99CD -FNB #2003960 Common Area 25,016.991001 · Operating Acct. 071099

10011 · Equipment Fund 4,000.001001 · Operating Acct. 071099 - Other 24,411.71

Total 1001 · Operating Acct. 071099 28,411.71

1002 · Reserve Money Market 064009 5,036.221003 · FNB 5191 18,557.07

Total Checking/Savings 102,038.98

Accounts Receivable1200 · Accounts Receivable-Dues 1,266.221201 · A/R Water Fees / PFI -1,536.511204 · Special Assessment 375.00

Total Accounts Receivable 104.71

Other Current Assets1499 · Undeposited Funds 2,258.35

Total Other Current Assets 2,258.35

Total Current Assets 104,402.04

Fixed Assets1503 · CT R Ritchey Reservoir Liner 176,760.001505 · Community Mail Boxes 2,965.741509 · Water System Improvement 28,296.041510 · Water System 203,223.051511 · Utility Water Systems 298,562.961512 · Pumps & Motors 2,599.271515 · ATV Sprayer 349.991520 · Sign Board 1,000.001521 · Water System Controller 18,168.001525 · CT Ritchy Res.Inlet 2,996.341526 · Water Plant RPZ Valve 1,475.001600 · Accumulated Depreciation -267,508.266020-03 · Water Purchase 138,750.00

Total Fixed Assets 607,638.13

TOTAL ASSETS 712,040.17

LIABILITIES & EQUITYEquity

3000 · Contributed Capital 176,760.003001 · Paid in Capital 493,500.003900 · Retained Earnings 24,678.443901 · Retained Earning-Unapprop. -9,394.56Net Income 26,496.29

Total Equity 712,040.17

TOTAL LIABILITIES & EQUITY 712,040.17

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Financial Report – Income / Expense 6/30/14 Jun 14 Jan - Jun 14

Ordinary Income/ExpenseIncome

4010 · Annual Dues 0.00 38,000.004015 · Water Availability Fees 4,293.00 25,758.004017 · Late Charges 151.88 151.884022 · Water Usage Fees 0.00 97.004060 · Road Use Agreement 0.00 2,500.004149 · Fire Mitigation 0.00 50.004998 · Other Water System Income 1,468.35 1,468.354999 · Other Income 0.00 76.547000 · Weed Abatement Reimbursement 0.00 337.508000 · Interest Income 2.91 52.01

Total Income 5,916.14 68,491.28

Gross Profit 5,916.14 68,491.28

ExpenseMiscellaneous Expense 0.00 0.006010 · General and Administrative

6010-03 · Insurance 0.00 2,908.006010-04 · Legal Fees 0.00 180.006010-08 · Tax Prep & Audit 0.00 375.006010-09 · Mgmt & Accounting 303.95 1,972.426010-11 · Property Taxes 0.00 1,355.566010-12 · Website 0.00 141.426010-13 · Return Deposited Item -5.00 0.00

Total 6010 · General and Administrative 298.95 6,932.40

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Financial Report – Income / Expense 6/30/14 6030 · Common Area Maintenance

6030-01 · Gate Electrical 38.69 220.646030-02 · Gate Telephone 52.57 315.336030-04 · Maintenance/Improvement 0.00 459.006030-05 · Remotes/Gate 0.00 325.006030-06 · Road Maintenance 2,115.00 2,430.006030-07 · Snow Removal 0.00 1,800.006030-09 · Trash Removal 320.00 1,600.006030-13 · Ranch Manager 1,000.00 2,000.00

Total 6030 · Common Area Maintenance 3,526.26 9,149.97

6090 · TVW Water System6090-01 · Contract Services 399.74 2,029.386090-02 · Water Maintenance Assistant 1,576.25 5,301.006090-03 · Water Plant Operations 1,185.00 3,317.006090-04 · Electrical Spring # 1 35.02 165.106090-05 · Treatment Plant / Spring #2 184.67 873.556090-06 · Treatment Plant/Telephone 135.31 792.746090-07 · Propane 316.20 2,864.876090-08 · Water Maint. & Supplies 275.38 1,758.286090-09 · Water System- Repair 2,444.07 4,352.94

Total 6090 · TVW Water System 6,551.64 21,454.86

6210 · Long Range Plan-Water System6210-02 · Spring #1 Online 1,298.37 2,553.006210-05 · Equipment Fund 0.00 1,904.76

Total 6210 · Long Range Plan-Water System 1,298.37 4,457.76

Total Expense 11,675.22 41,994.99

Net Ordinary Income -5,759.08 26,496.29

Net Income -5,759.08 26,496.29

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Financial Report – YE Forecast 6/30/14

June 30, 2014Operating Accounts

H2O Assessment Reserve

Total Available

Funds Notes

Account Balances $28,412 $18,557 $55,070 $102,0391001 · Operating Acct. 071099 $24,412 Balance Sheet10011 · Equipment Fund 071099 $4,000 Balance Sheet1003 · Special Assecssment 075191 $18,557 Balance Sheet1002 · Reserve Money Market 064009 $5,036 Balance SheetCD-FNB #2003971 Water Reserves $25,017 Balance SheetCD -FNB #2003960 Common Area $25,017 Balance Sheet

Accounts Receivable / (Payable) $1,988 $375Accounts Receivable + Undeposited $1,988 $375 Balance SheetAccounts Payable ($0) Balance Sheet

Forecast YE Income $99,825Income to date $68,491Income Remaining To Go $31,334

Forecast YE Expenses ($89,934) ($16,958) Incl Reserve & ContingencyExpenses to date ($37,537) ($4,458)Expenses Remaining To Go ($52,397) ($12,500)

Forecast YE Capital Expense $0 $0Capital Expense to date $0 $0Capital Expense To Go $0 $0

Transfers $0 $0 $5,000Operating to Reserve $0 $0 $5,000

ForecastFunds Available as of 12/31/2014 $9,336 $6,432 $60,070 $75,839

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• Objectives and assumptions: # Achieve a balanced budget in total. # The budget addresses only TVW operational income from Annual

Assessment and Water Fees and typical operational expenses. The water system special assessment is not included in this budget – this is managed through separate income and expense account categories.

# Budget increases are proposed and are consistent with a step by step approach to achieving Long Range Planning objectives.

# Budget is proposed for a Ranch Maintenance Assistant. # The Water Rights acquisition was completed in 2013. # The budget was established by line item based on 2013 actual costs, 2014

budget and forecast (June 2014) and inflation (~3%). # An allocation for reserve is proposed. # Income versus expense allocations for both the common area and water

system are essentially balanced

2015 Budget 65 8/11/14

•  2015 estimated expenses / budget: $100,235 •  6010 – General and Administrative: $15,190

•  Applied inflation to insurance, supplies and taxes; •  Reduced management, insurance and audit consistent with actual expenses.

•  6030 – Common Area: $38,160 •  Applied inflation to utilities; •  6030-06 Road Maintenance –$10,000 budget consistent with Long Range Plan; •  6030-11 Weed Abatement – total expenses, 50% Huerfano County match included in

Other Income – Common Area •  6030-13 Ranch Maintenance Assistant – budgeted $6,000 for common area work based

on 2014 trial period; •  6030-14 FireWise – new line item for fire mitigation activities, e.g. brush pile.

•  6090 – Water System: $41,110 •  Applied inflation to services and utilities; •  6090-02 Water Maintenance Assistant – increased budget to $14,000 for added

distribution system work during 2014 Ranch Maintenance Assistant trial period; •  6090-11 – Equipment Fund – continued line item for the replacement of water system

equipment; •  6090-09 Water System Repair – increased budget by $500 to reflect repair history; •  6090-13 CT Ritchey Reservoir – reduced budget to reflect maintenance requirements.

•  6100 – Reserve / Contingency: $5,776 •  $5,000 reserve allocation, $776 contingency

2015 Budget 66 8/11/14

• 2015 Proposed Income: $100,235 •  10% increase in dues to $523 per year ($475 in 2014). • No increase in water availability fees ($53 per month)

• Bottom Line # A balanced budget is proposed. # 10% increase in dues – 2015 dues will be $523

annually. # $5,000 reserve allocation is included. # Income versus expense for both the common area and

water system are essentially in balance.

2015 Budget 67 8/11/14

2015 Budget - Income

H2OActual 2013

Budget 2014

Forecast 2014

Proposed Budget

2015Number of Lots 80 80 80 80Percent Increase in Annual Dues 10% 10% 10% 10%Annual Dues / Lot 432$ 475$ 475$ 523$ Percent Increase in Water Fees 10% 10% 10% 0%Water Availablity Fees / Lot / Month 48$ 53$ 53$ 53$

4010 Annual Dues 0% 34,663 38,000 38,000 41,8404015 Water Availability Fees 100% 46,958 50,880 50,880 50,8804017 Late Charges 100% 66 250 250 2504018 Lien Filing Fee 100% 0 60 60 604020 Gate Remotes 0% 0 15 15 154021 Mail Box Lease 0% 375 250 250 2504022 Water Usage Fee 100% 462 200 200 2004040 Grazing Lease 0% 1,250 1,250 1,250 1,2504045 RV Parking 0% 200 200 200 2004060 Road Use Agreement 0% 0 2,500 5,000 2,5004110 Special Assessment – Water System 100% 30,000 0 0 0

Other Income - Common Area 0% 0 0 2,075 2,090Other Income - Water System 100% 0 0 1,468 0Other Income 50% 1,468 0 77 0

8000 Interest 50% 652 700 100 700

Total Income 116,094 94,305 99,825 100,235

Income

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2015 Budget - Expenses H2O

Actual 2013

Budget 2014

Forecast 2014

Proposed Budget

2015

6010 General & Administrative6010-01 Bank Charge 50% 370 50 50 506010-02 Contributions Fire & Rescue 50% 500 500 500 5006010-03 Insurance 50% 5,544 7,100 5,650 5,8206010-04 Legal Fees 50% 780 1,000 750 7506010-05 License & Permits 0% 0 10 10 106010-06 Annual Meeting 50% 25 300 300 256010-07 Monthly Board Meetings 50% 25 0 0 06010-08 Tax Preperation & Audit 50% 1,375 2,500 1,775 1,7756010-09 Management 50% 4,396 4,750 3,948 4,4006010-10 Office Supplies & Postage 50% 149 300 300 3106010-11 Property Taxes 0% 0 1,270 1,356 1,4006010-12 Web Site Etc. 50% 15 20 160 150

Other Expenses 50% 1,298 0 0 0

Total General & Administrative 14,476 17,800 14,799 15,190

6030 Common Area Maintenance6030-01 Gate Electrical 0% 271 380 444 4606030-02 Gate Telephone 0% 627 650 630 6506030-03 Community Mail Boxes 0% 0 0 0 06030-04 Maintenance / Improvement 0% 2,177 2,000 2,000 1,5006030-05 Remotes/Gate 0% 2,067 620 620 6406030-06 Road Maintenance 0% 7,043 10,000 10,000 10,0006030-07 Snow Removal / Abatement 0% 3,845 9,300 9,300 9,3006030-08 Supplies & Parts 0% 0 500 500 5106030-09 Trash Removal 0% 3,840 4,000 3,840 3,9506030-10 Water Lease Expense 0% 0 0 0 06030-11 Weed Abatement 0% 2,880 2,600 3,375 4,1506030-12 Water Admin Expense 0% 0 500 500 5006030-13 Ranch Maintenance Assistant 0% 0 0 4,000 6,0006030-14 FireWise 0% 0 0 0 500

Total Common Area Maintenance 22,751 30,550 35,209 38,160

Expenses

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2015 Budget - Expenses

H2OActual 2013

Budget 2014

Forecast 2014

Proposed Budget

2015

6090 TVW Water System6090-01 Contract Services-RN 100% 5,007 6,900 4,920 5,0706090-02 Water Maint. Assist. 100% 9,188 12,000 11,520 14,0006090-03 Water Plant Operations 100% 6,267 3,560 3,560 3,7006090-04 Spring #1/Elect 100% 414 500 372 3806090-05 Treatment Plant/Spring #2/Elect 100% 1,727 1,730 2,004 2,0506090-06 Treatment Plant/Telephone 100% 1,546 1,600 1,585 1,6306090-07 Propane 100% 3,958 3,700 4,000 4,1206090-08 Water Maintenance & Supplies 100% 3,776 2,100 2,100 2,1606090-09 Water System-Repair 100% 19,569 3,000 4,500 3,5006090-10 CT Ritchey Reservoir 100% 0 1,500 0 5006090-11 Equipment Fund 100% 0 4,000 0 4,000

Total TVW Water System 51,453 40,590 34,561 41,1106100 Reserve / Contingency 0 5,365 5,365 5,776

6100-01 Reserve Expense 50% 0 5,000 5,000 5,0006100-02 Contingency 50% 0 365 365 776

Total Operational Expenses 97,931 94,305 89,934 100,235

Operational Net ( Income - Expenses) (11,837) (0) 9,891 0

Expenses

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2015 Budget – Water System / Common Area

H2OActual 2013

Budget 2014

Forecast 2014

Proposed Budget

2015Water System Income 47,104 51,740 52,947 51,740

6010 Water System Expense (G&A) 8,080 8,260 6,717 6,8906030 Water System Expense (Common) 0 0 0 06090 Water System Expense (Water) 46,981 40,590 34,561 41,1106210 Water System Expense (LRP) 0 0 0 06100 Water System Capital / Projects 0 0 0 0

Water System 50% Rsrv/Cntgcy 3,307 2,683 2,683 2,888Water System Expenses 59,867 51,533 43,960 50,888Water System Net of Income - Expenses (12,764) 207 8,986 853

Common Area Income 69,489 42,565 46,878 48,4956010 Common Area Expense (G&A) 9,307 9,540 8,083 8,3006030 Common Area Expense (Common) 26,950 30,550 35,209 38,1606090 Common Area Expense (Water) 0 0 0 062xx Common Area Expense (LRP) 0 0 0 06100 Common Area 50% Rsrv/Cntgcy 3,307 2,683 2,683 2,888

Common Area Capital / Projects 0 0 0 0Common Area Expenses 39,563 42,773 45,974 49,348Common Area Net of Income - Expenses 29,926 (208) 904 (853)

71 8/11/14

2015 Budget Presentation and Vote

The Board of Directors and Finance Committee recommend approval of the 2015 Budget

72 8/11/14

BOARD OF DIRECTORS ELECTION

73 8/11/14

Board of Directors Election

Vote for two

• Larry Goldman • Maria Smith

74 8/11/14