Tahoe Donner News – May 2012

2011 ANNUAL REPORT INSIDE See pg. 33

MAY

Table of Contents 5

13

FEATURES

13

Hiking Trails, vistas and exploring

24

Tahoe Donner Golf Getting ready for opening day

TAKE NOTE

05 Kayak Storage

Lottery sign-up 06

New Trail Connecting TD and downtown

09 Chris Beck

On the cover 21

Photo Contest Submit your photos

31

Spring Craft Tissue paper flowers

24

DEPARTMENTS

02

President’s Message Membership update

03

Monthly Calendar Something for everyone

08

Let’s Get Together TD events & happenings

27

Bulletin Board Upcoming community events

28

Taking Care of Business Board meeting minutes

32

Where in the World is TD News?

TD News travels the world

VOL. 13, NO. 5

WELCOME

MAY 2012 EDITORIAL AND PRODUCTION STAFF Amanda Birchenough Brittany Felton Amanda Wallace Kirt Zimmer

PRESIDENT’S MESSAGE

BOARD OF DIRECTORS President

Suzan Knisley, suzylynn@mindspring.com

Vice President

Tom Johns, btjtd@aol.com

Secretary

Steve Miller, stephen.m.miller@wellsfargoadvisors.com

Treasurer

Ron Wulff, rwulff@sbcglobal.net

Director

Jay Lempinen, jjlempinenlost@sbcglobal.net

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

SUZY KNISLEY | PRESIDENT

comdep@tahoedonner.com

Advertising Sales Tahoe Guide is the exclusive advertising

SUZY KNISLEY | PRESIDENT

representative for the Tahoe Donner News.

Call (530) 448-3065 or (530) 587-1393

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.

Two very significant events that are important to our members are on the calendar very soon. First is our annual election for the board of directors. Although it would be nice if every single member had the opportunity to vote on each of the important issues that come before the association, our Tahoe Donner governing documents and the State of California statutes preclude that from occurring. Your vote is effectively represented when you vote for the member that best represents your voice on how the association should be governed. You will soon receive your ballot in the mail. Be sure and read the statements and ask ques-

tions of the candidates running for the board and mail or personally turn in your ballot.

Importantly, sign the outside of the ballot envelope to make sure your vote counts.

Unlike other association developments, Tahoe Donner members own all of the amenities and common areas instead of being retained by the developer. Although our governing documents control association matters such as CC&R’s, the level of business operations within Tahoe Donner is on the same level as a medium size corporation with similar business decisions and challenges or a town such as Truckee that operates at a budget level very close to Tahoe Donner’s operating budget.

The next event date to save on your calendar is June 24 for our Annual Tahoe Donner Member Meeting to be held that Sunday at 1 p.m. at the Northwoods Clubhouse. In addition to our annual meeting where you have the opportunity to exchange ideas with staff and the board of directors, there will be many fun family activities planned along with our annual barbeque, free to all members.

Included in this issue is Tahoe Donner’s Annual Report. This is an important document full of all the financial details important to our members for review. The board thanks our Director of Finance Mike Salmon for his expertise and commitment to excellence in our Operating Budget and preparation of the Annual Report.

Looking forward to a great spring and summer in Tahoe Donner.

y d a e r r t e e m G m u S for

MAY SEASON OPENING DATES

May IMPORTANT SUMMER REGISTRATION DATES Registration takes place online at tahoedonner.com/shop

TWO THOUSAND TWELVE

Summer Fun Guide

DAY CAMPS Tennis Center Opens for the Season Saturday, May 5 (conditions permitting) Sail. Hike. Paddle. Swim. Ride. Swing. Explore. Summer in Tahoe Donner is packed with adventure.

Spend your summer days drifting away at the Beach Club Marina or climbing to the top of Hawk’s Peak.

Discover a new adventure and most importantly, have fun. What are you waiting for?

Looking for an extra copy of the 2012 Summer Fun Guide?

Pick yours up just outside of the Member Services office in the Northwoods Clubhouse.

Enjoy a free day of tennis as part of our fourth annual Tennis Across America event on opening day. We will have something for the whole family to enjoy as we showcase our 2012 summer programs. Take a theme clinic or cardio tennis. Call (530) 587-9474 to sign-up.

Sundays 10 a.m. – 2 p.m. starting June 17

SWIM LESSONS MEMBER REGISTRATION Tuesday, May 8 @ 8 a.m GUEST REGISTRATION Tuesday, May 22 @ 8 a.m

RECREATION MEMBER REGISTRATION Tuesday, May 29 @ 8 a.m This includes the Bocce ball league.

GUEST REGISTRATION Tuesday, June 5 @ 8 a.m

Member Services Office Hours Monday – Saturday 9 a.m. – 4:30 p.m.

MEMBER REGISTRATION Tuesday, May 1 @ 8 a.m GUEST REGISTRATION Tuesday, May 15 @ 8 a.m

Golf Opens for the Season Friday, May 18 (conditions permitting)

To register as a member, each participant must be identified on your Tahoe Donner profile, even if they are 6 or under. You can make changes to your profile by contacting the Member Services office in Northwoods Clubhouse or by calling (530) 587-9400.

Guests must obtain a transferable guest ID card number or a member card ID number in order to register.

Beach Club Marina Opens for Season Friday, May 25 (conditions permitting)

tahoedonner.com |

3

FROM THE DIRECTOR OF FINANCE & ACCOUNTING

MICHAEL SALMON | DIRECTOR OF FINANCE & ACCOUNTING The 2011 Annual Report for Tahoe Donner Association is included in this issue starting on page 33. This report provides comprehensive information on 2011 financial results and communicates the 2011 audited financial statements and Independent Auditor’s Report. The majority of our amenities performed very well in 2011, despite the lack of winter weather in December. For 2011, we were on budget through November; however, due to the lack of snow we were materially off budget in December and missed budgeted net operating results for the year by $185,000/4% or $29 per owner. Of note are a few interesting 2011 operational metrics regarding our vital Forestry department operations. We manage over 7,000 acres, planted 5,500 trees, and 870 tons of chipped material was recycled into energy at the regional co-generation plant.

The financial start to 2012 has been challenging. With downhill and cross country ski operations not opening until January 24, 2012, the losses in January and February of 2012 amounted to an unfavor-

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| Tahoe Donner News | May 2012

able Net Operating Result (NOR) variance to budget of $522,000, with revenues off $1.1 million. I would like to thank our entire management team for their exemplary performance during such challenging operational conditions. We are proactively addressing this NOR shortfall from many angles to recover 2012 NOR back to budget by the end of this December. In March, we improved $15,000 to budget and preliminary April results look to be a minimum of $50,000 improved to budget.

The golf course is one of our most valuable and financial significant summer operations. The course is schedule to open on May 18. For members and guests, the daily rates remain unchanged for the third consecutive year. The daily play rates vary by time of the season as well as the time of day playing. The season pass rates were increased over last season. Members can also purchase multi-packs to lower the cost per round. All members can book tee times 14 days in advance, not just passholders. Your reservation can be cancelled within 24 hours of play time. So if you think you may be coming up to play, book your tee time in advance to ensure availability! Our golf rates for members are lower than market to benefit you, the member, so please come and enjoy your spectacular home course.

By now you should have received in the mail the 2012 Summer Fun Guide. The guide can also be found online at tahoedonner.com. There is a wealth of summer activities, and many require some advanced planning too. Take a few minutes with your beverage of choice and review your association’s 2011 Annual Report. I am sure you will find some interesting facts and figures regarding Tahoe Donner. Please call or drop an email anytime to me regarding your association’s finances.

Lastly, I would like to thank the Finance Committee for their service, valued insight and oversight of your association.

MICHAEL R. SALMON DIRECTOR OF FINANCE & ACCOUNTING msalmon@tahoedonner.com (530) 587-9418

COMING SOON! Kayak storage lottery The 2012 online kayak storage lottery is May 3 – 10. We encourage you to sign up at any time during this period at tahoedonner.com.

The storage is for kayaks with a beam (widest part of the bottom of the boat) of no more than 33 inches. The cost is $100 for the season.

If you receive a spot, we will contact you on May 11. You have until June 15 to pay for your spot and sign your liability waiver. You do not have to bring your boat in by June 15, but payment must be made and paperwork completed. You may bring your boat in at any point during the season. Spot assignments will be on a first come first serve basis starting at 7 a.m. on Friday, May 25.

1 Day of Work.

364 Days of Fun. PROUD SPONSOR

TRUCKEE DAY Saturday, June 2

Meet at SnowTech at 8 a.m. to join the townwide cleanup effort.

TAHOE DONNER CONTACTS Member Communications (area code 530) Member Services

587-9400

info@tahoedonner.com

General Manager

587-9431

gm@tahoedonner.com

Call 800.452.3060 | 17356 Northwoods Blvd.

Contact Member Services to be transferred to other administrative departments.

Amenities Alder Creek Campground 587-9462

campground@tahoedonner.com

Beach Club Marina

587-9460

marina@tahoedonner.com

Cross Country Center

587-9484

xcski@tahoedonner.com

Downhill Ski Area

587-9444

ski@tahoedonner.com

Equestrian Center

587-9470

equestrian@tahoedonner.com

Forestry 587-9432 forestry@tahoedonner.com Golf Course

587-9443

golf@tahoedonner.com

The Lodge

587-9455

lodge@tahoedonner.com

Pizza On The Hill

582-9669

pizza@tahoedonner.com

Recreation Info Hut

587-9413

troutcreek@tahoedonner.com

Tennis Center

587-9474

tennis@tahoedonner.com

Trout Creek Rec. Center

587-9437

troutcreek@tahoedonner.com

Tahoe Donner Association Committee Chairs Architectural Standards, Jason Wooley aso@tahoedonner.com Covenants, Al Noyes

anoyes@sbcglobal.net

Elections, Nan Carnal

ncarnal@sfsu.edu

Finance, Jeff Bonzon

jdbonzon@yahoo.com

General Plan, Dick Gander

rwgander@yahoo.com

Tahoe Donner Association Chartered Club Presidents Bridge, Sharilyn Nelson

nelson9025@sbcglobal.net

Friends of TD Trails, B.R. Levine

tdtrails@gmail.com

Rowing Club, Dot Mace

dotmace@sbcglobal.net

Senior Alpine Ski, Jeff Bonzon

jdbonzon@yahoo.com

Tahoe Donner Green, Sue Sorensen

tahoedonnergreenclub@gmail.com

Tennis, Linda Stewart

pindagold@yahoo.com

Nordic Ski Club, Carol Ozimek

president@tdnordicskiclub.org

9-Holers, Hilary Ward

hilary2@aabol.com

Mens Golf, Ralph Schindler

tdmensgolf@gmail.com

Women’s Golf, Denise Kosak

deezak12@hotmail.com

Hiking Club, Robin Reese

rbtahoe@sbcglobal.net

Quilt Club, Linda Brush

cbrush4110@gmail.com

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5

NEW TRAIL TO DOWNTOWN TRUCKEE BEING DISCUSSED

B

Because of its higher elevation and snowfall levels, Tahoe Donner’s road maintenance needs are more significant than other parts of Truckee. To meet that need, Tahoe Donner homeowners pay an additional assessment (tax) – typically used for accelerating the town’s slurry sealing and asphalt overlay schedules for the subdivision.

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| Tahoe Donner News | May 2012

It’s called the Truckee Special Service Area 1, a.k.a. “TSSA 1,” and the fund has an approximate fund balance of $5.2 million, accumulating at a rate of $589,000 per year. Aside from roadway maintenance activities, TSSA 1 funds may be used for trails and improved roadside parking in the town right-of-way which directly benefits the Tahoe Donner community (i.e., TSSA 1 service area).

Each year, the Truckee Town Council reviews the town’s pavement management program along with any eligible projects that directly benefit the TSSA 1 service area.

In recent years, the Tahoe Donner staff and board of directors have reviewed these plans and requested the town designate TSSA 1 funds for additional projects that would benefit Tahoe Donner in addition to the regular

roadway maintenance activities. Recently these funds were used to improve the onstreet parking area at the Tahoe Donner Cross Country Center along with completing a class 1 trail design from Tahoe Donner to downtown Truckee.

As the town and Tahoe Donner both look to encourage non-motorized transportation, a proposed trail has been explored that would run from the Northwoods Boulevard entrance to Tahoe Donner (by the power lines and monument sign) to Bridge Street downtown.

The paved trail, known as Trail 13, would be for multiple uses like hiking and biking but not for motorized vehicles.

The estimated length of the trail is just over one mile. Per the Town of Truckee’s Trails and Bikeways Master Plan, Trail 13 is proposed as a Class 1 path and its design standards are as follows: separated from a roadway with a minimum ten foot wide hard surface path.

The trail may or may not include a separate soft surface trail running parallel to the hard surface path.

Following the Tahoe Donner Board of Directors recommendation, the town council

approved the use of TSSA 1 funds for an environmental impact study. The study, completed last summer, determined that the trail could be built with minimal impact to the area in question. Initial design parameters are now being developed.

Now the town is considering whether to use TSSA 1 funds for construction of the trail.

At its March and April board meetings, the Tahoe Donner Board of Directors discussed the issue and made a recommendation to the town to program TSSA 1 funds to construct the first phase (one quarter mile) of Trail 13 from Northwoods Boulevard to Euer Valley Road South. Additionally, the town is reviewing their five year pavement management plan, which may impact the available town funds which are augmented by TSSA 1 funds to provide for the accelerated road maintenance in Tahoe Donner. Potential shortfalls in town budgeting may impact the frequency of slurry sealing and road overlays in Tahoe Donner; however, the town staff does not believe modifications to the funding or current road maintenance levels will impact the proposed trail project.

Exceptional Results. And More.

Tahoe Donner Market Statistics January – March, 2012

Sale Pending 30 Days on Market

Price Properties DOM Avg. List Avg. Sold Sold Sold Price Price SF Pricing Range

Properties Sold – Price Range

40 20 10

34 17

14179 Skiview Loop Architecturally stunning 3,557+ sq. ft. home.

4 bedrooms (2 en-suites), 3.5 baths. “Secret” playroom. SkiviewLoopLodge.com $1,095,000

$0 $499,999

$500,000 $749,999

7 $750,000 $999,000

$0 – $499,999

48

103

$347,375

$336,273

$211.93

$500,000 – $749,999

17

98

$619,188

$598,301

$247.09

$750,000 – $999,000

7

189

$890,785

$834,357

$264.83

$1,000,000+

2

265 $1,150,000 $1,110,000 $281.80

2 Over $1,000,000

Sales statistics based on TSMLS sold property 1/1/12 - 3/31/12

“ Alison Elder has proved herself to be the best of the best. What stood out most is Alison’s market knowledge. I have never seen

someone do such a detailed and in-depth analysis of the market with what would be the right price to get the home sold. Her team is super responsive and helpful. I look forward to working with Alison on every project in Tahoe.”

– Pradeep Gandhi – Real Estate Investor

Alison Elder 530 582 8103

tahoe@alisonelder.com eldergrouptahoerealestate.com Alison sold over $32MM in Tahoe Donner since 2009

tahoedonner.com |

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LET’S TOGETHER

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| Tahoe Donner News | May 2012

SKI

O TA H

TY

EN

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LU B C H C BEA ARINA M

CE

TY

I EQU EN PU B L I CNight AM Friday Family Movie U N D at Northwoods Clubhouse

NEW! Purchase movie snacks for $1.

Here is this month’s Family Movie schedule: ER ONN D E HO May 4 TA Ice Age 3

DS

Happily N’Ever After AT

TY

Enjoy either a classic or new movie starting at 6:30 p.m. every Friday. Movies in this series are rated G and PG.

LIF B

PR

R NTE

K

May 11 May 18 May 25

Y

Y

NER

RIA E ST

AR EGU

EN

E E AT E H Sky T HHigh

Chicken Little

For more information, please contact Trout Creek Recreation Center at (530) 587-9437.

Kids Night Out at Northwoods Clubhouse 5 - 9 p.m. Friday, May 4 Kids 4 – 9 years old are invited to join in the fun with crafts, dinner, and a movie as well as cookies and milk. This month’s featured film is Ice Age 3. Registration must be made at least 24 hours in advance by calling (530) 582-9646.

Cost: $15 per child.

Wii Night at Pizza on the Hill returns May 27 Starting May 27, play a friendly game of Wii on the big screen each Sunday from 6:30 – 8 p.m. at Northwoods Clubhouse.

Thursday Night Trivia returns May 31 Test your trivia skills from local history to current events. The topics change every week!

You never know what questions are going to be featured. Trivia Night returns to Thursdays starting May 31 from 6:30 – 8 p.m. The winner receives a certificate for a free pizza!

I VAT E A M

EN

The 2012 tennis season is about to get underway. Our opening day is Saturday, May 5, and we want to invite you to our Fourth Annual Tennis Across America Day. This USPTA sponsored event features a full day of free tennis clinics. The tennis center will highlight some N of its R summer instrucN E DO E tional programs for free.

This will include O TA H theme clinics and our popular cardio tennis.

Sign up now the pro shop at R E by calling EP N TA & R (530) 587-9474.L S

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Adult Clinic Schedule Do you want to improve your tennis skills?

Do you want to get in shape? Then look no further than Tahoe Donner Tennis. The 2012 clinic schedule is set and we will once again offer over 15 hours of adult clinics each week.

From the heart-pumping cardio clinic to theme clinics, Tahoe Donner Tennis is your one stop shop to tennis greatness. Purchase a six-pack pass and only pay for five as Tahoe Donner Tennis will continue its popular discount program.

Cardio Tennis Thursday through Tuesday, 9 - 10 a.m.

Theme Clinics Thursday through Tuesday, 10 - 11 a.m.

Ladies Drill and Weekly Play Dates The easiest way to get out and play tennis this summer to sign up and let us take care of the rest. With all of the organized play dates each week, you will get all the tennis you need without having to worry about finding a fourth or making calls.

Tuesdays Men’s Day, 9 - 10:30 a.m.

Wednesdays Ladies Day Drill and Play, 9 a.m. – 12 p.m.

90 minute clinic - 90 minutes of play Cost: $20 Members, $25 Guest Fridays Ladies Day, 9 - 10:30 a.m.

Sundays Mixed Doubles Day, 9 - 10:30 a.m.

NEW! ON THE COVER This month, we followed Tahoe Donner homeowner and professional photographer Chris Beck on a recent photo shoot.

Chris, his wife Christy and daughters Kylee, 10, and Maci, 7, live in Tahoe Donner. Chris met Christy at Colorado State in 1988. They grew up skiing and decided to move to Squaw Valley after getting married in 1995. Once they learned more about the local area, they decided that Tahoe Donner would be a great location to settle down and raise a family. They bought their home in 1998 and have lived there ever since! The whole family loves exploring the trails with their dog Tank.

On hot summer days they can be found at the Beach Club Marina or swimming at the pools. Chris has been a professional photographer in the area for the past 14 years. His specialties include weddings, family portraits, corporate events and marketing images. His favorite spot to take pictures in Tahoe is along the east shore. “We love all four seasons here, but realize after 17 years of living in Tahoe, summers can’t be beat!

We found our paradise…”

Do you have an interesting story and want to be featured as one of our “On the Cover” Tahoe Donner homeowners? Email us at comdep@tahoedonner.com and let us know!

tahoedonner.com |

9

E DO

REA

OG

RAM

(Tennis Center continued)

inc.

Your trees don’t have to look like this!

Andrew’s CA CL #859237 ISA Certified Arborist #WE8607A

Pruning

Fourth Annual NTRP Tournament at Tahoe Donner The Tahoe Donner Tennis Center is hosting its Fourth Annual NTRP Tournament Friday, June 1 - Sunday, June 3. The Norcal branch of the USTA has designated the 3.0 division in this year’s event with Tournament of the Year status. Sign up is available online at norcal.usta.com.

Call

530-386.0656

www.andrewspruning.com

Spring has sprung at Tahoe Donner Tennis.

Look online at tahoedonner.com, give us a call at (530) 587-9474, check out the Summer Fun Guide or stop by the pro shop for a complete list of events or more information on all the tennis activities at Tahoe Donner this summer.

IAN MINDELL | DIRECTOR OF TENNIS

BER

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C LU A N JOI

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Lace up your sneakers and grab your racquet as we kick off the season in style. This tennis club sponsored event gets you out on the courts for a great afternoon of team tennis. The exciting format will have you buzzing from court to court and match to match as you fight for every game to help your team to victory.

Saturday, May 26 Round Robin: 2 – 5 p.m.

BBQ and Potluck: 5 p.m.

EM TD M EET ARE INTE

RE

MENS GOLF CLUB By the time you read this, we should only be a few weeks away from opening day for the golf course. Let’s hope that a shorter ski season pays off with a longer golf season.

E R The golf ONN D E O season has a planned TA H opening for the end of May. Our first tournament is the Ice Breaker I scheduled for June 3.PThis is a Eless stressful N UBLIC AM team game (4-Man Shamble) that is a fun way to get the tournament season started. This was the most popular tournament in our member survey, so make sure that you sign up.

CO U F L GO

RSE

June 2012 Tournaments Sunday, June 3| ICE BREAKER Friday, June 8 | NCGA Senior Four-Ball Net Championship Qualifier NER DON E NT O Saturday, June H 23 | NCGA TA E V EFour-Ball Net L A I Championship E CQualifier

SP

If you would like to join us this year or to get tournament entry forms, please visit tdgolfclub.com or pick up forms from our bulletin board on the lower level of the Lodge outside the pro shop.

The TDMGC Board would like to thank everyone who took the time to complete the golf club participation survey. We had a 44 percent response rate. Visit tdgolfclub.com to review the detailed presentation that was made at that meeting which included a summary of the feedback and some preliminary recommendations.

Based on the survey feedback, the board is proposing to make a number of changes for the 2012 season which are summarized below.

We hope that these changes will encourage many of you who have been reluctant or unable to participate in the past to join us for as many events as possible. Specific details have been sent to members via email.

• Expand communication to and involve

broader spectrum of members • Make tournaments attractive to a

broader audience • Expand Wednesday’s Skins game to

attract fun/social interests as well as

competitive interests

DAVE PARSONS | MEN’S GOLF CLUB

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| Tahoe Donner News | May 2012

C

TY

Memorial Weekend Season Kick-Off

TA

A

DINING OPTIONS

The Lodge Restaurant & Pub Open nightly at 5 p.m. For more information, or to make a reservation, please call (530) 587-9455.

Happy Hour at the Pub | Enjoy drink specials and 25 percent off tasty starters, small plates, soups and salads from 5 – 6:30 p.m., Sunday – Thursday.

No Corkage Tuesdays | Bring your own bottle of vino to enjoy with your meal and we’ll waive the corkage fee on Tuesdays nights.

It’s the perfect time to enjoy that favorite bottle of wine you’ve been saving at home. Offer only valid during non-holiday periods WildER Wednesdays | Happy Hour specials all night long in the entire restaurant! Enjoy 25 percent off small plates, soups and salads, plus drink specials.

Three Course Meal Deal | This favorite is back!

From May 1 – 24, Sunday – Thursday, enjoy a special three course menu plus glass of house wine for only $25. Menu changes throughout the month. Not valid on Sunday, May 13, and may not be combined with any other promotions or coupons.

Cinco de Mayo Party | We’re celebrating on Saturday, May 5, with Mexican food specials, $3 Coronas, $5 margaritas and Happy Hour specials all night long in the entire restaurant. Don’t forget your sombrero!

Mother’s Day Fun | Treat the whole family to a fun event on Friday, May 11, from 4 – 8 p.m. at the Lodge Restaurant & Pub. Enjoy Mother’s Day crafts, games and Wii. The bounce house will be set up on the back pavilion, weather permitting. Treat mom to a great dinner at the Lodge while the kids play and make crafts.

The Pub will open at 4 p.m. on Friday, May 11. The dining room will open at 5 p.m.

In honor of Mother’s Day weekend, we are offering a special three course menu in addition to our regular menu on Friday, Saturday and Sunday evenings. Hope you will join us!

Pizza on the Hill Re-opens on Thursday, May 24, with regular hours from 5 – 8:30 p.m., Thursday – Monday

tahoedonner.com |

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| Tahoe Donner News | May 2012

g n i k i H

t yl e S r e n n o Ta h o e D

Whether it’s an inspect-every-last-leaf–and-bug walk with your 3-year-old or a rugged dawn-to-dusk trek, our region offers hiking trails to suit every age, fitness level and whim. We touched base with a variety of local hiking experts who weighed in on their favorite Tahoe Donner and Truckee trails.

The following article offers several ideas that’ll get you and your gang out the door and happily headed in the right direction soon.

tahoedonner.com |

13

In Your Own Backyard Homeowners and visitors don’t have to travel far to find stellar hiking right here in Tahoe Donner, where old logging roads and singletrack paths were converted into a network of well-marked trails.

Happily, Tahoe Donner folks often get a head start on the hiking season as the open terrain is typically snow-free much earlier than neighboring Tahoe mountain trails. On top of that, Tahoe Donner’s wideopen spaces allow for sweeping views of the region from Donner Lake to the Carson Range.

TAHOE DONNER-CENTRIC TRAIL TIPS:

14

| Tahoe Donner News | May 2012

• Tahoe Donner’s trails are multi-use, which means everyone can join in the fun – except motorized vehicles. Bicyclists yield to hikers and everyone yields to horses… for obvious reasons!

• Dogs are welcome, but only on leash. And look for the 10 ‘doggie valet’ stations to assist in cleaning up after Fido.

• Many of the trails wind around private properties, so be polite and stay on the trail.

• Complimentary maps are located at six trail head kiosks: Glacier Way, North Ski Slope, Alder Creek, Tahoe Donner Campground, Teton Way and the Northwoods Clubhouse. Maps correspond to numbered trail signage.

Family Friendly NATURE LOOP TRAIL

Families with young children should look no farther than the Nature Loop (#1), says Truckee mother of two Shelly Purdy. The 2.8 mile loop starts at the Northwoods Clubhouse trailhead kiosk and follows Trout Creek to the driving range. “There are two fishing ponds and lots of cool beaver ponds along the way,” Purdy notes. Enjoy the 20 interpretive signs that offer great info on flora and fauna that’s glimpsed along the loop. Remember your baby backpack though, as there are no strollers allowed on this likeable loop.

Views Galore GLACIER WAY TRAIL

This hike is beautiful any time of day, but particularly at sunset when the stunning Sierra alpenglow descends upon the peaks. Take Northwoods Boulevard up to Ski Slope Way and Tahoe Donner Ski Area, which brings you to the Glacier Way trailhead (#24) that features a paved parking lot and picnic tables. The 40-minute, 3 mile round trip hike follows a gravel service road most of the way.

There are three knolls that sequentially increase in size and are pretty easy to climb. “There are terrific views of Donner Lake and the Pacific Crest from Castle Peak to Tinker’s Knob,” notes Garry Cox, former leader of the Tahoe Donner trail crew. Check out the Tahoe Donner trail map for several other worthwhile hikes that start near this scenic area.

Flower Sightings WILDFLOWER & ASPEN GROVE HIKE

Commencing at the equestrian center (#12 to #62), this 4-mile hike is challenging, but the extra effort is rewarded with a myriad of wildflowers and a lovely aspen grove. “There are fabulous wildflowers here starting around the first part of June,” says Garry Cox. “You’ll find Shooting Stars, Lupine, Skunk Cabbage, Indian Paintbrush and many more. There’s quite a bit of up and down so I wouldn’t take an outof-shape friend or relative on this one.” This is also a nice place for leaf peepers in the autumn.

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Truckee Area Hikes

The Hiking With Quintessential a Swimming Sierra Hike Hole Chaser MT. JUDAH/PACIFIC CREST LOOP

The 5.5-mile Mt. Judah Loop trail is accessed off the Pacific Crest Trail south of Old Hwy. 40. From Old 40 east of Donner Ski Ranch, turn onto Mary Lake Road adjacent to Sugar Bowl Academy. The trailhead is a short distance from the Sugar Bowl Academy. Begin the hike heading south on the Pacific Crest Trail. This is a longer hike, but it’s doable for most. “In just 5.5 miles, you get a tremendous bang for your hiking buck,” says Tim Hauserman, author of Tahoe Rim Trail: The Official Guide for Hikers, Mountain Bikers and Equestrians. Awesome ridgetop views, wildflowers, incredible Western white pines and hemlocks. This hike has it all. Hauserman adds if you are looking for something less known, head up to Mt. Lola with its expansive views. “You might have the hike to yourself!”

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| Tahoe Donner News | May 2012

LOCH LEVEN LAKES

Where to go when the summer heats up? Loch Leven Lakes is a locals’ favorite. Off I-80, the trailhead begins 1/8 mile east of the Big Bend Visitor Center. Upper Loch Leven Lake is just 2 miles away, while High Loch Leven Lake is 1.5 miles farther up. Beautiful vistas of ridges and valleys, high alpine meadows and glaciated terrain can be seen in either direction. For the best swimming hole, head for the far end of the second lake. Bring a picnic and a fishing pole, as locals say the fish are often biting in these picturesque lakes.

Open Air Classroom

DONNER MEMORIAL STATE PARK INTERPRETIVE TRAIL For an easy trek that’s perfect for the whole family (from toddlers to grandparents), head for Donner Memorial State Park - located within the town of Truckee, just west of downtown on the south side of the freeway. A gentle, self-guided natural and cultural interpretive trail starts near the museum and loops through the forest. The educational 1-mile lakeside trail begins in the lagoon portion of the day-use area and continues along Donner Lake. Printed trail guides are available at the park’s entrance kiosk.

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Truckee Area Hikes Cont.

Go Big or Go Home!

PACIFIC CREST TRAIL, DONNER SUMMIT TO SQUAW VALLEY This iconic 15-mile one-way hike is a rite of passage for many a Tahoe local. In turn, hardy hikers are rewarded with some of the most stunning vistas in the area. The trek begins on the rugged ridges of the Sierra Crest on Donner Summit’s Old Highway 40. On the way to Squaw Valley, hikers will travel past Anderson Peak and Tinker’s Knob and snag an amazing glimpse down the vast American River canyon. Besides plenty of water and snacks, hikers will need to take two cars. Leave one at Squaw Valley and drive the other vehicle to the Pacific Crest Trail head located on Old Highway 40, four miles west of Donner Lake’s west end.

TRUCKEE FATHER’S DAY

RIBFEST & BBQ! Tri Counties Bank Plaza

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JUNE 17, 2012 JUNE 17, 2012

Sunday, Noon Noon –– 4:00 Sunday, 4:00pm pm

RIBS, RODS & ROCK-N-ROLL LIVE MUSIC, BEER GARDEN, KIDS CORNER

ENJOY TASTY RIBS & BBQ FROM SOME OF THE AREA’S FINEST RESTAURANTS AND CATERERS

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Taste. Savor. Enjoy Mark your calendar for the 38th annual Wine & Restaurant Faire, and dream of letting your taste buds go wild.

Presented by Soroptimist International of Truckee-Donner

Soroptimist Wine & Restaurant Faire Fundraiser $40 nce dva in a 5 $4 e at th r doo

Saturday June 2nd 5:00 p.m. - 7:30 p.m.

Coyote Moon Golf Course 10685 Northwoods Blvd., Truckee, CA

Live & Silent Auctions • • Wine and Beer Tasting Live Music • • Souvenir Wine Glass Culinary Delights Prepared by Area Restaurants and Caterers Tickets will be on sale, starting in May, at Dickson Realty, Truckee Chamber of Commerce, Truckee Physical Therapy, and on the day at the door.

For more information please contact Sandy Horn at 530.412.0449.

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| Tahoe Donner News | May 2012

How to Grow a Happy Hiker In an age of virtual reality and Internet overload, there’s a lot to be said for the grounding effect of a family walk in the woods. Most children can maneuver a hiking trail confidently by age 3, even if it’s for only a few hundred yards. Tempering your goal-oriented objectives, particularly with young kids, is the secret to success and harmony.

“Experiencing nature is about being intuitive...”

“Experiencing nature is about being intuitive,” says Joseph Cornell, Nevada City renowned nature educator and author. “With children, we need to relax and get into their rhythm. As a parent, you have to honor whatever it is they are tuning into.”

Tim Hauserman, author of Monsters in the Woods: Backpacking with Children, further simplifies the formula for hiking happiness.

“Don’t go too far, make it fun and let them play in the dirt!”

And don’t worry; parents don’t need to be the walking Google of Sierra plants and wildlife to be great nature guides. Because in the end, a discovery shared by parent and child is probably the most valuable lesson of all!

TAHOE DONNER HIKING CLUB Looking to broaden your hiking repertoire? With hikes offered four days a week, the 240-member strong Tahoe Donner Hiking Club explores the Tahoe Truckee region, as well as outlying areas like Yosemite and Mt. Whitney.

“The philosophy of the club is to hike at your own pace,” explains club leader and Tahoe Donner homeowner Robin Reese. “Some of us love to hike fast for fitness. Others like to discuss wildflowers or engage in bird watching. We encourage hikers of all abilities to join us. We are a fun-loving group … no whiners allowed!”

And where is Robin’s favorite Tahoe-Trucking hiking trail? “The Tahoe Rim Trail is my very favorite,” she says. “Nothing – except where it overlaps the Pacific Crest Trail – is more than a 10 percent grade and the trail is very well maintained. And the views are amazing!

WRITTEN BY ANN LINDEMANN

FOR MORE INFORMATION: tahoedonner.com truckee.com tahoeloco.com tahoerimtrail.com

Photo Contest With all the beautiful scenery Tahoe Donner and Truckee have to offer, it’s hard not to collect a variety of spectacular photos. For the cover of our May issue, we featured a local photographer at one of his favorite Tahoe Donner spots. We also decided it would be fun to have a 2012 summer photo contest.

Do you take great photos? Do you want to get published?

Snap away from now through September 3, and email us your best pictures. There are so many things to explore this summer; we had a difficult time setting strict guidelines for this contest, so just send us your favorites! We will publish the top picks in one of our fall issues of Tahoe Donner News.

Please submit only .jpeg of 300 dpi or higher for printing to comdep@tahoedonner.com. Please include a photo caption and story behind your captured moment.

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| Tahoe Donner News | May 2012

THE DOWNHILL DUMMY

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PU

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GO LF

DONN

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TAH O E

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TAHOE DONNER GOLF COURSE’S UPCOMING SEASON

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nother exciting Masters is in the books, one in which a worldwide television viewing audience received an education on “Bubba” golf, including the virtues of not hitting a golf ball straight, courtesy of 2012 Masters champion, Gerry “Bubba” Watson. What an amazing way to win one of the most coveted championships in golf while demonstrating that the shortest route from the outhouse to the penthouse isn’t always a straight line. Those of you who witnessed his unbelievable shot will understand what I’m referring to: seemingly in trouble and on his way to defeat, Bubba hit a shot out of the woods, starting his shot low to go under a tree branch before making the ball curve 40 yards while climbing the necessary height to land on the elevated 10th green. Thanks to his creativity and the ability to curve the ball on

command, Watson was able to conjure up a championship shot under extreme pressure to win on the second hole of the sudden-death playoff.

With his victory, the golf season has officially begun, since according to legend, the golf season begins upon the conclusion of the Masters.

What a season we have in store for you. We are optimistic that the harsh conditions and late openings from the past two years are hopefully behind us, and the golf course will open as on Friday, May 18.

We will use all available means to update our patrons on the status of the course as we get closer to our opening date. In the April edition of Tahoe Donner News, I shared some information on what to expect, including early season promotions and new player development programs. Here is another summary of what you can expect at the golf course in 2012.

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| Tahoe Donner News | May 2012

Player Development We will offer daily golf clinics throughout most of the season, plus one free afternoon clinic per week through the end of June (and possibly beyond). We are also introducing a new Get Golf Ready group lesson series for only $99 per student for six lessons. This program targets the new/beginner golfer.

Visit PlayGolfAmerica.com for more information on Get Golf Ready.

Spring Golf Promotions From May 25 through June 15, our TD members can take advantage of the following golf specials (Monday through Friday only) exclusive to TD members and their guests.

• Member for the Day | TD members may invite up to seven

guests after 3 p.m. and all players will receive the discounted

Twilight member rate of $30 per player, plus a discounted cart

fee of $10 per player for those who wish to ride.

• 9-holes for $25 | TD members and accompanied guests who tee off after 4:30 p.m. will receive the discounted member rate of $25 per player, which includes a complimentary cart.

• Last Light | TD members and accompanied guests who tee off after 6 p.m. may play as many holes as they can complete before dark for only $15. In addition, kids under 18 will play for free (one free child per paid adult) after 6 p.m. Note that this promotion is limited to walking only, as carts are not available after 6 p.m.

Not ready to commit to a season pass this year?

No problem. Tahoe Donner has a variety of packages for golfers who play less frequently.

4 Play*

$316

5 Play

$275

10 Play (Nine hole rounds)

$270

10 Play

$550

20 Play

$1,000

*Includes cart. May be used formultiple players on one day, or one person on multiple days.

All packages for Tahoe Donner members only, except for 4 Play. Restrictions apply.

For details, visit tahoedonner.com/golf or call (530) 587-9440.

OPEN 7 DAYS A WEEK - 530-550-0110 M-F 9-6:30 | SAT 9-6 | SUN 11-4 12047 Donner Pass Road - West Truckee Phone orders gladly accepted w/ Sears Card

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Circling back to player development, I would also like to introduce the golf instructors on our staff. In the April edition of Tahoe Donner News, I provided a brief summary of my teaching experience and mentioned that I would follow up with a short biography of my fellow instructors.

the clubs. Joe is from Lansing, Michigan, and worked at clubs in Michigan, including the Moors Golf Club and Boyne Highlands Resort. Like Phil Mickelson and Bubba Watson, Joe plays the game left-handed, so consider him our resident “lefty.”

James Murtagh

John returns for his third season at TD. After serving as our outside service supervisor in 2011, John indicated his interest in enrolling in the PGA apprentice program, and as such, will be working full-time as an assistant in the golf shop. He has previously assisted with the junior schools and weekly clinics and now hopes to become more actively involved with our instructional program. He is a highly skilled golfer with excellent interpersonal skills, and with a bit more experience under the belt, I expect John to grow into an excellent instructor as well.

James is the first assistant, and has served Tahoe Donner for over a decade. He is easy going, knowledgeable, and has taught junior clinics, junior schools and adult clinics for the past 10 years. James will coordinate all junior schools in 2012, and will play an important role with our beginner programs, including daily golf clinics and the Get Golf Ready group lessons. During the winter months, James serves as the junior ski school director at Alpine Meadows, so he works particularly well with juniors.

Charlie Lyon Charlie returns for his third season at Tahoe Donner, and has built up a clientele of loyal students. Charlie previously taught at Troon North and Troon Golf Club in Scottsdale, Arizona, Lookout Mountain Golf Club in Phoenix, Arizona, and Rancho Manana in Cave Creek, Arizona. In addition, he has worked at D’Andrea Country Club in Sparks, Nevada, and Discovery Bay Golf Club in Discovery Bay, California.

Joe Stakoe Joe returns for his second season at TD, and comes to us by way of the Golf Academy of America in Orlando, which included volunteer work at nearby Bay Hill and Isleworth golf clubs, where he bumped into many of the top PGA/LPGA tour professionals who either belonged to or frequented

John Hamilton

As you can see, we have a highly skilled and personable staff to help you develop your golf skills. My instructors, like myself, all share a love for the game of golf and a willingness and desire to assist people in any number of capacities, including golf instruction, club fitting, customer service, merchandise wants/needs, rules interpretations, online reservations questions, etc. As a group, we embrace our collective roles as ambassadors of good will, which includes a commitment to nurturing and sustaining a fun atmosphere and comfortable learning environment on and around the golf course. We look forward to seeing you soon.

Fairways & Greens

ED LEINENKUGEL DIRECTOR OF GOLF

MEMBER TIPS FOR TAHOE DONNER GOLFERS As the old American Express ads used to say, membership has its privileges. Tahoe Donner Golf Course is open to the general public, but members of the homeowners association enjoy special benefits.

For instance, members are able to book tee times 14 days in advance of their round, while other golfers may do so 12 days in advance. It’s a great way to get the time you want, and it’s very easy to do. Just go to tahoedonner.com/golf and follow the simple directions. You’ll need to set up a Foretees profile, which also allows you to see when other Tahoe Donner members are playing.

If you think you may be visiting your TD property, book a tee time. If necessary, you can cancel within 24 hours of that time.

Tahoe Donner offers a number of season pass options, but for golfers who can’t play as frequently, there are Five Pack and Ten Pack options.

At a cost of just $55 per round on a world-class course, you can’t beat it. There’s even a Ten Pack for folks who would rather play only nine

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| Tahoe Donner News | May 2012

holes at a time, at a cost of just $27 per outing. Can you say Father’s Day, Mother’s Day or graduation present?

Daily play rates for members have stayed the same for the past three years and remain a value when compared with similar courses. Early and late season rates make it even more attractive. If you’re willing to tee off between 6-7 p.m., the Last Light rates are incredibly low – and free for golfers under the age of 18 who play with a member. Check the web site for details.

If you’re looking to make a personal connection with golfers like you, consider checking out the Men’s Golf Club, the Women’s Golf Club or the 9-Holers Women’s Golf Club. Each offers social options throughout the season, on and off the course.

For more info on special golf deals and events, make sure to sign up for the golf newsletter on tahoedonner.com. Look for the “subscribe” link in the upper right corner of any page.

BULLETIN BOARD

Tahoe Donner and the Town of Truckee have a lot of events coming up this summer. Please note the dates below since they are events that can help you dispose of unwanted items and excess yard waste.

May 1 - The Green Bag for Green Waste program is now running year round (although rarely used through the winter) and will get into full swing on May 1. If weather allows and bags are out earlier, they’ll get picked up. Residents may place up to four bags at the curb each week for no additional charge. Bags are available at Mountain Hardware and Tahoe Supply Company. Bags need to be tied and weigh no more than 40 lbs. each for collection. Pine needles, small twigs, pine cones, weeds, shrubs etc. are accepted.

June 2 - Truckee Day is coming. Set aside Saturday, June 2, for the Ninth Annual Truckee Day neighborhood street clean up. It’s easy to participate. Simply grab your work gloves, put on sunscreen and meet at Snow Tech at 17356 Northwoods Blvd. at 8 a.m. Bags, street assignments and clean up instructions will be available there. Street assignments are done on a first-come, first-serve basis so if you want to clean up your favorite street, get there early. Each participant will receive a free t-shirt while supplies last and all participants get to enjoy a free BBQ with music at the Regional Park starting at 12 p.m. following the clean-up.

June 16 - The Town of Truckee will host its annual e-waste recycling day on Saturday, June 16. At the same time and location, the Truckee Police Department will be on hand to accept confidential documents for free onsite shredding. Electronics disposal (computers, TV’s, cell phones, etc.) and universal waste disposal (household batteries, fluorescent light bulbs, empty aerosol cans and any item that contains mercury) will also take place that day. The hours of operation have not yet been announced. If you would like more information on either of these events, please call Nichole Dorr, the Town’s Recycling Coordinator at (530)582-2909.

The Pine Needle Day program is undergoing change and more information will be available through the weekly Tahoe Donner e-mails.

ENID LONGO | ARCHITECTURAL STANDARDS OFFICE

HOMES ON THE RISE The Architectural Standards Committee reviewed the following plans in March 2012.

Unit/Lot Street Address Square Ft. Project 01/246 12154 Bernese Lane 750 Addition 02/206 13056 Falcon Point Lane 600 Garage 03/194 12124 Snowpeak Way 3,000 House

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TAKING CARE OF BUSINESS REGULAR BOARD MEETING MINUTES SUMMARY FEBRUARY 25, 2012 • Consent Calendar: Approved 4-0 (Director Knisley Absent) ·· Inspector of Elections ·· Committee Charter Revisions ·· Elections Committee Appointment (Sorensen) ·· Election Committee Alternate Appointment (Shaver) ·· Finance Committee Resignation (Stang) ·· Finance Committee Chair Appointment (Bonzon) ·· TDA Medical Insurance Policy Renewal

• Presentation & Consideration of Auditor’s Report Fiscal Year 2011: Approved 4-0 (Director Knisley Absent) Following a presentation by Bobbie Hales of Gilbert Associates, Incorporated, the Board accepted the 2011 audit as presented.

• Golf Rates for 2012: Approved 5-0 The board considered Golf Course rates for the 2012 Golf Course season. Following discussion, the board approved the golf rates and fees for 2012 as follows: the daily play member and guest rates remained unchanged for the 3rd

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| Tahoe Donner News | May 2012

consecutive year. For season passes, the 5-day & 7-day member season passes were both increased by $100, to $950 and $1300 respectively, when purchased by April 30.

• Members Request to Waive Late Fee:

Disapproved 4-0 (Director Knisley Absent)

The board denied members’ requests to waive late fees for

the 2012 Annual Assessment.

• Director of Finance and Accounting Report: Approved 4-0 (Director Knisley Absent) The board received a report on the preliminary February 2012 Financials.

• Employee Policies & Procedures Manual: Approved 4-0 (Director Knisley Absent) The board approved an employee manual that provides information about working conditions, employee benefits, and some of the policies affecting employment at Tahoe Donner.

• Tahoe Donner Monument and Way Finding Signage:

No Action | The board received a report from Forrest Huisman,

director of capital projects, on proposed signage for Tahoe Donner

and took no action.

• Euer Valley Operating Plan: Approved 4-0 (Director Knisley Absent) Discussion took place regarding proposed “Operating Rules” for the Euer Valley. Following discussion, the board approved publishing for member comment a set of proposed rules for the Euer Valley.

• Cross Country Center/Equestrian Center Operating Plan: No Action | The board received a report from Miguel Sloane, director of operations, regarding a draft site plan for the new Cross Country Center and relocation of the Equestrian Operation and took no action.

• Truckee Special Service Area 1 (TSSA-1) 2012/13 Assessment: No Action | The board discussed funding levels and eligible projects for this assessment and took no action.

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To schedule an appointment call:

530-414-8850 References available

These summaries are intended for general information purposes only. The minutes are available at tahoedonner.com, upon request in the general manager’s office or by calling (530) 587-9431. A copy of the minutes and current agenda are posted outside the Member Services Office in Northwoods Clubhouse.

Minutes of Tahoe Donner Board of Directors meetings are available to members at tahoedonner.com. They can be found on the Board of Directors page in the Members section. Alternatively, members may request that a hard copy be sent to them via the postal service.

To make the request, contact Bonnie Watkins at (530) 587-9431.

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TAX TIME AND TAHOE DONNER ASSOCIATION With spring, we often enjoy great sunny skiing and always the IRS filing deadline. Speaking of taxes, your association pays several types of taxes as well. This article provides a summary of the types of taxes your association pays and does not pay.

Tahoe Donner Association is a common interest development corporation, incorporated as a nonprofit mutual benefit corporation in California. While a mutual benefit corporation, not for profit, this does not mean exempt from taxes. The association pays sales tax on applicable purchases of supplies and capital goods, and myriad licenses, fees and permits like any other business in California. Where taxes for the association vary from a regular corporation is primarily with income taxes and property taxes.

For federal income taxes, the association is IRS registered as a 501(c)(4) entity, which is referred to as a Social Welfare Organization.

This special entity classification allows the association to be exempt from federal income taxes for most activities, including investment income. The association still pays federal income taxes on the net income of unrelated (to entity purpose) business activities. Please

note that 501(c)(4) does not mean charitable organization and payments to the association are not deductible as charitable contributions.

The public portion of amenities is considered an unrelated business activity. However, after factoring expenses there is no tax liability related to this in most years. The association paid $11,000 ($2 per owner) in federal income taxes for 2010.

For state income taxes, the association’s investment earnings are taxable, as is unrelated business activities income, as well as the gain or loss on the sale of assets. With investment income (US Treasury bonds and FDIC insured Certificate of Deposits interest income) at record lows, the amount of taxable income has been reduced. Regarding investments by the association, preservation of principal balance, not investment returns, is paramount. The association paid $17,000 ($3 per owner) in state income taxes for 2010.

Property taxes are regulated by the state and counties of California. All of the association is within Nevada County. Common Property of the association is excluded from the assessment valuation of the association.

This common property value is understood to

be inherently within the assessment valuations of each individual property within the association. Other association Real Property (land, land improvements, buildings) and all Business Property (equipment, furniture, and supply inventories) are subject to assessment and resulting property taxes which are paid by the association. The assessment valuation does factor the age of business property. For tax year ending June 2011, the association paid approximately $95,000 in property taxes, which equates to $15 per owner. Property taxes will increase (budgeted item) approximately $43,000 ($7 per owner) in 2012 and forward due to the recent acquisitions of the Forestry building 20 acre parcel and the Euer valley land purchase.

If you have any questions regarding your association’s finances, please feel free to call or write anytime.

MICHAEL SALMON, DIRECTOR OF FINANCE msalmon@tahoedonner.com (530) 587-9418

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| Tahoe Donner News | May 2012

HOW TO MAKE A TISSUE PAPER FLOWERS May means spring flowers, warm weather and Mother’s Day. This fun and simple craft will make the perfect centerpiece for mom’s special day and bring some cheerful color and into your home! This craft is great for parents to do with their kids. Supplies can be found around your house, in your back yard and at many local stores in Truckee. With your own creativity, different color combinations and arrangements possibilities are endless!

Step 1: Find your branches and cut them to size so that they will fit in your jar without tipping it over. You may also need to let your branches dry a bit, if they are wet from melting snow.

Step 2: Cut tissue paper into rectangles (4x6, 5x7, etc). You will need about 15 sheets per flower, so keep that in mind. You may use the same color or layer different colors together. Be creative!

Step 3: Cut an 8-inch piece of wire for each flower you plan on making.

Supplies List: Pastel tissue paper Thin steel wire Glue

Step 4: Accordion-fold the stack of larger tissue paper.

Step 5: Fold the wire around the middle of the paper accordion you’ve just created.

Step 6:

Mason jar

Trim the outside ends of the flowers for a petal look, and separate the layers of tissue paper.

Repeat these steps for all your flowers.

Scissors

Step 7:

Wire cutters

Twist and wind the remaining end of wire around your branches. Arrange in Mason jar.

Ruler Branches (Manzanita, Aspen, etc.)

Important: Younger children may need help trimming the branches along with cutting and handling the wire.

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31

Paris

Todd Acker standi Eiffel ng und Tower er the on his Paris w field tr hile at ip to tendin ence i g a con n Brus fersels.

tica oard Antarcee n Lewis ab il Hank and E Geog raphic the National n to an expeditio Explorer on ia South Georg A nta rctica, s. d n the Falkla Isla nd, and

Costa RicaNeipp

ne Jim, Nancy and Ja la Bula in Bu tel Ho visited the ere they enjoyed Playa Grande, wh other fun surfing along with adventures.

Paris

Fred & Mary Zapponi standing outside the Louv re. They visited Paris to celebrate their 36th wedding anniversar y!

Email your “Where in the World� photos to: comdep@tahoedonner.com. Please submit only .jpeg of 300 dpi or higher for printing. Photos must include a copy of TD News. Please list the names of everyone in the picture, where and when it was taken, and a short description of your captured experience.

32

| Tahoe Donner News | May 2012

2011 Budget Annual Assessment per Owner of $1,330 Distribution

2008

$200 $100

2007$

$695

$360

$695

2011

$348

$695

2010

$334

$660

2009

$619

2008

$25

$25

$25

$250

$232

$695

$146

$330 $17

$695

$143

-

$(100) $0

$360

$200

$400

$600

2007

$22

$800

$334

$1,000

$660

$1,200

$318

(May - Oct)

Accumulating funds over time to address the aging infrastructure needs of your association, consistent with the General Plan, while 2011 striving to minimize the operating fund porAnnual tion of your assessment.

November -

$200

$400

$600

$800

New Machinery & Equipment

$232

$25

$146

$22

$143

$138

$1,000

$1,200

$1,400

ANNUAL ASSESSMENT Development (Reg&BldgRepl) PER OWNER,

BY FUND January ‐ April : record snowfall New Machinery & Equipment Operating

Annual Assessment per Owner

Compounded Annual Growth Rate (CAGR), 2007 to 2011 Summer

$25

$330 $17

$1,400

$619

Operating Fund CAGR 3% Capital Funds CAGR 7% Total Assessment CAGR 5%

$250

$138

Development (Reg&BldgRepl) $0

$25

$348

$695 $318

Public Amenities | -3%

2009

$300

ANNUAL ASSESSMENT PER OWNER, BY FUND Private Amenities | -1%

2010

HOA Utilities, Insurance, Taxes | 5%

2011

ANNUAL ASSESSMENT PER OWNER, BY FUND HOA Maintance Support | 12%,

$400

HOA General & Admin | 30%

$500

Reserve Capital Funds | 48%

$600

HOA Forestry/Fire Prevention | 10%

$700

Replacement Reserve

2011

• Pros and Cons from snowfall; Replacement Reserve overall NOR on Budget $695 $360 $25 $250 Operating

2010 $695

January 2009 April

$25

$232

• Golf latest opening on record,

2008

$660

2007 $619

NOR off Budget $185,000 $0 $200 4% | $29 per owner

$348

May - October (Summer): slow results overall $695 start, good$334 $25 $146

$400

$330 $17 $143 June 24, lacked momentum all season

Golf revenue off $182k/16% $318

$22

Golf NOR off $64k/131%

$600

$800

$138

$1,000

$1,200

• Other amenities performed very well,

$1,400

effective cost controls Development (Reg&BldgRepl) tahoedonner.com | New Machinery & Equipment

November - December:

Replacement Reserve

33

Public

Privat

HOA U

HOA F

HOA M

HOA G

Reserv

$100 $$(100)

OPERATING FUND - NET OPERATING RESULTS (NOR) 2011 VARIANCE TO BUDGET January ‐ April : record snowfall • Pros and Cons from snowfall; overall NOR on Budget

Summer (May - Oct)

January April

May - October (Summer): slow start, good results overall • Golf latest opening on record, June 24, lacked momentum all season

2011 Annual

Golf revenue off $182k/16% Golf NOR off $64k/131%

NOR off Budget $185,000 4% | $29 per owner

• Other amenities performed very well, effective cost controls

November December

November - December: no snow, missed Budget • Did not open downhill, cross country or snowplay • Revenue off $665,000, NOR off only $205,000 due to good cost controls

Dear Owners, The purpose of this 2011 Annual Report is to provide a comprehensive report on 2011 financial results and communicate the 2011 Audited Financial Statements and Independent Auditors Report to all members.

Management, finance committee and the board consistently monitor both operational and financial results, and we are committed to both responsive and proactive management, balancing our service levels to volume and financial performance.

Please contact me any time to discuss this report or any other financial aspects of your association.

MICHAEL SALMON DIRECTOR OF FINANCE & ACCOUNTING

msalmon@tahoedonner.com (530) 587-9418 tahoedonner.com/financials

34

| Tahoe Donner 2011 Annual Report

$40.6 million | $6273 per owner | Members’ Equity as of 12/31/2011, up 3.3% to 2010 $4.1 million | $635 per owner | Capital Contribution by Annual Assessment in 2011 $4.5 million | $695 per owner | Operating Contribution by Annual Assessment in 2011 $8.3 million | Operating Revenues | Down 6% to Budget and down 5% to 2010 $12.9 million | Operating Costs | Down 2% to Budget and up 1% over 2010 $4.7 million | NOR Loss | $185,000 or 4% off Budget, $662,000 or 16% off 2010

AT T E N D A N C E 139,777 | 383 average per day Trout Creek visits, up 1% to 2010

27,132 | 254 average per season day Cross Country Ski visits, down 27% to 2010

45,032 | 421 average per season day Downhill Ski visits, down 26% to 2010

16,868 | 131 average per season day Golf Rounds, down 11% to 2010

41,330 | 113 average per day The Lodge dinner guests, up 7% to 2010

16,522 | 285 average per season day Snowplay visits, down 23% to 2010

39,497 | 306 average per season day Marina visits, up 6% to 2010

1,869 | August 13, 2011 Robert Cray concert attendance

-$300

-$250

-$200

-$150

-$100

-$50

$0

Downhill Ski

36 82 127

Cross Country Ski

21 33 38

Beach Club Marina

28 21 23

Snowplay

6 7 8

Tennis Center

2 2 2

Trout Creek Recreation Center & Aquatics

2 2 9 -2 -3 -4

2011 Actual -$725 2011 Budget -$695 2010 Actual -$621

$50

$100

$150

Campground

-19 -13 -15

Camps, and Programs

-8 -5 -14

Pizza on the Hill

-13 -12 -14

The Lodge, Summer Lunch & Golf Food Service

-17 -17 -16

Equestrian

-4 -9 -14

The Lodge, Dining & Banquets

-45 -29 -40

Golf Course

-47 -50 -43

Architectural & Member Services

-114 -129 -114

Maintenance

-121 -131 -123

Forestry

-149 -169 -165

General

-281 -275 -266

Management, Accounting, Personnel

OPERATING FUND

Net Operating Results (NOR) per Member Property

Tahoe Donner 2011 Annual Report |

35

OPERATING FUND / 2011 DEPARTMENTAL RESULTS

T

R ASSOCIATION esults ber 31

-

Operating Fund Cost of Goods Sold

Gross Revenue

2011 Actual

Net Operating Results

Operating Expenses

2011 NOR versus Budget Actual to 2011 Budget Budget Variance

PRIVATE AMENITIES Trout Creek Recreation Center & Aquatics

$ 1,013,246

$ -30,301

$ -971,350

$ 11,595

$ 13,467

$ -1,872

Beach Club Marina

441,694

-30,989

-226,823

183,882

138,499

45,383

Tennis Center

223,238

-39,114

-168,634

15,490

10,841

4,649

Camps and Programs

192,638

-3,251

-309,774

-120,387

-86,121

-34,266

1,870,816

-103,655

90,580

76,686

13,894

948,354

-77,599

-1,163,346

-292,591

-190,585

-102,006

2,157,860

-145,073

-1,782,406

230,381

533,486

-303,105

592,154

-31,591

-426,061

134,502

216,662

-82,160

Snowplay

97,471

0

-55,825

41,646

47,250

-5,604

Campground

42,693

0

-54,586

-11,893

-20,155

8,262

133,443

-3,621

-239,214

-109,392

-110,721

1,329

1,464,248

-484,090

-1,004,564

-24,406

-61,021

36,615

The Lodge, Lunch & Golf Food Service

137,557

-53,653

-167,267

-83,363

-78,630

-4,733

Pizza on the Hill

257,288

-90,107

-219,671

-52,490

-31,378

-21,112

5,831,068

-885,734

-5,112,940

-167,606

304,908

-472,514

7,701,884

-989,389

-6,789,521

-77,026

381,594

-458,620

TOTAL PRIVATE AMENITIES

-1,676,581

PUBLIC AMENITIES Golf Downhill Ski Area Cross Country Ski Center

Equestrian The Lodge, Dining & Banquets

TOTAL PUBLIC AMENITIES TOTAL AMENITIES

HOMEOWNERS ASSOCIATION AND AMENITIES SUPPORT SERVICES General

193,855

0

-1,157,323

-963,468

-1,094,319

130,851

Management, Accounting, Personnel, IT

190,588

0

-2,005,873

-1,815,285

-1,780,560

-34,725

Architectural & Member Services

79,737

0

-386,275

-306,538

-320,715

14,177

Forestry

111,177

0

-897,340

-786,163

-849,795

63,632

Maintenance TOTAL HOMEOWNERS ASSOCIATION TOTAL OPERATING RESULTS Assessment Revenues Total Operating Fund

0

0

575,357

0

-5,181,327

-4,605,970

-4,879,594

273,624

8,277,241

-989,389

-11,970,848

-4,682,996

-4,498,000

-184,996

4,498,000

0

$ 12,775,241

$ -1,000,734

-734,516

0 $ -11,970,848

Net Operating Results (NOR) is defined as the net result of operating revenues less cost of goods sold and operating expenses.

All Amenity departments costs do not have allocated overhead for administrative, accounting, human resources, or IT support costs.

These amenities support costs are in respective departments under the Homeowners Assocation and Support Services section .

36

| Tahoe Donner 2011 Annual Report

-734,516

4,498,000 $ -184,996

-834,205

4,498,000 $ 0

99,689

0 $ -184,996

Year Ending December 31, 2011

2011 NOR versus Prior Year 2011 2010 to 2010 Actual Variance

~ ~ ~ ~ ~ Amounts Including Replacement Reserve Capital Contribution ~ ~ ~ ~ ~ NOR Contribution to 2011 2011 per 2010 per 2011 Replacement Net Results Property Property Actual Reserve Fund After Capital 6471 6471

2011 vs 2010

$ 55,641

$ -44,046

$ 11,595

$ -175,433

$ -163,838

$ -25

$ -15

$ -10

147,799

36,083

183,882

-58,127

125,755

19

13

6

10,917

4,573

15,490

-102,560

-87,070

-13

-8

-5

-97,743

-22,644

-120,387

-9,487

-129,874

-20

-17

-3

116,614

-26,034

90,580

-345,607

-255,027

-39

-27

-12

-259,061

-33,530

-292,591

-606,607

-899,198

-139

-144

5

820,568

-590,187

230,381

-360,674

-130,293

-20

77

-97

244,408

-109,906

134,502

-60,122

74,380

11

26

-15

54,663

-13,017

41,646

-7,000

34,646

5

8

-3

-25,971

14,078

-11,893

-36,224

-48,117

-7

-11

4

-102,631

-6,761

-109,392

-43,466

-152,858

-24

-21

-3

-91,636

67,230

-24,406

-203,588

-227,994

-35

-39

4

-89,459

6,096

-83,363

-23,621

-106,984

-17

-17

0

-90,248

37,758

-52,490

-29,058

-81,548

-13

-18

5

460,633

-628,239

-167,606

-1,370,360

-1,537,966

-238

-139

-99

577,247

-654,273

-77,026

-1,715,967

-1,792,993

-277

-166

-111

-1,070,908

107,440

-963,468

-187,836

-1,151,304

-178

-186

8

-1,723,831

-91,454

-1,815,285

-93,239

-1,908,524

-295

-278

-17

-275,253

-31,285

-306,538

-5,300

-311,838

-48

-43

-5

-793,753

7,590

-786,163

-64,413

-850,576

-131

-139

8

-734,687

171

-734,516

-263,245

-997,761

-154

-157

3

-4,598,432

-7,538

-4,605,970

-614,033

-5,220,003

-807

-803

-4

-4,021,185

-661,811

-4,682,996

-2,330,000

-7,012,996

-1,084

-969

-115

-192

4,498,000

2,330,000

6,828,000

1,055

1,043

12

$ -29

$ 74

$ -103

4,498,192 $ 477,007

$ -662,003

$ -184,996

$ 0

$ -184,996

Tahoe Donner 2011 Annual Report |

37

OPERATING FUND / 2011 HIGHLIGHTS VERSUS BUDGET

SUMMER F&B: NOR ($83,000) | ‐5,000/6% ALDER CREEK CAMPGROUND: NOR ($12,000) | +8,000/41%

GOLF COURSE: NOR ($293,000) | ‐102,000/54%

EQUESTRIAN CENTER: NOR ($109,000) | +1,000/1%

TROUT CREEK/AQUATICS: NOR $12,000 |‐2,000/14%

THE LODGE RESTAURANT & PUB: NOR ($24,000) | +37,000/60%

A LD ER CRE E K RD

TO H W Y 8 9

FJORD

CROSS COUNTRY SKI: NOR $135,000 | ‐82,000/38%

SNOWPLAY: NOR $42,000 | ‐6,000/12%

S NOW PEA K WAY

NORTHWOODS BLVD. (LOOP)

TENNIS: NOR $15,000 | +5,000/43%

DOWNHILL SKI: NOR $230,000 | ‐303,000/57% N

DAY CAMPS AND RECREATION PROGRAMS NOR ($120,000) | ‐34,000/40% E

BEACH CLUB MARINA: NOR $184,000 | +45,000/33% I N T E R STAT E 8 0

S

NORTH WOODS BLV D.

W

PIZZA ON THE HILL: NOR ($52,000) | ‐21,000/67%

D ONNER PA SS ROAD

TO T RU CK E E

O L D H I G H WAY 4 0

DONNER LAKE MANAGEMENT, ACCOUNTING, PERSONNEL, AND IT NOR ($1,815,000) | ‐34,000/2%

MEMBER SERVICES NOR ($307,000) | +14,000/4%

Tahoe Donner Measurements: 6,471 Properties 25,000 Members 7,000 Acres 250 Employees

FORESTRY: NOR ($786,000) | +64,000/8%

HOA and Amenity Support Services

| Tahoe Donner 2011 Annual Report

MAINTENANCE: NOR ($735,000) | +100,000/12%

FORESTRY Trails, forest health, defensible and open space

$274,000 | +6%

management. Cost savings primarily due to the

Favorable net operating results (NOR) versus budget

from winter 2010/2011 impacting spring 2011.

shortened work season due to the snowpack

MAINTENANCE GENERAL

Common area property, buildings, and vehicles

General HOA costs and communications.

maintenance. Cost savings primarily due to

Cost savings due to position vacancies and a

reorganization of departments cost savings.

favorable income tax credit adjustment.

38

GENERAL: NOR ($963,000) | +130,000/12%

Public Amenities

Public Amenities Cont.

Private Amenities

($473,000) | (155%) Unfavorable net operating results (NOR) versus budget

$14,000 | +18% EQUESTRIAN

Favorable net operating results (NOR) versus budget

Shortened season, lower revenues and good cost controls.

• Revenue 19% under budget and 14% under last year.

• NOR 1% better than budget and 7% off last year.

GOLF Latest course opening on record, June 17.

• Rounds off 2,900/16%

TROUT CREEK /AQUATICS Strong visitation and fitness classes; revenue

THE LODGE

up $35,000/4% Aquatics programs labor costs

• Revenue off $182,000/16%

Solid year, approaching break-even, despite

over budget $32,000/6% (expanded programs

• Costs savings of $80,000/6%

December’s weather woes. NOR improved over

and trainings)

2010 by $67,000 or 73%!

• Visits of 41,330, up 2,741/7% to last year

DOWNHILL SKI AREA On Budget through November, then did not open

• Revenue of $1.46 million, up $135,000/10% to

in December. Spring 2011 record snows, good

MARINA Strong member and guest visitation (up 8%)

last year

and rental revenues. Revenues up 17% and costs

• Costs of $1.48 million, up $68,000/5% to last year

visits, increased costs.

• Visits off 12,400/22% • Revenue off $387,000/15%

up 8%.

SUMMER FOOD & BEVERAGE The Lodge’s summer lunch service, golf snack bar

• Costs savings of $84,000/4%

CROSS COUNTRY SKI AREA

and bar cart, and Trout Creek’s poolside Marco

Visits up 16% and revenues up 5%,

Polo Grill . Shortened season due to golf’s delayed

while costs up 3%.

opening in 2011, improves margins.

Off Budget $27,000 through November, with Spring 2011 record snows, negatively impacting

TENNIS

• Revenue of $138,000, down $17,000/11% to

last year

DAY CAMPS AND RECREATION PROGRAMS

visits and increasing costs. Did not open in

• Costs of $221,000, down $23,000/9% to last year

DAY CAMPS:

December, missing NOR by $55,000 for the month.

• NOR of ($83,000), favorable $6,000/7% to last year

Strong program participation and effective cost reductions.

• Visits off 6,200/19% • Revenue off $148,000/20% • Costs savings of $66,000/13%

• $107,000 in revenues, up 27% to budget

PIZZA ON THE HILL

• NOR of $19,000 was favorable $27,000 to budget

Continuing to improve on margins, missed an

RECREATION:

aggressive budget. NOR improved over 2010 by

Robert Cray Concert, higher revenues and

$38,000 or 42%!

costs than budget

Ahead of Budget $9,000 through November, then

• Revenue of $257,000, up $6,000/2% to last year

• Net $2,000 loss

did not open in December, missing NOR by $15,000

• Costs of $309,000, down $32,000/9% to last year

• Off budget $12,000.

SNOWPLAY

for the month.

Bike rentals start-up operation

• Revenue off $3,000/3%

• Off budget $18,000.

• Costs over budget $3,000/6%

Member Events • Increased scope (costs) of member events,

CAMPGROUND

off budget $10,000.

Shortened season, effective marketing and good cost controls.

• Revenue 7% over budget and 22% over last year.

• NOR 41% better than budget and 54% better

than last year.

Tahoe Donner 2011 Annual Report |

39

KEY FUND BALANCES RESERVED FOR FUTURE CAPITAL NEEDS $6,000,000 2005

2006

2007

2008

2009

2010

2011

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0 Replacement Reserve Fund

Development Fund- RAE Funds (restricted)

Development Fund- Regular

Development Fund - Building Replacement Designated

27% Funded Replacement Reserve funds as of 12/31/2011 ratio to Replacement Reserve Component total costs on 100% Funded Method calculation.

$1.5MILLION | 2011 EXPENDITURES REPLACEMENT RESERVE FUND

• $359,000 Golf Course (equipment, cart paths, carts lease) • $256,000 IT (computer , network & phone hardware and software) • $216,000 Downhill Ski (parking lot paving, rental equipment, fencing, bus) • $198,000 Tennis Center (courts resurfacing, fencing, access road refurb) • $126,000 HOA General (meeting room remodel, parking lots sealing)

The Replacement Reserve Fund is used to account for financial resources designated for the repair, restoration, replacement, or maintenance of, or litigation involving repair, restoration, replacement or maintenance of, major components which the association is obligated by state law and sound business practices to repair, restore, replace or maintain. A 30-year reserve funding and expenditure plan is produced every three years, and updated annually, to schedule and analyze the funding and expenditure needs. Over 1,300 individual items are tracked in this plan, with a current replacement value of over $32 million. A complete study and plan were performed in 2010, updated in 2011.

40

| Tahoe Donner 2011 Annual Report

$1.8MILLION | 2011 EXPENDITURES DEVELOPMENT FUND • $916,000 HOA General (Euer valley land acquisition)(RAE funds) • $785,000 HOA General (McGlashan

Springs land acquisition)(Regular funds) • $65,000 Forestry (building acquisition

costs)(Building Replacement funds) • ($120,000) Cross Country (TSSA-1

funds reimbursement from Town)

The Development Fund was established to accumulate funds for use in the development of and additions to facilities identified by the board as necessary due to new capacity requirements of the association, or changing needs of the community. The Development Fund also accounts for the board designated funds accumulated for the specifc purpose of replacing existing buildings. The Development Fund also accounts for the restricted Recreational Amenities Expansion funds, referred to as the RAE funds. In 2011, $777,000 of RAE funds were expended to acquire land in Euer Valley (in 2012, final escrow close of transaction and majority of remaining RAE Funds expended).

$124,000 | 2011 EXPENDITURES NEW MACHINERY AND EQIP. FUND • $79,000 IT software & hardware • $15,000 Tennis cabanas • $5,000 Snowplay improvements • $5,000 Pizza on the Hill kitchen equip.

The New Machinery and Equipment Fund is used to account for financial resources designated for the acquisition of new assets identified as necessary for the association to be more efficient in operations or to provide new services to the membership.

PROPERTY FUND The Property Fund is used to account for the association’s investment in its fixed assets. Capital additions to fixed assets totaled $2,973,000 (in 2010 $2,112,000). Depreciation expense for the year totaled $2,245,000 (in 2010 $2,256,000). Total gross fixed asset value of $49.4m equates to $7,629 per owner and net book value of fixed assets and construction in progress of $27.6m equates to $4,261 per owner (an increase of 3% over 2010).

CAPITAL FUNDS SUMMARY

TAHOE DON

Capital Funds

Year Ending Dec

SSOCIATION

ary

1

Replacement Reserve Fund: Beginning Fund Balance Assessment Contribution Interest Revenue Other Revenue & Expense, Net Major Maintenance Expenses Expenditures for Capital Additions Change in Fund Balance Ending Fund Balance

$

New Machinery & Equipment Fund: Beginning Fund Balance Assessment Contribution Interest Revenue Major Maintenance Expenses Expenditures for Capital Additions Change in Fund Balance Ending Fund Balance

2011

2011

2011 Actual

2010

2011

Actual

Budget

vs Budget

Actual

vs 2010

4,867,305 2,330,000 17,572 19,359 (337,967) (1,193,521) 835,443 5,702,748

4,404,000 2,330,000 28,000 10,000 (342,000) (1,523,000) 503,000 4,907,000

$

463,305 (10,428) 9,359 4,033 329,479 332,443 795,748

$

4,424,649 2,251,000 13,155 21,471 (258,528) (1,584,442) 442,656 4,867,305

$

442,656 79,000 4,417 (2,112) (79,439) 390,921 392,787 835,443

33,000 162,000 (123,000) 39,000 72,000

13,706 30 (708) (678) 13,028

40,120 162,000 9 (155,423) 6,586 46,706

Development Fund: (includes RAE Restricted, Designated Building Replacement, and Regular) Beginning Fund Balance 6,722,923 6,722,000 Assessment Contribution 1,618,000 1,618,000 Interest Revenue 40,448 38,000 Operating Fund Transfer In 100,000 100,000 Other Revenue & Expense, Net (12,914) (9,000) Fund Expenses for Capital Additions (102,617) Expenditures for Capital Additions (1,655,511) (3,330,000) Change in Fund Balance (12,594) (1,583,000) A) 6,710,329 5,139,000 Ending Fund Balance

923 2,448 (3,914) (102,617) 1,674,489 1,570,406 1,571,329

5,567,818 1,501,000 63,663 (15,224) (22,160) (372,174) 1,155,105 6,722,923

1,155,105 117,000 (23,215) 100,000 2,310 (80,457) (1,283,337) (1,167,699) (12,594)

Capital Fund Totals: Major Maintenance/Fund Expenses Expenditures for Capital Additions Total

4,033 2,003,260 2,007,293

(280,688) (2,112,039) (2,392,727)

(79,439) (860,701) (1,020,597)

A) Development Fund:

46,706 162,000 30 (123,708) 38,322 85,028

$

6,586 21 31,715 31,736 38,322

see next page for by department

$

(440,584) (2,972,740) (3,413,324)

(342,000) (4,976,000) $ (5,318,000)

$

$

$

Recreational Amenity Expansion (RAE) amounts are restricted funds, refer to Development Fund discussion for further information.

12/31/2011 Ending Balance Components: $2,394,753 RAE Restricted, $3,993,123 Designated Building Replacement, and $322,453 Regular.

12/31/2010 Ending Balance Components: $3,280,551 RAE Restricted, $2,815,802 Designated Building Replacement, and $626,570 Regular.

The variance between Actual and Budget capital expenditures is primarily driven by the timing of projects between years.

The Board has a fiduciary responsibility (by law) to do what is best for the association both now and for the future.

Current owners have the responsibility to pay for the depreciation of association assets, not defer the burden to future owners. Properly maintaining our assets protects owners' property values.

Tahoe Donner 2011 Annual Report |

41

CAPITAL FUNDS EXPENDITURES BY DEPT.

TAH

CIATION

Cap Y

ures

New Machinery & Equipment Fund

Replacement Reserve Fund

11

Development Fund

Capital Funds Total

Capital

Major

Capital

Major

Capital

Major

Capital

Major

Additions

Maintenance

Additions

Maintenance

Additions

Maintenance

Additions

Maintenance

PRIVATE AMENITIES Trout Creek Recreation Center

$

Beach Club Marina Tennis Center Northwoods Pool

28,934

$

$

-

$

-

$

-

$

-

$

28,934

$

19,483

3,697

11,864

4,290

-

-

-

7,987

11,864

184,068

13,765

15,313

-

-

-

199,381

13,765

-

-

-

-

-

17,356

-

17,356

Camps & Recreation Programs

19,483

6,032

-

21,142

-

27,174

234,055

-

45,112

25,635

-

21,142

-

280,832

45,112

205,484

153,105

3,898

-

5,867

-

215,249

153,105

213,950

1,823

-

-

50,977

-

264,927

1,823

32,566

14,302

-

-

(119,845)

-

(87,279)

14,302

-

-

-

-

-

-

-

-

9,131

2,682

-

-

-

-

9,131

2,682

The Lodge

54,943

9,006

-

-

-

-

54,943

9,006

Pizza on the Hill

34,066

1,280

-

-

-

39,222

1,280

TOTAL PRIVATE AMENITIES

-

-

PUBLIC AMENITIES Golf Downhill Ski Cross Country Ski Campground Equestrian

Snowplay

44,315

-

5,156 5,195

-

-

-

49,510

TOTAL PUBLIC AMENITIES

594,455

182,198

14,249

-

(63,001)

-

545,703

182,198

-

TOTAL AMENITIES

828,510

227,310

39,884

-

(41,859)

-

826,535

227,310

4,911

-

1,637,590

85,386

1,714,129

140,672

HOMEOWNERS ASSOCIATION 71,628

55,286

Communications

General

-

-

-

-

-

-

-

-

Facility Administration

-

-

-

-

-

10,833

-

10,833

Administration

8,463

Management Information Systems Accounting

-

-

-

-

-

8,463

222,819

33,650

78,913

-

-

-

301,732

33,650

-

-

-

-

-

-

-

-

-

Human Resources

-

-

-

-

-

-

-

-

Architectural Standards Office

-

-

-

-

-

-

-

-

Member Services

-

-

-

-

-

-

-

-

Forestry

23,634

7,000

-

-

58,490

6,398

82,124

13,398

Maintenance

38,467

14,721

-

-

1,290

-

39,757

14,721

365,011

110,657

83,824

-

1,697,370

102,617

2,146,205

213,274

337,967

$ 123,708

-

$ 1,655,511

$ 102,617

$ 2,972,740

TOTAL HOMEOWNERS ASSOCIATION TOTAL

42

$ 1,193,521

| Tahoe Donner 2011 Annual Report

$

$

$

440,584

INDEPENDENT AUDITOR’S REPORT

Board of Directors Tahoe Donner Association Truckee, California We have audited the accompanying statements of financial position of Tahoe Donner Association (Association) as of December 31, 2011 and 2010, and the related statements of revenue, expenses and changes in members’ equity, and of cash flows for the years then ended. These financial statements are the responsibility of the Association’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tahoe Donner Association as of December 31, 2011 and 2010, and the changes in its members’ equity and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Accounting principles generally accepted in the United States of America require that the information on future major repairs and replacements on page 51 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by generally accepted accounting principles, which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

GILBERT ASSOCIATES, INC. SACRAMENTO, CALIFORNIA MARCH 21, 2012

STATEMENT OF LEGAL COMPLIANCE A number of state laws and provisions of its own Governing Documents dictate how Tahoe Donner Association is to manage its financial affairs. Financial reporting, what books and records are to be maintained, how operating and capital needs are determined and funded, how budgets are established, and how member assessments are determined and collected are generally the areas regulated in the financial arena. These regulations can be found in the Association’s Covenants and Restrictions (“C&Rs”) and Bylaws, as well as the Civil Code and the Corporations Code. After a review of these regulations and our practices, Association Counsel has determined that the association is in substantial compliance with these requirements.

INDEPENDENT AUDITOR’S REPORT The independent auditor’s report, prepared by Gilbert Associates, and associated financial statements are pages 43 - 51 of this Annual Report.

Tahoe Donner 2011 Annual Report |

43

STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2011 AND 2010

OPERATIONS

Amenities OPERATING REVENUES: Access and use fees Retail sales Lessons and rental revenue Other revenues Interest income Gross operating revenues Cost of goods sold Net operating revenues

$ 3,290,518 2,607,243 1,662,761 141,362

Homeowners' Association

$

561,028 14,329 575,357

7,701,884 (989,389) 6,712,495

OPERATING EXPENSES: Salaries and wages Payroll taxes and employee benefits Supplies and maintenance Utilities Insurance Other employee expenses Income taxes (benefit) Other expenses Total operating expenses

575,357

3,748,689 866,956 961,446 545,722 194,200 97,130 375,378 6,789,521

NET OPERATING INCOME (LOSS)

(77,026)

Total Operating Fund $ 3,290,518 2,607,243 1,662,761 702,390 14,329 8,277,241 (989,389) 7,287,852

2,828,489 744,268 597,030 212,399 112,133 121,724 (23,296) 588,580 5,181,327

6,577,178 1,611,224 1,558,476 758,121 306,333 218,854 (23,296) 963,958 11,970,848

(4,605,970)

(4,682,996)

4,498,000

4,498,000

CAPITAL ACTIVITIES: Capital additions and transfers Gain (loss) on sale or disposal of assets Fund expenses Depreciation expense Total capital activities ASSESSMENTS: Assessment revenues INCREASE (DECREASE) IN MEMBERS' EQUITY

$

(77,026)

$

(107,970)

(184,996)

TRANSFERS BETWEEN FUNDS

(100,000)

MEMBERS' EQUITY, December 31, 2010 MEMBERS' EQUITY, December 31, 2011 The accompanying notes are an integral part of these financial statements.

44

| Tahoe Donner 2011 Annual Report

807,598 $

522,602

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN MEMBERS’ EQUITY DECEMBER 31, 2011 AND 2010

CAPITAL

Replacement Reserve Fund

$

17,572 17,572

New Machinery & Equipment Fund

$

30 30 30

17,572

19,758 19,758 (2,186)

30

TOTALS

Development Fund

$

Property Fund

Total 2011

Total 2010

40,448

$ 3,290,518 2,607,243 1,662,761 702,390 72,379 8,335,291 (989,389) 7,345,902

$ 3,717,902 2,594,114 1,873,426 650,833 102,175 8,938,450 (1,000,734) 7,937,716

12,914 12,914

6,577,178 1,611,224 1,558,476 758,121 306,333 218,854 (23,296) 996,630 12,003,520

6,529,871 1,661,933 1,417,198 768,240 312,889 240,381 70,081 915,747 11,916,340

27,534

(4,657,618)

(3,978,624)

38,498 (440,584) (2,244,985) (2,647,071)

23,713 (323,837) (2,256,134) (2,556,258)

8,608,000

8,412,192

727,136

1,303,311

1,877,310

40,448 40,448

(1,193,521) 39,117 (337,967)

(123,708)

(1,655,511)

(1,492,371)

(123,708)

(1,758,128)

2,330,000

162,000

1,618,000

835,443

38,322

(102,617)

(112,594)

$ 2,972,740 (619) (2,244,985) 727,136

100,000 4,867,305 $ 5,702,748

$

46,706

6,722,923

26,843,138

39,287,670

37,410,360

85,028

$ 6,710,329

$ 27,570,274

$ 40,590,981

$ 39,287,670

The accompanying notes are an integral part of these financial statements.

Tahoe Donner 2011 Annual Report |

45

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN MEMBERS’ EQUITY DECEMBER 31, 2011 AND 2010

Operating Fund

Replacement Reserve Fund

New Machinery & Equipment Fund

Development Fund

Property Fund

Total 2011

Total 2010

ASSETS Cash

$

1,014,083

Cash, designated and restricted

117,994

Investments

529,975

Investments, designated and restricted

999,950

Assessments and other member receivables, net of allowance for doubtful accounts of $97,440 in 2011 and $92,230 in 2010

292,325

Other receivables

$ $

140,442

$

54,039

$

141,266

100,000 6,499,960

32,315

7,100,231

6,454

6,082

1,014,083

$

1,622,080

453,741

520,611

629,975

972,089

14,600,141

13,395,610

292,325

276,709

44,851

49,400

Inventory

268,494

268,494

249,055

Prepaid expenses and other assets

260,948

260,948

249,593

$ 27,570,274

27,570,274

26,843,138

$ 27,570,274

$ 45,134,832

$ 44,178,285

$

$

Due from (to) other funds

17,908

3,311

(616)

(20,603)

Net property and equipment TOTAL ASSETS

$

3,533,992

$

6,650,167

$

153,423

$

7,226,976

$

180,824

$

134,447

$

7,422

$

8,539

LIABILITIES AND MEMBERS' EQUITY Accounts payable Deferred revenues

2,208,949

812,972

60,973

508,108

331,232

378,526

3,591,002

3,615,622

Deposits from members

119,735

119,735

96,965

Accrued liabilities

501,882

501,882

799,502

4,543,851

4,890,615

TOTAL LIABILITIES

3,011,390

947,419

68,395

516,647

MEMBERS' EQUITY

522,602

5,702,748

85,028

6,710,329

$ 27,570,274

40,590,981

39,287,670

7,226,976

$ 27,570,274

$ 45,134,832

$ 44,178,285

TOTAL LIABILITIES AND MEMBERS' EQUITY

$

3,533,992

The accompanying notes are an integral part of these financial statements.

46

| Tahoe Donner 2011 Annual Report

$

6,650,167

$

153,423

$

STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2011 AND 2010

Operating Fund

Replacement Reserve Fund

New Machinery & Equipment Fund

Development Fund

$

$

$

Property Fund

Total 2011

Total 2010

CASH FLOWS FROM OPERATING ACTIVITIES: Increase (decrease) in Members' Equity

$

(184,996)

835,443

38,322

(112,594)

$

727,136

$

1,303,311

$

1,877,310

Reconciliation to net cash provided by operating activities: (500,285)

Fund transfer

500,285

Depreciation expense

2,244,985 1,193,521

Capital additions and transfers (Gain) loss on sale or disposal of property and equipment

123,708

1,655,511

2,244,985

2,256,134

(2,972,740)

(39,117)

619

(38,498)

(23,713)

(15,616)

(37,358)

4,549

22,524

Changes in: Assessments receivable

(15,616)

Other receivables

(8,355)

(519)

13,423

Inventory

(19,439)

(19,439)

58,011

Prepaid expenses and other assets

(11,355)

(11,355)

130,330

6,702

(47,294)

(22,991)

(16,116)

(24,620)

285,345

22,770

22,770

(40,380)

(297,620)

(297,620)

15,537

Due from (to) other funds

(187,068)

171,694

Accounts payable

(45,029)

(8,289)

Deferred revenues

(82,319)

68,023

Deposits from members Accrued liabilities Net cash provided (used) by operating activities

(829,027)

1,594

13,780

(678) 5,792

1,720,471

168,738

2,060,991

3,121,173

4,520,749

(1,193,521)

(123,708)

(1,655,511)

(2,972,740)

(2,112,039)

CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment Proceeds from sale of property and equipment

39,117

Purchases of investments Proceeds from sale of investments Transfers between funds

(3,758,152)

(7,252,161)

4,100,000

6,650,000

39,117 (100,000)

241,848

NET INCREASE (DECREASE) IN CASH

(587,179)

CASH, Beginning of Year

(12,352,104)

(23,462,417)

(14,268,244)

11,850,000

22,600,000

11,551,666

(3,796,040)

(4,788,104)

(674,867)

(267,355)

100,000

(100,000)

Net cash provided (used) by investing activities

40,513

1,719,256

(1,756,565)

(223,708)

(36,094)

(54,970)

176,536

109,009

CASH, End of Year

$

1,132,077

$

140,442

$

OTHER CASH FLOW INFORMATION: Income taxes paid

$

1,243

$

4,916

$

54,039

(2,057,615)

3,376 137,890

2,142,691

2,410,046

$

141,266

$

$

1,467,824

$

2,142,691

$

3,509

$

$

9,668

$

51,036

The accompanying notes are an integral part of these financial statements.

Tahoe Donner 2011 Annual Report |

47

NOTES TO FINANCIAL STATEMENTS 1. OPERATIONS Tahoe Donner Association is a California nonprofit mutual benefit corporation.

The association’s members own the 6,471 membership properties within the Tahoe Donner subdivision in Truckee, California.

The association was organized to provide management services and maintenance of certain common areas owned by the association. A significant portion of revenue is derived from the assessment of member dues.

The association operates and maintains facilities, which include a golf course and pro shop, restaurant, downhill ski area, clubhouse, Nordic ski area, beach and marina area, equestrian center, campground, tennis facilities, recreation complex, pools and parks. Revenues are derived from member and non-member usage of these facilities.

Tahoe Donner Association’s Board of Directors is comprised of five members elected to serve three year terms by a vote of the members. The board of directors governs in accordance with the association’s bylaws and declaration of covenants and restrictions. The board of directors establishes members’ dues and user fees, and has the ability to enter into long-term contracts.

Along with other actions, closing an association amenity (as defined by the governing documents) requires a vote of the members.

2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation – the association’s governing documents provide certain guidelines for governing its financial activities. To ensure observance of limitations and restrictions on the use of financial resources, the association maintains its accounts using fund accounting. Financial resources are classified for accounting and reporting purposes in the following funds established according to their nature and purpose:

48

| Tahoe Donner 2011 Annual Report

Operating Fund – Used to account for financial resources available for the general operations of the association.

Replacement Reserve Fund – Used to account for financial resources designated for the repair, restoration, replacement or maintenance of, or litigation involving repair, restoration, replacement or maintenance of, major components which the association is obligated to repair, restore, replace or maintain and for which the replacement reserve fund was established.

New Machinery & Equipment Fund – Used to account for financial resources designated for the purchase of new machinery, equipment, furnishings and fixtures.

Development Fund – Used to account for financial resources designated for use in the acquisition and enhancement of facilities, equipment and other resources. Restricted funds include proceeds from land received by the association in settlement of claims against the developer, Dart Resorts, Inc. (Dart) which can only be expended to fund the expansion of recreational facilities per terms of the settlement of claims against the developer.

Property Fund – Used to account for the association’s investment in its common property and equipment.

Assessment revenue – Association members are subject to annual dues to provide funds for the association’s operating expenses, major repairs and replacements, development and purchase of new machinery and equipment.

Assessment revenue is recognized in the assessment period. Assessments received in advance are deferred until earned. The association has the right to suspend certain membership rights and pursue collection through foreclosure action. Bad debts are recognized when an account’s collectability is uncertain.

Access and use fee revenues – Daily fees are charged for access to and use of association amenities. As an alternate to daily fees, the association sells recreation passes to members that entitle them to use of various amenities. Revenues from these sales are allocated to the various amenities based upon recreation pass usage.

Cash consists of cash on hand, demand deposits at banks and money market funds.

The association minimizes credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. The association has not experienced any losses in such accounts and management believes The association is not exposed to any significant credit risk related to cash.

Investments consist of debt securities and certificates of deposits, which are carried at amortized cost as the association has the positive intent and ability to hold all debt securities and certificates of deposit until maturity.

Inventories consist of food and retail goods and are stated at the lower of average cost or market.

Property and equipment of the association includes certain facilities and land contributed by Dart in prior years. These assets are reflected in the accounts at the developers’ cost basis. Purchases are stated at cost. The association capitalizes all expenditures for property and equipment in excess of $2,000.

Depreciation is computed using the straightline method over estimated useful lives of individual assets ranging from 3 to 60 years.

These assets are recorded directly in the property fund.

Approximately 2,000 acres of undeveloped non-common area real property owned by the association is controlled by the association’s declaration of covenants and restrictions, and bylaws.

NOTES TO FINANCIAL STATEMENTS

Interest income is allocated to the operating, replacement and reserve, new machinery and equipment and development funds in proportion to the interest-bearing assets of each fund.

Deferred revenue represents funds received for assessments and recreation passes during the current year, which are applicable to the following year.

Income taxes – The association is generally exempt from federal income taxes under Internal Revenue Code 501(c)(4). For California purposes, the association is taxed as a regular corporation. As a membership organization, the association is generally taxed only on non-member income, such as advertising revenue and golf and ski ticket sales to the public, at regular federal corporate tax rates.

The association has implemented the amended accounting principles related to the accounting for uncertainty in income taxes and has determined there is no material impact on the financial statements. With some exceptions, the association is no longer subject to U.S. federal and California income tax examinations by tax authorities for years prior to 2007.

Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

3. CASH AND INVESTMENTS At December 31, the association’s cash and investments consisted of undesignated, designated and restricted accounts as follows:

2011 2010 $5,574,050 Replacement reserve fund - designated $6,640,402 3,199,546 2,400,087 Development fund - restricted (RAE Fund) 4,036,756 4,841,410 Development fund - designated New machinery and equip. fund - undesignated/unrestricted 100,000 109,009 54,039 New machinery and equip. fund - designated 2,594,169 1,544,058 Operating fund - undesignated and unrestricted 899,684 999,950 Operating fund - designated Operating fund - Architectural standards 97,176 117,994 deposits - restricted (note 5) $16,510,390 $16,697,940 Total Board designated funds in the replacement reserve fund cannot be expended for any purpose other than the repair, restoration, replacement or maintenance of, or litigation involving repair, restoration, replacement or maintenance of, major components which the Association is obligated to repair, restore, replace or maintain and for which the replacement reserve fund was established as mandated by state law.

Restricted funds in the development fund relate to the proceeds from the sale of a parcel of land which can only be expended to fund the expansion of recreational facilities per terms of the settlement of claims against the developer, Dart Resorts, Inc. These restricted funds are internally known as the Recreational Amenities Expansion (RAE) Fund.

Designated funds in the development fund are controlled by board-adopted policy that affords the board discretion in expenditure, except where member approval is required in connection with the intended project.

Since the association has the positive intent and ability to hold investments until maturity, they are carried at amortized costs determined by specific identification. Unrecognized holding gains and losses are deemed immaterial.

Investments at December 31, 2011 mature as follows: Investment Within 1 Year 1-2 Years Total $13,600,241 $13,600,241 U.S. Treasury $1,629,875 $451,336 $1,178,539 Certificates of deposit $15,230,116 $14,051,577 $1,178,539 Total

Subsequent events have been evaluated through March 21, 2012, the date the financial statements were issued.

Tahoe Donner 2011 Annual Report |

49

NOTES TO FINANCIAL STATEMENTS 4.PROPERTY AND EQUIPMENT Property and equipment consist of the following: 2011 2010 Buildings $21,187,682 $20,988,463 11,427,366 11,244,585 Fixtures and facility improvements 9,812,699 9,815,273 Equipment 6,102,154 4,807,832 Land and land improvements 835,072 787,310 Furnishings 49,364,973 47,643,463 Total (22,485,408) (21,024,322) Less accumulated depreciation 26,879,565 26,619,141

690,709 223,997 Construction in progress $27,570,274 $26,843,138 Total

5. DEPOSITS FROM MEMBERS The deposits held by the Association are primarily security deposits from members for the construction of residential real property. The deposits are used to ensure that construction is completed in accordance with the guidelines established by the Association’s Architectural Standards Committee. The funds are deposited in a separate trust account and are refundable upon satisfactory completion of construction.

6. REPLACEMENT RESERVE FUND The Association’s policy is to maintain replacement funding levels sufficient to pay for capital replacements, refurbishments and repairs. Replacement funding levels, as determined by a study updated in 2011, are forecast on a 30-year basis with annual updates to replacement schedules, as they become known. Actual expenditures, however, may vary from the estimated amounts and the variations may be material. If additional funds are needed, the Association has the right, subject to any necessary member approval, to increase regular dues, to levy special assessments, or modify and adjust the scheduled major repairs and replacements as necessary.

7. SALARY SAVINGS PLAN The Association maintains a salary savings plan for all eligible employees. The Association matches 50% of the first 6% of the participant’s contribution. Matching contributions are 20% vested after the third year of service and vest at the rate of 20% per year thereafter. Matching contributions expense was $65,916 and $66,104 for 2011 and 2010, respectively.

8. OPERATING LEASE OBLIGATIONS The Association has non-cancelable operating leases for copiers, golf carts, land usage and computer equipment. Rental expense under all operating leases was $138,243 and $194,482 for 2011 and 2010, respectively. Future minimum lease payments under these leases are as follows: Year ending December 31: 2012 2013 2014 2015 2016 and thereafter Total

50

$97,124 28,242 21,270 11,642 51,250 $209,528

| Tahoe Donner 2011 Annual Report

REQUIRED SUPPLEMENTARY INFORMATION ON FUTURE MAJOR REPAIRS AND REPLACEMENTS DECEMBER 31, 2011 (UNAUDITED)

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 association-owned assets. A 30-year reserve funding and expenditure plan is produced every three years, and updated annually, to schedule and analyze the funding needs. The Association updated its study in 2011 to estimate the remaining useful lives, the lives after replacement and the replacement costs of the components of common property. The estimates were based on estimates from consultants, management, contractors and historical costs. Estimated current replacement costs take into account the effects of inflation between the date of the study and the date that the components will require repair or replacement.

The Association does not designate the balance in the replacement reserve fund by component.

The total available for major repairs and replacements at December 31, 2011, was $5,702,000.

The 2012 lot assessments include $2,589,000 to be allocated to the replacement fund.

The Association has not included the replacement of building structures as a component of the replacement study. These structures generally have an estimated useful life greater than 30 years. The Association is accumulating funds in the Development Fund designated for building replacement.

The following table is based on the study and presents significant information about the components of common property for which funds are being set aside.

Component Group

Range of Estimated Life Current Remaining Lives After Replacement Replacement (Years) (Years) Costs

Trout Creek, pools & recreation Marina Tennis complex Downhill ski area Cross country Equestrian Golf complex Campground The Lodge Pizza On the Hill Administration Asphalt maintenance Forestry General & building maintenance Vehicle maintenance

0-24 1-30 0-14 1-30 0-20 1-30 0-29 1-30 0-22 1-30 0-24 1-30 0-23 1-30 0-16 1-25 0-24 1-30 0-30 1-30 0-30 1-30 0-28 1-30 0-30 1-30 0-30 1-30 0-21 1-30

$2,111,654 610,463 1,563,746 4,677,098 1,193,365 410,275 6,674,677 204,125 2,762,491 444,764 3,613,782 4,022,478 975,355 1,895,987 1,198,906

Total

$32,359,166

Tahoe Donner 2011 Annual Report |

51

$�

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Downhill Ski

The Lodge Golf Course Trout Creek Rec Ctr/Aquatics Cross Country Ski Marina

Pizza on the Hill Tennis Administration

Marketing Equestrian The Lodge, Summer Lunch & Golf F&B Day Camp Forestry Snowplay Recreation ASO

Campground

2011 Actual $8.3 million 2011 Budget $8.8 million 2010 Actual $8.9 million

Member Services Accounting

52

| Tahoe Donner 2011 Annual Report

OPERATING REVENUES (excludes Annual Assessment)

WE SELL TAHOE DONNER

Located in the Heart of Tahoe Donner

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©2011 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC. DRE License # 00313415 Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate.

Therefore, Coldwell Banker Residential Brokerage does not guarantee the data’s accuracy. Data maintained by the MLS may not reflect all real estate activity in the market