2022 ANNUAL BUDGET AND DISCLOSURE

2022

Budget + Annual Disclosure

By Ken Silveira, Board Treasurer

AS THE NEW TREASURER, one of my first duties is to help with the implementation of the 2022 Budget and publishing of the Annual Disclosure.

The 2022 Budget was developed by a team led by Keiron McCammon including the Finance Committee, Accounting Department, Cove Advisor’s Committee, Water Quality Committee, and Water Company Long-Term Planning Committee. Challenges this year included trying to plan in the fallout of post-pandemic economic problems and the more recent disruption caused by the Caldor Fire and emergency evacuation. After several month’s work, the Budget was approved by the Board in October. The 2022 Annual Budget for the entire Association is $7.56 million. The single-family subdivisions represent $4.22 million or 56% of the budget and the townhome subdivisions represent $3.34 million or 44% of the budget.

All members will soon be receiving the Annual Disclosure, which includes important legally required information about the Association including the 2022 budget and new assessments. There are two versions of the Annual Disclosure—one for the single-family subdivisions and one for the townhome subdivisions.

Included in both versions of the Annual Disclosure is the 2022 Pro-Forma Budget and Notice of Assessment Increases, which explains the key elements of the budget and assessments. The notice shows the assessment for the common operations shared by all owners (Common, Water Quality, Water Company, and Channels & Lagoons) needed to be increased by 19.9%, raising this assessment to $881 per quarter. The increase for land-locked properties was less, due to a 50% discount on the Water Quality assessment. The primary reasons driving the increase were higher insurance costs, higher Water Quality operating costs, the new TRPA lake access fee (MOU), discontinued VHR fees, adding back an admin position, higher pavilion trash dumpster costs, and higher electricity costs. The increases were partially offset by staff reductions in security and pool operations, and lower legal costs.

The townhome version of the Annual Disclosure includes the cost of shared common operations (above) plus the cost of townhome operations and reserves. The assessment for the 12 townhome subdivisions’ operating expenses and reserves increased by an average of 4.5% for a variety of reasons unique to each townhome subdivision. When combined with the cost of shared common operations, the overall assessment for the townhome subdivisions needed to be increased by an average of 9.7%, raising the average townhome assessment to $2,579 per quarter with a range from $2,150 to $3,213 per quarter.

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The Annual Disclosure also includes information about the reserves used to fund planned maintenance and improvement activities, as well as possible special assessments for major unplanned activities. Next year, one possible special assessment would be for funding the Controlled Methods Test (CMT) for aquatic weeds. This assessment of $600 per lot was previously approved by homeowners on the condition the test is approved by the regulators. A general special assessment to fund major improvements to the Water Company, is also possible. Two Town Hall Forums have been held on this complicated issue. A townhome subdivision special assessment is also possible to fund the replacement of the bulkhead in Cove 3C.

Looking ahead, I plan to continue the work started by Keiron to keep members well informed about financial matters. Please let me know if you have any questions or suggestions or would like to get involved.

Ken Silveira

TREASURER

Members will receive the Annual Disclosure by regular mail or electronically, depending on preferences. The Disclosure can also be found on the Association’s website in the Documents folder – TKPOA. com>Documents>Accounting>Budgets>2022. A copy may also be obtained at the Pavilion office.

Questions

For questions about the Annual Disclosure please contact Kirk Wooldridge, General Manager (kwooldridge@tahoekeyspoa.org). Questions about the budget and financial information may be directed to Ken Silveira, Treasurer (ken.silveira@msn.com), or Don Havard, Accounting Manager (dhavard@ tahoekeyspoa.org). ... THE OVERALL ASSESSMENT FOR THE TOWNHOME SUBDIVISIONS NEEDED TO BE INCREASED BY AN AVERAGE OF 9.7%, RAISING THE AVERAGE TOWNHOME ASSESSMENT TO $2,579 PER QUARTER WITH A RANGE FROM $2,150 TO $3,213 PER QUARTER.

TKWC WATER SYSTEM UPDATE – THE DECISION PROCESS

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Directors approved a $1,300 Emergency Special Assessment per TKPOA property. The Emergency Special Assessment is due by November 30th, 2021.

The TKWC Long Range Facilities Plan – Oversight Board Subcommittee and MC Engineering had completed the Long-term Facilities Plan “draft” to address the water issues and it was presented to the TKPOA Board in August for comments and questions. This final draft report includes the twelve alternatives that were evaluated with three of the project scenarios recommended for further evaluation. Once finalized, the TKWC Long Range Facilities Plan implementation will be divided into three phases. A Town Hall meeting seeking member input was also conducted on October 28th, 2021, with over sixty members participating. Additional Town Hall meetings will be scheduled in 2022 as new information and decisions become available.

The TKWC Long Range Facilities Plan will be placed on the agenda for the December 14th, 2021 Regular Open Board meeting for review and discussion. The potential approval of this TKWC Long Range Facilities Plan would result in additional research to determine which of the three project scenarios is the best fit for the TKWC.

As of October 12th, 2021 the short and intermediateterm projects where completed, and the TKWC water system has the following capacities: • The TKWC water system capacity is 2,750 gallons per minute (gpm), but only 1,750 gpm of reliable production capacity (total production capacity with the largest source out of service). • The reliable production capacity, with Well #3 there is blending bypass option that has been installed, that will potentially be permitted and approved for operation, this should be adequate at 3,150 gpm total capacity and 1,950 gpm reliable capacity to meet the 2022 irrigation demands, but only with the new TKPOA Operating Rule SECTION 10 WATER

CONSERVATION RULES (a.k.a. Landscape Irrigation

Rules) in place.

The TKPOA property owners can only irrigate on assigned days and time in accordance with the TKPOA Operating Rule SECTION 10 WATER CONSERVATION RULES. This requirement needs to be paired with an active member outreach and education program to ensure compliance. The carrot of education needs to be followed with enforcement to make sure that water demand does not exceed production capacity. The TKPOA common areas and Townhome/Cove subdivisions must also be managed and monitored to minimize water use.

At the December 14th, 2021 Board Meeting the TKWC Long Range Facilities Plan – Oversight Board Subcommittee is recommending that the TKPOA Board approve the final plan, hire a program manager/ firm for Phases 1 and 2, provide TKPOA staffing and management to monitor and enforce irrigation rules through 2022 season and beyond, and approve moving forward with Phase 1 activities. This includes installing residential water meters and smart irrigation controllers on all common areas and Townhome/Cove subdivisions, as well the construction of a one million gallon storage tank and implementation of an approve TKWC Backflow Prevention Program.

Phase 2 implementation encompasses investigating long-term financing options to spread out the cost of TKWC system improvements over 20-year (±) period; continuing to analyze water system flows from SCADA to provide a basis for future water system facilities design and distribution system modeling; continue negotiations on potential agreements with STPUD, and LBWC; and support discussions with private water companies regarding the purchase and/or operation of the TKWC water system, as well as identify potential new well sites within the Tahoe Keys and conduct exploratory drilling and evaluation.

For Additional Information

The TKPOA Board of Directors welcome your comments and questions on the TKWC Long Range Facilities Plan. The final draft of the “Facilities Plan for Permitting and Design of the Water Production Facilities to Address Contamination in Source Ground Water” (154 pages). The current version of the plan is available for download at: https://documentcloud. adobe.com/link/review?uri=urn:aaid:scds:US:a8c9 4a82-3f6b-491c-85ad-10098c12ed62.

Please visit the TKPOA website at www.tkpoa. com. Any additional questions can be answered by contacting the TKPOA front desk at (530) 542-6444, Monday through Friday from 8:30 am–4:30 pm, Saturday and Sunday from 10:00 am–2:00 pm.

NOTICE OF CHANGE IN OPERATING RULES

TEXT OF ADOPTED CHANGES (Deletions are shown in strikethrough type and additions in boldface underlined type)

The TKPOA Board of Directors approved to adopt the following changes to Association Operating Rules at the November 17th, 2021 Regular Board of Directors Meeting. These changes were noticed for a 28 day member review period in the August issue of Keys Breeze.

Purpose and Effect of Proposed Rule Change To further clarify Architectural Control Rules

SECTION 13

BOAT DOCKS AND OVER-WATER PLATFORMS

13.10 Dock Guidelines

Dock Dimensions: New docks: Any construction of a new dock (either where there is no existing dock on the property or, where an existing dock is relocated) shall not exceed 225 sq. feet.

Replacement in Kind: Applications for “replacement in kind” of an existing dock in the same location and of the same design and configuration shall not be considered a new dock, and shall not be subject to the 225 sq. foot limit for new docks; however, the size of the new replacement in kind dock shall be not exceed the square footage of the existing dock. Any application to change the location, design and/or configuration of an existing dock will be deemed a “new dock” application subject to the 225 sq. foot limit.

Replacement or Repair of Existing Docks 225 sq. ft. or less: Application for “replacement” of an existing dock shall not be considered a new dock. The square footage may not be increased to exceed 225 sq. ft. Replacement or Repair of Existing Docks exceeding 225 sq. ft.: Application for “replacement” of an existing dock shall not be considered a new dock. The following shall apply to existing docks where replacement or modifications are proposed:

a. Dock may be reduced in size from currently existing square footage b. Dock position may be changed, including size and position of pilings c. Shape/dimensions (footprint) may be reconfigured d. In no case may the current square footage be increased e. Reconfiguration of the existing dock may not increase the number of moorings

Dimensions Applicable to All Docks: Height: 18 inches above water level or high water mark. Fascia will extend from decking to not less than 8 inches above the water line. All pilings must be contained within the dock. The height of all pilings must not exceed 3 feet above the high water line (HWL). Dock pilings must be a minimum of 2 ½ inches in diameter.