Tahoe Donner News December 2017

H O L I D AY E D I T I O N

24

TAHOE DONNER N

E

W

S

ANNUAL

BUDGET REPORT

2018 BUDGET + FINANCIAL INFORMATION

10

WELCOME TO TAHOE DONNER!

A GUIDE FOR SHORT-TERM GUESTS

28

THE BUZZ

WHAT’S HAPPENING IN TAHOE DONNER 06 DECEMBER 2017

Wishing You A Wonderful HOLIDAY SEASON

Snow Removal

|

530.582.0300

Paint & Stain

|

Deck Restoration

info@elementsmtn.co

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Driveway Sealing

www.elementsmtn.co

INSIDE THE REPORT:

THE BUZZ:

02

03

ASSOCIATION UPDATES

EVENTS, DINING+ UPDATES

Message from the Board President

24

BEST OF TAHOE DONNER: HOLIDAY EDITION The best activities and adventures to enjoy with friends and family this season

10

Quick Calendar

06

Annual Budget Report

Tahoe Donner Programs, Features + Clubs

26

09

28

24

Capital Projects Updates

Dining Hours + Specials

A Guide for Best of Tahoe Short-Term Guests Donner: Holiday Edition

31

Giving Fund: Benefit Dinner Raises Money for 2018 Grant Cycle

FEATURES

10

32

Board Meeting Recap

ANNUAL BUDGET REPORT Budget and financial information for 2018

31

GIVING FUND BENEFIT DINNER

Raising money to support grantmaking in 2018

TAHOE DONNER NEWS |

1

VOLUME 18 | NO. 12

DECEMBER 2017 EDITORIAL AND PRODUCTION TEAM CHRISTINA SCHWARTZ

DEREK MOORE

LINDSAY HOGAN

DREW DEURLINGTON

JOE LEWANDOWSKI

JAMIE BATE

BOARD OF DIRECTORS PRESIDENT | JEFF CONNORS

JCONNORS@TAHOEDONNER.COM

VICE PRESIDENT | JEFF SCHWERDTFEGER JSCHWERDTFEGER@TAHOEDONNER.COM

TREASURER | JEFF BONZON

JBONZON@TAHOEDONNER.COM

SECRETARY | JENNIFER JENNINGS JJENNINGS@TAHOEDONNER.COM

DIRECTOR | DARIUS BROOKS

DBROOKS@TAHOEDONNER.COM

BOARD OF DIRECTORS

BOARD@TAHOEDONNER.COM

POSTMASTER: SEND ADDRESS CHANGES TO TAHOE DONNER NEWS, 11509 NORTHWOODS BLVD., TRUCKEE, CA 96161; (530) 587-9400, FAX (530) 587-9419

EMAIL: COMDEP@TAHOEDONNER.COM ADVERTISING SALES: CREATIVE CONCEPTS MEDIA + MARKETING IS THE EXCLUSIVE ADVERTISING REPRESENTATIVE; PHONE (530) 582-4100 PUBLISHING INFORMATION TAHOE DONNER ASSOCIATION HOLDS THE EXCLUSIVE SERVICE MARK RIGHT TO “TAHOE DONNER.” ANY UNAUTHORIZED USE OF SUCH WILL BE REGARDED AS AN INFRINGEMENT OF THAT SERVICE MARK RIGHT AND IS PROHIBITED. THE INCLUSION OF ADVERTISING IN THIS PUBLICATION DOES NOT CONSTITUTE AN ENDORSEMENT OR RECOMMENDATION BY TAHOE DONNER ASSOCIATION OR ITS BOARD OF DIRECTORS OF THE PRODUCTS, SERVICES, OR VIEWS CONTAINED THEREIN. TAHOE DONNER NEWS (ISSN 1550-6061) IS THE OFFICIAL MONTHLY PUBLICATION OF TAHOE DONNER ASSOCIATION, WHICH IS LOCATED AT 11509 NORTHWOODS BLVD., TRUCKEE, CA 96161.

EACH MEMBERSHIP PARCEL RECEIVES ONE SUBSCRIPTION TO A DOMESTIC ADDRESS. ADDITIONAL SUBSCRIPTIONS ARE AVAILABLE AT THE COST OF $25 EACH. COST TO PRODUCE AND DISTRIBUTE THIS PUBLICATION IS OFFSET

BY ADVERTISING REVENUES. PERIODICALS POSTAGE PAID AT TRUCKEE, CA, AND ADDITIONAL MAILING OFFICES. MEMBER LETTERS TO TAHOE DONNER ARE PUBLISHED IN THE MEMBERS SECTION OF TAHOEDONNER.COM, WHERE PUBLISHING GUIDELINES ARE AVAILABLE.

ON THE COVER: Photo submission by Tahoe Donner resident, Ben Hogan.

MESSAGE FROM THE BOARD PRESIDENT Hello and welcome to the Holiday Season!

Since I last wrote to you in early October, your board has been working hard on a variety of issues, holding four special and regular board meetings in addition to attending a variety of committee meetings, from the three newly created shorter-term committees (ShortTerm Rental, Equestrian and Architectural Standards) to the six ongoing committees that help manage Tahoe Donner Association.

On behalf of the entire board, I start this update by sharing some excellent news regarding the 2018 budget and your Annual Assessment. The very good news is that your Annual Assessment will remain the same at $1,900 for the third year in row!

This is the first time in over 30 years that the assessment has remained flat for more than two years. In a similar fashion, we have also held the popular Recreation Fee at $270 for the third year in row. We very much appreciate that in prior years (2012-2015) there were significant increases (8% average per year, over 20% cumulatively).

Many of you who are raising families, living on fixed incomes or trying to afford the joys of a second home understood the related drivers to an increased assessment (winter droughts, regulatory costs, workers compensation insurance and the updating of aging facilities) but found the growth difficult, and questioned Tahoe Donner’s affordability and what may lie ahead.

Today, inverse drivers are now helping us hold the overall assessment flat, along with our expectation that the 2017 budget loss will be lower than expected by over $1 million. In addition, we have put more focus on controlling expenses. To provide some added color to the flat assessment, we now have had three strong summer seasons and two great winter seasons (thank you members and the weather

gods), our workers compensation risk rating has improved dramatically, and regulatory pressures have eased. Further, with strong support from the Finance Committee, we have factored in areas of opportunity that will reduce costs and increase user fees where competitive analysis and margin changes are warranted.

These favorable factors have been more than sufficient to offset another increase in California minimum wage (we employ a large restaurant and seasonal entrywage workforce) and other more classical operating cost pressures.

As you might recall, your $1,900 assessment gets distributed to the Operating Fund (used for day-to-day expenditures) as well as the two key Reserve Funds (Replacement Reserve and Development). We have not neglected these areas of responsibility, especially given our continually aging property and equipment with a gross value in excess of $74 million. We believe that properly saving/reserving for the eventual replacement of our member assets is a core fiduciary responsibility of the board, and helps protect the association and each owner’s property values. As such, in constructing the 2018 budget we are reducing the Operating Fund contribution by $35 per member ($226,000) and increasing the two Reserve Funds by a corresponding amount.

One key area of change for 2018 relates to the Private Amenity Daily Access Fee. The member daily entry fee remains at $6, and a guest accompanied by a member remains at a very affordable $8. In 2018, we are adding what is being called an Unaccompanied Guest Fee. Here we have increased the fee for a guest on a Guest Card entering our facilities without a member from $8 to $12.

This change reflects a start in addressing (Continued on p. 4)

FEATURED TD EVENTS

CHRISTMAS DAY BREAKFAST WITH SANTA

Breakfast with Santa at Tahoe Donner Downhill Ski Resort, followed by a half-day of skiing with Santa.

The ski lifts will open at 11:30AM for this special day.

DATE: Monday, Dec. 25 TIME: Breakfast at 10AM, lifts open at 11:30AM WHERE: Tahoe Donner Downhill Ski Resort

NEW YEAR'S EVE LIGHT PARADE AND FIREWORKS SHOW Ring in the New Year with a ski parade at the Downhill Ski Resort. See tahoedonner.com for info about being in the parade.

DATE: Sunday, Dec. 31 TIME: 6:15PM WHERE: Tahoe Donner Downhill Ski Resort COST: Free

Does your tree need a new home?

NEW YEAR’S EVE GUIDED SNOWSHOE TOUR A guided snowshoe hike on the cross country trails, followed by a drink at the Trailside Bar.

DATE: Sunday, Dec. 31 TIME: 5:30PM–7:30PM WHERE: Alder Creek Adventure Center COST: $49

DECEMBER TD EVENT SCHEDULE

See the complete list and all event details at tahoedonner.com/events.

DEC. 1 DEC. 2 DEC. 3 DEC. 4-8 DEC. 8 DEC. 8 DEC. 8 DEC. 9 DEC. 9 DEC. 10 DEC. 11-15 DEC. 13 DEC. 15 DEC. 16 DEC. 16 DEC. 16 DEC. 18-22 DEC. 20 DEC. 25 DEC. 25 DEC. 29 DEC. 30 DEC. 31 DEC. 31 DEC. 31 DEC. 31

Kids Night Out Full Moon Snowshoe Tour Learn to Teach XC Ski Clinic XC Bring a Friend Week Downhill Ski Resort Opens (conditions permitting) Snowplay Opens (conditions permitting) Performance for Cross Country Skiing Presentation Cross Country Ski Rep Night Free Classic Grip Wax Clinic Learn to Teach Cross Country Skiing/Skating XC Bring a Friend Week Women’s Shopping Night at XC Ski Center Wax Clinic (XC) Kids Night Out Downhill Ski Customer Appreciation - $10 Lift Tickets Women's "Hands-On" Wax Clinic XC Bring a Friend Week Men’s Shopping Night at XC Ski Center Christmas Breakfast with Santa at Downhill Ski Resort Christmas Day at XC Ski Center "Hands-On" Wax Clinic XC Equipment Demo Day NYE Light Parade + Fireworks NYE Guided Snowshow Tour NYE Kids Night Out Champagne Toast at The Lodge

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TAHOE DONNER NEWS |

3

(Continued from p. 2)

the member value equation and crowding at our private amenities, especially during holidays. A great deal more analysis and member input needs to be undertaken in a systematic manner during 2018, and will be pursued through a temporary new committee focused on the amenity pass.

Starting on page 10, please review the more detailed and comprehensive 2018 Budget Report regarding your association’s financial budget. One important point to keep in mind is that although we have kept the assessment flat, the association when all is said and done has a negative cash flow and loses about $12.5 million each year (+/-) after overhead, staff and capital spending are taken into consideration. This is what your assessment is used to supplement.

We therefore need to continually explore two important questions. First, how do we strengthen those amenities that lose money on a Net Operating Revenue (NOR) basis?

(NOR reflects Direct Revenue received minus Direct Expenses, and does not include capital spending or overhead areas like marketing, finance, management, technology or member services, to name a few.)

The second question we need to bear in mind is how do we continually enhance the efficiency and effectiveness of nonrevenue-producing services so resources can be continually refocused on what is important to the membership with limited cost impacts so member satisfaction with our environment remains strong?

In this spirit, we recently kicked off the first comprehensive amenity review. We started with our Equestrian Center and have a diversified group of around 15 members, under the leadership of its chairwoman Nan Meeks, exploring a variety of opportunities and ways to achieve greater member involvement and enjoyment within a stronger financial platform.

This brings me to a recent additional $25,000 funding approval given by the board (at its October meeting) to further the work being done by the General Plan Committee in looking at possibly expanding the Trout Creek Recreation Center.

The task force is exploring the need to expand the facility due to an increase in usage, especially during non-shoulder season time frames. To date, the board has funded $110,000 to ensure that the issue is fully studied, and reliable cost estimates obtained for the overall project, if approved,

could possibly cost in the $2 million range and take a year to complete. There is, however, much more analytical work to be completed in the coming months, and I expect that additional member surveying will be initiated to ensure that this strategic expenditure complies with the thinking of our overall membership on the longer-term direction of Trout Creek versus the alternatives we might have available. Information on the expenditure can be found on the website by going to the October 28 Board Meeting, Item L. Finally, the board is fully aware of member concerns as to how well our covenants are being enforced, and is addressing the issue.

You might have seen our efforts to improve the communication process associated with helping members understand the rules of the association through comments articulating them in the weekly email blasts and in last month’s article in the TD newsletter titled ”Protecting the Integrity of Tahoe Donner” by Annie Rosenfeld, our Director of Risk Management and Real Property. In addition, we have formed a temporary task force to focus further on the issue of ShortTerm Rentals and whether their growth relates to the rise in covenant-related issues. As an added step, management has refocused its resources in this area and expanded staff availability so calls to register complaints can be made after hours and on weekend evenings until 11PM. You can call or text (530) 414-8166 to reach a TD representative to help you address a covenant concern/violation.

Let me conclude this note by reiterating that this board hears your concerns and is working to ensure that as part of a member-based association, your views are fully reflected in our thought- and decision-making processes. So please keep the emails and overall comments coming by writing to board@ tahoedonner.com.

Happy Holidays and Merry Christmas to all!

– Jeff JEFF CONNORS | BOARD PRESIDENT

ERRATUM

In the October newsletter I erroneously stated that the motion to approve three backup generators was defeated 5-0.

I should have said that board voted 5-0 to delay moving forward for at least 6 months…my apologies.

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TAHOE DONNER CONTACTS Area Code (530)

MEMBER COMMUNICATIONS Member Services General Manager

587-9400 587-9431

info@tahoedonner.com gm@tahoedonner.com

587-9460 582-9694 587-9484 587-9444 587-9470 587-9432 587-9443 587-9455 582-9669 587-9413 587-9462 587-9474 582-9672 587-9437

marina@tahoedonner.com bikeworks@tahoedonner.com xc@tahoedonner.com ski@tahoedonner.com equestrian@tahoedonner.com forestry@tahoedonner.com golf@tahoedonner.com lodge@tahoedonner.com pizza@tahoedonner.com troutcreek@tahoedonner.com campground@tahoedonner.com tennis@tahoedonner.com trails@tahoedonner.com troutcreek@tahoedonner.com

AMENITIES Beach Club Marina Bikeworks Cross Country Ski Downhill Ski Area Equestrian Center Forestry Golf Course The Lodge Pizza on the Hill Recreation Hut Campground Tennis Center Trails Trout Creek

ASSOCIATION COMMITTEE CHAIRS Architectural Standards Rod Whitten aso@tahoedonner.com

Finance Art King aiking156@att.net

Covenants Fred Zapponi fzapponi@tahoedonner.com

General Plan Michael Sullivan iceman40@mac.com

Elections Bette Rohrback truckeebette@yahoo.com

Giving Fund Chairman Dick Gander tdgf@tahoedonner.com

ASSOCIATION CHARTERED CLUB PRESIDENTS Bridge Club Pat Callahan mrscallahan36@gmail.com

Women’s Golf Bettye Carmichael ibboop@suddenlink.net

Friends of TD Trails B.R. Levine tdtrails@gmail.com

Hiking Club Robin Reese rbtahoe@sbcglobal.net

Rowing Club Dot Mace dotmace@me.com

Quilt Club Linda Brush sewlinda@aol.com

Senior Alpine Ski Michael Eyton-Lloyd hmsmike1@aol.com

Junior Golf Club Jean Lai jslai@comcast.net

Tennis Michele Forsberg minkeysf@sbcglobal.net

TD 4-Wheelers Club Bill Ratcliff club@td4wheelers.org

9-Holers Lynette Powell lynette.powell@sbcglobal.net

Equestrian Club Susan Terrell terrellsf@earthlink.net

Men’s Golf Patrick Gemma patgemma1@att.net

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TAHOE DONNER NEWS |

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THE

BUZZ EVENTS. DINING. UPDATES. WINTER GOLF ACADEMY

RECREATION

Come in to work on your full swing, chipping, putting or just play a round of golf.

SNOWPLAY WEEKENDS STARTING NOV. 24-26*

Cost: $99, 50% refunded if golf clubs are purchased

Slide into fun at Tahoe Donner Snowplay!

Admission includes sledding and tubing equipment (no personal equipment is permitted).

Hours: Friday 1:30-4:30PM, Saturday & Sunday 9:30AM-4:30PM Where: 12790 Northwoods Blvd. *Conditions permitting

Golf Simulator

Holiday Extended Hours

Club Fitting

Our certified club fitting staff will collect data on your swing to identify the optimal golf club and golf ball configuration for your game.

Enjoy 27 of the world’s finest golf courses with our golf simulator!

Multiple tee and game options are available. Reservations recommended.

Cost: 30-Minute “Virtual” Session $25 60-Minute “Virtual” Session $35

Lessons

Improve your game in the off-season with video analysis of your swing.

Cost: 30-Minute Session $50 60-Minute Session $100 A 10% discount will be given to any TD Club Member

Info/Tee Times: (530) 587-9442

Dec. 22–Jan. 2: 9:30AM-4:30PM daily Christmas: 12-4:30PM New Year’s Day: 9:30AM-4:30PM

SNOWPLAY NIGHT TUBING FRIDAY, DEC. 15 Slide under the bright lights at one of four night tubing events of the season.

When: 4:30-6:30PM

TRIVIA NIGHT THURSDAYS

Trivia lovers, this is your chance to win big!

Join us every Thursday.

When: Thursdays, 6:30-8PM, not held Dec. 21 or Dec. 28 Where: Pizza on the Hill Cost: Free!

FAMILY MOVIE NIGHT FRIDAYS

Bring the family for both classic and new movies every Friday (except Nov. 24). All films are rated G or PG. Call (530) 582-9646 to find out what’s playing.

When: Fridays, 6:30PM Where: Northwoods Clubhouse Cost: Free!

LIGHT UP THE NIGHT SATURDAY, NOV. 25

Once you’ve had enough turkey fun on Thanksgiving, get ready for Santa and holiday activities at the annual Tahoe Donner Light Up the Night event. Give back to the community by bringing canned items for the Project MANA food drive. Fun activities include reindeer games, arts and crafts, hot chocolate and s’mores, letters to Santa, storytelling by Mrs. Claus, caroling, photos with Santa and the lighting of the tree. We’ll also have a raffle with Tahoe Donner prizes, and proceeds going to Project MANA. When: Saturday, Nov. 25, 5-7PM Where: The Lodge Restaurant & Pub Cost: Free!

CONTINUED

DOWNHILL SKI

CROSS COUNTRY SKI

OPENING DAY FRIDAY, DEC. 8*

Winter is here and it’s time to get your skis ready to head out on the trails as soon as there is snow. We have lots of early-season offerings to learn more about XC skiing, buying and caring for equipment, and deals in our retail store. Season passes are on sale and offer the best deal for a season full of winter adventures.

Tahoe Donner Downhill Ski Area opens on Friday, Dec. 8.* Get your season pass before prices go up on Dec. 1! *Conditions permitting

UPCOMING EVENTS

We have some special events coming in December, including: Customer Appreciation Day, Dec. 16 Christmas Breakfast + Ski with Santa, Dec. 25 at 10AM (lifts open at 11:30AM) New Year’s Eve Light Parade + Fireworks Show, Dec. 31 (chair loading starting at 6:15PM with fireworks after the parade) For a complete list of events and details, visit tahoedonner.com/downhill

SKI PROGRAMS

All programs begin in early January. For more info about specific programs, visit tahoedonner.com/downhill.

TD TYKES (SKI OR SNOWBOARD) A weekly ski and snowboard school program designed for skiers age 3-6 and snowboarders age 5-6 is a great way for your child to begin skiing or riding with 2.5 hours of instruction every week. See tahoedonner.com/downhill for program sessions.

When: Various day and time options, programs begin the week of Jan. 7 Cost: Members $359, Public $419

TD TYKES FOR KINDERGARTEN KIDS Designed for kids age 5-6 who want to improve their skiing skills. The program begins the second week of January.

When: Wednesdays, 2-4PM Cost: Members $359, Public $419 SUNDAY SPEEDSTERS (SKI OR SNOWBOARD) Weekly program designed for skiers age 4-6 and snowboarders age 5-6 who can already ski or ride at Level IV or above.

Sessions will run for 11 weeks on Sundays through the season.

When: Sundays, 10:30AM-3PM Cost: Members $499, Public $549 RECREATIONAL SKI + SNOWBOARD TEAMS Open to skiers and snowboarders age 7-13 who want to improve their skills in a fun environment and make new friends.

The low student-to-instructor ratio ensures lots of individual attention, and themed days provide great fun for everyone. Cost includes season pass.

When: Sundays, 10:30AM-3PM Cost: Members $499, Public $549 Programs do not run during Ski Skate Week. See tahoedonner.com/downhill for exact dates of programs.

SKI PROGRAMS

Don’t miss out on some great opportunities to improve your skiing. See the website for our 4-week adult improver programs and 6-week kids after school programs.

UPCOMING EVENTS Saturday, Dec. 2: Full Moon Snowshoe Tour

Sunday, Dec. 3 + Dec. 10: Learn to Teach XC Skiing Saturday, Dec. 9: Free Classic Grip Wax Clinic Saturday, Dec. 9: XC Ski Rep Night Wednesday, Dec. 13: Women’s Shopping Night at the XC Ski Center Wednesday, Dec. 20: Men’s Shopping Night at the XC Ski Center Monday, Dec. 25: Open at 12PM Saturday, Dec. 30: XC Equipment Demo Day Sunday, Dec. 31: New Year’s Eve Guided Snowshoe Tour For a complete list of events and details, visit tahoedonner.com/xcski.

TROUT CREEK RECREATION CENTER HOURS

Open daily from 6AM-10PM

HOLIDAY HOURS Dec. 24: 6AM-6PM Dec. 25: 12-4PM Dec. 31: 6AM-10PM

KIDS NIGHT OUT: NYE

The New Year’s Eve party of the year… for 3- to 9-year-olds, that is! They’ll enjoy pizza, a movie, games, snacks and more.

Bring pajamas to get cozy.

When: Dec. 31, 7PM-1AM Cost: 7-10:30PM: $45, 7PM-1AM: $55 Reservations: (530) 587-9437

JOIN OUR TEAM

We still have a few openings for positions at the XC Ski Center and Alder Creek Cafe this winter. See tahoedonner.com/employment for current openings. Perks include a free season pass and discounts on food.

TAHOE TAHOE DONNER DONNER NEWS NEWS| |

7

THE

BUZZ: CLUBS QUILT CLUB The Tahoe Donner Quilt Club has presented another 29 baby quilts to the Truckee Healthy Babies program.

In addition, several more Fidget Quilts, especially made for Alzheimer and dementia patients, have been donated to Tahoe Forest Long Term Care Center. We are an active Tahoe Donner service club, enjoying each other, our craft and helping our community. Our next meeting is Dec. 6 at Northwoods Clubhouse in the Meadow Room from 1-3PM. For more information contact Linda Brush at sewlinda@aol.com.

TD 4 WHEELERS CLUB 2018 WILL BE LOADS OF FUN!

The 2018 Tahoe Donner 4 Wheel Drive Club trail run and event calendar is being developed, and will include Bodie Ghost Town, the Easter Jeep Safari in Moab, Utah, and local High Sierra and Nevada trips and trail/area maintenance events.

We also are planning a monthly social on the first Saturday of each month. See the CALENDAR tab on td4wheelers.org for dates and times.

SIGNAL PEAK OCTOBER 21

Eleven Jeeps made the trip up Signal Peak to see the beautiful views and the old Central Pacific Railroad Snow Shed Fire Lookout (built in 1909, abandoned in 1934). Eight Jeeps took the OHV trail

via Eagle Lake Road to the peak, negotiating washouts, large rocks and wet/ snowy slippery conditions. Three Jeeps took the Forest Service Road from Cisco Grove, enjoying the ridgeline views and meeting the others at the top. It was a

NOW HIRING SEASONAL POSITIONS

Snowplay Downhill Ski Resort Cross Country Ski Center Trout Creek Rec Center

sparkling blue day with spotty snow at the top. Wow, what an amazing place to have lunch and see the surrounding area!

EUER VALLEY ANNUAL MAINTENANCE DAY OCTOBER 14

On a brisk Saturday morning, five Jeeps drove down into Euer Valley to undertake a day of cleanup and maintenance with members of the Tahoe Donner Forestry Crew. Sheila and Ron Raumer, Deborah and David Gray, John Scherer, Bill Ratcliff, Rich Jensen and two TD Forestry Department members focused on an area heavy with downed trees and dead wood.

The day got underway with the mighty roar of chainsaws. The team dragged the dead wood stash into open space piles for future removal by the TD Forestry Department. Large log rounds were picked up by the Forestry Crew to be taken to the wood yard for sale. Small rounds, limbs and branches were added, making 10 new burn piles. By day’s end, 14 standing dead or broken trees and 16 downed trees were addressed.

Thanks to Bill Houdyschell, the TD Forester, and his capable team for all of their hard work keeping us fire-safe! Also, a big thanks to Rich Jensen for making the arrangements, and to all who contributed to a successful day keeping Euer Valley a magical destination! We’ll do it again next year!

The Lodge Restaurant & Pub Vehicle Maintenance Pizza on the Hill I.T. and more

Apply at tahoedonner.com/employment

THE

BUZZ:

DINING Open daily from 5-9PM

CURRENT HOURS

Open daily from 11AM-2PM

NEW HOURS SATURDAY, DEC. 16 Lunch served daily • 11AM-3PM Monday-Friday • 11AM-4PM Saturday + Sunday • Grab-and-go available from 8:30AM-5PM daily

TRAILSIDE BAR OPEN SATURDAY + SUNDAY When: 11:30AM-5PM

HAPPY HOUR

$4 selected draft, $4 house wines When: Saturday + Sunday, 3-5PM 15275 ALDER CREEK RD (530) 587-9484

SPECIAL HOLIDAY HOURS SUNDAY, DEC. 24 Open 4-8PM, special menu, reservations recommended.

MONDAY, DEC. 25 Closed for Christmas.

DEC. 26–31

Pub open at 4PM with Pub menu.

Please check for holiday party closures.

NEW MENU DEBUT FRIDAY, DEC. 15 TOYS FOR TOTS BOX

Donate new toys in original packaging for local children. Please do not wrap the toys.

When: Drop off until Dec. 18 at The Lodge Restaurant & Pub

THURSDAY NIGHT TRIVIA

Play for free and win great prizes.

When: 6:30-8PM, not held Dec. 21 or 28

FREE FRIDAY NIGHT MOVIE

DECEMBER HOURS

Thursday-Monday, 5-8:30PM

SPECIAL HOLIDAY HOURS DEC. 21–JAN. 1 Open daily, 11:30AM-8:30PM Closed Christmas Day

Enjoy family-friendly films every week.

When: Fridays, 6:30PM Where: Northwoods Clubhouse

$10 PIZZA SUNDAYS

Enjoy $10 cheese, sausage and pepperoni pizzas, dine-in or take-out. Limit six per family.

When: Sundays, 5-8:30PM, not valid Dec. 24 or 31

PUB HAPPY HOUR

Drink specials and 25% off small plates, soups and salads in the Pub. When: Daily, 5-6:30PM. Not valid Dec. 18-Jan. 1.

NO CORKAGE TUESDAYS

Bring your special bottle of wine on Tuesday and we’ll waive the corkage fee.

Not valid Dec. 19 or 26.

WILD WEDNESDAYS

Enjoy Happy Hour in the entire restaurant all night long! Not valid Dec. 20 or 27.

NEW YEAR’S EVE SUNDAY, DEC. 31

Join us for a special menu and champagne toast at midnight. Seating from 5-10PM, reservations are required and are held with a credit card.

12850 NORTHWOODS BLVD (530) 587-9455

MONDAY NIGHT FOOTBALL SPECIAL

25% off a pizza when you buy a pitcher of beer during Monday Night Football.

When: Mondays, 5-8:30PM through Dec. 18

HAPPY HOUR

25% off all appetizers, $4 Coors Lights, $5 drafts, $6 house wines.

When: 5-6PM, not valid Dec. 21-Jan. 1

11509 NORTHWOODS BLVD (530) 582-9669

TAHOE DONNER NEWS |

9

*All offers listed are valid during non-holiday periods and are not valid with any other promotions or coupons. Offers subject to change.

WINTER HOURS

TAHOE DONNER ASSOCIATION 2018 ANNUAL ASSESSMENT $1,900 PER PROPERTY OPERATING FUND - 49% ($940) REPLACEMENT RESERVE FUND - 33% ($620) NEW MACHINERY & EQUIPMENT FUND - 2% ($30) DEVELOPMENT FUND - 16% ($310)

November 17, 2017 Dear Tahoe Donner Association Owners, Over the last few months, management worked with the Finance Committee to develop the 2018 Annual Budget. The budget was approved by the board on October 28, 2017. This follows a Finance Committee approval recommendation and several open meetings where many financial and economic factors were discussed and analyzed. The result of this process, which directly impacts each owner, was the establishment of our 2018 Annual Assessment at $1,900 per property, no increase over 2017 or 2016. The 3rd year in a row at the same total assessment. This mailing contains your 2018 assessment invoice, due January 1, 2018. Please refer to the enclosed invoice for important details regarding payment.

As illustrated above, the assessment consists of an Operating Fund portion and three Capital Fund portions.

The Operating Fund covers the annual net operating cost of running our association, and provides us with our amenities, customer services, and association administration. The Operating Fund revenue requirement is $18.5 million, with budgeted operating revenues funding 67% and Annual Assessment revenue funding just the remaining 33%. For 2018 the Operating Fund portion of the assessment amount has been decreased by $35 (4%) to $940. This decrease in assessment is driven primarily by strong actual operating revenues the past two summer and winter seasons, increasing the budgeted operating revenue assumptions for 2018. On the expense side, the increased regulatory costs involving increases in the California minimum wage, health insurance, and liability insurance costs amount to a $57 per owner cost impact, which was fortunately more than offset by the operating revenue growth. Bottom Line: A $35 decrease for the operations portion of the assessment.

The 2018/2019 recreation fee of $270, reflects no increase over the current year, three years flat at $270.

The Capital Fund allows the association to maintain our current assets (Replacement Reserve), purchase new assets to meet new needs (New Machinery and Equipment), and provide capital to expand and/or replace aging infrastructure (Development). Failure to adequately fund these components ultimately impacts the overall value of our association and the value of each individual owner’s property. With this fiduciary responsibility in mind, we have increased the contribution to the Replacement Reserve by $25 (4%) and Development by $10 (3%) for 2018. These increases conservatively keep the association financially healthy and protect our association’s aging assets. Bottom Line: The Capital Fund portion of the assessment increased $35 and amounts to $960 per property (51% of the assessment).

As you enjoy our numerous recreational opportunities, we trust that you continue to see the increasing value of your ownership reflected in this year’s Annual Assessment. The diversity of the association is reflected in the complexity of our annual budget. The comprehensive 2018 Budget Report will be provided in the December 2017 issue of Tahoe Donner News, our official communication medium. You may view this report and other financial information at www.tahoedonner.com.

Sincerely,

Jeff Bonzon Treasurer

Michael R. Salmon Director of Finance & Accounting

2016 ASSESSMENT: $1,900 2017 ASSESSMENT: $1,900 2018 ASSESSMENT: $1,900 THREE YEARS, NO CHANGE.

$270 RECREATION FEE NO CHANGE, 3RD YEAR IN A ROW AT $270

$12.5 MILLION TOTAL OPERATING REVENUES

ASSESSMENT GROWTH RATES COMPOUNDED ANNUAL GROWTH RATES TO 2018

5 YEAR

10 YEAR

20 YEAR

Operating

3.5%

3.6%

4.3%

Capital

6.1%

6.9%

7.9%

Combined Total

4.8%

5.1%

5.8%

PHOTO CREDIT: KATHY ENGLAR Photo submitted for the 2017 Tahoe Donner Photo Contest depicting the monumental 2016/17 winter. Strong winters generate strong financial returns, a key factor in allowing the association to keep the Annual Assessment fee flat for three years running.

Tahoe Donner 2018 Budget Report |

1

TAHOE DONNER ASSOCIATION TAHOE DONNER ASSOCIATION 2018 Budget - Per Member Annual Assessment of $1,900 Distribution 2018 Budget - per Member Annual Assessment of $1,900 - Distribution $200

$-

$ (200)

HOA Maintanance Support 9%, $(173)

HOA Utilities, Insurance, Taxes 6%, $(119)

HOA Forestry/ Fire Prevention 7%, $(134)

Private Amenities ‐2%, $33

Public Amenities 1%, $(17)

$ (400)

HOA General & Admin 28%, $(530)

$ (600)

2018 Budget 2017 Budget

$ (800)

$ (1,000)

Reserve Capital Funds 51%, $(960)

$ (1,200)

INTRODUCTION 2018 Annual Assessment of $1,900 reflects no change from 2017 or 2016.

• The $960 Capital Funds portion was increased $35 to fund future capital needs of our aging assets.

own governing documents and budgetary policies and procedures.

The Association’s approved budget also reflects the fiduciary responsibility of the Board and management, in protecting all owners’ investment in the Association, both for the 2018 budget year and into the future.

• The $940 Operating Fund portion was decreased $35 due primarily to improved three-year operating revenue trends coming off record seasons.

The process begins with general direction from the Board of Directors regarding influential factors, such as the level of service to be provided, new community projects, economic conditions and changes to business operations. Capital and equipment expendi• The optional Recreation Fee remains unchanged at $270, with increased sales volumes and visitations offsetting increases in ture budgets are formulated to determine the funding needs for the operating costs.

Replacement Reserve Fund, the New Machinery and Equipment Fund \\tahoedonner.sharepoint.com@SSL\DavWWWRoot\accounting\Shared Documents\zBudget\TDA\Other\2018 Budget Summary 20171028 draft Charts pg 3 and the Development Fund. The operating budget traditionally G2B isPage 1 of 1 10/30/2017 | 1:41 PM Tahoe Donner Association (the Association) prepares its annual developed with attention to historical trends in revenue generation, revenue and expense budget in accordance with applicable laws, its

ANNUAL ASSESSMENT PER OWNER:

New Machinery & Equipment

2018 ANNUAL ASSESSMENT IS $1,900 PER PROPERT Y OWNER, NO CHANGE FROM 2017 OR 2016. THE ASSESSMENT CONTRIBUTION BY FUND IS ILLUSTRATED BELOW:

30 30 30 30 30 30

2018, $1,900 Same Annual Assessment, 3rd year in a row.

2017, $1,900

Development

250 250 250 250

310 300

2016, $1,900 2015, $1,800 2014, $1,600

Replacement Reserve 434

478

546 526

595

620

2013, $1,505

940

Operating 791 -$100

2

$100

$300

$500

| Tahoe Donner 2018 Budget Report

edonner.sharepoint.com@SSL\DavWWWRoot\accounting\Shared Documents\zBudget\TDA\Other\2018 Budget Summary 20171028 draft Chart AA

$700

975 994

842

$900

1,074

$1,100

TAHOE DONNER ASSOCIATION 2018 Annual Budget - Public Amenities - Net Operating Results per Member Downhill Ski, ($73)

$ 100 $ 80 $ 60 $ 40 $ 20

$16

Bikeworks, ($0)

$0 $ 20 $ 40

ALL Public Amentities NOR, ($17)

$ 60

Golf Course, ($15)

Trails, ($23)

ACAC F&B, ($18)

Equestrian, ($13) Summer F&B, ($22)

Pizza, ($9)

Snowplay, ($16)

Cross Country, ($20)

Campground, ($2) The Lodge, ($24)

($80) ($100) ($120)

2018 Budget ($116)

($140)

2017 Budget 2017 Forecast

($160) ($180) ($200)

consideration of economic factors that may influence revenue or expenses, achievable cost reductions across all departments, service levels to be achieved and staffing levels required. The Finance Committee participates in reviewing the budget prior to submittal to the Board of Directors and offers input for the Board’s consideration. The General Manager and Director of Finance and Accounting then present the staff-recommended budget for Board review. The Board subsequently directs staff to incorporate revisions it feels are appropriate.

The 2018 Budget approved by the Board is summarized in this report.

OPERATING REVENUE Budget of $12.5m, excluding assessment, has increased $1,460,000 or 13% more than the 2017 Budget and represents a decrease of $508,000 or 4% less than the 2017 Forecast.

Operating revenues are subject to significant volatility due to weather.

Accordingly, we have utilized multi-year averages in establishing volume expectations. The record winters 2015/2016 and 2016/2017 have increased winter amenity revenue budgets for 2018, while the majority of the other amenities have seen consistent revenue and visitation growth. Our $1.3 million investment in snowmaking at the Downhill Ski Resort has also been factored. We have attempted to be financially conservative in our revenue projections while still capturing visitation trends, capital, marketing, and price initiatives impacts.

OPERATING PAYROLL Budget of $12.5m represents 67% of total operating costs and reflects an increase of 7% over 2017 Budget and an increase of 4% over 2017 Forecast. A key element of any largescale common interest development is the employees who operate Jeff Bonzon Michael R. Salmon and manage our amenities, support departments and administration.

Treasurer Director of Finance and Accounting Operating payroll costs include wages, salaries and the associated \\tahoedonner.sharepoint.com@SSL\DavWWWRoot\accounting\Shared Documents\zBudget\TDA\Other\2018 Budget Summary 20171028 draft Charts pg 3 costs of payroll taxes, workers compensation, retirement G2B savings Page 1 of 1plans, 10/30/2017 | 1:41 PM OPERATING FUND and health insurance benefits. The increase is driven primarily by the CA minimum wage increase effective 1/1/2018, a merit wage increase The Operating Fund accounts for the revenue and expense activities average of 3%, health care costs increase of 7%, and more personnel of our amenity and homeowner association service functions. This to service the increase in revenue. The increase was favorably partially fund is for non-capital or major equipment expenses essential to our offset by a 21% decrease in our workers compensation insurance operation, including amenities. Capital-related expenditures are held costs due to improved incidents experience ratings. in other funds. Operating Fund budgets for all departments were prepared with an emphasis on managing operating costs efficiently, OPERATING EXPENSE Budget of $4.5m represents 25% of our total while continuing to provide consistent levels of service. Detailed operating costs and reflects an increase of 6% to 2017 Budget and analyses of each department were prepared and evaluated by a decrease of 3% to 2017 Forecast. For operating expenses, 84% of senior management before the budget was reviewed by the Finance the total amount falls into nine categories, as follows. Utilities repreCommittee and the Board. Methods for optimizing revenue while sent $995,000 or 22% of operating expenses. Repair & Maintenance maintaining favorable property-owner access and rates were also materials costs represent $799,000 or 18% of operating expenses. examined.

Insurance represents $480,000 or 11% of operating expenses. Government taxes, licenses, permits, fees, audit and legal costs represent IN TOTAL, THE 2018 ASSESSMENT CONTRIBUTION TO OPERATIONS IS $497,000 or 11% of operating expenses. Employee-related expenses $6,085,000 OR $940 PER MEMBER-PROPERTY, A DECREASE OF $35 FROM represent $285,000 or 6% of operating expenses. Forestry contract 2017. THE 2018 AMOUNT REPRESENTS A 3.6% 10-YEAR COMPOUNDED services represent $205,000 or 5% of operating expenses. Credit ANNUAL GROWTH RATE. card merchant fees represent $250,000 or 5% of operating expenses.

Printing and postage costs represent $145,000 or 3% of operating exThe total revenue requirement for a balanced 2018 Operating Fund penses. Fuel costs represent $145,000 or 3% of operating expenses. budget is $18,545,000. Operating revenues generated by users of

$12,460,000 fund 67% of the requirement. The necessary funding level for operations from the Annual Assessment is $6,085,000 or 33% of the requirement. This assessment represents the shortfall of non-assessment revenue versus operating costs in the Operating Fund budget. Refer to page 6 for budget summary by activity.

COST OF GOODS SOLD Budget of $1.5m represents 8% of our total operating costs. Cost of Goods Sold represents the wholesale cost of retail, food and beverage product.

Tahoe Donner 2018 Budget Report |

3

ASSESSMENT AND RESERVE FUNDING DISCLOSURE SUMMARY

2018 Budget Operating Revenue of $12.5 Million - By Department $0

$1m

$2m

(CA CIVIL CODE SECTION 5570) $3m

Downhill Ski Resort The Lodge Golf Trout Creek Recreation Center Cross Country Ski Center Beach Club Marina Pizza on the Hill Alder Creek Cafe Snowplay Tennis Center Summer Food and Beverage Day Camps Aquatics Equestrian

$9.3M PUBLIC

$9.3 Public Amenities Revenue AMENITIES (75% of total) MixREVENUE 3.7M |(75% 40% Member OF TOTAL) 1.6M | 17% Guest 4.0M | 43%| Public $3.7M 40% MEMBER

Administration

$1.6M | 17% GUEST $4.0M | 43% PUBLIC

Marketing and Communications

MIX VARIES BY AMENITY

Recreation Programs ASO Bikeworks Campground Member Services Accounting Forestry Trails

REPLACEMENT RESERVE FUND The Replacement Reserve Fund is used to account for the financial resources designated for the repair, restoration, replacement or maintenance of major common area components of the Association.

Although building component replacements are included in the Replacement Reserve Fund plan, complete structure replacement is not. Funding for structure replacement is discussed below in the review of the Development Fund.

In accordance with state law and sound business practices, it is the policy of the Association to fund a reserve program that will adequately provide for repair and replacement of existing communityowned assets. A 30-year reserve funding and expenditure plan is produced every three years, and updated annually, for the purpose of scheduling and analyzing the Association’s funding needs. OVER

2,000 INDIVIDUAL ITEMS ARE TRACKED IN THIS PLAN, WITH A CURRENT REPLACEMENT VALUE OF APPROXIMATELY $51 MILLION. Each item is

evaluated by average useful life, present age, projected remaining useful life, and estimated replacement cost. A full review of the plan was performed in 2016. Updates are conducted each year and another full review of the plan will be performed in 2019.

4

| Tahoe Donner 2018 Budget Report

The current regular assessment per ownership interest is $1,900 per year. The updated 30-year funding and expenditure plan, utilizing a 3% annual inflation of repair and replacement costs, requires a contribution to the reserve fund of $620 per property for 2018 – an increase of $24 or 4% over 2017. This amounts to a 2018 contribution to the reserve fund of $4,013,000. There are no additional regular or special assessments anticipated for the reserve program or for other purposes, at this time.

Based upon the most recent reserve study and other information available to the board of directors, the currently projected reserve account balances will be sufficient at the end of each year to meet the Association’s obligation for repair and/or replacement of major components during the next 30 years. This projection is principally based on the future funding plan, which requires a minimum 4% annual increase to the contribution until the fund achieves a percent funded level minimum of 25% and until the fund balance is equal to or exceeds 10% of Net Replacement Reserve Assets (as defined in Policy Resolution 2013-3).

All major components are included in the reserve study and are included in its calculations. Components with an estimated remaining useful life of more than 30 years are not included in the reserve calculation. The Development Fund section of this report contains additional information.

Based on the method of calculation in paragraph (4) of subdivision (b) of CA Civil Code Section 5570, the estimated amount required in the reserve fund at the end of the current fiscal year is $30,846,974*, based in whole or in part on the last reserve study and update prepared by management and Hughes Reserves & Asset Management, Inc. as of October 2017. The projected reserve fund cash balance at the end of the current fiscal year is $10,006,000, resulting in reserves being 32.4% funded at this date. If an alternate, but generally accepted, method of calculation is also used, the required reserve amount is $10,006,000; this alternate method being the threshold pooling method. This difference ($20.8 million) equates to an estimated $3,220 per member-property. * This amount is calculated based on a straight-line method, wherein each component must stand alone, not utilizing the cash flow method of funding, also known as the pooling method.

Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570 of the Civil Code, the estimated amount required in the reserve fund at the end of each of the next five budget years is $30.8m 2018, $30.1m 2019, $32.0m 2020, $33.1m 2021, $34.0m 2022, and the projected reserve fund cash balance in each of those years, taking into account only assessments already approved and other known revenues, is $7.8m 2018, $8.4m 2019, $8.3m 2020, $8.1m 2021, $7.2m 2022, leaving the reserve at 21% funded in 2022. If the reserve funding plan approved by the Association is implemented, the projected reserve fund cash balance in each of those years will be $7.8m 2018, $8.6m 2019, $8.8m 2020, $9.1m 2021, $8.9m 2022, leaving the reserve at 26% funded in 2022.

The Replacement Reserve Fund Analysis on page 5 summarizes the component values by area and the projected available funding for repairs and replacements. The full reserve study plan with a more detailed listing of the individual plan components is available to any member upon request.

The association has no outstanding loans.

Note: The financial representations set forth in this summary are based on the best estimates of the preparer at that time. The estimates are subject to change. At the time this summary was prepared, the assumed long-term before-tax interest rate earned on reserve funds was 2% per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was 3% per year.

REPLACEMENT RESERVE FUND ANALYSIS Tahoe Donner Association 2018 Budget Golf Complex

Total Current Replacement Cost

Range of Remaining Life (years)

Range of Useful Life (years)

Allocation of Accumulated Funds (12/31/17)

100% Funded Allocation (12/31/17)

$ 10,795,888

0 to 30

1 to 30

$ 2,473,032

$ 6,251,333

Downhill Ski Resort

9,206,992

0 to 30

1 to 30

1,936,149

5,069,611

Administration/MIS

5,140,083

0 to 30

1 to 30

1,013,375

2,993,822

General & Building Maintenance

3,988,496

0 to 30

1 to 30

664,802

2,936,249

The Lodge

3,560,927

0 to 30

1 to 30

673,820

2,906,451

Trout Creek, Pools & Recreation

5,142,305

0 to 30

1 to 30

1,055,703

2,625,465

Cross Country Ski Center

3,973,751

0 to 30

1 to 30

515,269

2,580,603

Tennis Complex

1,822,234

0 to 30

1 to 30

439,444

1,058,344

Trails

1,523,575

0 to 30

1 to 30

252,253

900,194

Vehicle Maintenance

1,531,467

0 to 30

1 to 30

276,851

812,634

Forestry

1,064,168

0 to 30

1 to 30

155,918

710,680

Marina

1,213,054

0 to 30

1 to 30

252,885

668,471

Equestrian

804,209

0 to 30

1 to 30

77,470

604,421

Campground

613,962

0 to 30

1 to 30

127,268

444,469

Pizza on the Hill

458,578

0 to 30

1 to 30

85,380

271,197

30,473

0 to 30

1 to 30

6,381

13,030

$ 10,006,000

$ 30,846,974

Bikeworks Totals

$ 50,870,162

Note: Projected accumulated funds at 12/31/17 equal approximately 32.4% of the 100% funded total based on the method of calculation in Section of the i il o e he financial representations set forth in this summary are ase on the est estimates of the preparer at this time The estimates are subject to change.

REPLACEMENT RESERVE EXPENDITURES The reserve plan schedules funding for replacement, repair and/or enhancement of the Association’s existing capital investments. In the year 2018, budgeted reserve expenditures total $6.4 million, including carry-over approved projects. Components scheduled for 2018 may not necessarily be expended, based on individual review. The following outlines notable 2018 budget year expenditure budget items: DOWNHILL SKI RESORT, $2,218,000: Includes replacement of Snowbird lift, snow groomer, rental equipment, building components, lift components, food service equipment, summer trails grooming, groomer components, and snowmobile.

TROUT CREEK RECREATION CENTER, $1,684,000: Includes building

remodel, exercise equipment replacements, parking lot asphalt overlay, and significant pool and spa related projects (coping and tile replacements).

CROSS COUNTRY SKI CENTER, $515,000: Includes replacement of snow

groomer, snow blower, summer trails grooming, asphalt sealing, and signage.

EQUESTRIAN, $92,000: South arena footing, tack sheds painting, horse and equipment replacements.

MARINA, $72,000: Includes furniture and rental equipment replace-

ments, asphalt sealing, and state lands lease.

NEW MACHINERY AND EQUIPMENT FUND

The New Machinery and Equipment Fund (NMEF) is used to acquire new items identified as necessary to be more efficient in operations, or to provide new services to the membership. The 2018 assessment contribution to the fund totals $194,000, or $30 per property owner, consistent with the 2017 contribution. Fund expenditures are budgeted at $213,000 and include new amenities and maintenance equipment, HVAC for Mezzanine meeting room at Northwoods Clubhouse, software, and recreation equipment. The fund is projected to have a 2018 year-end balance of approximately $47,000 after budgeted contributions and expenditures.

TRAILS, $333,000: Trail remodels in eight locations throughout the

Association, Glacier Way trailhead parking asphalt overlay, Trout Creek and Glacier Way trailhead remodels, and wildland borders perimeter fencing.

MIS, $312,000: Includes replacement of hardware and software, fiber

optic and software leases, VoIP hardware, and miscellaneous network and other equipment.

GOLF COURSE, $229,000: Includes course bridge replacements, range

cart and range balls replacements, maintenance mowers and other equipment replacements, course irrigation items, and pathway asphalt repairs.

MAINTENANCE AND VEHICLES, $193,000: Includes two trucks, building painting, asphalt repairs, boat/RV storage lot asphalt overlay, mailbox repairs, software, and loader plow blade replacements.

FORESTRY, $128,000: Mastication and chipper equipment replacements and asphalt sealing.

BILL STEVENSON

Tahoe Donner 2018 Budget Report |

5

2018 BUDGET SUMMARY - OPERATING FUND

# of Properties = 6,473

Operating Revenue (REV)

Operating Costs Total (OCT)

Net Operating Result (NOR)

REV

OCT

NOR

$ 994,000

$ (948,300)

$ 45,700

$ 154

$ (147)

$7

Beach Club Marina

686,000

(451,300)

234,700

106

(70)

36

Tennis Center

235,000

(212,800)

22,200

36

(33)

3

Aquatics

218,000

(279,400)

(61,400)

34

(43)

(9)

Recreation Programs

175,000

(230,000)

(55,000)

27

(36)

(8)

Tahoe Donner Association

PRIVATE AMENITIES Trout Creek Recreation Center

Day Camps

Operating Fund 2018 Budget per Property

234,000

(204,200)

29,800

36

(32)

5

2,542,000

(2,326,000)

216,000

393

(359)

33

3,152,000

(2,681,000)

471,000

487

(414)

73

Cross Country Ski Center

925,000

(798,000)

127,000

143

(123)

20

Snowplay

269,000

(164,800)

104,200

42

(25)

16

Equestrian

222,000

(309,000)

(87,000)

34

(48)

(13)

Total Private Amenities PUBLIC AMENITIES Downhill Ski Resort

Campground Golf Trails

61,000

(70,900)

(9,900)

9

(11)

( 2)

1,150,000

(1,248,000)

(98,000)

178

(193)

(15)

1,000

(148,600)

(147,600)

0

(23)

(23)

Bikeworks

109,000

(107,800)

1,200

17

(17)

0

Summer Food and Beverage

242,000

(385,800)

(143,800)

37

(60)

(22)

Alder Creek Cafe

313,000

(429,300)

(116,300)

48

(66)

(18)

2,300,000

(2,454,000)

(154,000)

355

(379)

(24)

524,000

(581,800)

(57,800)

81

( 90)

(9)

9,268,000

(9,379,000)

(111,000)

1,432

(1,449)

(17)

11,810,000

(11,705,000)

105,000

1,825

(1,808)

16

-

(847,800)

(847,800)

-

(131)

(131)

213,000

(723,600)

(510,600)

33

(112)

(79)

-

(330,300)

(330,300)

-

(51)

(51)

202,000

(754,900)

(552,900)

31

(117)

(85)

-

(655,000)

(655,000)

-

(101)

(101)

5,000

(797,400)

(792,400)

1

(123)

(122)

The Lodge Pizza on the Hill Total Public Amenities Total Amenities

HOMEOWNERS ASSOCIATION SERVICES & AMENITIES SUPPORT General Marketing & Communications Facility Admin & Risk Mgmt Administration Information Technology Accounting & Finance Human Resources Architectural tan ar s

ffice

Member Services Forestry, Defensible & Open Space Maintenance Total Homeowners Association TOTAL OPERATING FUND

-

(382,200)

(382,200)

-

(59)

(59)

193,000

(420,600)

(227,600)

30

(65)

(35)

32,000

(266,000)

(234,000)

5

(41)

(36)

5,000

(870,200)

(865,200)

1

(134)

(134)

-

(792,000)

(792,000)

-

(122)

(122)

650,000

(6,840,000)

(6,190,000)

100

(1,057)

(956)

$ 12,460,000

$ (18,545,000)

$ (6,085,000)

$ 1 ,925 $(2,865)

$ (940)

et perating esult is efine as the net result of perating Revenue less Operating Costs (cost of goods sold, payroll, and expenses).

NOR for each department does not include any allocated overhead or capital costs.

6

| Tahoe Donner 2018 Budget Report

Individual amounts may not sum to total due to rounding.

2018 BUDGET SUMMARY - BY FUND

Tahoe Donner Association

# of Properties = 6,473

2018 Budget

$ per Property (6,473)

OPERATING FUND Beginning Balance, start of year Assessment Contribution Net Operating Results Operating Fund, Year End Balance

$ 2,059,000 6,085,000

$ 318 A1

940

(6,085,000)

(940)

$ 2,059,000

$ 318

REPLACEMENT RESERVE FUND Beginning Balance, start of year Assessment Contribution Interest Income Salvage Receipts Income Tax and Other Expense Expenditures for Capital Additions Major Repairs, Maintenance & Lease Expenses Replacement Reserve Fund, Year End Balance

$ 10,006,000 4,013,000

$ 1,546 A2

155,000

620 24

30,000

5

(24,000)

(4)

(5,419,000)

(837)

(935,000)

(145)

$ 7,826,000

$ 1,209

NEW MACHINERY AND EQUIPMENT FUND Beginning Balance, start of year Assessment Contribution Interest Income Expenditures for Capital Additions NM&E Fund, Year End Balance

$ 64,000 194,000 2,000

$ 10 A3

(213,000) $ 47,000

30 0 (33) $7

DEVELOPMENT FUND Beginning Balance, start of year Assessment Contribution Interest Income Income Tax and Other Expense

$ 3,600,000 2,007,000 80,000

$ 556 A4

310 12

Expenditures for Capital Additions Development Fund, Year End Balance

(14,000) (1,408,000)

(2) (217)

$ 4,265,000

$ 659

Combined CAPITAL FUNDS ACTIVITY Expenditures for Capital Additions

(7,040,000)

(1,088)

(935,000) $ (7,975,000)

(144) $ (1,232)

Major Repairs, Maintenance & Lease Expenses Combined CAPITAL FUNDS ACTIVITY - Total

2018 Annual Assessment Recap Operating Fund Replacement Reserve Fund New Machinery and Equipment Fund Development Fund - Regular designated Capital Funds, subtotal 2018 Annual Assessment - Total

$ 6,085,000 (A1)

$ 940

4,013,000 (A2)

620

194,000 (A3)

30

2,007,000 (A4)

310

6,214,000

$ 960

$ 12,299,000

$ 1,900

Members Equity Beginning Balances are based on Forecasted 2017 results, not Actual. Actual results may vary from Budget. This Fund Summary excludes the Property Fund which accounts for the Association's investment in property & equipment. The Property Fund activites include capitalization of property and equipment purchased and depreciation expense.

Tahoe Donner 2018 Budget Report |

7

FUND BALANCES RESERVED FOR FUTURE CAPITAL NEEDS OF THE ASSOCIATION. KEY FUND KEY BALANCES RESERVED FOR FUTURE CAPITAL NEEDS OF THE ASSOCIATION Members’ Equity (as of December 31) (D)

$ 10,000,000

Members’ Equity (as of 12/31/20XX)

2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Forecast 2018 Budget (E)

$ 9,000,000 (E)

$ 8,000,000

(A)

$ 7,000,000 $ 6,000,000 $ 5,000,000

(A)

$ 4,000,000

(D)

(B)

$ 3,000,000 $ 2,000,000 (C)

$ 1,000,000

(C)

$0

Replacement Reserve Fund

Development Fund

(A) Expenditures include the Euer Valley Land purchase in 2011 & 2012.

(B) Expenditures include The Lodge expansion.

(C) Expenditures include the Alder Creek Adventure Center building construction in 2014 and 2015. Snowmaking in 2015.

(D) Balance includes Operating Fund transfers in of $1.5 million to Replacement Reserve Fund and $1.8 million to Development Fund.

(E) For 2018 Capital Expenditure discussion; see page 5 for Replacement Reserve Fund analysis.

The 2018 Budget expenditures for Development Fund are $1,408,000 and for Replacement Reserve Fund are $6,354,000.

DEVELOPMENT FUND

POLICIES AND PROCEDURES REGARDING DELINQUENT ASSESSMENT ACCOUNTS

The Development Fund was established as authorized in governing documents to accumulate funds for large-scale projects identified as necessary due to the new capacity requirements, or changing needs of the Association. In order to facilitate the future use of Development Fund assessments toward the funding of large-scale projects, each year projects are identified as eligible for such future funding. Projects designated as eligible, though not approved, to receive funding from future assessment contributions include building replacements, amenity expansions and additions, and recreational land and infrastructure improvements.

The Annual Property Owner Assessment is due January 1, and becomes delinquent January 15 of the year of that Annual Assessment.

Special Individual Assessments (Architectural Standards, Covenants and Forestry Assessments, Fines and Inspection Fees) are due thirty (30) days after invoicing and delinquent fifteen (15) days thereafter.

Delinquent accounts are subject to the following schedule of procedures and charges. (The actions indicated below will not be taken until at least the date specified, but may occur at a later date due to scheduling considerations.)

The 2018 Annual Assessment contribution to the Development Fund totals $2,007,000, or $310 per member-property, an increase of 3% over 2017. Budgeted expenditures from this component for 2018 total $1,408,000 and include Trout Creek Recreation Center remodel/ expansion, Downhill Ski Resort, Equestrian Center phase 3 completion, and feasibility studies for priority one projects. The budgeted ending balance for Development Fund is $4,265,000.

ANNUAL ASSESSMENT March 1: DELINQUENCY FEE (10 PERCENT OF ASSESSMENT BALANCE) is charged to the account; also, interest equal to the maximum allowed by law (currently 12 percent per annum) begins to accrue on the delinquent assessment balance.

April 1: Notice of pending suspension of membership rights (eligibility for candidacy to serve as a director, to vote in any election, to access the amenities as a member) for failure to pay the assessment and of the member’s right to a prior hearing thereon, and notice of intent to record a lien against the member’s property to secure amounts owed, is sent to Owner(s) of Record via certified mail.

April 15: Assessment Lien recorded against property; LIEN FEE OF $185 is charged to the account; approximate effective date of suspension of membership rights, which shall remain in effect until the account is brought current; if requested, hearing on pending suspension of membership rights must be completed at least five days prior to the suspension’s effective date; interest begins accruing on Delinquency Fee. May 1: Interest begins accruing on Delinquency Fee. June 15: Delinquent accounts become subject to all appropriate collections/legal recourses, including FORECLOSURE of the assessment lien, to recover amounts owed. All costs and fees related to such actions, including attorneys’ fees, become the property owner’s obligation.

July 1: Interest begins accruing on Lien Fee. SPECIAL INDIVIDUAL ASSESSMENT(S)

NEIL BRYDON

8

| Tahoe Donner 2018 Budget Report

60 days after invoicing: DELINQUENCY FEE (10 PERCENT OF ASSESS-

MENT BALANCE) is charged to the account; also, interest equal to the maximum allowed by law (currently 12 percent per annum) begins to accrue on the delinquent assessment balance.

120 days after invoicing: If applicable, Assessment Lien recorded against property; LIEN FEE OF $185 is charged to the account; approximate effective date of suspension of membership rights, which shall remain in effect until the account is brought current or compliance is achieved; if requested, hearing on pending suspension of membership rights must be completed at least five days prior to the suspension’s effective date; interest begins accruing on Delinquency Fee. 165 days after invoicing: Delinquent accounts become subject to all appropriate collections/legal recourses, including FORECLOSURE 105 days after invoicing: If applicable, Assessment Lien recorded against property; LIEN FEE OF $185 is charged to the account; approximate effective date of suspension of membership rights, which shall remain in effect until the account is brought current or compliance is achieved; if requested, hearing on pending suspension of membership rights must be completed at least five days prior to the suspension’s effective date; interest begins accruing on Delinquency Fee. 165 days after invoicing: Delinquent accounts become subject to all appropriate collections/legal recourses, including FORECLOSURE of the assessment lien, to recover amounts owed. All costs and fees related to such actions, including attorneys’ fees, become the property owner’s obligation.

180 days after invoicing: If applicable, interest begins accruing on Lien Fee. RECEIPT, APPLICATION OF PAYMENTS AND PAYMENT PLANS Timeliness of payments in relation to the imposition of penalties, etc., in accordance with this schedule shall be determined by: Official USPS postmark date appearing on the envelope in which a payment is received through the mail (private postage meter dates are ignored). Any other method of delivery (i.e. hand-delivered payments, overnight services, electronic payments) are considered delivered on date of receipt of payment. Send payments to: Tahoe Donner Association, ATTN: Accounting, 11509 Northwoods Blvd, Truckee, CA 96161.

It is the Association’s policy to apply payments received as follows: First, to the oldest unpaid Assessment. Second, to the Interest and Penalties (Delinquency Fee, Lien Fee, costs of collection, etc.) related to that oldest unpaid Assessment. Next, to the second-oldest Assessment, followed by the Interest and Penalties related to that second-oldest Assessment. This sequence continues until the most recent Assessment is paid, the Interest and Penalties related to that most recent Assessment are then paid.

An Assessment payment plan can be established with the association, the plan length terms do not extend beyond the end of the applicable assessment year for payment in full; including delinquency fee, finance charges, and any other charges, as applicable.

ASSESSMENTS AND FORECLOSURE Assessments become delinquent 15 days after they are due, unless the governing documents provide for a longer time. The failure to pay Association assessments may result in the loss of an owner’s property through foreclosure. Foreclosure may occur either as a result of a court action, known as judicial foreclosure or without court action, often referred to as nonjudicial foreclosure. For liens recorded on and after January 1, 2006, an association may not use judicial or nonjudicial foreclosure to enforce that lien if the amount of the delinquent assessments or dues, exclusive of any accelerated assessments, late charges, fees, attorney’s fees, interest, and costs of collection, is less than one thousand eight hundred dollars ($1,800). For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800) or more than 12 months delinquent, an association may use judicial or nonjudicial foreclosure subject to the conditions set forth in Article 3 (commencing with Section 5700) of Chapter 8 of Part 5 of Division 4 of the Civil Code. When using judicial or nonjudicial foreclosure, the Association records a lien on the owner’s property. The owner’s property may be sold to satisfy the lien if the amounts secured by the lien are not paid. (Sections 5700 through 5720 of the Civil Code, inclusive) In a judicial or nonjudicial foreclosure, the Association may recover assessments, reasonable costs of collection, reasonable attorney’s fees, late charges, and interest. The Association may not use nonjudicial foreclosure to collect fines or penalties, except for costs to repair common areas damaged by a member or a member’s guests, if the governing documents provide for this. (Section 5725 of the Civil Code)

The Association must comply with the requirements of Article 2 (commencing with Section Civil Code Section 5310 requires the following 5650) of Chapter 8 of Part 5 of Division 4 of the notices: Civil Code when collecting delinquent assessments.

NOTICE ASSESSMENTS AND FORECLOSURE This notice outlines some of the rights and responsibilities of owners of property in common interest developments and the associations that manage them. Please refer to the sections of the Civil Code indicated for further information. A portion of the information in this notice applies only to liens recorded on or after January 1, 2003. You may wish to consult a lawyer if you dispute an assessment.

If the Association fails to follow these requirements, it may not record a lien on the owner’s property until it has satisfied those requirements. Any additional costs that result from satisfying the requirements are the responsibility of the Association. (Section 5675 of the Civil Code)

Tahoe Donner 2018 Budget Report |

9

2018 Budget - Amenity Visitation Metrics 60,000

160,000

54,700

147,000

2018 Budget - -Amenity Visitation Metrics 50,000 Budget 2018 Amenity Visitation Metrics 41,600

60,000 40,000

54,700

39,000

140,000

40,000

160,000

50,000

140,000

30,000

41,600

40,000

39,000

40,000

19,200

20,000

22,300

17,500 20,000 20,000

120,000

30,000

19,200

22,300

5,000

17,500 20,000 20,000

4,700

100,000 80,000 60,000

1,700

80,000

5,000

4,700

60,000

1,700

20,000 40,000

-

Trout Creek Recreation Center

a

zz

-

Pi

Cl

ub

M

20,000

Trout Creek Recreation Center

D

Be

ac

h

Th

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lu

Th

b

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Lo

dg

e Pair M i z n a za on rin ow Dt a ohwe on nh th ill nHhi e Sk Cr ill H i R ll S os ill C k e s r i so Co os R rt es un s C or ou tr t G y Sk ntorl f G y iC ol Te en Sk f nn te i C en is Ter Ce nn te r Su nt is e m r Ce m S n er um te r F& m Sn B er ow F& B Eq pla Sno y ue w pl st E ay ria q D ay n ue s Ca tr ia Ca m Da n p y m s Ca pg C m ro a ps un m d pg ro un d

40,000

10,000 -

147,000

100,000

10,000

20,000

120,000

2018 Budget - Visitation Mix (estimated) 100%

5%

10% 10% 2018 Budget - Visitation Mix (estimated) 90%

40%

63%

20%

42%

70%

60%

63%

30% 20%

30%

70%

60%

70%

6% 6% 31%

70%

10%

42% 23%

48%

75%

92%

70%

75%

92%

70%

63%

Guest

Member

18% Member

ay

18%

ue

st

Snay ow Eq

pl

Guest

80% 80%

27%

pl

F&

D

Seur

m m Su

The collection practices of the Association may be governed by state and federal laws regarding fair debt collection. Penalties can be imposed for debt collection practices that violate these laws.

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Be

ASSESSMENTS AND FORECLOSURE, CONTINUED

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Th e Th ac Be Lo e a h c dg Lo Cl h ub C e dg l e M ub ar M in a a ri (v na ) ( D v) ow D nh o illwn Pi Sk hi zz i ll S a Pi ki onzz tha o en Cr H th os ill e sCr H Coo ill usns tCr o yu Skn itry

Public

70% 70%

28%

If a lien is recorded against an owner’s property in error, the person who recorded the lien is required to record a lien release within 21 days, and to provide an owner certain documents in this regard.

(Section 5685 of the Civil Code)

| Tahoe Donner 2018 Budget Report

63%

28%

At least 30 days prior to recording a lien on an owner’s separate interest, the Association must provide the owner of record with certain documents by certified mail, including a description of its collection and lien enforcement procedures and the method of calculating the amount. It must also provide an itemized statement of the charges owed by the owner. An owner has a right to review the Association’s records to verify the debt. (Section 5660 of the Civil Code)

10

55%

30% 30%

31%

0%

Public

20%

27%

48%

i

0%

10%

55% 30%

10%

20%

23%

14%

20%

20%

30%

42%

10%

50% 40%

20%

10%

8%

20%

42%

70% 50% 60% 40%

5%

tr ia Dmp n ay s ( v) C Ca am m ps pg (v ro ) Ca un Tr d m ou pg tC ro re un Tr ek d ou (v tC ) re ek (v )

20%

10%

20%

Ca

80% 60%

10%

40%

14%

ay

90% 70%

20%

20%

Erqian ue s

100% 80%

10%

8%

(v) = Private Amenity

(v) = Private Amenity

PAYMENTS When an owner makes a payment, he or she may request a receipt, and the Association is required to provide it. On the receipt, the Association must indicate the date of payment and the person who received it. The Association must inform owners of a mailing address for overnight payments. (Section 5655 of the Civil Code).

In addition, an association may not initiate a foreclosure without participating in alternative dispute resolution with a neutral third party as set forth in Article 3 (commencing with Section 5925) of Chapter 10 of Part 5 of Division 4 of the Civil Code, if so requested by the owner. Binding arbitration shall not be available if the Association intends to initiate a judicial foreclosure.

An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment was paid properly on time. (Section 5685 of the Civil Code)

MEETINGS AND PAYMENT PLANS An owner of a separate interest that is not a timeshare may request the Association to consider a payment plan to satisfy a delinquent assessment. The Association must inform owners of the standards for payment plans, if any exist. (Section 5665 of the Civil Code) The board of directors must meet with an owner who makes a proper written request for a meeting to discuss a payment plan when the owner has received a notice of a delinquent assessment. These payment plans must conform with the payment plan standards of the Association, if they exist. (Section 5665 of the Civil Code) NOTICE OF RIGHTS AND OBLIGATIONS RELATING TO GOVERNING DOCUMENT ENFORCEMENT: The provisions of Tahoe Donner Associ-

ation’s Governing Documents (Declaration of Covenants and Restrictions, Bylaws, Articles of Incorporation, and Association Rules) may be enforced by the Association or by any owner, and the prevailing party in such an action is entitled to an award of reasonable attorney’s fees and costs. However, before most Governing Document enforcement actions may be taken to court, Civil Code Section 5935 requires the initiating party to serve a Request for Resolution (the “Request”) upon the other parties to the dispute. The objective of the Request must be to encourage the recipient opposing parties to agree to resolve the matter through arbitration, mediation, or some other form of alternative dispute resolution (“ADR”). The form and details of the ADR process, and whether its result will be binding or non-binding on the parties, must be agreed upon by the parties. If you receive a Request, you have 30 days to either accept or reject the ADR proposal. If you do not respond to the party issuing the Request within that time, you will be deemed to have rejected the proposal. If the Request is rejected, the other party may file a suit.

You should be advised that failure by any member of the Association to comply with the pre-filing requirements of section 5935 of the Civil Code may result in the loss of your rights to sue the Association or another member of the Association regarding enforcement of the Governing Documents. In a Governing Document enforcement lawsuit, the court may also consider a party’s refusal to participate in ADR in determining an attorney’s fee award. With regard to internal dispute resolution, Tahoe Donner Association follows the process described in section 5915 of the Civil Code. For more information, please contact the Association offices.

As required by California Civil Code section 5300(b)(9), the following is a summary of Tahoe Donner Association’s insurance coverages: PROPERTY INSURANCE POLICY: Granite State Insurance Co.; Limit – $57,320,850; Deductible – $5,000 per occurrence for buildings, contents, lifts, moveable equipment etc., and $1,000 per occurrence for golf carts and tee to greens.

GENERAL LIABILITY POLICY: Granite State Insurance Co.; Limit – $1,000,000; General Aggregate – $1,000,000 per occurrence; Deductible – $10,000 per occurrence.

CRIME POLICY: Granite State Insurance Co.; Limit – $500,000; Deductible – $5,000 per occurrence; Additional excess crime coverage; Travelers; Limit - $1,000,000; Deductible - $505,000 per occurrence.

EARTHQUAKE AND FLOOD INSURANCE POLICY: Granite State Insurance Co; Limit – $3,000,000 per occurrence; Earthquake Aggregate – $3,000,000; Deductible – $100,000; Flood Deductible – $50,000.

INLAND MARINE: Granite State Insurance Co.; Limit – $7,611,388; Deductible – $5,000 per occurrence.

DIRECTORS AND OFFICERS LIABILITY INSURANCE: Navigators; Limit – $5,000,000; Deductibles – Non-Indemnifiable Loss: None; Indemnifiable Loss: $50,000.

BOILER & MACHINERY COVERAGE: Granite State Insurance Co.: Limit - $45,901,562; Deductibles - $5,000 minimum for compressors, motors, pumps, equipment generating electricity, and property damage: Deductible - $2,500 minimum for consequential spoilage.

BUSINESS AUTOMOBILE: Granite State Insurance Co.; Limits $1,000,000; Deductibles - $3,000 for vehicles and $5,000 for large vehicles and equipment per occurrence; No deductible, if claim against us.

DIGITAL RISK: Hiscox 100% Lloyd’s; Limits - $1,000,000; Deductible $5,000 per occurrence.

THE CIVIL CODE REQUIRES THAT THE FOLLOWING STATEMENT APPEAR: “This summary of the Association’s policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any Association member may, upon request and provision of reasonable notice, review the Association’s insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the Association maintains the policies of insurance specified in this summary, the Association’s policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.” In fact, since all of our common areas and facilities are owned solely by the Association as a corporate entity, and not by the Association’s individual members, the insurance carried by the Association insures only the Association, and only with regard to its actions and its property. It does not insure individual members, their property (individual homes and lots) or their actions.”

EXCESS LIABILITY (UMBRELLA) POLICY: New Hampshire Insurance Co. Limit – $25,000,000; General Aggregate – $50,000,000; Deductible – $10,000 per occurrence. Additional excess liability coverage over the current Umbrella; Torus National Insurance Co.; Limit - $15,000,000; Aggregate - $50,000,000; Navigators; Limit - $9,000,000.

Tahoe Donner 2018 Budget Report |

11

TAHOE DONNER ASSOCIATION

2018 Budget

NEWS YOU CAN USE VERSUS 2017, NO CHANGE IN TOTAL ASSESSMENT AMOUNT

$1,900 Annual Assessment (PER OWNER PROPERTY) (DUE 1/1/2018)

+ $25

Increase Reserve funding: to ensure adequate funds to replace aging infrastructure of the Association, protecting your home values

+ $10

Increase Development funding: to address the changing needs of the members and eventual building replacement needs

+ $57

Regulatory cost increases from California minimum wage, insurance and health insurance renewal

- $75

Operating revenue growth driven by record summers, and record winters 2015/2016 and 2016/2017 favorably impacting assumptions

- $24

Workers compensation insurance decrease, favorable incidents trend

+ $7 $0

All other changes, net increase

TOTAL CHANGE IN ANNUAL ASSESSMENT

NO INCREASE FROM THE 2016/2017 RECREATION FEE. WHY?

$270 Recreation Fee (EFFECTIVE 5/1/2018)

Daily Entry Fees (EFFECTIVE 1/1/2018)

Facts + Figures About Your Association

ESTIMATES AS OF NOVEMBER 2017 / SUBJECT TO CHANGE

The optional, yet ever-popular, Recreation Fee (valid for up to 4 individuals) equates to as low as $5.63 per person per month for unlimited access to all private amenties and Snowplay.

The Recreation Fee allows cardholders unlimited access to the following amenities: Trout Creek Recreation Center, Beach Club Marina, Northwoods Pool, Tennis and Snowplay. ales of the recreation fee an aily entry fees an to offset increased operating costs.

isitation ha e increase sufficiently

Private Amenity Daily Entry Fees (EFFECTIVE 1/1/2018):

* Daily Entry Fees, Member (non-Recreation Fee) - $6, no change * Daily Entry Fee, Guest (with Member) - $8, no change * Daily Entry Fee, Guest (without Member) - $12 (guest on guest card)

• 6,473 member property owners

Own & Operate:

• 2,500 trees planted in 2017

• 25,000 members • 84% 2nd homeowners

• Golf Course • Beach Club Marina

• Established 1971 • 90% built-out

• Downhill Ski Resort • Cross Country Ski Center

• Over 55,000 trees planted in past decade • 68 miles of paved public roads

• Owned & managed by the property owners • $24.8 million budget for 2018

• Snowplay Area • Equestrian Center

• $61 million in total assets • 7,000 acres • 26 buildings • 120,000sf of conditioned space

10/31/2017 1:38 PM | \\tahoedonner.sharepoint.com@SSL\DavWWWRoot\accounting\Shared Documents\zBudget\TDA\Other\2018 Budget Summary 20171028 draft News U Can Use

• Tennis Center • Pools • Recreation Center • Day Camps • Restaurants • Retail Shops

• 60 miles of trails (and more planned) • $3.7 billion estimated Tahoe Donner community real estate value

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TAHOE DONNER NEWS |

23

FEATURE

BEST OF TAHOE DONNER:

HOLIDAY EDITION

By JOE LEWANDOWSKI

Whether it’s your first time in Tahoe Donner or you’ve been visiting or living here for years, there’s no shortage of fun activities and adventures to enjoy with friends and family, especially around the holidays. Here are some of our local holiday highlights so you can set your seasonal schedule and celebrate in style.

BEST FAMILY CELEBRATION LIGHT UP THE NIGHT

After you’ve had a couple days to digest that Thanksgiving feast, bring the entire family for our annual Light Up the Night celebration. Look forward to the tree-lighting ceremony, arts and crafts, visits with Mrs. Claus and Santa, and a raffle with great prizes and proceeds benefiting local nonprofit Project MANA. When: Saturday, Nov. 25, 5-7PM Where: The Lodge Restaurant & Pub Cost: Free! Donate canned food here.

BEST ADVENTURE DATE ACTIVITY FULL MOON SNOWSHOE TOUR

Bring your sweetheart for some holiday romance under the night sky with a full moon snowshoe tour, or moonlit hike if Mother Nature hasn’t supplied the snow yet. With experienced guides and sweeping panoramas, it’s the perfect way to get your heart racing.

When: Saturday, Dec. 2, 5:30-7:30PM Where: Alder Creek Adventure Center Cost: $49 adult, $30 kids 12 + under

BEST GIRLS NIGHT OUT WOMEN’S SHOPPING NIGHT

Bring your girlfriends for an evening of fun and sensational seasonal savings at the Tahoe Donner Cross Country Ski Center. With deals offered on everything – including gear, clothing and drinks at the Trailside Bar – it’s the perfectly social way to save.

When: Wednesday, Dec. 13, 5-8PM Where: Alder Creek Adventure Center Cost: Free!

BEST SANTA EXPERIENCE CHRISTMAS DAY & SKIING WITH SANTA

Christmas morning just got a little more magical – join Santa for a delicious breakfast, followed by a day of skiing and riding with the big guy once the lifts open.

Bring the whole family for this magical day in the winter wonderland of Tahoe Donner.

When: Monday, Dec. 25, 10AM breakfast, 11:30AM skiing Where: Tahoe Donner Downhill Ski Resort

BEST WAY TO RING IN THE NEW YEAR LIGHT PARADE & FIREWORKS Ring in the New Year in true Tahoe Donner fashion with our annual Light Parade down the mountain!

Intermediate or better skiers and riders age 10 and older are invited to join the parade, and everyone will enjoy music, snacks and a spectacular fireworks show.

Signups begin at 4:30, so come early to save your spot in the parade – or snag a great seat.

When: Sunday, Dec. 31, 6:15PM Where: Tahoe Donner Downhill Ski Resort Cost: Free!

BEST CHAMPAGNE TOAST NEW YEAR’S EVE AT THE LODGE RESTAURANT & PUB

Celebrate New Year’s Eve in style with a delicious dinner followed by dancing, a champagne toast and perhaps a kiss. Executive Chef Lew Orlady probably won’t pucker up, but he and his team will craft a magical meal to remember. Seating is limited and reservations are required.

When: Sunday, Dec. 31, 5-10PM Where: The Lodge Restaurant & Pub Reservations: (530) 587-9455

TAHOE DONNER NEWS |

25

THE REPORT

CAPITAL PROJECTS: UPDATES FROM THE GPC TASK FORCES The board-approved Capital Projects Process (CPP) is used by the General Plan Committee (GPC) to evaluate, track and document Capital Projects. The complete CPP can be found in the member area on tahoedonner.com.

CLU ST ER M AILB OX CO N SO LIDATI ON The task force is working with the Truckee Postmaster to obtain USPS cooperation in replacing 2,630 existing mailboxes in four locations with 2,160 new mailboxes located under roofed structures at three locations.

TROUT CREEK RECREATION C E N T E R SPAC E REALLOCAT I ON AND E XPANS IO N At their Oct. 28 meeting, the board voted 5-0 to approve funding for architectural and engineering (A/E) documents necessary to obtain construction costs for a 670 sq. ft. addition to the proposed Trout Creek STATUS: Recreation Center Phase 1 + Phase 2, after FINAL DESIGN which the space reallocation and expansion project will be considered for approval of construction.

STATUS: ANALYSIS

EQUEST RI AN C ENT ER RELO CAT IO N S E A S ON A L EM PLOY E E HO U SIN G The task force is monitoring the experience with employee housing this winter, as well as the progress of the Mountain Housing Council.

STATUS: ANALYSIS

Phase 3 of the Equestrian Center relocation construction began this fall, including gravel at the driveway, parking stalls and walkways.

During the spring months of 2018, construction will be completed ahead of summer operations STATUS: for the guide shack, loading ramp, wash rack, CONSTRUCTION and other elements of the relocation plan.

Please use caution in these areas as construction equipment and activities will be ongoing.

DO W NHI L L S KI R E SO RT STU DY

ASSOC I AT I ON M AST ER PLAN

The task force is in support of the Downhill Ski Area being renamed the Downhill Ski Resort.

In November’s copy of Tahoe Donner News, our article focused on the financial importance of the amenity and the critical need to address STATUS: deficiencies and risk associated with the ski CONCEPTUAL lodge. At its meeting on Nov. 6, the task force finalized its formal communication plan and the Capital Projects Process Stage 2 milestone schedule.

The Association Master Plan was completed and approved by the board and is now posted on the Tahoe Donner website at tahoedonner.com/association-master-plan.

A post-project review is being written.

STATUS: POST-PROJECT

STAG E S O F T HE CA PI TA L PR OJE CT S PROC ES S : LIST DEVELOPMENT

PROJECT ANALYSIS

CONCEPTUAL DESIGN

FINAL DESIGN

CONSTRUCTION

POST-PROJECT REVIEW

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27

FEATURE

WELCOME TO TAHOE DONNER

A GUIDE FOR SHORT-TERM GUESTS

By JAMIE BATE

Set in the High Sierra, Tahoe Donner is a community comprised of homeowners with a passion for outdoor recreation and a love of the mountain lifestyle. Along with pristine open space and cherished tranquility, Tahoe Donner offers an array of private and public amenities shared by residents and visitors alike.

JOHN ALDRIDGE

Whether short-term guests are visiting Tahoe Donner for a single night or long weekend, the Tahoe Donner Association encourages them to both enjoy and respect this truly unique place its members call home.

TAHOE DONNER AMENITIES Tahoe Donner is all about altitude, not attitude. Guests will discover a variety of amenities ranging from restaurants to recreation centers.

Some are open to the general public, while others are open only to members, their guests and short-term renters. Whatever the activity or taste, Tahoe Donner offers something for everyone. And to keep amenities accessible to everyone, please familiarize yourself with the simple guidelines at the various facilities, including the privileges afforded at the private amenities with a Transferable Guest Card.

PRIVATE AMENITIES

PUBLIC AMENITIES

Beach Club Marina

Alder Creek Campground

Northwoods Pool

Bikeworks

Tennis Center

Cross Country Ski Center

Trout Creek Recreation Center

Downhill Ski Resort Equestrian Center Golf Course + Driving Range Snowplay Winter Golf Academy

AMENITY USE Per the homeowner’s discretion, short-term renters may be provided a Transferable Guest Card to gain access to the private amenities.

There are two guest passes per property. A total of eight guests of a homeowner may access the private amenities at the same time without a member being present. Once the guests pay the applicable daily fee, they will receive a wristband that will give them access to other private amenities during the same day. Call member services for exact rates.

NEED MORE INFO? Tahoe Donner Member Services is the one-stop location for information about private and public facilities around the community.

Contact Member Services from 8AM-5PM daily.

LOCATION Northwoods Clubhouse, 11509 Northwoods Blvd.

Truckee, CA 96161

CONTACT (530) 587-9400 info@tahoedonner.com Live Chat on tahoedonner.com

HOURS Open daily, 8AM-5PM SPECIAL HOLIDAY HOURS Thanksgiving Day: 8AM-2PM Christmas Eve: 8AM-2PM New Year’s Eve: 8AM-4PM

Day after Thanksgiving: 8AM-5PM Christmas Day: 8AM-12PM New Year’s Day: 8AM-5PM

TAHOE DONNER NEWS |

29

FEATURE

IMPORTANT RULES

KNOW SNOW

People chose to become part of the Tahoe Donner community to experience the peace, quiet and bright starlit nights a mountain lifestyle affords. When visiting, be respectful of your Tahoe Donner neighbors, which includes people and wildlife.

Tahoe Donner is famous for big-time snow accumulations. Here are a few tips to make your stay in the snow safe and enjoyable:

As a short-term renter, violation of Tahoe Donner’s covenants can result in suspension of amenity privileges and fines paid by the guest and/or homeowner.

• As a courtesy, minimize noise and turn off exterior lights after 10PM. • Any vehicle parked off-pavement in any common area or other association-owned property will be towed at the vehicle owner’s expense.

• Pets must be on a leash on Tahoe Donner-owned property and on a leash or within voice control on streets.

• Any use of amenities or facilities after closing, either for the day or for the season, is prohibited.

• Open outdoor fires without screens or covers are prohibited without a permit.

• Fireworks of any kind are prohibited.

• Snowmobiles, motor-powered bikes, all-terrain vehicles and off-road motorcycles are prohibited.

• Smoking is prohibited at all amenities.

• Drone use in Tahoe Donner is prohibited without prior written authorization from the Tahoe Donner Association.

This is an abbreviated list of covenant rules. For full list visit tahoedonner.com/covenants.

KEEP WILDLIFE WILD Tahoe Donner is home to bears and other wildlife. Please DO NOT FEED THE BEARS! To keep wildlife wild, please do the following: • Never put trash or recycling out at the curb prior to Tuesday morning.

• Close Dumpster lid.

• Remove key from bear box.

• Do not store pet food outside.

• Lock doors and windows when away from the residence.

• Do not keep food items or used food containers in vehicles.

• Do not park on streets between Nov. 1 and April 30 due to snowplows and do not park in other people's driveways.

• Be aware of snow loads sliding off roofs; people and pets can be buried.

• Clear all snow from vehicle roofs; it can later slide onto your windshield and obstruct vision.

• Carry a window scraper/brush.

• The speed limit in Tahoe Donner is 25 MPH or less, depending on road conditions.

• In case of power outage, travel with flashlights, battery-powered radio and batteries.

• Tahoe Donner is at a higher elevation than most of Truckee, thus winter road conditions generally necessitate good all-weather/ winter tires and AWD/4WD. If you do not have AWD/4WD you will need chains.

DINING IN TAHOE DONNER Tahoe Donner is home to a variety of dining opportunities perfect for a romantic dinner, family pizza party and everything in between.

If Snowplay is the plan for the day, make sure to visit the TD Eats food truck parked right next to the tubing hill. Need to grab a bottle of wine or other household necessities? Don’t go down the hill, just head to Z Marketplace Deli for all of your grocery needs.

YEAR-ROUND The Lodge Restaurant & Pub Pizza on the Hill Alder Creek Cafe

WINTER SEASONAL Downhill Ski Resort Grill & Bar TD Eats Food Truck at Snowplay

SUMMER SEASONAL T-9 Grill at Tahoe Donner Golf Course Marco Polo Grill at Trout Creek Recreation Center Marina Grill at Beach Club Marina

WHAT’S GOING ON? Be it a unique dining experience at The Lodge Restaurant & Pub or a cross country ski clinic at the Alder Creek Adventure Center, there are always awesome events happening around Tahoe Donner. Check out the Event Calendar online at tahoedonner.com/events.

For everything that’s happening around Truckee and North Lake Tahoe, the Truckee Chamber of Commerce calendar is your onestop spot at chamber.truckee.com/events.

RUSS ALBANO

COMMUNITY-MINDED With its towering pines, endless trails and room to roam, Tahoe Donner is the perfect respite from the hustle and bustle of daily life.

That’s why you’re here. During your visit, please respect the privacy and property of others, including being aware of Tahoe Donner’s wildfire-prone landscape that is home to an array of wildlife dependent on the forest.

THE REPORT

THIRD ANNUAL GIVING FUND BENEFIT DINNER RAISES $15,000!

By DICK GANDER, Tahoe Donner Giving Fund Committee Chair

On the heels of awarding $24,000 in grants to local non-profits, the Third Annual Giving Fund Dinner raised $15,000 for next year’s grants! Eighty diners enjoyed a fantastic meal at the Alder Creek Adventure Center on October 14.

The evening began with champagne and a passed appetizer reception followed by a delicious salad, whole roasted Rocky Jr. chicken with brown butter and rosemary gravy, grilled artichoke and black lentil ratatouille, roasted autumn vegetables, wine on the tables and perhaps the best trout many of us had ever had! Chef Joe Casey really brought his A-game to the party!

We thank our sponsors for their support on the big night: Easterbrook Painting, Margo Groth of Dickson Realty, Plumas Bank and Tahoe Donner.

Stacy Caldwell, CEO of the Tahoe Truckee Community Foundation (TTCF), briefed the diners on the TTCF’s goals and plans to attract $100 million in capital to the region while supporting our many non-profits.

TTCF intends to help the region unite diverse interests to solve some of our largest

problems, such as the recently convened Mountain Housing Council addressing affordable housing. For more on TTCF, see TTCF.net.

Throughout the evening there was spirited bidding on a wide variety of silent auction items. The community was so generous in donations, as were the attendees with their bids.

Thank you to everyone who attended for your generous support: the Tahoe Donner Food and Beverage staff, our sponsors, the silent auction contributors, and most especially to the hardworking Giving Fund Committee members that made it happen: Suzanne Sullivan, Pam English, Lois Ermak, Jeanette Fagerskog, Linda Slattery and Katie Veni.

Please look for our insert in your Annual Assessment letter, which you can use to send in a contribution to next year’s grant, or to make an online contribution anytime visit our website at tahoedonner.com/giving-fund.

The Tahoe Donner Giving Fund is chartered by the Tahoe Donner board of directors. All contributions are voluntary tax-deductible gifts from Tahoe Donner members and friends. The Giving Fund is administered through the Tahoe Truckee Community Foundation. For more information on the Giving Fund or to make a contribution, visit our web page at tahoedonner.com/giving-fund. Contact tdgf@tahoedonner.com with questions or to volunteer for the committee.

TAHOE DONNER NEWS |

31

THE REPORT

BOARD MEETING RECAP SPECIAL MEETING OCTOBER 19, 2017 2018 TAHOE DONNER ASSOCIATION BUDGET REVIEW The Board of Directors reviewed and discussed in detail the 2018 Tahoe Donner Association Budget.

APPROVED 5-0 • Voted to remove E-bikes from the new equipment fund 2018 spending list.

• Agreed to implement an unaccompanied guest pass product for $12.

MONTHLY MEETING OCTOBER 28, 2017 APPROVED BY THE BOARD • Approval of Minutes: Sept. 23, Oct. 10 and Oct. 19, 2017.

• Special Task Force Formation: Equestrian Blue-Ribbon Panel Task Force and ASC/ASO Task Force. No action taken on Short-Term Rental/Amenity Access Task Force.

• Approve Women’s 9 Hole Golf Club Revised Bylaws • Approve Women’s Golf Club Revised Bylaws • Approve Tahoe Donner Senior Alpine Ski Club Revised Bylaws • Advertising Sales Agreement • Trout Creek Reallocation Project: Additional $25,000 in development funds to cover necessary architecture, engineering, consulting and contingency fees for another 670 square feet of conditioned space as a part of the Trout Creek Reallocation Project.

• Approve the 2018 Tahoe Donner Association Budget • Association Key Performance Indicators Update

NO ACTION • Executive Session Report • Social Media Update and Tahoe Donner Association’s Response • Committee Management Reports • Compensation Study Report: Phase II report, conducted by Romanoff Consulting Inc. • Tahoe Donner Association Emergency Action Plan: Discussed Greater Truckee Area Emergency Preparedness and Evacuation Guide, the Town of Truckee’s Emergency Operations Plan and the Tahoe Donner Association Emergency Operations Plan.

HOMES ON THE RISE The Architectural Standards Committee reviewed the following plans during October 2017.

UNIT/LOT

ADDRESS

SQ. FT

PROJECT

03/041

16304 Skislope Way

1264

House

03/209

12330 Snowpeak Way

2569

House

03/381

13949 Skislope Way

2550

House

04/166

14288 Tyrol Road

1727

House

#tahoedonnerassociation facebook.com/tahoedonner twitter.com/tahoedonner instagram.com/tahoedonnerassociation

Happy Holidays from Our Elder Group Family to Yours!

Rarely does a home of this caliber come to market – offering a custom design by an award winning architect, a spectacular golf course homesite and lovely ambiance. This unique setting and Lindal Cedar home is truly a magical mountain destination. Filled with light, soaring ceilings, huge windows and custom finishes, you have arrived to your perfect retreat. Incredible finishes and interesting history abounds – antique and remanufactured pine floors from the original Sears building, Western red cedar siding, commissioned stain glass windows accent the dining room, beautiful lighting setting the perfect ambiance, gorgeous grounds and many accents that sets this home apart.

Listed for: $1,350,000 | 4 BD | 3.5 BA | 3,025± s.f. | 14960SwissLane.com

December’s Happy Seller Client

SOLD

14835NorthwoodsBlvd.com Listed for: $875,000 Sold for: $865,000 Close of Escrow: 11/7/2017

ELDER GROUP TAHOE

Wow! Never had an experience of this caliber in selling or buying a home. This is a team of professionals working seamlessly together for you. After signing with Alison, she was full throttle from the beginning to the close of escrow. She knows her product well. Very good recommendation from our neighbor in Tahoe Donner. I must say, Alison, you set the bar pretty high! I believe it would be very difficult to find another realtor and team like the Elder Group.

– Hunn Family, Sellers, October 2017

Alison Elder Real Estate Advisor, Par tner 530.582.8103 tahoe@alisonelder.com eldergrouptahoerealestate.com alisonelder.evusa.com

PARK CITY | LAKE TAHOE | NEWPORT BEACH | SAN FRANCISCO | LAGUNA BEACH | LONG BEACH | ST. GEORGE ©2017 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. Engel & Völkers and its independent License Partners are Equal Opportunity Employers and fully support the principals of the Fair Housing Act. If your property is currently represented by a real estate broker, this is not an attempt to solicit your listing. CA BRE License #01399851

TAHOE DONNER ASSOCIATION 11509 NORTHWOODS BLVD. TRUCKEE, CA 96161

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