Tahoe Donner News May 2020

ELECTION ROADMAP

06

TAHOE DONNER N

E

W

S

ANNUAL REPORT

13

BUSINESS DIRECTORY TIPS AND TRICKS FOR STAYING IN SHAPE WHILE IN QUARANTINE 16

18

M A Y

2 0 2 0

RELAX WE GOT THIS INTRODUCING DEFENSIBLE SPACE SERVICES

DEFENSIBLE SPACE ASPHALT SEALING PAINT & STAIN SNOW REMOVAL

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INSIDE THE REPORT:

THE BUZZ:

02

10

06

11

ASSOCIATION UPDATES

EVENTS, DINING + UPDATES

Message from the Board President

Club Updates

Roadmap to the Election

13

COURT LEVE

2019 ANNUAL REPORT

Graphical overview of Tahoe Donner‘s 2019 audited results and accomplishments

FEATURES

12

14

COVID-19 Update

18

Business Directory

Amenity Updates, Programs + Events

On the Greens: 2020 Golf Course Repairs and Improvements

16

Staying in Shape while Staying at Home: Tips and 2020 Defensible Tricks from a Trout Space Inspections Creek Rec Center Fitness Instructor

22

23

Briefs

The legacy behind the event that continues to better our community

20

AT-HOME EATS

Enjoy these tips for creating tasty, healthy meals while at home, including a delicious butternut bisque recipe from Alder Creek Cafe

ALI DICKSON

TRUCKEE DAY

Board Meeting Recap

COURTESY OF MATT WARREN

08

24

TAHOE DONNER NEWS |

1

VOLUME 21 | NO. 05

MAY 2020

EDITORIAL AND PRODUCTION TEAM Lindsay Hogan Joe Reeder Derek Moore

Drew Deurlington Ali Dickson Amber Barrett

SENIOR MANAGEMENT

Annie Rosenfeld | Director of Risk + Real Property arosenfeld@tahoedonner.com Miguel Sloane | Director of Operations msloane@tahoedonner.com Jon Mitchell | Director of Capital Projects jmitchell@tahoedonner.com Lindsay Hogan | Director of Marketing + Member Relations lhogan@tahoedonner.com Miah Cottrell | Director of Information Technology mcottrell@tahoedonner.com Tom Knill | Director of Human Resources tknill@tahoedonner.com

BOARD OF DIRECTORS President | Charles C. Wu cwu@tahoedonner.com

Vice President | Don Koenes dkoenes@tahoedonner.com Treasurer | Jeff Connors jconnors@tahoedonner.com Secretary | Jim Roth jroth@tahoedonner.com Director | Jennifer Jennings jjennings@tahoedonner.com

POSTMASTER: Periodical postage paid at

Truckee, California and additional mailing offices.

Send address changes to Tahoe Donner News, 11509 Northwoods Blvd., Truckee, CA 96161; (530) 587-9400, Fax (530) 579-3224

EMAIL: comdep@tahoedonner.com ADVERTISING SALES: CC Media + Publishing is the exclusive advertising representative: (775) 327-4200 | laura@cc.media

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. 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.

MESSAGE FROM THE BOARD PRESIDENT Dear members, We are continuously proud and humbled to witness how the Tahoe Donner community has banded together in these unprecedented times – we really are all in this together.

The state-mandated ‘Stay at Home Order’ is a constantly evolving situation. As we create a plan that will move us forward, we are looking at many options in the best interest of Tahoe Donner members, budget, staff and amenities. The board is focused on preserving essential staff and retaining as many employees as achievable amidst current pandemic and budget realities.

Federal and state COVID-19 relief and support programs have been researched and reviewed. We will take advantage of appropriate support as allowed. Thank you to those who have made suggestions.

Please consider giving to the Tahoe Donner Staff Appreciation Fund. Your efforts will directly help staff who have been impacted by loss of wages related to COVID-19. Read more information about this grassroots effort and how you can support your community on page 4.

Tahoe Donner will keep amenities closed through the month of May, and staggered openings as allowed by regulations will begin in June. Amenities usage will be designed around social distancing and may look very different during the COVID-19 pandemic.

This difference will ensure the utmost safety for all members and staff involved. We will staff accordingly to get those amenities open for our members, and extensive communication concerning these changes will be shared as soon as we are able.

Any decisions made will be rooted deeply in science, recommendations of state and local government and the idea that Tahoe

Donner remain a safe place for members and staff. Extreme amounts of creativity and resourcefulness are being used to preserve the value of our community and the experiences of our members during this time.

There is no one right answer in this situation, and decision-making comes with much evaluation. I ask that you be understanding and thank you for your patience.

Election season is upon us, so please look for ballots to arrive near the end of May. Each property receives one ballot to the address which Annual Assessments are mailed to. If you share a property with others, please work together to cast your vote. This year, it is more important than ever to return your ballot by mail. On-site drop-off details will be communicated as we get closer to these dates.

Learn about the candidates by visiting tahoedonner.com/board-elections.

Each candidate has their own web page that includes a photo, contact info, candidate statement, video (optional) and more. Take advantage of online events, and submit questions you’d like to see the candidates answer by emailing electionscommittee@tahoedonner.com

by May 18.

We look forward to summer and the adventures we can safely have in Tahoe Donner. Our community is strong, and we are thankful for the beauty, peace and excitement that it provides us. We are all in this together, and I ask that you be kind to one another. Wherever you are now, we wish you well and look forward to a time when we can celebrate together again.

Sincerely, CHARLES C. WU | BOARD PRESIDENT

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TAHOE DONNER NEWS |

3

STAY IN THE KNOW. SIGN UP FOR WEEKLY EMAILS:

TAHOEDONNER.COM/SUBSCRIBE

TAHOE DONNER CONTACTS Area Code (530)

MEMBER SERVICES

587-9400 | info@tahoedonner.com | Live chat on website

AMENITIES Beach Club Marina 587-9460 marina@tahoedonner.com Bikeworks 582-9694 bikeworks@tahoedonner.com Cross Country Ski 587-9484 xc@tahoedonner.com Downhill Ski Resort 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 Recreation Hut 587-9413 recreation@tahoedonner.com Campground 587-9462 campground@tahoedonner.com Tennis Center 587-9474 tennis@tahoedonner.com Trails 582-9672 trails@tahoedonner.com Trout Creek 582-9603 troutcreek@tahoedonner.com

TAHOE DONNER STAFF

APPRECIATION FUND

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

THANK YOU FOR SUPPORTING TAHOE DONNER STAFF DURING THIS DIFFICULT TIME

Covenants Fred Zapponi covenantscommittee@ tahoedonner.com Elections Bette Rohrback electionscommittee@ tahoedonner.com

One of the most powerful aspects of Tahoe Donner is its commitment to community. We are humbled and honored that a grassroots group of Tahoe Donner homeowners has joined together to create a Tahoe Donner Staff Appreciation Fund to thank our employees who have been impacted as a result of the COVID-19 crisis. Your donation can supply food, rent or medical services directly to a neighbor in need.

We are proud of the homeowners that make this kindhearted community unlike any other.

MAKE A DONATION + LEARN MORE AT TAHOEDONNER.COM/STAFF-FUND

Finance John Dundas, Acting Chair financecommittee@ tahoedonner.com General Plan Rob McCray robmccray@sbcglobal.net Giving Fund Suzanne Sullivan tdgf@tahoedonner.com

ASSOCIATION CHARTERED CLUB PRESIDENTS 9-Holers Women's Golf Judi Roberts judi@greenroberts.com

Quilt Marilyn Dundas md11792@outlook.com

Bridge Lynn Cordner lynn.cordner@gmail.com

Rowing Dot Mace dotmace@me.com

Equestrian Susan Terrell terrellsf@earthlink.net

Senior Alpine Ski John Makin jmakin@sbcglobal.net

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

TD 4-Wheelers Bill Ratcliff club@td4wheelers.org

Hiking Robin Reese rbtahoe@sbcglobal.net

TD Ladies Play 9 Golf Shellie Poplin shelliepoplin@gmail.com

Junior Golf Jean Lai jslai@comcast.net

Tennis Michele Forsberg minkeysf@sbcglobal.net

Limited Abilities Persons’ Golf Mike Srago msrago@comcast.net

Women’s Golf Denise Rebar denise_rebar@merithr.com

BRANT ALLEN

Men’s Golf Tim Pellegrini tncpellegrini@sbcglobal.net

MEMBER FEEDBACK Help improve the overall association.

Submit your comments and concerns via Likemoji or by using our online form at tahoedonner.com/feedback.

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TAHOE DONNER NEWS |

5

THE REPORT

ROADMAP TO THE ELECTION

ALL ELECTION COMMITTEE-SPONSORED EVENTS WILL BE HELD ONLINE. VISIT TAHOEDONNER.COM/BOARDELECTIONS FOR MEETING AND LOGIN INFORMATION. APRIL 27

Candidate applications are reviewed by the Elections Committee, and applicants are advised of their eligibility to stand for election.

Slate of candidates is announced via email blast and on Tahoe Donner media.

Election campaign begins.

MAY 13

Candidate web pages are released. Learn about each candidate by viewing their candidate statement, video and more.

MAY 1 6

MAY 2 3

CANDIDATES VIRTUAL MEET + GREET #1

CANDIDATES NIGHT VIRTUAL FORUM

5:30-7:30PM

6-9PM

ONLINE MEETING

ONLINE MEETING

Get to know the candidates in an online meeting where members have the opportunity to submit questions via online chat, and candidates can articulate their campaign platforms. Questions will be accepted from 5:30 to 6PM. The meet and greet will begin at 6PM.

Join the online forum moderated by the Inspector of Elections. Submit your questions to candidates by emailing electionscommittee@tahoedonner.com

by May 18 at 5PM. There is not an opportunity to ask additional questions during this event.

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JUNE 28 J UNE 2 6 JUN E 6 M AY 2 7

ELECTION DAY + ANNUAL MEETING OF MEMBERS 10AM-12PM ELECTION BALLOT MEETING + REGULAR BOARD MEETING Election ballots are mailed to all eligible members – one ballot per property. Please work with your co-owners to cast your vote. Ballots are sent to the same address that the Annual Assessment goes to. Visit tahoedonner.com/boardelections for an FAQ on receiving, completing or returning ballots.

Due to the current COVID-19 pandemic, members are strongly encouraged to mail in their ballots.

CANDIDATES VIRTUAL MEET + GREET #2

9AM-5PM

5:30-7:30PM

ONLINE MEETING

ONLINE MEETING

Personally delivered ballots are accepted and replacement ballots are available until 5PM. Government ID or Tahoe Donner photo ID is required to vote in person. The deadline for receipt of ballots mailed or personally delivered to the Accountancy Firm is 5PM. Members are strongly urged to mail in their ballots early in order for them to be received in time for the election. Mailed ballots received after the June 26 deadline will not be counted.

Get to know the candidates in an online meeting where members have the opportunity to submit questions via online chat, and candidates can articulate their campaign platforms. Questions will be accepted from 5:30 to 6PM. The meet and greet will begin at 6PM.

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ONLINE MEETING Election results are announced prior to the end of the meeting, providing a quorum of the voting power of the association is reached (25%). If not, meeting is adjourned to June 29. Personally delivered ballots may be accepted until 11:30AM with a valid photo ID.

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TAHOE DONNER NEWS |

7

FEATURE

HOW TRUCKEE DAY CLEANS UP NICELY THIS YEAR’S TRUCKEE DAY WILL BE HELD ON JUNE 6, 2020. DISCOVER THE LEGACY BEHIND THE LABOR THAT CONTINUES TO BETTER OUR COMMUNITY.

By ALI DICKSON | Photos courtesy of MATT WARREN Through rain, wind, snow, sun and now a pandemic, there is one constant in Truckee that has remained the first week of each June: Truckee Day. What started with the small effort of one man at Tahoe Donner has transformed into a town-wide cleanup initiative collecting over 36 tons of trash to date.

A MOVEMENT IN THE MAKING Before Truckee Day was a designated holiday, it was an ambitious idea held by a man right at Tahoe Donner. In early 2000, Steve Ames, a former high school coach and owner of Ames Deli Mart – now Z Marketplace – noticed that TD streets were strewn with litter.

Wanting to clean the community he was so proud to work and live in, an origin story was born. With a couple of regular clients and a few Truckee High athletes, Ames hit the street and a Tahoe Donner cleanup began.

Initially, this small crew only covered main streets like Northwoods Boulevard. In 2001, however, SnowTech – now Elements Mountain Company – partnered with Ames to cultivate and expand volunteer participation. Popularity snowballed as word spread of the cleanup initiative.

What started as a group of classmates and neighbors quickly became a rising crusade they called Clean TD. Instead of focusing on only heavily trafficked areas within the association, enough volunteers allowed for every street to be swept. By 2002, over 300 helpers were contributing, and the movement expanded even further to address litter on Tahoe Donner trails.

FROM CLEAN TD TO TRUCKEE DAY Before their eyes, Clean TD became an event with a reputation and a following beyond just picking up strewn waste. SnowTech started producing t-shirts for volunteers, and Ames provided a free BBQ lunch for helpers to enjoy with their fellow neighbors after the cleanup. Matt Warren, co-founder of Elements, shared that their company worked with Tahoe Donner early on to collect the garbage bags left at the end of each cleanup. More than a band of humanitarians working to help their community, Clean TD quickly became a staple event in the area.

Word spread beyond the Tahoe Donner community of the positive impact Clean TD created, and the Town of Truckee quickly took interest in further expanding its efforts. In 2004, Maia Schneider, former Truckee mayor and Town Council member, expanded Clean TD into what we currently know and love as Truckee Day. The rest, as they say, is history. The upcoming June 2020 date marks Truckee Day’s 17th year, and over 6,000 volunteers have helped in that time to improve streets across our town.

Truckee Day would not be the force it is today without the people that gave it life. Ames and Schneider crafted the building blocks for the event’s character. Tip Chase, a former Tahoe Donner employee within the Architectural Standards Office, was an instrumental part of its growth and success in garbage collection. Elements Mountain Company helped to lift this force off the ground so many years ago.

Erica Mertens, Recycling Program manager from the Town of Truckee, is the main event organizer. Chelsea Walterscheid and Virginia Donica are co-chairs of the event. Clear Capital is the main financial sponsor, and many local businesses have contributed to offset the cost of the shirts, BBQ lunch and additional event expenses.

Above all, the champions who turn up year after year to make a difference in their community are the driving forces in what makes Truckee Day extraordinary.

A SOCIALLY DISTANT GATHERING The state-mandated ‘Stay at Home Order’ beginning in March has halted non-essential businesses, required families and individuals to remain in their homes and disbanded gatherings larger than two people to reduce the spread of COVID-19. Truckee Day has taken this order seriously and is working to ensure that, while helping our environment, we don’t cause harm to our neighbors.

Elements Mountain Company has been the check-in station for Tahoe Donner, and Warren shares, “One of the great parts about our involvement with Truckee Day is the personal connections we make with the TD volunteers when they come to our office.” If conditions are not safe in time to sign up for a street in person, virtual registration will be enforced. Up-to-date information on registration can be found at keeptruckeegreen.org/truckee-day-2020.

No Truckee Day is complete without a t-shirt, but this year’s fashion may include a face mask as well. If the ‘Stay at Home Order’ is still in effect, all volunteers will wear protective masks to avoid transmitting or receiving virus-laden particles that cause this airborne coronavirus. Warren notes, “Our goal is to have TD volunteers pick up a bag with their name on it that includes a t-shirt, garbage bag, street assignment and any other swag on the day of the event.”

No in-person meetings will be held before the event day, but communication will continue in a mostly online format. Emails, social media, HOA e-blasts, radio communication and advertisements in local papers will keep you up to speed on what you need to know. The Town of Truckee will continue to update its website at keeptruckeegreen.org/truckee-day-2020. Elements Mountain Company will also be sending informational emails to Tahoe Donner homeowners.

While the BBQ and gathering that usually follow the cleanup are not possible this year, Truckee Day 2020 may hold more community spirit than any physical gathering could embrace. When asked of the biggest concerns involving Truckee Day, honoring volunteers and showing appreciation was at the top of Warren’s list as he mused, “Many people always say that [donuts and coffee] are their favorite part of Truckee Day and the only time during the year when they treat themselves to a donut.”

Clearly, the gratitude Truckee Day organizers hold for their participants has not been shaken. Volunteer efforts made this year solely for the sake of making a community better, without incentives of a burger or even a donut, is one that will be looked back on in future years as inspiration for the true meaning of community.

A TRADITION WORTH CARRYING Warren has enjoyed seeing Truckee Day blossom from a growing ambition to a town-wide initiative. When asked about his favorite part of Truckee Day, he actually had two. “First, our employees love volunteering to help pull off Truckee Day in Tahoe Donner.

We all enjoy the break from working in our business to helping our community. Second, as a Tahoe Donner homeowner, I get a lot of satisfaction driving around Tahoe Donner in the weeks following Truckee Day and enjoying our trash-free streets. It’s a great feeling knowing that I live in an area where there is such great civic pride.”

Though this event spans across an entire town, Tahoe Donner homeowners usually contribute to over half of the volunteers that participate in all Truckee neighborhoods. Having such support from Tahoe Donner members is a testament to how a group of likeminded individuals can care for their community.

While this time is one of uncertainty, it is also a time of banding together. Showing compassion to our streets, our situation, and our loved ones is something not to take for granted in a world that could currently use a few extra acts of kindness. For those who would like to participate in this year’s Truckee Day, register or learn more at keeptruckeegreen.org/truckee-day-2020.

TRUCKEE DAY ITINERARY JUNE 6, 2020 REGISTRATION BEGINS AT 8AM All Tahoe Donner homeowners register at

DROP ALL TIED GARBAGE BAGS FOR PICKUP ON THE FOLLOWING STREETS: Northwoods Boulevard,

Elements Mountain Co.

Alder Creek Road,

17356 Northwoods Blvd,

Lausanne Way and

Truckee, CA 96161

Schussing Way

Bundles with t-shirt, garbage bag and swag will be at each registration location

If you are cleaning a street that does not offer garbage pickup, please walk your bags to the intersection of the nearest pickup street

Cleanup begins once you receive your bundle

CLEANUP ENDS AROUND 12PM OR WHEN TRASH BAGS ARE FULL To discover what this year’s Truckee Day holds, learn more by visiting keeptruckeegreen.org/ truckee-day-2020.

Questions can be answered by emailing info@elementsmtn.com.

TAHOE DONNER NEWS |

9

THE

BUZZ

EQUESTRIAN BOARDING RESERVATIONS Horse boarding reservations for summer 2020 are open. For details and a reservation application, visit tahoedonner.com/equestrian.

2020 BOARDING RATES

Our 12-by-24-foot partially covered pipe corral paddocks are available and include daily cleaning, watering and feeding. Deluxe, large paddocks are also available.

EVENTS. DINING. UPDATES. FACILITY CLOSURES

At the time of press, facilities are closed due to COVID-19. We are continuing to closely monitor emerging information from the Centers for Disease Control and Prevention (CDC) and California Department of Health and will evaluate future operations as we have more information. Please check tahoedonner.com for the latest updates on all Tahoe Donner restaurants and other facilities.

XC SKI CENTER

DOWNHILL SKI RESORT

2020/21 season passes are now on sale.

Prices start at $284 for adult members and $74 for members’ kids age 7-12.

Get your 2020/2021 season passes now and save big! Prices start at $239 for adult members and $184 for members’ kids age 7-12.

Enjoy exclusive perks, including discounts at Tahoe Donner restaurants, four days of skiing at Diamond Peak Ski Resort, two days at Homewood Mountain Resort and more. Get your passes now at tahoedonner.com/skiseasonpasses.

Restrictions apply

SUMMER EVENTS + PROGRAMS

Passholder perks include four days of skiing at Diamond Peak Ski Resort, two days at Homewood Mountain Resort, early bird skiing and more! Get your passes now at tahoedonner.com/skiseasonpasses.

Restrictions apply

BASIC 12X24 MEMBER PADDOCK Monthly $439 Weekly $124 Daily $30

Tahoe Donner will follow guidelines issued by the California Department of Health, the Center for Disease Control (CDC) and the World Health Organization (WHO) concerning summer events. Please check our website for up-to-date information on summer happenings.

SAVE MORE

SKI MORE

2020/21 SEASON PASSES ON SALE TAHOEDONNER.COM/SKISEASONPASSES

All prices are subject to change. Due to COVID-19, all event dates, times and locations are also subject to change.

BUZZ: CLUBS MEN’S GOLF CLUB Our tournament course this year, The Links at Squaw Creek, is currently closed until May 1. However, the season pass discount deadline has been extended to May 16, and the resort will continue to offer three free rounds of golf to those that sign up for a pass before this new date. Call the pro shop at (530) 5816637, or stop by once they reopen to purchase your season pass.

In addition, due to current conditions, our first four scheduled traveling Wednesday games have been postponed for the foreseeable future. We are hopeful that we will be able to reschedule these Wednesday games and others at local courses when conditions permit.

QUILT CLUB The Tahoe Donner Quilt Club is busy making masks for Tahoe Forest Hospital. The ladies are working at home to help our community. We don’t know when Northwoods Clubhouse will reopen for our meetings, but the Club will also continue to work on walker bags and bibs for our Extended Care Center. For information about the Club, contact Marilyn Dundas at md11792@outlook.com.

4 WHEELERS CLUB TD4WD Club activities are currently shut down, and the Sixteen to One Mine tour will be rescheduled to a later date. The Moab trip is also cancelled. We will resume trail runs and other activities as soon as it is safe to do so. Check out TD4Wheelers.org for any updates.

Now is a good time to get prepared for future activities. For example, if your vehicle’s navigation off the beaten path isn’t adequate, consider downloading a topographic mapping app. Several of us use the Gaia app as it has CarPlay capability; if you have cellular service (no actual signal required), it uses your device’s existing satellite interface. If you have an iPad or other device without cellular service, you can purchase an inexpensive Bluetooth GPS antenna and not incur any usage fees. It’s nice to know exactly where you are. We also carry a satellite beacon and communicator with us. Units like SPOT or inReach Explorer have subscription fees, but it’s worth having in case of an emergency; a cell signal isn’t always available, so having one riding on the road, biking or hiking is a good idea.

We use family radios to communicate during trail runs. These inexpensive handheld radios under two watts don’t require a license at low power settings and are perfect for our club activities. For higher power transmission radios, a $70 FCC ZA license (which is good for 10 years) is needed, and no test is required. Midland X-Talker or Motorola Talkabouts portable radios are two popular choices.

Proudly Serving Truckee & Tahoe-Donner For Over 25 Years

WOMEN’S GOLF CLUB Recognizing the uncertainty surrounding the pandemic but hoping for golf in June, the Women’s Golf Club Board has continued plans to begin club play on June 16. During the month of March, we surveyed our membership to determine favorite courses in the Reno, Plumas, North Tahoe and Auburn areas. We plan to start with the Wolf Run and Lakeridge courses in the Reno area for our first two outings in June, expecting the weather and course conditions to be more favorable. The Women’s Golf Club always welcomes new members.

If you would like to join us, please email tdwgclub@gmail.com.

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THE

11

THE REPORT

COVID-19 UPDATE

AVAILABLE SERVICES + TIPS FOR STAYING WELL CDC GUIDELINES TO PROTECT YOURSELF

IF YOU GO OUTSIDE FOR EXERCISE, DO SO IN THE SAFETY OF YOUR NEIGHBORHOOD AND OBSERVE THE FOLLOWING GUIDELINES FROM THE CENTERS FOR DISEASE CONTROL AND PREVENTION:

COVER YOUR FACE

• You could spread COVID-19 to others even if you do not feel sick.

• Everyone is recommended to wear a cloth face cover when in public places, such as the grocery store.

• Cloth face coverings should not be placed on children under the age of 2, anyone who has trouble breathing or anyone unable to remove the mask without assistance.

• Cloth face covers are meant to protect other people in case you may be infected.

• Do NOT use a face mask meant for a healthcare worker.

• Continue to keep 6 feet of distance between yourself and others. Face covers are not substitutes for social distancing.

AVOID CLOSE CONTACT

• Keep your distance from people who may be sick or at a 6 FEET higher risk of getting sick.

• Stay close to your home to reduce the spread of infection to outside communities.

• Maintain distance between yourself and any other person.

Exercising can spread a virus farther than 6 feet due to forceful breathing; increase social distance by at least 15 feet if you do exercise outdoors.

• Exercise in open spaces or areas that are not heavily trafficked.

PRACTICE SAFE HYGIENE

• No matter what you do outdoors, avoid touching items whenever possible. The virus can live on surfaces long enough for you to become sick upon exposure. Places such as playgrounds and public bathrooms should be avoided when possible.

• If you do need to touch public objects, use gloves or disinfecting wipes. Use a hand sanitizer with at least 60 percent alcohol afterward, and wash your hands when available with soap and water.

PRIORITIZE OUTDOOR TIME

• Stay home as much as possible. If you need to exercise outdoors, keep your time limited to reduce exposure of yourself and others.

• When heading outside, do not exercise with anyone you are not currently living with. Friends and family can be contacted through phones, video chats and other online services.

DISINFECT AFTERWARD

• After exercising outside of your home, clean and disinfect doorknobs, handles, keys, light switches and anything else you may have touched after coming inside.

• Wash your hands and any clothing or object that may have been exposed to COVID-19.

Tahoe Donner facilities and amenities will remain closed under the State of California ‘Stay at Home Order’ and COVID-19 restrictions. This is a time to honor the order’s intent and stay at home unless you absolutely must go out for essential needs like grocery shopping and medical attention. We all play a part in minimizing the spread of the virus, and we thank you for all your efforts and sacrifices to do so.

Management and the board of directors continue to discuss the impact of the virus to operations and are preparing financial and operational modeling now to set plans in place for modified operations and services this summer, dependent on state and local mandates.

We continue to show appreciation that our Tahoe Donner community has supported each other during this coronavirus pandemic.

Tahoe Donner staff are continuing essential functions remotely and/or in strict accordance with safety guidelines for on-site staff as allowed under the executive order. Essential staff are available via email or phone number.

MEMBER SERVICES

For general questions and information, email Member Services at info@tahoedonner.com or call (530) 587-9400.

ARCHITECTURAL STANDARDS

For questions and assistance on rules and regulations, email aso@tahoedonner.com or call (530) 587-9407.

ACCOUNTING

For questions on annual assessments or accounting issues, email tdaccounting@tahoedonner.com or call (530) 587-9417.

FORESTRY

For questions concerning land management or forestry issues, email forestry@tahoedonner.com or call (530) 587-9432.

Please note that we will be monitoring emails with regularity.

However, with limited staff available, we cannot promise an immediate response. Visit tahoedonner.com for the most up-to-date information on facilities and services. Thank you for your patience.

At this time, Tahoe Donner will also continue to provide maintenance and security duties for the association.

2019

ANNUAL

REPORT $4.4 MILLION

IN CAPITAL EXPENDITURES

REINVESTING IN YOUR ASSOCIATION, PROTECTING YOUR INVESTMENT CAPITAL DISCUSSION STARTS ON PAGE 10

$801,000 OR 14% FAVORABLE

NET OPERATING RESULTS IN OPERATING FUND

STRONG WINTER MONTHS RESULTS DETAILS ON PAGE 2

$19.8 MILLION

IN CAPITAL RESERVES SAVINGS

SAVING FOR AGING EQUIPMENT, BUILDING COMPONENTS AND THE BUILDING REPLACEMENT OF THE DOWNHILL SKI RESORT LODGE

$2.2 MILLION

IN OPERATING FUND RESERVES

A PROVEN NECESSARY CONTINGENCY FUND BALANCE WITH THE COVID-19 PANDEMIC

VISION STATEMENT Tahoe Donner is a vibrant and desirable mountain community providing attractive and well-maintained facilities, events, programs and leading customer service to its members, guests and public, all while maintaining accessible and healthy natural surroundings.

TAHOE DONNER 2019 ANNUAL REPORT |

1

$801,000 FAVORABLE NOR RESULTS

Dear Members,

Net Operating Result Loss of $4.8 million was $801,000 or 14% favorable to Budget and $338,000 or 6% favorable to 2018

The purpose of this 2019 Annual Report is to provide a comprehensive report on 2019 financial results and to communicate the 2019 Audited Financial Statements and Independent Auditors Report to all members.

$14.7 MILLION OPERATING REVENUES Up 3% to Budget and up 10% to 2018

$19.8 MILLION OPERATING COSTS

Management, the Finance Committee and the board consistently monitor both operational and financial results.

We are committed to both responsive and proactive management, balancing our service levels to volume and financial performance.

Down 2% to Budget and up 5% to 2018

$4.4 MILLION CAPITAL FUNDS EXPENDITURES

Favorable $2.8 million or 40% to Budget, primarily due to timing of projects between years

$5.7 MILLION | $880 PER OWNER

Please contact us anytime to discuss this report or any other financial aspects of your association.

Operating Contribution by Annual Assessment in 2019

$7.0 MILLION | $1,085 PER OWNER

CHARLES C. WU BOARD PRESIDENT cwu@tahoedonner.com

Capital Contribution by Annual Assessment in 2019

$71.4 MILLION TOTAL ASSETS Up $4.3 million or 6% to 2018

tahoedonner.com/financials

$63.4 MILLION | $9,794 PER OWNER Members’ Equity as of 12/31/2019, up 6% to 2018

OPERATING FUND

MAY – OCT.

JAN. – APRIL

NET OPERATING RESULTS – 2019 VARIANCES TO BUDGET GREAT SKI CONDITIONS. EXTREME WINTER WEATHER IN FEBRUARY. • REVENUES UP FAVORABLE $795,000 OR 14% TO BUDGET

+$522,000 JAN. – APRIL

• EXPENSES UP UNFAVORABLY $273,000 OR 4% TO BUDGET • NET OPERATING RESULT FAVORABLE $522,000 OR 57% TO BUDGET

STRONG VISITATIONS AND FINANCIAL PERFORMANCE AT MOST AMENITIES. GOLF WAS OFF BUDGET EXPECTATIONS DUE TO COURSE DAMAGE FROM EXTREME WINTER. PIZZA ON THE HILL STRUGGLED UNTIL LATE IN THE SEASON.

+$15,000 MAY – OCT.

• REVENUES OFF $708,000 OR 11% TO BUDGET OVERALL (GOLF OFF BUDGET $450,000 OR 39%) • REVENUES AT PIZZA ON THE HILL OFF 46% TO BUDGET • EXPENSES DOWN FAVORABLY $723,000 OR 7% DUE TO POSITION VACANCIES AND COST SAVINGS

+$264,000 NOV. – DEC.

NOV. – DEC.

• NET OPERATING RESULT FAVORABLE $15,000 OR 0% TO BUDGET SNOWMAKING PROVIDED ENOUGH SNOW. GOOD BUSINESS LEVELS. NEW PEAK PRICING FOR GUESTS AND PUBLIC (NOT MEMBERS) PROVIDED INCREMENTAL POSITIVE RESULTS.

2019 ANNUAL

+$801,000

• SNOWMAKING PROVEN INVESTMENT, PROVIDED ENOUGH SNOW TO OPERATE FOR THE PEAK HOLIDAY PERIOD

NOR FAVORABLE TO BUDGET $801,000 | 14% | $124 PER OWNER

• VERSUS BUDGET: REVENUE UP $394,000 / 20% AND COSTS UP $130,000 / 5%

REVENUE AND PAYROLL OPERATING REVENUES

2015 $ 8,681,085

2016 $ 12,771,029

2017 $ 13,116,553

2018 $13,535,047

2019 $14,695,538

EMPLOYEE W-2s ISSUED

764

897

924

958

954

W-2s PER $1,000 REVENUE RATIO

9

7

7

7

6

AVERAGE WAGES PER W-2 ISSUED

$

9,509

$

9,826

$

10,276

$

10,181

$

11,086

CALIFORNIA MINIMUM WAGE (1)

$

9.00

$

10.00

$

10.50

$

11.00

$

12.00

SEASONAL/PART-TIME FTE (3)

100.9

128.2

133.0

125.0

123.0

FULL-TIME REGULAR (2) FTE (3)

66.0

81.0

82.0

84.0

83.0

FTE (3) TOTAL

166.9

209.2

215.0

209.0

206.0

OPERATING REVENUE PER FTE

$

52,014

W-2 TO FTE RATIO

4.6

$

61,047 4.3

$

61,007 4.3

$

64,761

$

71,338

4.6

The association employs a high percentage of seasonal customer service, entry level positions to operate the various amenities of the association.

There is a high volatility of work-force every season, and within seasons, based on numerous factors, particularly weather and business volumes.

(1) California Minimum Wage; 2014 change effective 7/1, 2019 increased to $12.00 and 2020 increases to $13.00.

(2) The Federal Affordable Care Act of 2010, impacted the Association starting in 2016, created a Federally regulated determination of those employees categorized as 'Full Time' and mandated to be offered health insurance. Prior to this Act, the association had discretion as to which employees were offered health insurance and categorized full time and which were classified as seasonal employees.

(3) Full Time Equivalents (FTE) as calculated based on a standard of 2080 work hours per year.

2

| TAHOE DONNER 2019 ANNUAL REPORT

4.6

Chart dollars in thousands

$16,000 $14,000 $12,000

91%

92%

87%

$10,000 $8,000 $6,000 $4,000 $2,000 $0 2018 ACTUAL 2019 BUDGET 2019 ACTUAL OPERATING REVENUE OPERATING PAYROLL PAYROLL PERCENT OF REVENUE 2019 ACTUAL VERSUS BUDGET REVENUE UP 3%, PAYROLL COSTS DOWN 2% 2019 ACTUAL VERSUS PRIOR YEAR REVENUE UP 10%, PAYROLL COSTS UP 4%

CALIFORNIA MINIMUM WAGE UP $1.00 OR 9% IN 2019 VERSUS 2018

ANNUAL ASSESSMENT

DISTRIBUTION OF 2019 ANNUAL ASSESSMENT

$1,965 PER OWNER DISTRIBUTION OF 2019 ANNUAL ASSESSMENT ($1,965 PER OWNER) $1,000

GRAY BARS ARE PRIOR YEAR 2018 BUDGET ($1,900 IN TOTAL) FOR COMPARISON

$900 $800

33% / $650

$700 $600

28% / $552

$669

$500

19% / $365

$400

$520

$300

9% / $184

11% / $214

$200 $100 $0

$201

$170

HOA SERVICES FOR MEMBERS

$340

HOA FORESTRY + FIRE PREVENTION

PRIVATE AMENITIES

PUBLIC AMENITIES

FUTURE CAPITAL NEEDS

ANNUAL ASSESSMENT OWNER

BY FUND ANNUAL ASSESSMENT PERPER OWNER

BY FUND $910

2020

$770

$880

2019

$30

2016

$546

$

$200

$400

$600

OPERATING

$800

$1,000

REPLACEMENT RESERVE

$232 $146

2009-2019

2009-2020

CAPITAL FUNDS

7.9%

7.8%

OPERATING FUND

2.4%

2.5%

TOTAL ASSESSMENT 5.1%

5.1%

11 YEAR

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

$1,900

$250

$250

$1,900 $1,800

$1,600

$1,505

$1,330 $1,300

Capital portion 42% in 2009

$1,200

$1,200

$1,965

$1,375

$250

$1,400

NEW EQUIPMENT

KEY NOTES Capital Funds Portion of Annual Assessment

COMPOUND ANNUAL GROWTH RATE (CAGR) METRICS 10 YEAR

$25

$334

$695

2009

$25

$348

$695

2010

$250 $250

$250

$25

$360

$695

2011

$30

$400

$695

2012

$30

$434

$791

2013

$30

$478

$842

2014

$30

$2,065

$1,900

$300 $30

$526

$994

2015

$310

$30

$595

$1,074

$355 $335

$30

$620

$975

2017

$30

$720

$940

2018

Capital portion 56% in 2020

• The Replacement Reserve Fund portion has been deliberately increased over time to improve the reserve funding level of our over-45-year-old association.

Underfunding reserves is considered the bane of many associations across the country.

We adopted a reserves funding policy and recent boards have adhered to this policy. Your association’s reserves are now in a much stronger financial position to handle the replacement and major maintenance needs of the association’s assets.

$1,600

$1,800

$2,000

$2,200

DEVELOPMENT

Operating Fund Portion of Annual Assessment • The Operating Fund portion was held flat for four years (2009-2012), with strong visitation and revenue growth and no droughts.

• The Operating Fund portion increased in 2015 and 2016 due to the combined pressures of winter droughts impacting operating revenue expectations and payroll cost increases due to California minimum wage increases and the Federal Affordable Care Act impacts.

• The Development Fund portion was held at $250 for six years (2011-2016) and we are now increasing to recognize the known future funding requirements. This funding is for eventual building replacements due to functional obsolescence and for new facilities or other new major projects due to the changing needs of membership.

• For 2017, 2018 and 2019, the Operating Fund portion was decreased due to favorable revenue trends, our snowmaking investment, price increases, as well as a favorable decrease in workers’ compensation costs, all favorably offsetting the California minimum wage increases.

• More historical information on Capital Funds, see pages 10-11.

• More historical information on the Operating Fund, see page 4.

TAHOE DONNER 2019 ANNUAL REPORT |

3

OPERATING FUND

CAGR = COMPOUND ANNUAL GROWTH RATE

OPERATING FUND ACTUAL ACTUALRESULTS RESULTS $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 ($5,000,000) ($10,000,000) ($15,000,000) ($20,000,000)

2009

2010

2011

2012

OPERATING REVENUES

2013

2014

OPERATING COSTS

2015

2016

2017

2018

2019

NET OPERATING RESULTS

Record revenues and record costs in four consecutive years, from 2016 to 2019, with relatively flat net operating results. 2019 Resulting NOR Loss of $4.9 million compares to $4.7 million in 2009 Actual, a 0.4% 10-year CAGR. NOTE: Each year is subject to volatility due to weather and other variables. See page 28 for Budget growth information.

OPERATING FUND MEMBERS’ EQUITY OPERATING FUND

ACCUMULATED NET RESULTS, CONTINGENCY OPERATING FUND ACCUMULATED NET RESULTS, CONTINGENCY $5,000,000

+ $1.2 million favorable results in 2017 - $1.5 million transfer to Replacement Reserve Fund

$4,000,000 $3,000,000

- $1.8 million transfer to Development Fund - $2.1 million (A) 2017 change in Operating Fund equity + $650,000 favorable results in 2018 - $500,000 transfer to Replacement Reserve Fund

(A)

$150,000 (B) 2018 change in Operating Fund equity

$2,000,000

(B)

$2,242,452 (C)

2018

2019

+ $801,000 favorable results in 2019 - $1,000,000 transfer to Replacement Reserve Fund

$1,000,000 $0

- $199,000 (C) 2019 change in Operating Fund equity

2009

2010

2011

FROM THE 2009 BUDGET TO THE 2019 BUDGET 10-YEAR CAGR 5.6% OPERATING REVENUE GROWTH 4.6% OPERATING COSTS GROWTH 2.4% NET OPERATING RESULT LOSS (THIS LOSS EQUATES TO THE PORTION FUNDED BY THE ANNUAL ASSESSMENT) See page 28 for more Budget Growth Information

4

| TAHOE DONNER 2019 ANNUAL REPORT

2012

2013

2014

2015

Costs are greater than Operating Revenues (every year) and the Costs have grown at a lower growth rate. Therefore, the resulting NOR Loss growth rate is lower than both Revenue and Costs growth rate.

FOR 2020 BUDGET The strong financial performance from 2016 to 2019 combined for a substantial increase

2016

2017

in operating revenue expectations for the 2020 Budget, before the adjustment for no Golf.

(The 2017 Budget was $11.0 million, the 2018 Budget was $12.5 million and the 2019 Budget is $14.1 million.) This is due in large part to the snowmaking investment and Peak Period Pricing at the Downhill Ski Resort, which both reduce the Operating Fund Net NOR loss.

NET RESULTS AFTER REPLACEMENT RESERVES CAPITAL CHARGE

CHART DOLLARS IN THOUSANDS

BY DEPARTMENT

-71 -52 -49

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

Net Results after Reserves Capital Charge is NOR plus a Replacement Reserves Capital Charge (presented in this chart).

BEACH CLUB MARINA

Refer to pages 6 and 7 for additional details.

-186 -249 -213

RECREATION PROGRAMS

-171 -255 -243

TENNIS CENTER

-848 -899 -702

TROUT CREEK RECREATION CENTER + AQUATICS

-178 -201 -217

ALDER CREEK CAFE

-215 -212 -237

PIZZA ON THE HILL

-161 -161 -127

THE LODGE, SUMMER LUNCH + GOLF FOOD SERVICE

-807 -791 -751

THE LODGE, DINING + BANQUETS

18 25 16

2019 ACTUAL -$9,558,000 2019 BUDGET -$10,356,000 2018 ACTUAL -$9,245,000

-33 -40 -39

SNOWPLAY

37 35

TRAILS

-264 -243 -244

EQUESTRIAN CENTER

-85 -104 -78

CAMPGROUND

-1

-1,587 -1,176 -1,051 141

-809 -750

HOA + ADMINISTRATION

-$3,000

-$2,750

-$2,500

-$2,250

-$2,000

-352 -390 -313

-$1,750

-$1,500

-$1,250

-$1,000

-$750

-$500

-$250 NEGATIVE

BIKEWORKS

-396 -431 -376

-137 -373 -308

AMENITIES

DAY CAMPS

CROSS COUNTRY SKI CENTER GOLF COURSE

DOWNHILL SKI RESORT ARCHITECTURAL + MEMBER SERVICES

-1,546 -1,486 -1,240

FORESTRY, DEFENSIBLE + OPEN SPACE

-2,717 -2,544 -2,322

GENERAL HOMEOWNERS ASSOCIATION

$0

$250

$500

POSITIVE

TAHOE DONNER 2019 ANNUAL REPORT |

5

OPERATING FUND RESULTS

2019 DEPARTMENTAL SUMMARY AMOUNTS INCLUDING

2019 OPERATING FUND GROSS REVENUE

OPERATING COSTS TOTAL

OPERATING RESULT BEFORE OVERHEAD

OVERHEAD ALLOCATION

NET OPERATING RESULTS

CONTRIBUTION TO REPLACEMENT RESERVE FUND

PRIVATE AMENITIES Trout Creek Rec Center + Aquatics

$

1,310,493

$

-1,214,849

$

95,644

$

-441,242

$

-345,598

$

-502,098

Beach Club Marina

680,754

-416,116

264,638

-124,317

140,321

-122,486

Tennis Center

308,060

-235,698

72,362

-82,029

-9,667

-161,756

Recreation Programs

201,021

-201,959

-938

-120,559

-121,497

-64,515

Day Camps

247,719

-236,924

10,795

-60,762

-49,967

-21,505

2,748,047

-2,305,546

442,501

-828,909

-386,408

-872,360

706,522

-1,230,695

-524,173

-213,864

-738,037

-848,985

Downhill Ski

4,770,549

-3,069,054

1,701,495

-456,783

1,244,712

-1,103,306

Cross Country Ski

1,381,116

-963,176

417,940

-203,904

214,036

-350,627

244,046

-131,804

112,242

-51,232

61,010

-24,310

95,813

-85,916

9,897

-32,374

-22,477

-62,645

238,636

-330,226

-91,590

-69,186

-160,776

-102,851

TOTAL PRIVATE AMENITIES

PUBLIC AMENITIES Golf

Snowplay Campground Equestrian Trails

2,832

-145,060

-142,228

-56,241

-198,469

-197,286

134,638

-127,589

7,049

-29,745

-22,696

-10,285

2,540,702

-2,499,066

41,636

-393,776

-352,140

-454,412

Bikeworks The Lodge, Dining + Banquets The Lodge, Summer Lunch +

201,521

-293,225

-91,704

-47,352

-139,056

-21,505

Pizza on the Hill

Golf Food Service

344,563

-389,831

-45,268

-109,163

-154,431

-60,775

Alder Creek Cafe

490,426

-558,924

-68,498

-80,354

-148,852

-28,985

TOTAL PUBLIC AMENITIES

11,151,364

-9,824,566

1,326,798

-1,743,974

-417,176

-3,265,972

TOTAL AMENITIES

13,899,411

-12,130,112

1,769,299

-2,572,883

-803,584

-4,138,332

0

-1,072,731

-1,072,731

-1,368,259

-2,440,990

-275,827

174,681

-389,200

-214,519

-112,959

-327,478

-24,310

94,975

-1,248,873

-1,153,898

-169,936

-1,323,834

-222,531

269,656

-2,710,804

-2,441,148

-1,651,154

-4,092,302

-522,668

227,063

-638,208

-411,145

411,145

0

0

0

-315,414

-315,414

315,414

0

0

264,741

-1,130,268

-865,527

865,527

0

0

HOMEOWNERS ASSOCIATION General HOA Architectural Standards Office Forestry, Defensible + Open Space TOTAL HOA

AMENITY + HOA SUPPORT SERVICES Marketing + Communications Facility Administration + Risk Management Administration Information Technology

0

-613,197

-613,197

613,197

0

0

4,802

-839,191

-834,389

834,389

0

0

Human Resources

0

-383,748

-383,748

383,748

0

0

Member Services

29,865

-253,328

-223,463

223,463

0

0

Accounting + Finance

Maintenance

0

-749,668

-749,668

749,668

0

0

526,471

-4,923,022

-4,396,551

4,396,551

0

0

14,695,538

-19,763,938

-5,068,400

172,514

-4,895,886

-4,661,000

TOTAL SUPPORT SERVICES TOTAL OPERATING RESULTS Assessment Revenues

TOTAL OPERATING FUND

6

5,696,445

0

5,696,445

0

5,696,445

4,661,000

$ 20,391,983

$ -19,763,938

$ 628,045

$ 172,514

$ 800,559

$ 0

| TAHOE DONNER 2019 ANNUAL REPORT

YEAR ENDING DECEMBER 31, 2019 MEMBERS’ REPLACEMENT RESERVE CAPITAL CONTRIBUTION 2019 NET RESULTS AFTER CAPITAL

$

-847,696

2019 PER PROPERTY 6473

$

-131

2018 PER PROPERTY 6473

$

-108

2019 NOR VERSUS BUDGET 2019 BUDGET

ACTUAL TO BUDGET VARIANCE

-23

-396,800

51,202

2019 VS 2018

$

2019 NOR VERSUS PRIOR YEAR 2018 ACTUAL*

$

-269,927

2019 TO 2018 VARIANCE

$

-75,671

17,835

3

2

1

147,300

-6,979

121,192

19,129

-171,423

-26

-38

12

-93,300

83,633

-104,039

94,372

-186,012

-29

-33

4

-184,100

62,603

-157,329

35,832

-71,472

-11

-8

-3

-30,900

-19,067

-30,456

-19,511

-1,258,768

-194

-185

-9

-557,800

171,392

-440,559

54,151

-1,587,022

-245

-162

-83

-327,300

-410,737

-320,345

-417,692

141,406

22

-116

138

294,100

950,612

199,562

1,045,150

-136,591

-21

-48

27

-22,600

236,636

-6,522

220,558

36,700

6

0

6

59,400

1,610

19,764

41,246

-85,122

-13

-12

-1

-41,600

19,123

-23,786

1,309

-263,627

-41

-38

-3

-140,500

-20,276

-155,403

-5,373

-395,755

-61

-58

-3

-233,700

35,231

-205,961

7,492

-32,981

-5

-6

1

-29,500

6,804

-30,268

7,572

-806,552

-125

-116

-9

-337,000

-15,140

-359,499

7,359

-160,561

-25

-20

-5

-139,200

144

-108,903

-30,153

-215,206

-33

-37

4

-151,700

-2,731

-185,171

30,740

-177,837

-27

-34

7

-171,700

22,848

-192,430

43,578

-3,683,148

-569

-647

78

-1,241,300

824,124

-1,368,962

951,786

-4,941,916

-763

-832

69

-1,799,100

995,516

-1,809,521

1,005,937

-2,716,817

-420

-358

-62

-2,267,800

-173,190

-2,084,637

-356,353

-351,788

-54

-48

-6

-365,700

38,222

-291,791

-35,687

-1,546,365

-239

-191

-48

-1,263,400

-60,434

-1,047,954

-275,880

-4,614,970

-713

-597

-116

-3,896,900

-195,402

-3,424,382

-667,920

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

-9,556,886

-1,476

-1,429

-47

-5,696,000

800,114

-5,233,903

338,017

10,357,445

1,600

1,529

71

5,696,000

445

5,884,234

-187,789

$ 800,559

$ 124

$ 100

$ 24

0

800,559

$ 650,331

$ 150,228

* 2018 Actual has been restated to include Overhead Allocation amounts based on the 2019 methodology

SEE PAGES 8-9 FOR RESULTS BY DEPARTMENT HIGHLIGHTS TAHOE DONNER 2019 ANNUAL REPORT |

7

OPERATING FUND RESULTS

2019 HIGHLIGHTS VERSUS BUDGET FAVORABLE VARIANCE TO BUDGET

UNFAVORABLE VARIANCE TO BUDGET

NOR = Net Operating Results. NOR is defined as the net result of operating revenues less cost of goods sold, operating payroll and expenses and any overhead allocation.

PUBLIC AMENITIES EQUESTRIAN

GOLF

CAMPGROUND

NOR LOSS ($160,776)

NOR LOSS ($738,037)

NOR ($22,477)

UNFAVORABLE -$20,276 / 14% TO BUDGET

UNFAVORABLE -$410,737 / 125% TO BUDGET

FAVORABLE $19,123 / 46% TO BUDGET

Boarding up 19%. Camps and special events business strong. Trail rides volume still room for growth, down 25%. Costs of herd care continue to rise.

Late/Partial opening due to large winter, poor greens conditions all summer

Reservation software and increase in prices contribute to the rise in visitation and revenues.

ANNUAL: Rounds down 29%; Revenue down $453,000/39% (down $396,000/36% to last year); Costs down $42,000/3%

ANNUAL: Visits up 30%; Revenue up

ANNUAL: Visits down 19%; Revenue down $16,000/6%; Costs up $9,000/3%

TRAILS NOR LOSS ($198,469) FAVORABLE $35,231 / 15% TO BUDGET Savings driven by huge winter impact delaying summer season and trail crew efforts.

BIKEWORKS

DOWNHILL SKI NOR $1,244,712 FAVORABLE $950,612 / 323% TO BUDGET February received 22 feet of snow to maintain conditions for full season. December 2019 snowmaking and peak pricing all year continue to contribute to strong positive results.

ANNUAL: Visits up 4%; Revenue up

Rental sales down 1% due to the winter impact on summer business. Retail sales up 28%, which has an associated cost of goods sold increasing costs.

ANNUAL: Rentals down 1%; Revenue up $18,000/5%; Costs up $11,000/7%

THE LODGE NOR ($352,140) UNFAVORABLE -$15,140 / 4% TO BUDGET Cost savings primarily due to vacant Director of F&B position. Banquet events pricing increases and menu pricing increases favorably offset other costs driven primarily by CA minimum wage increase.

ANNUAL: Visits of 47,274, down 16% to budget and down 12% to last year; Revenue of $2.54 million down $89,000/3%; Costs down $74,000/2%

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| TAHOE DONNER 2019 ANNUAL REPORT

SUMMER F+B NOR LOSS ($139,056) FAVORABLE $144 / 0% TO BUDGET Payroll costs down 19% and Operating Expenses down 25%. Low visitation volume due to poor golf season.

ANNUAL: Visits down 35%; Revenue down $68,000/25%; Costs down $69,000/17%

$876,000/22%; Costs down $75,000/2%

CROSS COUNTRY SKI

NOR ($22,696) FAVORABLE $6,804 / 23% TO BUDGET

$26,000/37%; Costs up $7,000/6%

SNOWPLAY NOR $61,010

NOR $214,036 FAVORABLE $236,636 / 1,047% TO BUDGET

High snow volume at the end of 2018/19 season and average snow in December 2019.

February received 22 feet of snow to maintain conditions for full season. December 2019 open all 31 days. Peak pricing through season contributed to positive results.

ANNUAL: Visits down 25%; Revenue down $38,000/13%; Costs down $40,000/18%

ANNUAL: Visits up 77%; Revenue up $338,000/32%; Costs up $101,000/10%

ALDER CREEK CAFE

PIZZA ON THE HILL

NOR LOSS ($148,852)

NOR LOSS ($154,431)

FAVORABLE $22,848 / 13% TO BUDGET

UNFAVORABLE -$2,731 / 2% TO BUDGET

New: Open for dinner service 12 days in December. Q1 and Q4 benefited from strong winter seasons. Summer season good volumes to budget, net up $13,000.

Closed September through December except previously scheduled banquet events.

Struggled during the early summer season due to personnel turnover.

ANNUAL: Visits up 7%; Revenue up $40,000/9%; Costs up $18,000/3%

ANNUAL: Visits down 44%; Revenue down $258,000/43%; Costs down $256,000/34%

FAVORABLE $1,610 / 3% TO BUDGET

PRIVATE AMENITIES

SUPPORT SERVICES

TROUT CREEK RECREATION + AQUATICS

GENERAL

NOR ($345,598)

NOR LOSS ($2,440,990)

FAVORABLE $51,202 / 13% TO BUDGET

UNFAVORABLE -$173,190 / 8% TO BUDGET

TROUT CREEK: Increased pricing for Members, Guests and Unaccompanied Guests. Trout Creek costs down due to position vacancies and construction impacts. Visitation down 4%; Revenue down $34,000/3% (Recreation Fee Sales +$16,000); Costs down $76,000/4%

General HOA costs. Costs of HOA include allocation of general and administration costs to serve membership, property taxes, annual meeting, legal fees, magazine and website operations. Primary driver of cost overrun is General Manager severance costs of $260,000, offset partially by cost savings in other areas.

AQUATICS: Costs up due to rising costs of chemicals and chlorine.

BEACH CLUB MARINA NOR $140,321 UNFAVORABLE -$6,979 / 5% TO BUDGET Visits down 13% to budget and down 13% to 2018; Revenue down $69,000/9%; Costs down $62,000/10%

ARCHITECTURAL STANDARDS OFFICE NOR LOSS ($327,478) FAVORABLE $38,222 / 10% TO BUDGET Revenue off $21,000/11% due primarily to decline in construction related fees activities. Cost savings of $60,000/11% driven primarily by position vacancies.

TENNIS NOR LOSS ($9,667) FAVORABLE $83,633 / 90% TO BUDGET Recreation Fee portion shift to Tennis due to increase in recreation fee scans impacted Tennis favorably $52,000. Visits up 24%; Revenue up $95,000/45%; Costs up $11,000/4%

FORESTRY NOR LOSS ($1,323,834) UNFAVORABLE -$60,434 / 5% TO BUDGET

RECREATION PROGRAMS

Forest health, defensible space and open space management. Increased cost driven primarily by board approved non-budgeted expenditure of $41,000 for Firewise Camera partnership with regional fire agency.

NOR LOSS ($121,497) FAVORABLE $62,603 / 34% TO BUDGET Strong summer concert results were the primary driver.

Revenue up $21,000/12%; Costs down $42,000/11%

DAY CAMPS COURT LEVE

NOR LOSS ($49,967) UNFAVORABLE -$19,067 / 62% TO BUDGET Pricing threshold may have been reached. Programs and pricing addressed for 2020. Visits down 6%; Revenue down $27,000/10% (down $9,000/3% to last year); Costs down $8,000/3%

TAHOE DONNER 2019 ANNUAL REPORT |

9

CAPITAL RESERVES

REPLACEMENT RESERVE FUND REPLACEMENT RESERVE FUND

MEMBERS EQUITY BALANCE) AND PERCENT FUNDED MEMBERS’ EQUITY(FUND (YEAR-END FUND BALANCE) + PERCENT FUNDED 33%

$12,000,000 $10,000,000

27%

27%

27%

$8,000,000

25%

19%

26%

32% 29%

28%

35% 30% 25%

19%

20%

$6,000,000

15%

$4,000,000

10%

$2,000,000

5%

$0

2009

2010

2011

2012

2013

• The Replacement Reserve Fund is the capital reserve fund for existing asset components of the association. This is a savings fund utilized to replace and preserve assets of the association as they depreciate over time. There are over 2,000 components in the reserve study, which is updated every year, and a complete physical inspection of all components is performed every three years.

• The association has a Replacement Reserve Fund policy which provides for a target minimum of 25% funded.* • The reserve study does not include the replacement of existing buildings. Funding for the replacement of existing buildings comes from the Development Fund, seen below.

2014

2015

2016

2017

2018

2019

PERCENT FUNDED*

YEAR-END MEMBERS’ EQUITY BALANCE

$14,000,000

0%

• The funding level from the annual assessment generally needs to increase each year to keep pace with inflation.

• The association has a fiduciary duty to adequately reserve for the preservation of assets, which ultimately protects property values.

• The board of directors approved $1,500,000 (2017), $500,000 (2018) and $1,000,000 (2019) transfers from Operating Fund members’ equity to this fund.

• The 2019 assessment funding level was $720 per owner or $4,661,000, an increase of 16% over 2018.

• The 2020 assessment funding level was $770 per owner or $4,985,000, an increase of 7% over 2019.

*Percent (%) Funded is the measure of the fund balance to the fully funded – 100% funded reserve study amount. The fully funded – 100% balance is total accrued depreciation.

An indicator against which actual (or projected) reserve balance can be compared. The direct proportion of the fraction of life “used up” of the current repair or replacement cost.

This number is calculated for each component and summed together for the association in total. Refer to the 2020 Budget Report for more information on the reserve study.

DEVELOPMENT FUND DEVELOPMENT FUND

MEMBERS’ EQUITY (YEAR-END FUND BALANCE) MEMBERS EQUITY (FUND BALANCE) $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0

2009

2010

2011

2012

2013

• The Development Fund was established as authorized in the governing documents of the Association to accumulate funds for large-scale projects identified as necessary due to the new capacity requirements or changing needs of the association.

• The Association Master Plan guides the prioritization of the numerous projects identified for Development Fund expenditure; the plan is updated every five years. Management is developing a work plan to

10

| TAHOE DONNER 2019 ANNUAL REPORT

2014

2015

2016

2017

2018

2019

utilize staff and General Plan Committee resources to start the update process in the next year.

• In 2017, the board of directors approved a $1,800,000 transfer from Operating Fund members’ equity to this fund.

• The 2019 assessment funding level was $335 per owner or $2,168,000, an increase of 8% over 2018.

• The 2020 assessment funding level was $355 per owner or $2,298,000, an increase of 6% over 2019.

CAPITAL EXPENDITURES

CAPITALFUNDS FUNDS CAPITAL EXPENDITURESBYBY YEAR EXPENDITURES YEAR

1010YEAR YEARTOTAL TOTAL==$48.3 $48.3MILLION MILLION

$9,000,000 8.0M

$8,000,000 $7,000,000

6.1M

$6,000,000

5.4M

5.4M

$5,000,000

4.4M

4.1M

$4,000,000 $3,000,000

5.3M

3.9M

3.4M 2.4M

$2,000,000 $1,000,000 $0

2010

2011

2012

2013

REPLACEMENT RESERVE FUND

2014

2015

2016

DEVELOPMENT FUND

2017

2018

NEW EQUIPMENT FUND

Ten-year total spend of $48.3 million equates to an average of $4.8 million in capital fund expenditures per year. The 10-year average of depreciation expense is $2.7 million per year for a total of $27 million. Note that many high-age assets are fully depreciated and now have no annual depreciation expense. The net effect is a growth in net fixed assets; over the 10 years the CAGR of 4.4% in net fixed assets.

CAPITAL INVESTMENT OVER THE 10 YEARS INCLUDES:

Net fixed assets grew from $27 million at the end of 2009 to $41.3 million at the end of 2019. Bottom line – reinvesting in the association, the net fixed assets value grew at a 4.4% growth rate.

replacement of Snowbird chairlift for $1.4 million.

This, as opposed to limited or less capital spend, would have equated to flat or a decline in net fixed assets.

THE BOARD HAS A FIDUCIARY

RESPONSIBILITY (BY LAW) TO DO WHAT IS BEST FOR THE ASSOCIATION, BOTH

NOW AND FOR THE FUTURE. CURRENT

$28.3 million in replacement and major repairs of existing assets (per reserve study plan) $2.8 million per year 10-year average, maintaining existing asset components (depreciation average is $2.7 million)

$2.3 million per year 1st 5 years average, maintaining existing asset components $3.3 million per year 2nd 5 years average, maintaining existing asset components The increase from 2009-2014 to the 2014-2019 average is due to the overall aging of assets, the impact of Development Fund projects on related reserve components, and the 2018

$18.3 million in Development Fund capital investments, including: Euer Valley land 482 acres (2012) Forestry building and 20 acres (2012) The Lodge expansion – kitchen, covered porch and pro shop (2013) Alder Creek Adventure Center building (2014-2015) Downhill Ski Area snowmaking investment (2015) Solar projects at three locations (2015-2016) Equestrian campus relocation and upgrades (2015-2016-2017) Crabtree Canyon land 640 acres (2016)

OWNERS HAVE THE RESPONSIBILITY

Alder Creek Adventure Center exterior storage building (2017)

ASSOCIATION ASSETS, NOT TO DEFER THE

Trout Creek Recreation Center building expansion (2019)

TO PAY FOR THE DEPRECIATION OF

BURDEN TO FUTURE OWNERS. PROPERLY MAINTAINING OUR ASSETS PROTECTS OWNERS’ PROPERTY VALUES.

2019

Equestrian campus improvements, Eagle Rock Chairlift building improvements (2018)

$1.7 million in New Equipment Fund capital investments $172,000 per year average

TAHOE DONNER 2019 ANNUAL REPORT |

11

CAPITAL FUNDS REPLACEMENT RESERVE FUND

32% FUNDED

Replacement Reserve Funds as of 12/31/2019 ratio to Replacement Reserve Component total costs on 100% Funded Method calculation.

See page 10 for by-year trends.

$3.5 MILLION | 2019 Expenditures • $892,000 TROUT CREEK RECREATION CENTER remodel • $395,000 INFORMATION TECHNOLOGY equipment and software • $344,000 FORESTRY defensible space and equipment • $207,000 NORTHWOODS CLUBHOUSE exterior restrooms remodel • $177,000 DOWNHILL SKI rental equipment and bus replacements • $134,000 ADMINISTRATION fund direct payroll allocation • $123,000 GOLF COURSE remodel planning and greens replacement 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 2,000 individual items are tracked in this plan, with a current replacement value of $62 million. A complete study and plan was performed in 2019 and is updated annually.

The year-end fund balance increased by $2,426,863 or 23%. In 2019, $1,000,000 was transfered in from the Operating Fund.

These transfered in funds were generated by favorable net operating results by the Operating Fund. Excluding the transfer,

12

| TAHOE DONNER 2019 ANNUAL REPORT

REPLACEMENT RESERVE FUND CONTINUED

the fund balance increased $1.4 million or 14%. The balance fluctuates each year due to funding level from assessment, transfers, if any, as well as expenditures each year, in accordance with 30-year reserve study.

DEVELOPMENT FUND $832,000 | 2019 Expenditures • $396,000 TROUT CREEK RECREATION CENTER expansion • $191,000 ADMINISTRATION fund direct payroll allocation • $120,000 ADMINISTRATION fund allocated overhead • $49,000 DOWNHILL SKI improvement planning costs • $30,000 TRAILS additions per the Trails Master Plan • $27,000 EQUESTRIAN complex improvements The Development Fund is specifically intended for and authorized in the governing documents of the association.

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 includes funds accumulated for the specific purpose of replacing existing buildings, as only certain components of buildings are in the Replacement Reserve study.

The assessment contribution for 2019 was $2,168,000 or $355 per owner. The year-end fund balance increased by $1.5 million or 28%. Savings in this fund are primarily for the anticipated known need to address the aging (49 years old) Downhill Ski Lodge skier services building.

NEW EQUIPMENT FUND $106,000 | 2019 Expenditures • $51,000 FORESTRY chipper • $26,000 EQUESTRIAN 4x4 ATV work vehicle • $15,000 TROUT CREEK RECREATION CENTER new gym equipment

The New 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.

The year-end fund balance of $208,000 increased by $95,000 or 84% compared to prior year end.

PROPERTY FUND The Property Fund is used to account for the association’s investment in its fixed assets. Capital additions to fixed assets totaled $3,248,000 (in 2018, $4,319,000).

Depreciation expense for the year totaled $3,440,000 (in 2018, $3,284,000).

Total gross fixed asset value of $81.7 million equates to $12,619 per owner and net book value of fixed assets and construction in progress of $41.3 million equates to $6,385 per owner (a decrease of $35 or 2% to 2018).

CAPITAL FUNDS SUMMARY YEAR ENDING DECEMBER 31, 2019

2019 ACTUAL

2019 BUDGET

2019 ACTUAL VS 2019 BUDGET

2018 ACTUAL

2019 ACTUAL VS 2018 ACTUAL

REPLACEMENT RESERVE FUND $

Beginning Fund Balance

10,400,648

$

9,900,000

$

500,648

$

10,238,311

$

162,337

4,661,000

4,661,000

-

4,013,000

648,000

219,493

172,000

47,493

211,998

7,495

1,000,000

-

1,000,000

500,000

500,000

43,994

4,000

39,994

56,916

(12,922)

Major Maintenance + Fund Expenses

(1,075,576)

(1,396,000)

320,424

(1,017,764)

(57,812)

Expenditures for Capital Additions

(2,422,048)

(3,721,000)

1,298,952

(3,601,813)

1,179,765

2,426,863

(280,000)

2,706,863

162,337

2,264,526

9,620,000

$ 3,207,511

$ 10,400,648

$ 2,426,863

Assessment Contribution Interest Revenue Operating Fund Transfer In Other Revenue + Expense, Net

Change in Fund Balance

$ 12,827,511

ENDING FUND BALANCE

$

NEW EQUIPMENT FUND Beginning Fund Balance

113,022

54,000

59,022

100,423

12,599

Assessment Contribution

194,000

194,000

-

194,000

-

Interest Revenue

6,813

3,000

3,813

3,005

3,808

Other Revenue + Expense, Net

(604)

-

(604)

-

(604)

-

-

-

-

-

(105,557)

(187,000)

81,443

(184,406)

78,849

94,652

10,000

84,652

12,599

82,053

Major Maintenance + Fund Expenses Expenditures for Capital Additions Change in Fund Balance $

ENDING FUND BALANCE

207,674

$

64,000

$

143,674

$

113,022

$

94,652

DEVELOPMENT FUND Beginning Fund Balance

5,304,789

4,950,000

354,789

3,753,013

1,551,776

Assessment Contribution

2,168,000

2,168,000

-

2,007,000

161,000

Interest Revenue

160,459

86,000

74,459

91,945

68,514

Other Revenue + Expense, Net

(14,185)

(12,000)

(2,185)

(13,938)

(247)

(111,782)

(170,000)

58,218

-

(111,782)

(720,030)

(1,850,000)

1,129,970

(533,231)

(186,799)

1,482,462

222,000

1,260,462

1,551,776

(69,314)

5,172,000

$ 1,615,251

5,304,789

$ 1,482,462

Fund Expenses Expenditures for Capital Additions Change in Fund Balance ENDING FUND BALANCE

CAPITAL FUND TOTALS

$

6,787,251

$

$

SEE PAGE 26 FOR SCHEDULE OF SPEND BY DEPARTMENT

Major Maintenance + Fund Expenses

(1,187,358)

(1,396,000)

320,424

(1,017,764)

(57,812)

Expenditures for Capital Additions

(3,247,635)

(5,758,000)

2,510,365

(4,319,450)

1,071,815

$ (4,434,993)

$ (7,154,000)

$ 2,830,789

$ (5,337,214)

TOTAL

$

902,221

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 deprecation of association assets, not defer the burden to future owners. Properly maintaining our assets protects owners’ property values.

TAHOE DONNER 2019 ANNUAL REPORT |

13

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF DIRECTORS TAHOE DONNER ASSOCIATION REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of Tahoe Donner Association, which comprise the balance sheet as of December 31, 2019, and the related statements of revenue and expenses – all funds, changes in fund balances and cash flows for the year then ended, and the related notes to the financial statements.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

AUDITORS’ RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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, 2019, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

14

| TAHOE DONNER 2019 ANNUAL REPORT

DISCLAIMER OF OPINION ON REQUIRED SUPPLEMENTARY INFORMATION Accounting principles generally accepted in the United States of America require that the information on future major repairs and replacements on pages 19 and 20 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.

OTHER INFORMATION The information included on pages 24-26 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the audit procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

COMPARATIVE INFORMATION Information for the year ended December 31, 2018 is presented for comparative purposes only. The financial statements for the year ended December 31, 2018 were audited by a predecessor auditor.

Those auditors expressed an unmodified opinion on those financial statements in their report dated March 15, 2019.

As discussed above, the financial statements of Tahoe Donner Association as of December 31, 2018 and for the year then ended were audited by other auditors. As described in Note 2, the Association changed the composition of its financial statements and allocations of certain departmental expenses in 2019, and the 2018 financial statements have been restated to conform to the composition and allocations utilized in 2019.

McCLINTOCK ACCOUNTANCY CORPORATION TAHOE CITY, CALIFORNIA APRIL 3, 2020

TAHOE DONNER ASSOCIATION BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2019 (WITH COMPARATIVE TOTALS FOR 2018) OPERATING FUND

REPLACEMENT RESERVE FUND

NEW DEVELOPMENT EQUIPMENT FUND FUND

PROPERTY FUND

TOTAL 2019

TOTAL 2018

ASSETS Cash and cash equivalents, unrestricted (Note 5)

$

1,541,942

$

-0-

$

-0-

$

-0-

$

-0- $

1,541,942 $ 1,488,059

Cash and cash equivalents, designated and restricted (Note 5)

253,090

159,670

12,710

23,705

-0-

449,175

625,254

4,504,145

-0-

-0-

-0-

-0-

4,504,145

4,114,816

-0-

14,181,560

246,478

7,391,214

-0-

21,819,252

17,778,905

6,299,177

14,341,230

259,188

7,414,919

-0-

28,314,514

24,007,034

Investments, unrestricted (Note 5) Investments, designated and restricted (Note 5)

Assessments and other member receivables, less allowance for doubtful accounts of $88,679 in 2019 and $87,193 in 2018

266,025

-0-

-0-

-0-

-0-

266,025

261,579

Other receivables

215,091

84,523

871

36,524

-0-

337,009

239,199

Inventory

319,342

-0-

-0-

-0-

-0-

319,342

314,922

Prepaid expenses and other assets

860,057

-0-

-0-

-0-

-0-

860,057

748,911

(131,222)

109,638

6,980

14,604

-0-

-0-

-0-

-0-

-0-

-0-

-0-

41,331,406

41,331,406

41,554,852

267,039 $ 7,466,047 $ 41,331,406 $ 71,428,353

$ 67,126,498

Due from (to) other funds Property and equipment, net (Note 6)

TOTAL ASSETS

$ 7,828,470 $ 14,535,391

$

LIABILITIES AND FUND BALANCES Liabilities Accounts payable

$

355,407 $

290,150

$

-0-

$

26,078

$

-0- $

671,635 $

487,502

Accrued liabilities

1,565,692

14,856

169

3,946

-0-

1,584,663

1,525,719

Deferred revenues

3,445,653

1,402,874

59,196

648,772

-0-

5,556,495

5,041,422

219,266

-0-

-0-

-0-

-0-

219,266

256,651

TOTAL LIABILITIES

5,586,018

1,707,880

59,365

678,796

-0-

8,032,059

7,311,294

Fund Balances - Exhibit B

2,242,452

12,827,511

207,674

6,787,251

41,331,406

63,396,294

59,815,204

267,039 $ 7,466,047 $ 41,331,406 $ 71,428,353

$ 67,126,498

Deposits from members

TOTAL LIABILITIES AND FUND BALANCES

$ 7,828,470 $ 14,535,391

$

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

TAHOE DONNER 2019 ANNUAL REPORT |

15

TAHOE DONNER ASSOCIATION

STATEMENTS OF REVENUE AND EXPENSES – ALL FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2019 (WITH COMPARATIVE TOTALS FOR 2018) OPERATING FUND

REVENUE

Members' assessments Downhill ski Snowplay The Lodge and Summer F&B Cross country center Trout Creek recreation center and aquatics Marina Golf course Alder Creek Cafe Pizza on the Hill Tennis Day Camps Equestrian Recreation Campground Bikeworks Trails Communications Architectural standards Forestry Interest income Late charges, handling, transfer fees, and other fees Miscellaneous income TOTAL REVENUE

$

5,696,445 4,770,549 244,046 2,742,223 1,381,116 1,310,493 680,754 706,522 490,426 344,563 308,060 247,719 238,636 201,021 95,813 134,638 2,832 227,063 174,557 94,975 114,156 130,614 54,762 20,391,983

REPLACEMENT RESERVE FUND

$

4,661,000 -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0219,493 -0-04,880,493

NEW EQUIPMENT FUND

$

194,000 -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-06,813 -0-0200,813

DEVELOPMENT FUND

$

PROPERTY FUND

$

2,168,000 -0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0160,459 -0-02,328,459

-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-

TOTAL 2019

$

12,719,445 4,770,549 244,046 2,742,223 1,381,116 1,310,493 680,754 706,522 490,426 344,563 308,060 247,719 238,636 201,021 95,813 134,638 2,832 227,063 174,557 94,975 500,921 130,614 54,762 27,801,748

TOTAL 2018

$

12,298,700 3,431,021 201,572 2,792,859 957,163 1,302,725 678,416 1,102,824 387,892 590,922 222,645 256,667 227,394 181,645 86,757 106,887 504 202,366 201,541 137,410 370,809 158,535 61,439 25,958,693

OPERATING EXPENSES

Downhill ski (cost of sales of $196,821 in 2019 and $172,637 in 2018) Snowplay (cost of sales of $1,911 in 2019 and $3,553 in 2018) The Lodge and Summer F&B (cost of sales of $784,377 in 2019 and $796,467 in 2018) Cross country center (cost of sales of $85,840 in 2019 and $72,782 in 2018) Trout Creek recreation center and aquatics (cost of sales of $20,016 in 2019 and $27,108 in 2018) Marina (cost of sales of $51,485 in 2019 and $52,259 in 2018) Golf course (cost of sales of $49,814 in 2019 and $62,154 in 2018) Alder Creek Cafe (cost of sales of $164,450 in 2019 and $138,213 in 2018) Pizza on the Hill (cost of sales of $99,622 in 2019 and $175,579 in 2018) Tennis (cost of sales of $35,643 in 2019 and $31,801 in 2018) Day Camps Equestrian (cost of sales of $7,732 in 2019 and $6,040 in 2018) Recreation (cost of sales of $1,469 in 2019 and $1,650 in 2018) Campground Bikeworks (cost of sales of $55,263 in 2019 and $33,280 in 2018) Trails Communications Architectural standards Forestry Homeowners’ association operating expenses and G&A TOTAL OPERATING EXPENSES

3,525,824 183,038

53,253 -0-

3,233,424

73,771

1,167,081

68,564

1,656,094 540,431 1,444,559

6,301 22,922 47,010

639,279

-0-

498,994 317,727 297,689 399,414 322,520 118,293 157,333 201,300 227,062 502,158 1,418,809 2,709,112 19,560,141

-0-031,283 19,591,424

1,617,184 585,815 1,518,769

639,279

588,284

498,994 328,438 297,689 399,414 322,520 120,615 157,333 209,647 227,062 502,158 1,668,922 3,353,156 20,747,499

786,823 361,893 292,517 404,273 347,101 115,433 140,661 281,812 202,366 506,998 1,457,839 2,741,728 19,806,867

(35,606) 3,440,155 68,610 24,220,658

111,966 3,284,227 45,870 23,248,930

30,927 3,440,155 -03,471,082 $ (3,471,082)

$

3,581,090

$

2,709,763

$

$

-0-

$

-0-

3,848,912

$

200,209

$

2,202,492

-0-

$ (2,422,049)

$

(105,557)

$

(720,030)

(1,000,000)

1,000,000

2,441,893

10,400,648

2,242,452

$ 12,827,511

-0-

-0-

113,022 $

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

| TAHOE DONNER 2019 ANNUAL REPORT

1,662,395 563,353 1,491,569

-0-014,185 125,967

800,559

16

1,021,751

-0-0604 604

$

$

1,235,645

(66,533) -022,538 1,031,581

$

FUND BALANCES, END OF YEAR

3,313,364

-010,711 -0-0-02,322 -08,347 -0-0250,113 532,262 1,075,576

PROPERTY FUND ADDITIONS, NET FUND BALANCES, BEGINNING OF YEAR

3,307,195

-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-

REVENUE OVER (UNDER) EXPENSES TRANSFER BETWEEN FUNDS

$

3,334,547 187,709

-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0111,782 111,782

FUND EXPENSES (Gain) Loss on disposal of assets Depreciation Income tax provision TOTAL EXPENSES

3,579,077 183,038

-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-

207,674

$

3,247,636 -0-

-0-

-0-

5,304,789

41,554,852

59,815,204

57,105,441

6,787,251

$ 41,331,406

$ 63,396,294

$ 59,815,204

TAHOE DONNER ASSOCIATION STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2019 (WITH COMPARATIVE TOTALS FOR 2018) OPERATING FUND

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Revenue Over (Under) Expenses $ 800,559 Replacement Revenue Over Expenses -0Non-Operating Funds Revenue Over (Under) Expenses -0Transfers between funds (1,000,000) Adjustments to Reconcile Operating/Replacement Revenue Over (Under) Expenses to Net Cash Provided (Used) by Operating Activities: Bad debt expense 9,519 Depreciation expense -0(Gain)/Loss on disposal of assets -0Changes in: Assessments receivable (13,965) Other receivables (69,895) Inventory (4,419) Prepaid expenses and other assets (111,148) Due to/from other funds 261,906 Accounts payable 40,127 Accrued liabilities 53,573 Deferred revenue 413,391 Deposits (37,385) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 342,263

REPLACEMENT RESERVE FUND

$

-03,848,912 -01,000,000

NEW EQUIPMENT FUND

$

-0-0200,209 -0-

DEVELOPMENT FUND

$

-0-02,202,492 -0-

PROPERTY FUND

$

-0-0(3,471,082) -0-

TOTAL 2019

$

800,559 3,848,912 (1,068,381) -0-

TOTAL 2018

$

650,331 (337,663) 2,397,095 -0-

10,714 -0(66,533)

-0-0-0-

4,409 -0-0-

-03,440,155 30,927

24,642 3,440,155 (35,606)

21,872 3,284,227 111,966

(10,714) (15,535) -0-0(133,278) 1,127 4,402 51,258 -04,690,353

-0(106) -0-0(36,675) -0169 22,666 -0186,263

(4,409) (12,272) -0-0(91,953) 16,389 801 27,757 -02,143,214

-0-0-0-0-0-0-0-0-0-0-

(29,088) (97,808) (4,419) (111,148) -057,643 58,945 515,072 (37,385) 7,362,093

(40,045) 62,118 31,510 (173,858) -0(192,750) 184,814 101,029 24,335 6,124,981

-0-0(11,385,559) 10,996,230 (389,329)

(2,295,559) 66,533 (30,215,254) 27,782,137 (4,662,143)

(105,557) -0(741,626) 644,933 (202,250)

(720,030) -0(9,760,625) 8,250,088 (2,230,567)

-0-0-0-0-0-

(3,121,146) 66,533 (52,103,064) 47,673,388 (7,484,289)

(4,319,450) 90,537 (21,005,065) 19,655,961 (5,578,017)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (47,066) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,842,098 CASH AND CASH EQUIVALENTS, END OF YEAR $ 1,795,032

28,210 131,460 159,670

(15,987) 28,697 12,710

(87,353) 111,058 23,705

-0-0-0-

(122,196) 2,113,313 1,991,117

546,964 1,566,349 2,113,313

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment Proceeds from sale of property and equipment Purchase of investments Maturity or redemption of investments NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES

ANALYSIS OF CASH AND CASH EQUIVALENTS Cash and cash equivalents, unrestricted Cash and cash equivalents, designated and restricted

SUPPLEMENTAL DISCLOSURE Income taxes paid

NON-CASH INVESTMENT ACTIVITIES Acquisition of equipment financed by trade payables

$

$ 1,541,942 253,090 $ 1,795,032

$

$

$

$

$

$

-0159,670 159,670

53,970

$

-0-

$

$

-012,710 12,710

-0-

$

126,490

$

$

$

$

$

-023,705 23,705

$

-0-0-0-

-0-

$

-0-

$

-0-

$

-0-

$

$

$

$

$

$

$

1,541,942 449,175 1,991,117

$

1,488,059 625,254 2,113,313

-0-

$

53,970

$

96,563

-0-

$

126,490

$

-0-

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

TAHOE DONNER 2019 ANNUAL REPORT |

17

NOTES TO FINANCIAL STATEMENTS 1

OPERATIONS

Tahoe Donner Association (Association) is a California nonprofit mutual benefit corporation. The Association’s members own the 6,473 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.

The 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: OPERATING FUND – Used to account for financial resources available for the general operations of the Association.

ASSESSMENT REVENUE – Association members are subject to annual assessments to provide funds for the Association’s operating expenses, major repairs and replacements, development and purchase of new equipment. Accounts receivable at the balance sheet date primarily represents amounts due from unit owners.

The Association’s collection policy includes, among other things, assessing a late charge and interest, filing a lien, and assessing a lien fee on payments not received within the allowable time periods.

In certain instances, foreclosure may be necessary. An allowance for doubtful accounts is created when an account’s collectability is uncertain. Accounts are written off when the Association’s management determines that an account is uncollectible due to an event such as bankruptcy or foreclosure proceedings.

REVENUE RECOGNITION – The Association’s accounting policies with regards to revenue from contracts with customers are discussion in Note 3, Revenues.

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. As of December 31, 2019 and 2018, cash balances exceeded federally insured limits by approximately $864,000 and $825,000, respectively. 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.

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.

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 straight-line method over estimated useful lives of individual assets ranging from 3 to 60 years. These assets are recorded directly in the property fund.

NEW EQUIPMENT FUND – Used to account for financial resources designated for the purchase of new machinery, equipment, furnishings and fixtures.

Approximately 3,000 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.

DEVELOPMENT FUND – Used to account for financial resources designated for use in the acquisition and enhancement of facilities, equipment and other resources.

INTEREST INCOME and the related income tax expense 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.

PROPERTY FUND – Used to account for the Association’s investment in its common property and equipment, and other Association real property.

18

| TAHOE DONNER 2019 ANNUAL REPORT

ASSESSMENTS PAID IN ADVANCE AND DEFERRED REVENUE primarily represents funds received for assessments, amenity and

NOTES TO FINANCIAL STATEMENTS newsletter fees received in the current fiscal year, which apply to the subsequent fiscal year.

DEPOSITS FROM MEMBERS 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.

ADVERTISING COSTS are expensed as incurred. For the year ended December 31, 2019 and 2018 advertising costs total approximately $73,449 and $80,472, respectively.

INCOME TAXES – For California purposes, the Association is taxed as membership organization. As such, the Association is generally taxed only on non-member income, such as investment earnings, advertising revenue and gains on sales of assets at regular state corporate tax rates. For federal purposes, the Association has tax-exempt status as a non-profit organization under Internal Revenue Code 501(c)(4). Unrelated business income earned by the Association, such as advertising revenue, is taxed net of related expenses at regular federal corporate tax rates.

The Association has applied the 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 state income tax examinations by tax authorities for years prior to 2015.

CARRYING AMOUNTS of financial instruments, including cash and cash equivalent, accounts receivable and accounts payable approximate their fair value due to the short-term maturities of these instruments.

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.

RECLASSIFICATIONS – Certain reclassifications have been made in the 2018 financial statements to conform to the classifications used in 2019. The reclassifications had no impact on the financial position or results of operations for 2018.

RESTATEMENT – In 2019, the Association changed the composition of its financial statements to present the Statement of Revenue and Expenses – All Funds by program rather than by natural classification. Additionally, the association began allocating certain departmental expenses (overhead) to the other departments they both directly and indirectly serve. The 2018 financial statements as presented for comparative purposes only have been restated to conform to the composition and allocations utilized in 2019. The restatements had no impact on the total financial position or results of operations for 2018.

REVENUE RECOGNITION – For 2019, the Association has adopted the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, (“Topic 606” in the Accounting Standards Codification (ASC)). Topic 606 superseded the revenue recognition requirements in FASB ASC 972-605, Real Estate—Common Interest Realty Associations, Revenue Recognition.

Under Topic 606, the Association must identify a contract with a customer, among other things, and recognize revenue as the Association satisfies a performance obligation.

As described above, Association members are subject to annual assessments that provide funds for the Association’s operating expenses and major repairs and replacements. Association management has considered Topic 606 and concluded that Association members are not customers as defined in the ASC. As such, all assessment revenue, including amounts allocated to the replacement fund, is recognized in the period in which it is assessed, regardless of when it is collected or expended. This treatment is substantially consistent with the Association’s accounting in previous years.

Contract revenue is discussed further at Note 3, Revenue from Contracts with Customers. The adoption of the new revenue recognition guidance did not result in any changes to the fund balances as of January 1, 2019 or the balance sheet or results of operations for the year ended December 31, 2019.

3

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE RECOGNITION The following provides information about the Association’s composition of revenue recognized from contracts with customers, the performance obligations under those contracts, and the significant judgments made in accounting for those contracts: Downhill ski, Cross Country and Golf revenue is derived from a wide variety of sources, including, among other things: lift, trail and course access revenue, which includes sales of lift tickets, trail access, golf course access and pass products; ski school and lesson revenue, which includes the revenue derived from ski school and lesson operations; food and beverage sales; retail sales and equipment rental revenue. Revenue is recognized over time as performance obligations are satisfied as control of the goods or services (e.g. access to ski areas, trails and golf course, provision of ski school and lesson services, etc.) is transferred to the customer, except for the retail sales, rentals and food and beverage operations revenue which are recognized at a point in time when performance obligations are satisfied by transferring control of the underlying goods to the customer. The Association records deferred revenue primarily related to the sales of the pass products. Deferred revenue is recognized throughout the ski and golf seasons as the Association’s performance obligations are satisfied as control of the service (e.g. access to the ski areas throughout the ski season) is transferred to the customer. The transfer of control is based on the number of days that have passed in the season relative to total (Continued on next page) TAHOE DONNER 2019 ANNUAL REPORT |

19

NOTES TO FINANCIAL STATEMENTS expected season days. Total expected season days are based on historical data, and the Association believes this estimate provides a faithful depiction of its customers’ pass product usage.

The Association’s private amenities (Trout Creek recreation center and aquatics, Snowplay, Marina and Tennis) are accessible via an annual recreation pass or daily access fees. Revenue is derived from recreation pass usage, daily access fees, lessons, classes and trainings, retail sales, equipment rentals and food and beverage sales. Revenue is recognized over time as performance obligations are satisfied as control of the goods or services (e.g. access amenities , provision of lesson, classes and training services, etc.) is transferred to the customer, except for the retail sales, rentals and food and beverage operations revenue which are recognized at a point in time when performance obligations are satisfied by transferring control of the underlying goods to the customer. The Association records deferred revenue primarily related to the sales of the recreation pass. Deferred revenue is recognized throughout recreation pass period as the Association’s performance obligations are satisfied as control of the service (e.g. access to amenities throughout the pass period) is transferred to the customer. The transfer of control is based on an estimated number of pass holder visits relative to total expected visits. The total expected visits are estimated based on historical data, and the Association believes this estimate provides a faithful depiction of its customers’ pass product usage.

Food and beverage revenue (The Lodge and Summer F&B, Alder Creek Café and Pizza on the Hill) is derived from restaurants and cafes, room rentals and banquets. Revenue is recognized at a point in time when performance obligations are satisfied by transferring controls of the underlying goods to the customer.

Other revenue sources not previously mentioned provide revenue from a variety of means including other amenity access fees, lessons and camps, retail sales, equipment rentals, special events and concerts and food and beverage sales, architectural fees and forestry grants revenues. Revenue is recognized over time as performance obligations are satisfied as control of the (e.g. completions of lessons or camps) is transferred to the customer, except for retail sales, equipment rentals and food and beverage sales which are recognized at a point in time when performance obligations are satisfied by transferring control of the underlying goods to the customer.

Communications revenue is derived primarily from newsletter ad sales. Revenue is recognized over time as performance obligations are satisfied as control of the good (e.g. inclusion of ad in the monthly newsletter) is transferred to the customer. Deferred revenue relates sales of newsletter ad space for multiple monthly publications in advance.

ARRANGEMENTS WITH MULTIPLE PERFORMANCE OBLIGATIONS Some of the Association’s contracts with customers include multiple performance obligations, primarily related to bundled services such as multiple events, camps, class and lesson packages. For such contracts, revenue is allocated to each distinct and separate

20

| TAHOE DONNER 2019 ANNUAL REPORT

performance obligation based on its relative standalone selling price. The standalone selling prices are generally based on observable prices charged to customers or estimated based on historical experience and information.

CONTRACT BALANCES Contract liabilities are recorded primarily as deferred revenues when payments are received or due in advance of the Association’s performance, including amounts which may be refundable. The deferred revenue balance is primarily related to accounts receivable or cash payments recorded in advance of satisfying the Association’s performance obligations related to advance purchase products consisting primarily of recreation passes, ski and golf passes, amenity related lessons and programs. Deferred revenue balances related to contracts was approximately $1,783,000 and $1,388,000 as of December 31, 2019 and 2018, respectively. For the year ended December 31, 2019, the Association recognized approximately $1,315,000 of contract revenue that was included in the deferred revenue balance as of December 31, 2018.

Contract assets are recorded as trade receivables when the right to consideration is unconditional. Trade receivable balances were $52,823 and $100,253 as of December 31, 2019 and 2018, respectively. Payments from customers are based on billing terms established in the contracts with customers, which vary by the type of customer, the location and the products or services offered.

The term between invoicing and when payment is due is not significant. For certain products or services and customer types, contracts require payment before the products are delivered or services are provided to the customer. Impairment losses related to contract assets are recognized through the Association’s allowance for doubtful accounts analysis. Contract asset write-offs are evaluated on an individual basis.

COSTS TO OBTAIN CONTRACTS WITH CUSTOMERS The Association expects that credit card fees paid in order to obtain season pass products contracts are recoverable. Accordingly, the Association recognizes these amounts as assets when they are paid prior to the start of the pass season. As of December 31, 2019, $11,283 of costs to obtain contracts with customers were recorded within prepaid expenses and other current assets.

Utilizing the practical expedient provided for under Topic 606, the Association has elected to expense credit card fees related to non pass products and services as incurred, as the amortization period is generally one year or less for the time between customer purchase and utilization. These fees are recorded within departmental expenses on the Association’s Statement of Revenue and Expenses and Changes in Fund Balances.

4

FAIR VALUE MEASUREMENT

The Financial Accounting Standards Board (the “FASB”)’s authoritative guidance on fair value measurements establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance

NOTES TO FINANCIAL STATEMENTS requires the Association to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below.

The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value: LEVEL 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

LEVEL 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

2019 Cash and cash equivalents

LEVEL 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Association measures its cash equivalents and accrued interest receivable at fair value. The Association classifies its cash equivalents, investments and accrued interest receivable within Level 1 or Level 2 because the Association values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Association’s Level 1 financial assets is based on quoted market prices of the identical underlying security. The fair value of the Association’s Level 2 financial assets is based on inputs that are directly or indirectly observable in the market, including the readilyavailable pricing sources for the identical underlying security that may not be actively traded.

The following tables set forth the estimated fair value of the Association’s financial assets measured at fair value on a recurring basis as of December 31, 2019 and 2018, based on the three-tier fair value hierarchy:

LEVEL 1

LEVEL 2

LEVEL 3

TOTAL

$ 1,991,117

$ -0-

$ -0-

$ 1,991,117

Other Assets:

Accrued interest receivable

TOTAL

2018 Cash and cash equivalents

-0- 101,238

-0- 101,238

$ 1,991,117

$ 101,238

$ -0-

$ 2,092,355

LEVEL 1

LEVEL 2

LEVEL 3

TOTAL

$ 2,113,313

$ -0-

$ -0-

$ 2,113,313

Other Assets:

Accrued interest receivable

TOTAL

5

-0- 95,703 $ 2,113,313

$ 95,703

-0- 95,703 $ -0-

$ 2,209,016

CASH AND INVESTMENTS

At December 31, the Association’s cash and investments consisted of undesignated, designated and restricted accounts as follows:

2019 2018

Replacement Reserve Fund - designated

Development Fund - designated 7,414,919

New Equipment Fund - designated 259,188

Operating Fund - undesignated and unrestricted 6,046,087

Operating Fund – Trust – restricted 457 (b) 33,813

Operating Fund - Architectural standards deposits - restricted (note 7) 219,277

TOTAL

$ 14,341,230

$ 28,314,514

$ 11,879,903 5,991,735 178,482 5,619,295 81,051 256,565

$ 24,007,034

TAHOE DONNER 2019 ANNUAL REPORT |

21

NOTES TO FINANCIAL STATEMENTS 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.

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.

Association investments consist of certificates of deposit, municipal and corporate securities, and governmental securities, and amounted to $26,323,397 and $21,893,721 at December 31, 2019 and 2018, respectively. Varying types and levels of safety protection cover the various Association investments, including FDIC insurance, SIPC insurance, privately funded bank insurance, and the backing of the US Treasury and its agencies.

Municipal and corporate securities, governmental securities and certificates of deposit are carried at amortized cost as they are classified as held to maturity investments since the Association has the positive intent and ability to hold all securities until maturity.

The amortized cost, gross unrealized gains and losses and aggregate fair value of held-to-maturity investment securities at December 31, 2019 are as follows:

2019

COST OR GROSS GROSS FAIR AMORTIZED UNREALIZED UNREALIZED VALUE COST GAINS LOSSES

Held to maturity: Certificates of Deposit

$ 1,129,197

$ 2,173

$ -0-

$ 1,131,370

Corporate Bonds

3,220,976 72,922

-0- 3,293,898

Municipal Bonds

2,262,597 36,607

-0- 2,299,204

U.S. Treasury

19,710,627

TOTAL HELD TO MATURITY

$ 26,323,397

58,043

$ 169,745

-0- 19,768,670 $ -0-

$ 26,493,142

WITHIN 1 YEAR

1-5 YEARS

TOTAL

$ 750,000

$ 1,129,197

The maturities of the held to maturity securities at December 31, 2019 are as follows:

INVESTMENT

Certificates of deposit

$ 379,197

Corporate bonds

1,054,765 2,166,211 3,220,976

Municipal bonds

320,200 1,942,397 2,262,597

U.S. Treasury

TOTAL

6

19,215,128 495,499 19,710,627 $ 20,969,290

PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

Buildings

2019 2018 $ 33,141,996 $ 32,406,312

Fixtures and facility improvements 18,633,568 18,231,578

Equipment

Land and land improvements

State

10,345,875 9,269,730

TOTAL

TOTAL

81,680,066 79,801,058

Less accumulated depreciation

(41,424,804) (38,264,353) 40,255,262 41,536,705

Construction in progress

1,076,144 18,147

22

The provision for income taxes for the year ended December 31, 2019 and 2018 is as follows:

18,566,594 18,953,625 992,033 939,813

$ 41,331,406 $ 41,554,852

| TAHOE DONNER 2019 ANNUAL REPORT

$ 26,323,397

INCOME TAXES

Federal

Furnishings

TOTAL

7

$ 5,354,107

2019 2018 $ 55,935

$ 45,145

12,675 725 $ 68,610

$ 45,870

The 2018 federal tax provision is less than 2019 due to over accruing for taxes in a prior year. Federal income tax for 2019 may be reduced by general tax credits available to the Association. The effect of these credits in not reflected in the accompanying financial statements.

NOTES TO FINANCIAL STATEMENTS 8

REPLACEMENT RESERVE FUND

The Association’s policy is to maintain replacement funding levels sufficient to pay for capital replacements, refurbishments and repairs. Fund for replacement of common area property and equipment is accounted for through a replacement reserve fund.

The funds are designated for major repairs and replacement. When major repairs or replacement occur, the expenditures are charged against the fund balance or, if certain conditions are met, a transfer is made for property and equipment to the property fund and the expenditures are capitalized.

Replacement funding levels, as determined by a study updated in 2019, are forecast on a 30-year basis with annual updates to replacement schedules, as they become known. The percent funded level is to exceed 25% and the replacement reserve fund balance is to equal or exceed 10% of net replacement reserve assets (total property and equipment less land and land improvements). The annual assessment allocation to the replacement reserve fund is determined by the Board of Directors with input from management.

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.

9

INTERFUND ACTIVITY

The Association maintains five funds. The reserve fund portion of the overall assessment are deposited first to the operating fund and transferred monthly to the reserve fund. At various times during the year there is a receivable/payable (due to/from) among the funds.

During 2019, the Board of Directors approved a $1,000,000 fund balance transfer from the operating fund to the replacement reserve fund.

10 RETIREMENT PLANS

11 OPERATING LEASE OBLIGATIONS The Association has non-cancelable operating leases for copiers, land usage and computer equipment. Rental expense under all operating leases was $40,190 and $93,000 for 2019 and 2018, respectively.

Future minimum lease payments under these leases are as follows: YEAR ENDING DECEMBER 31:

2020

$ 18,297

2021 5,752 2022

5,752

2023

1,917

TOTAL

$ 31,718

12 COMMITMENT During 2019, the Association entered into a contract for renovation of the golf course greens for $231,800. As of December 31, 2019, $162,260 remains to be spent on the project.

During 2019, the Association entered into a contract for the expansion of the Trout Creek Recreation Center for $1,496,400. As of December 31, 2019, $273,895 remains to be spent on the project.

13 SUBSEQUENT EVENTS Subsequent events have been evaluated through April 3, 2020 the date the financial statements were issued.

The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of the Association facilities. While disruption is currently expected to be temporary, there is considerable uncertainty around the duration of the closings. Therefore, the Association expects this matter to negatively impact its operating results. However, the related financial impact and duration cannot reasonably be estimated at this time.

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 $105,493 and $95,180 for December 31, 2019 and 2018, respectively.

The Association maintains two defined contribution plans which qualify under Section 457(b) and Section 457(f) of the Internal Revenue Code, respectively (the 457 Plans). The 457 Plans allow for additional Association contributions and salary deferrals subject to limitations for eligible executive employees. Contributions to the 457 Plans funds are considered deferred compensation until certain future date conditions are met. The Association’s contribution to the 457 Plans was $57,009 and $56,307 for the years ended December 31 2019 and 2018, respectively.

TAHOE DONNER 2019 ANNUAL REPORT |

23

TAHOE DONNER ASSOCIATION

SCHEDULE OF REVENUE + EXPENSES BY NATURAL CLASSIFICATION FOR THE YEAR ENDED DECEMBER 31, 2019 (WITH COMPARATIVE TOTALS FOR 2018)

OPERATIONS AMENITIES

TOTAL OPERATING FUND

HOMEOWNERS ASSOCIATION

REVENUE Assessments

$

-0-

$

5,696,445

$

5,696,445

Access and use fees

5,724,281

-0-

5,724,281

Retail sales

4,772,930

-0-

4,772,930

Lessons and rental revenue

2,941,005

13,275

2,954,280

Other revenues

461,195

668,696

1,129,891

Interest income

-0-

114,156

114,156

Total revenue

13,899,411

6,492,572

20,391,983

Salaries and wages

5,992,938

4,286,328

10,279,266

Cost of good sold

1,554,443

-0-

1,554,443

Payroll taxes and employee benefits

1,454,875

995,824

2,450,699

Supplies and maintenance

OPERATING EXPENSES

1,067,874

731,395

1,799,269

Utilities

748,105

185,681

933,786

Other employee expenses

265,727

167,254

432,981

Insurance

331,514

279,000

610,514

Income tax

-0-

31,283

31,283

714,961

956,737

1,671,698

2,572,883

(2,745,398)

(172,515)

14,703,320

4,888,104

19,591,424

(Gain) Loss on disposal of assets

-0-

-0-

-0-

Depreciation

-0-

-0-

-0-

Fund expenses

-0-

-0-

-0-

14,703,320

4,888,104

19,591,424

$ (803,909)

$ 1,604,468

PROPERTY FUND ADDITIONS, NET

-0-

-0-

-0-

TRANSFER BETWEEN FUNDS

-0-

-0-

(1,000,000)

FUND BALANCES, BEGINNING OF YEAR

-0-

-0-

2,441,893

$ (803,909)

$ 1,604,468

$ 2,242,452

Other expenses Overhead allocation Total operating expenses

FUND EXPENSES

Total Expenses

REVENUE OVER (UNDER) EXPENSES

FUND BALANCES, END OF YEAR

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

24

| TAHOE DONNER 2019 ANNUAL REPORT

$

800,559

REPLACEMENT RESERVE FUND $

4,661,000

CAPITAL

NEW EQUIPMENT FUND $

194,000

DEVELOPMENT FUND $

2,168,000

TOTALS

PROPERTY FUND $

-0-

TOTAL 2019

$

12,719,445

TOTAL 2018

$

12,298,700

-0-

-0-

-0-

-0-

5,724,281

4,771,304

-0-

-0-

-0-

-0-

4,772,930

4,807,694

-0-

-0-

-0-

-0-

2,954,280

2,481,175

-0-

-0-

-0-

-0-

1,129,891

1,229,011

219,493

6,813

160,459

-0-

500,921

370,809

4,880,493

200,813

2,328,459

-0-

27,801,748

25,958,693

-0-

-0-

-0-

-0-

10,279,266

9,753,277

-0-

-0-

-0-

-0-

1,554,443

1,573,523

-0-

-0-

-0-

-0-

2,450,699

2,388,373

-0-

-0-

-0-

-0-

1,799,269

1,705,066

-0-

-0-

-0-

-0-

933,786

910,364

-0-

-0-

-0-

-0-

432,981

409,834

-0-

-0-

-0-

-0-

610,514

476,875

22,538

604

14,185

-0-

68,610

45,870

10,714

-0-

4,409

-0-

1,686,821

1,571,791

77,000

-0-

95,514

-0-

(1)

-0-

110,252

604

114,108

-0-

19,816,388

18,834,973

(66,533)

-0-

-0-

30,927

(35,606)

111,966

-0-

-0-

-0-

3,440,155

3,440,155

3,284,227

987,862

-0-

11,859

-0-

999,721

1,017,764

1,031,581

604

125,967

3,471,082

24,220,658

23,248,930

200,209

$ 2,202,492

$ (3,471,082)

$ 3,581,090

$ 2,709,763

(2,422,049)

(105,557)

(720,030)

3,247,636

-0-

-0-

1,000,000

-0-

-0-

-0-

-0-

-0-

10,400,648

113,022

5,304,789

41,554,852

59,815,204

57,105,441

207,674

$ 6,787,251

$ 41,331,406

$ 63,396,294

$ 59,815,204

$ 3,848,912

$ 12,827,511

$

$

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

TAHOE DONNER 2019 ANNUAL REPORT |

25

CAPITAL FUNDS EXPENDITURES

BY DEPARTMENT

– FOR THE YEAR ENDED DECEMBER 31, 2019 REPLACEMENT RESERVE FUND

NEW EQUIPMENT FUND

DEVELOPMENT FUND

CAPITAL FUNDS TOTAL

CAPITAL MAJOR ADDITIONS MAINTENANCE

CAPITAL MAJOR ADDITIONS MAINTENANCE

CAPITAL MAJOR ADDITIONS MAINTENANCE

CAPITAL MAJOR ADDITIONS MAINTENANCE

$ 14,700

$ -

$ 396,165

PRIVATE AMENITIES Trout Creek Recreation Center

$ 1,021,010

(a)

$

6,301

(a)

$ -

$ 1,431,875

$

6,301

Beach Club Marina

21,951

22,922

-

-

-

-

21,951

22,922

Tennis Center

27,267

10,711

4,204

-

-

-

31,471

10,711

5,226

-

-

-

-

-

5,226

-

29,314

-

2,998

-

-

-

32,312

-

$1,104,768

$ 39,934

$ 21,902

-

$396,165

$-

$1,522,835

$ 39,934

Northwoods Pool / Aquatics Camps + Recreation Programs TOTAL PRIVATE AMENITIES

PUBLIC AMENITIES Golf

274,794 (b)

47,010

-

-

-

-

274,794

47,010

Downhill Ski

251,687

53,253

-

-

48,654

-

300,341

53,253

97,416

68,564

-

-

8,050

-

105,466

68,564

Cross Country Ski Campground

(c)

-

2,322

-

-

-

-

-

2,322

6,359

-

26,215

-

27,490

-

60,064

-

Trails

54,657

8,347

-

-

29,662

-

84,319

8,347

Bikeworks

21,185

-

-

-

-

-

21,185

-

The Lodge

65,259

73,771

-

-

3,379

-

68,638

73,771

-

-

-

-

-

-

-

-

9,755

-

-

-

-

-

9,755

-

564

-

-

-

-

-

564

-

5,577

-

-

-

400

-

5,977

-

$ 787,253

$253,267

$ 26,215

$-

$117,635

$-

$ 931,103

$253,267

$1,892,021

$293,201

$ 48,117

$-

$513,800

$-

$2,453,938

$293,201

11,680

227,993

-

2,537

134,000

Equestrian

The Lodge, Summer Lunch/Golf F&B Pizza on the Hill Alder Creek Cafe Snowplay TOTAL PUBLIC AMENITIES

TOTAL AMENITIES

HOMEOWNERS ASSOCIATION + GENERAL AND ADMINISTRATIVE General Homeowners Association

11,680

116,211 (d)

Marketing + Communications

-

-

Facility Administration

-

134,000

-

-

-

2,537

-

-

-

-

191,000

-

191,000

522

-

15,230

-

247,481

40,214

3,218

-

-

-

189,935

208,694

(f)

Administration

231,729 (g)

40,214

Information Technology

186,717 (h)

208,694 (h)

111,782 (e) (f)

Accounting

-

-

-

-

-

-

-

-

Human Resources

-

-

-

-

-

-

-

-

Architectural Standards Office

-

-

-

-

-

-

-

-

Member Services

-

-

-

-

-

-

-

-

93,667

250,113

51,163

-

-

-

144,830

250,113

6,235

33,143

-

-

-

-

6,235

33,143

TOTAL HOMEOWNERS ASSOC $ 530,028 $ 782,375

$ 57,440

$-

$206,230

$111,782

$ 793,698 $ 894,157

TOTAL

$105,557

$-

$720,030

$111,782

$3,247,636 $1,187,358

Forestry Maintenance

$2,422,049 $1,075,576

(i)

(a) Trout Creek Recreation Center includes major remodel in RRF of $892,000 and building expansion in DVF of $396,000. (b) Golf includes $70,000 greens turf down payment and $53,000 in course remodel planning costs. (c) Downhill Ski Resort includes $87,400 for bus replacement, $88,600 for rental equipment fleet replacement, and $22,700 for snowcat grooming implement replacements. (d) Replacement Reserve Fund - General HOA - Major Maintenance includes overhead ($77,000) and bad debt expense ($10,714) cost allocations.

26

| TAHOE DONNER 2019 ANNUAL REPORT

(e) Development Fund - General HOA - Major Maintenance includes overhead ($95,514) and bad debt expense ($4,409) cost allocations. (f) Personnel cost allocations, consistent with Budget and prior years. (g) Administration includes $206,856 for exterior restrooms remodel and ADA code compliance upgrades. (h) Information Technology; includes replacements of VOIP system, networking and wireless systems, SAN, workstations, webcams, fiber optic lines and other. (i) Forestry includes $165,200 in tree damage repairs and $84,900 in plantation mastication; both related to fire defensible space efforts.

REQUIRED SUPPLEMENTARY INFORMATION ON FUTURE MAJOR REPAIRS AND REPLACEMENTS DECEMBER 31, 2019 (UNAUDITED)

It is the policy of the Association to fund a reserve program that will adequately provide for repair and replacement of existing Associationowned 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 a study in 2019 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 management, contractors and historical costs. Estimated current replacement costs have been adjusted to reflect a 3% inflation factor, 2% interest rate, and an 8% tax provision on investment income.

The Association does not designate the balance of the replacement fund by component. The total available for major repairs and replacements as of December 31, 2019 is $12,827,511. The 2020 budget includes $4,985,000 of dues 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 original remaining life greater than 30 years. The Association is accumulating funds in the Development fund for specific building structure replacements, and not currently accumulating funds over time for all building replacements.

The following table is based on the study and presents significant information about the components of common property.

RESERVE COMPONENT

RANGE OF SERVICE LIFE REMAINING (YEARS)

Administration

0-39

$ 2,557,555

Alder Creek Cafe

1-35

164,989

Bikeworks

0-2

73,618

Campground

0-42

638,582

-0-

215,609

Chalet House

1-25

349,619

Cross Country Ski Center

0-39

3,868,726

Equestrian Center

0-29

976,839

Food Trailer

4-11

65,500

Forestry

0-39

2,085,217

General Maintenance

0-15

611,451

Golf Complex

0-18

988,539

Golf Course

0-39

11,206,314

Information Technology

0-13

2,185,152

Maintenance

0-53

2,993,677

Marina

0-39

1,363,521

Northwoods Pool Building

0-23

435,775

Northwoods Clubhouse

0-39

3,857,843

Pizza on the Hill

0-26

493,118

Recreation

0-24

593,780

Downhill Ski Resort Mountain Operations

0-39

5,273,469

Capital Projects

CURRENT REPLACEMENT COSTS

RESERVE COMPONENT

RANGE OF SERVICE LIFE REMAINING (YEARS)

CURRENT REPLACEMENT COSTS

Downhill Ski Resort Mountain Operations - Lift Maintenance

0-39

4,053,129

Downhill Ski Resort Mountain Operations Rental + Retail

0-20

1,090,310

Downhill Ski Resort Mountain Operations Snowmaking

1-21

1,060,213

Downhill Ski Resort Mountain Operations Top Shop

0-17

289,049

Downhill Ski Resort Mountain Operations Winter Food + Beverage

0-15

453,275

Snowplay

1-8

145,230

Tennis Complex

0-23

2,019,210

The Lodge Restaurant & Pub

0-53

3,673,425

Trails

0-32

2,947,858

Trout Creek Recreation Center Building

0-29

3,517,861

Trout Creek Recreation Center Pool and Spa

0-18

1,434,737

TOTAL

$ 61,682,890

(See Independent Auditor’s Report)

TAHOE DONNER 2019 ANNUAL REPORT |

27

CAGR = COMPOUND ANNUAL GROWTH RATE

ANNUAL BUDGET – SOURCE OF FUNDS DOLLARS IN THOUSANDS $30,000

$25,000

ANNUAL ASSESSMENT, CAPITAL ANNUAL ASSESSMENT, OPERATING ANNUAL ASSESSMENT, COMBINED TOTAL OPERATING REVENUE REVENUE SOURCES TOTAL

10-YEAR CAGR 2009-2019 2010-2020 7.9% 6.7% 2.4% 2.7% 5.1% 4.7% 5.6% 5.3% 5.4% 5.0%

5-YEAR CAGR 2014-2019 2015-2020 7.4% 7.5% 0.9% -1.7% 4.2% 2.8% 8.1% 9.0% 6.2% 5.7% $19,976

$20,000 $15,989

$16,844

$17,368

51% 8,220

50% 8,433

48% 8,925

51% 9,250

50% 8,760

44% 9,210

48% 9,620

$10,000

$5,000

$0

28% 4,500

27% 4,497

27% 5,119

25% 4,498

26% 4,498

27% 5,450

$21,497

43% 9,200

47% 11,000

50% 12,460

31% 6,433

27% 6,311

25% 6,085

25% 5,346

26% 5,988

25% 6,214

2016

2017

2018

20% 3,269

23% 3,914

24% 4,110

24% 4,401

25% 4,621

25% 4,906

2009

2010

2011

2012

2013

2014

2015

ANNUAL ASSESSMENT, CAPITAL

$24,759

32% 6,951

25% 5,217

$27,507

$23,299

$18,665

$18,149

$15,000

$20,860

$26,934

ANNUAL ASSESSMENT, OPERATING

ALL MEMBERS PAY

53% 14,215

51% 14,140

21% 5,696

21% 5,890

26% 7,023

2019

27% 7,477

2020

OPERATING REVENUES USERS PAY

(MEMBERS/GUESTS/PUBLIC)

ANNUAL BUDGET – USE OF FUNDS DOLLARS IN THOUSANDS $30,000

$25,000

CAPITAL FUNDING AMENITIES OPERATING COSTS HOA SERVICES COSTS OUTFLOW USES TOTAL

10-YEAR CAGR 2009-2019 2010-2020 7.9% 6.7% 5.1% 4.6% 3.7% 4.3% 5.4% 5.0%

5-YEAR CAGR 2014-2019 2015-2020 7.4% 7.5% 6.3% 5.0% 4.8% 5.2% 6.2% 5.7% $19,976

$20,000 $15,989

$15,000 32% 5,107

$16,844

31% 5,193

$17,368

31% 5,416

$10,000 48% 7,613

46% 7,737

45% 7,842

$18,149

30% 5,445

46% 8,303

$27,507 $26,934 $24,759 $23,299

$20,860

$18,665

30% 5,663

45% 8,381

29% 5,823

46% 9,247

29% 6,125

46% 9,518

$21,497

30% 6,347

46% 9,804

27% 6,352

47% 10,959

$0

20% 3,269

23% 3,914

24% 4,110

24% 4,401

25% 4,621

25% 4,906

2009

2010

2011

2012

2013

2014

2015

CAPITAL FUNDING

28

| TAHOE DONNER 2019 ANNUAL REPORT

AMENITIES OPERATING COSTS

BEFORE OVERHEAD FOR COMPARABILITY FOR ALL YEARS

29% 7,905

47% 12,561

44% 12,125

28% 6,840

47% 11,705

$5,000 25% 5,217

27% 7,350

25% 5,346

26% 5,988

25% 6,214

2016

2017

2018

HOA SERVICES COSTS

26% 7,023

2019

27% 7,477

2020

TAHOE DONNER GIVING FUND SUPPORTS LOCAL NON-PROFITS

Our hearts are with those affected by COVID-19. The Giving Fund’s grants to local non-profits put them in a stronger position to deal with today’s challenges, and we pledge to continue investing in these critical organizations as they work to meet the enormous needs of our community.

HOW YOU CAN HELP

Support the Giving Fund or the Tahoe Truckee Community Foundation’s Emergency Relief Fund.

Learn more + donate at tahoedonner.com/giving-fund or ttcf.net.

Together, we can show our community that Tahoe Donner

Cares!

TREE SERVICE & Defensible Space Inc. Since 1990

Todd Wolfe CCA License #775729

CONNECT + SHARE YOUR AMENITY EXPERIENCE WITH US

Kevin Spurgeon Certified Arborist #WE10389

Available to take your call 7 days a week!

TAHOEDONNER.COM/LIKEMOJI

TAHOE DONNER NEWS |

13

FEATURE

On the Greens

2020 GOLF COURSE REPAIRS AND IMPROVEMENTS

By ALI DICKSON

THE TAHOE DONNER GOLF COURSE ORIGINALLY OPENED IN 1975 WITH ONLY THE FRONT NINE HOLES. THE BACK NINE OPENED THE NE X T YE AR. NOW, OVER 40 YE ARS L ATER, TAHOE DONNER IS STILL STAYING FRESH AND MODERN. When you think of the Tahoe Donner Golf Course, happy days come to mind – scenic fairways, fast greens, towering pines and fresh mountain air. What makes the course special, however, is also what makes it challenging. The course is due for an upgrade, and the plan for 2020 will improve both conditions and playability.

COURT LEVE

Major capital expenditures have refurbished the course over the years, the last one being the Tee and Bunker Project from 2003-2007.

The scope of this project included adding additional bunkers and tee boxes at every hole and regrading holes 2, 7 and 9. Over 10 years have passed since this most recent update, though, and progress is due. Consequently, the Greens Replacement and Tee and Fairway Repair Project began in October 2019 and is projected to be completed in 2020.

Project Planning

Project Scope

Requirements for the updated course came through an assortment of venues. Funding over eight years generated over $2 million to sufficiently address a variety of necessary updates. The Tahoe Donner Golf Course Subcommittee gathered member feedback to enhance playability and the overall mountain golf experience. In 2018, the Tahoe Donner General Plan Committee received letters from the men’s and women’s golf clubs outlining course needs and implementation plans. In the fall of 2019, fresh greens were seeded through a third-party company to be transplanted in 2020 once the weather warms and conditions allow.

The 2020 development falls into two categories: Greens Renovation and Tee and Fairway Repair.

With the help of members, staff and professionals over the course of many years, an official plan was set in motion. While the current COVID-19 pandemic and State of California ‘Stay at Home Order’ have halted much of daily life, the Greens Renovation project began months prior to this order and is already midway through completion.

Holding off on construction and renovation is not viable at this stage.

Project Goals • Improved turf conditions and playing surfaces will enhance playability and increase player shot selections.

• Drainage work on holes 10 and 11 will improve the playability of landing areas.

• Relocation of the cart path on hole 11 will reduce the potential for personal injury as well as damage to golf carts and maintenance equipment.

GREENS RENOVATION:

• Holes 1-18, the putting green and the chipping green will be replaced with a modern bentgrass cultivar blend, which can more adequately endure high-traffic and high-stress conditions.

• A six-foot circumference of collars and rough turf immediately surrounding all putting surfaces will be removed and replaced with Kentucky bluegrass sod, allowing for appropriate grading tie-ins that will eliminate collar dams, improve surface drainage and limit ice damage during winter months.

• Irrigation heads and valves will be leveled and replaced with more efficient components where applicable.

TEE + FAIRWAY REPAIR:

• Items not tackled during the renovation between 2003-2007 will be addressed and completed.

• Tees will be expanded and repaired to meet the high volume of use by members and guests.

• Large-scale drainage systems will be installed on fairways to further improve irrigation and drainage.

• All areas in need will be resurfaced with Kentucky bluegrass.

Meet the Professionals

• Tee expansion and additional forward tees will create adequately sized teeing surfaces for a high volume of golfers.

Forward tees are especially popular and provide each individual some control of course difficulty, which is encouraging for golfers of all skillsets.

This project requires the assistance of skilled partners who have the experience and expertise to make a golf course renovation a success. With the help of new and familiar specialists, the goals of the course can quickly and efficiently become a reality.

• The pace of play may become faster with a more efficient course, which has been a concern and discussion for many years.

architect, designed the Tahoe Donner Golf Course Master Plan and performed the Tee and Bunker Renovation ahead of schedule and under budget. He has earned accolades from members, the public and Golf Digest Magazine for his work on the Tahoe Donner course.

• Overall improvements will positively boost public perception and reputation in the golf community.

• Above all, an improved course will allow members and guests to enjoy a reputable course and a high-quality golf experience.

CARY BICKLER , a reputable golf course

EARTH SCULPTURES , a family-owned California company, specializes in golf

course restoration and construction. Highly recommended from neighboring courses, their renovations and working relationship with Cary Bickler speak nothing but success.

WEST COAST TURF, a company that

leads the sod farming industry in California, grows its turf in Livingston before transplanting to client courses. They have worked with Tahoe Donner in the past and in October 2019 planted a special handselected bentgrass turf in preparation for our 2020 renovations.

With advanced technology, modern designs and new materials and products to utilize, the Tahoe Donner Golf Course will be more than just comparable to neighboring courses – it will be “the new place to play”. Discover the drive you never had or hone the skills you’ve been working to master on the newly renovated greens. Completion is expected by October 15, 2020.

For questions, progress, discounts and events concerning the Tahoe Donner Golf Course, visit tahoedonner.com/golf.

Where to Golf in 2020 Tahoe Donner has partnered with neighboring courses to offer discounted greens fees and season passes. To keep your drive going, deals will be offered at: • Gray’s Crossing + Old Greenwood • Coyote Moon • Resort at Squaw Creek • Grizzly Ranch Golf Club • Nakoma Resort A Tahoe Donner membership card must be presented for a discounted price, and rates do not apply to tournament play. For details, visit tahoedonner.com/golf and click on “Specials” for more information on deals at area courses.

At Tahoe Donner, the driving range will be open for the entire 2020 season.

Opening day is to be determined.

Note: Due to the State of California ‘Stay at

Home Order’, all Tahoe Donner facilities will

be closed through an undefined end date. Visit

tahoedonner.com for up-to-date information on

opening days and more. Please check with neighboring courses to determine their opening dates.

TAHOE DONNER NEWS |

15

FEATURE

STAYING IN SHAPE WHILE STAYING AT HOME Story and Photos by KAREN CATON-BRUNINGS

Tips and tricks from Karen Caton-Brunings, a Trout Creek Recreation Center fitness instructor, will inspire you to make the most of your time at home and turn your #TDhomeworkout into the socially distant envy of the neighborhood.

Fitness is a big part of Tahoe Donner. Working out isn’t just a way to get stronger and healthier - it is how we decompress, destress and reconnect to ourselves and each other.

The spread of COVID-19 has forced the closures of gyms and recreation facilities across the country, including our newly renovated Trout Creek Recreation Center. How do we maintain fitness or achieve fitness goals in a time of social distancing, closures and shelterin-place protocols?

Many of us get stuck in the same fitness ruts for years. Now is the perfect opportunity to enhance or shake up your routine and breathe new life into your health and wellness. It can be easier than you imagine, but it does require thinking outside of the box. With a little creativity and flexibility, you can find an exercise routine that packs a punch without leaving the house.

UNDERSTAND WHAT MOTIVATES YOU

Knowing what excites you will help you to pick exercises that will lift you up. If you love to be outside, fitness videos in your bedroom will take the wind out of your sails before you know it. Whether it’s getting outside, focusing on cardio or gaining flexibility, find your underlying motivation to make workouts feel more like an opportunity than an obligation.

Especially in a time of stress, make sure to pick activities and exercises that fit who you are and what you like. This will ensure its sustainability, and you may discover new exercises that surprise you.

CREATE A SCHEDULE

Once you decide on an exercise, make it a part of your daily or weekly calendar. If your normal gym time is from 8-9AM on weekdays, continue to allow that time for your exercise.

If maintaining old schedules aren’t possible, adjust according to your new demands, such as homeschooling, distance-learning or working from home. Taking care of yourself and creating new normalcy is important now more than ever.

FORGET THE FANCY EQUIPMENT

If you love strength training, it can be helpful to have a few free weights or a pull-up bar.

However, canned goods or filled water bottles make excellent small free weights. Aside from that, YOU are the only equipment you need to stay healthy and fit. The best tool you can utilize during your home workouts is your own determination.

Exercise and healthy living are important every day but especially during this COVID-19 outbreak. Stress levels are increased, and there are new challenges to tackle every day.

Movement, exercise and fitness will help you manage stress, mood, sleeping habits and health benefits such as lowered cholesterol and blood pressure. Be sure to support your body during this uncertain time.

While your workouts may be different for a little while, you can stay strong, fit and healthy until Trout Creek Recreation Center reopens. Whether you work out for health, wellness, strength or your mental well-being, we support you. Get outside. Try something new. Stay well. We look forward to providing you with a quality fitness experience again soon. *Please remember to confer with your physician before beginning a new fitness program.

THINKING OUTSIDE THE FITNESS BOX

Here are some fitness options and alternatives for the days and weeks ahead. Nature isn’t closed for outdoor enthusiasts, and your home has more to offer than you think for those who prefer indoor workouts.

OUTDOOR FOR THOSE WHO LOVE CARDIO ALFRESCO Walking, hiking, biking and running are great options. Warm-weather activities will become easier as spring continues and temperatures begin to climb. Just be sure to stay six feet away from others, wear protective gear and follow current recommendations from the CDC and State of California Department of Health to help stop the spread of COVID-19.

FOR THOSE WHO WANT TO SHAKE IT UP Try a new trail, path or route. Challenge yourself to increase your speed or distance. If part of your fitness motivation is social, call a friend while walking or running! Listening to an audiobook, your favorite comedian, cooking program, walking meditation or motivating playlist can put a spring in your step.

FOR THOSE WHO CRAVE A LITTLE MORE OUTDOOR There are circuit workouts online that require little or no equipment, such as premade schedules built at bodybuilding.com. Print one out and make the outdoors your gym while on a walk. For visual learners, take your phone outside and find a training video of your favorite Trout Creek instructors to follow as you enjoy the fresh air.

INDOOR FOR THOSE WHO NEED ROUTINE YouTube, Vimeo and other websites have endless information, exercise challenges and classes available for free at any time of the day. Whether you work out in the morning, afternoon or evening, make sure to set aside a designated quiet space in your home to focus on a video or self-guided workout. Whether it be for five minutes or an hour, give yourself the time you need to check in and rediscover some balance.

FOR THOSE WHO DO IT ALL FROM HOME If you work and work out in the same house for the time being, be sure to get up from your desk and move around like you would at the office. Set a timer if necessary so you don’t forget. Setting boundaries between work time, leisure time, and fitness time is crucial to your overall health.

FOR THOSE WHO PREFER THEIR CLASSES LIVE In light of the epidemic, some gyms, studios and instructors are offering virtual live classes on video conferencing platforms. Many are offering free, donation-based and drop-in class rates. Many Trout Creek instructors have created live or online classes. Find your favorite instructor and pick up right where you left off, or discover a new Trout Creek program to begin now and hone in future group classes! Get the workout you love with the fitness community you crave.

TROUT CREEK INSTRUCTOR CLASSES AT HOME

Many Trout Creek fitness instructors are offering virtual alternatives to the Trout Creek classes you know and love through Zoom, Facebook Live and YouTube videos. Don’t miss a beat when it comes to Trout Creek programs – now is an exciting time to rekindle familiar classes and discover new ones. Your instructors are cheering you on from home and will be thrilled to become a part of your fitness journey once more.

Connect with an instructor through their contact information below:

HIGH-INTENSITY INTERVAL TRAINING (HIIT) KAREN CATON-BRUNINGS kcbcoaching.com WENDY LAUTNER youtube.com/wendysuewrites

YOGA EMILY WEER EmilyWeer.com JENNIE PITTS KNIPE JenniePittsKnipe.com MARISSA BULRIS awareawakenings@gmail.com

STRENGTH + CORE + TRX KARI CHALSTROM kari@highmountainliving.com IVAZINA BLAYLOCK blaylockcorestrength.weebly.com

PILATES PAULA SMITH fullcirclemovement@gmail.com

TAHOE DONNER NEWS |

17

THE REPORT

BUSINESS DIRECTORY CARPET CLEANING

HEAVEN’S BEST CARPET CLEANING PO Box 3024, Truckee, CA 96160 (530) 320-4192 a.pratt@heavensbest.com laketahoe.heavensbest.com

DEFENSIBLE SPACE / LANDSCAPING / TREE SERVICE ALPEN TREE EXPERTS

PO Box 571, Truckee, CA 96160 (530) 448-1194 alpentree@gmail.com alpentree.com

EARTH WORKS

DRIVEWAY SEALING ELEMENTS MOUNTAIN CO.

17356 Northwoods Blvd., Truckee, CA 96161 (530) 582-0300, (530) 587-7017 info@elementsmtn.co elementsmtn.co

FIREPLACES / WOOD STOVES MOUNTAIN HOME CENTER

11403 Brockway Road, Truckee, CA 96161 (530) 587-6681, (800) 517-6262 info@mountainhomecenter.com mountainhomecenter.com

HEALTH CARE

TAHOE FOREST HOSPITAL

PO Box 3273, Truckee, CA 96160 (530) 414-1291 beschfred@gmail.com earthworksdefensiblespace.com

10121 Pine Avenue, Truckee, CA 96161 (530) 587-6011 info@tfhd.com tfhd.com

ELEMENTS MOUNTAIN CO.

HOME + OUTDOOR FURNISHINGS

17356 Northwoods Blvd., Truckee, CA 96161 (530) 582-0300, (530) 587-7017 info@elementsmtn.co elementsmtn.co

KD ELECTRIC

345 Pyramid Way, Sparks, NV 89436 (775) 357-9767 damon@kdelectricacdc.com kdelectricacdc.com

MR. HONEY-DO

PO Box 5247, Tahoe City, CA 96145 (530) 581-4031 michael@mrhoneydo.biz mrhoneydo.biz

SECOND HOME CARE INC.

17400 Northwoods Blvd., Ste. 3, Truckee, CA 96161 (530) 582-0220 shc@secondhomecare.com secondhomecare.com

TRUCKEE TAHOE PROS (530) 550-7767 truckeetahoepros.com

VERDI ENERGY, INC. (775) 391-3111 verdienergyinc@gmail.com verdienergyinc.com

HVAC

MOUNTAIN HOME CENTER

IN MOTION HEATING & PLUMBING

POTTERY WORLD

M+S HEATING + AIR

(916) 624-8080 - Rocklin/Cafe (916) 358-8788 - El Dorado Hills potteryworld.com

(775) 470-7450, (530) 725-5450 kentj@ms-ac.com frankh@ms-ac.com ms-ac.com

(530) 401-2619 northwoodstreeandland@gmail.com northwoodstreeandland.com

HOME MAINTENANCE + SERVICES

INSURANCE

PEAK LANDSCAPE INC.

DE LA TORRE PLUMBING

HALL TREE

PO Box 3374, Truckee, CA 96160 (530) 320-8061 halltree@gmail.com halltreecompany.com

NORTHWOODS TREE & LAND SERVICE

12166 Richards Blvd., Unit C, Truckee, CA 96161

PO Box 575, Truckee, CA 96160 (530) 587-4269 info@peaklandscapeinc.com peaklandscapeinc.com

TIMBERWOLFE TREE SERVICE AND DEFENSIBLE SPACE 15444 Archery View, Truckee, CA 96161 (530) 386-3340 todd@twts.biz timberwolfetreeservice.com

11403 Brockway Road, Truckee, CA 96161 (530) 587-6681, (800) 517-6262 info@mountainhomecenter.com mountainhomecenter.com

(530) 386-3492 joethetahoeplumber@gmail.com

INMOTION HEATING & PLUMBING PO Box 999, Truckee, CA 96160 (530) 210-2275 info@inmotionheating.com inmotionheating.com

PO Box 999, Truckee, CA 96160 (530) 210-2275 info@inmotionheating.com inmotionheating.com

NIC BEDDOE – STATE FARM AGENCY 10775 Pioneer Trail, Ste. 211C, Truckee, CA 96161 (530) 550-1400 nic@beddoeinsurance.com beddoeinsurance.com

INTERIOR DESIGN BASSETT FLOORING

10800 Pioneer Trail #3, Truckee, CA 96161 (530) 582-7428 truckee.abbeycarpet.com

For more information about these businesses, please visit tahoedonner.com/businessdirectory. These services are provided for Tahoe Donner homeowners. The businesses included in the directory are advertisers with Tahoe Donner. Tahoe Donner Association makes no claims regarding the quality of goods or services provided by these companies.

Potential customers are advised to use their own best judgment.

CABINET AND LIGHTING SUPPLY 11355 South Virginia Street, Reno, NV 89511 (775) 851-4004 cabinetandlighting.com

DONNER TAHOE FLOORING

12710 Northwoods Blvd., Ste. 1, Truckee, CA 96161 (530) 386-6635 donnertahoeflooring@gmail.com donnertahoeflooring.com

PAINTING SERVICES DEDEN PAINTING

11406 Oslo Drive, Truckee, CA 96161 (530) 587-7525, (530) 448-9673 dave@dedenpainting.com dedenpainting.com

EASTERBROOK PAINTING, INC.

15666 Alder Creek Road, Truckee, CA 96161 (530) 550-9332, (530) 386-3979 info@easterbrookpainting.com easterbrookpainting.com

ELEMENTS MOUNTAIN CO.

17356 Northwoods Blvd., Truckee, CA 96161 (530) 582-0300, (530) 587-7017 info@elementsmtn.co elementsmtn.co

SIERRA PRECISION PAINTING PO Box 11107, Truckee, CA 96162 (530) 550-7938, (530) 550-7918

sierraprecisionpainting@gmail.com sierraprecisionpainting.com

PET CARE

HAPPY WALKERS K9 CONCIERGE (530) 277-0198 happywalkersk9concierge@gmail.com happywalkers.net

REAL ESTATE

ALISON ELDER – ELDER GROUP TAHOE REAL ESTATE | ENGEL & VÖLKERS

10770 Donner Pass Road, Ste. 205, Truckee, CA 96161 (530) 582-8103 info@eldergrouptahoe.com eldergrouptahoerealestate.com

ALLISON JAMES ESTATES & HOMES (530) 386-3491 cdelatorre12@gmail.com delatorrerealty.com

DICKSON REALTY, TRUCKEE

11836 Donner Pass Road, Truckee, CA 96161 (530) 587-7444 info@dicksontruckee.com dicksonrealty.com

THE SHARP TEAM/COMPASS

11425 Donner Pass Road #12B, Truckee, CA 96161 (530) 587-8574 info@janiesharp.com thesharpteam.com

TRUCKEE & LAKE TAHOE REAL ESTATE – COLDWELL BANKER RESIDENTIAL BROKERAGE

17400 Northwoods Blvd., Truckee, CA 96161 (530) 446-2256 team@truckee-tahoe.com tahoe-truckeerealestate.com

RENTAL SERVICES LANDING

(530) 213-3093 colin@uselanding.com uselanding.com

SNOW REMOVAL

ELEMENTS MOUNTAIN CO.

17356 Northwoods Blvd., Truckee, CA 96161 (530) 582-0300, (530) 587-7017 info@elementsmtn.co elementsmtn.co

Cabinet and Lighting Supply Our quality brands make us good, Our specialists make us great.

SHOWROOM 11355 S. Virginia Street Reno | 775.851.4004

cabinetandlighting.com Ask about monthly specials, and Tahoe Donner resident discounts.

SPAS / PATIO FURNITURE MOUNTAIN HOME CENTER

11403 Brockway Road, Truckee, CA 96161 (530) 587-6681, (800) 517-6262 info@mountainhomecenter.com mountainhomecenter.com

• Locally owned HVAC Company (Tahoe Donner resident)

GET YOUR BUSINESS + SERVICES IN FRONT OF TAHOE DONNER HOMEOWNERS

Learn more about advertising with Tahoe Donner at tahoedonner.com/advertise

• 30 years experience

• Specialize in repair, maintenance & replacement • Service all makes & models

• We understand the challenges of second home owners

• We do our best to accommodate individual needs

LICENSED IN CA & NV 530.725.5450 | www.MS-AC.com

TAHOE DONNER NEWS |

19

FEATURE

AT-HOME EATS THE NEXT BEST THING

By ALI DICKSON

While COVID-19 is keeping us in our homes, a slowed rhythm of life has emerged. Take this time to create meals you and your family will look back on fondly. Especially in a time of uncertainty, comfort food nourishes our body, our soul and our connection to each other.

BEST FOOD BLOGS

FAMILY-FRIENDLY RECIPES: I Heart Naptime iheartnaptime.net GLUTEN-FREE RECIPES: Iowa Girl Eats iowagirleats.com VEGAN RECIPES: This Savory Vegan thissavoryvegan.com

RICH + CREAMY

Butternut BISQUE

From Alder Creek Cafe to Your Kitchen

BONUS RECIPES: Many famous chefs are creating online content due to restaurant closures. Search for your favorite chef online and enjoy their tips and recipes!

BEST LOCAL FOOD

Don’t forget about your favorite shops and restaurants – purchase gift cards now to be used at a later date. Many places are also offering takeout and delivery, so you can still enjoy the meals you love while supporting your community.

For foods both local and packed full of nutrients, take advantage of the farms in our area. The Tahoe Food Hub has an online farmers market at tahoefoodhub.org and is still functioning during this pandemic. For fresh ingredients all summer, sign up now for a CSA share at your favorite local farm through localharvest.org/farmers-markets.

BEST RECIPE TO RECREATE

If you miss dinners at Alder Creek Cafe, you aren’t alone! We are looking forward to the day we can all eat together again. Until then, this rich and creamy butternut bisque by Chef David Smith was a Tahoe Donner hit at a past Community Soup night and used fresh ingredients from local CSA farms. Enjoy it, from our table to yours.

INGREDIENTS

2 whole butternut squash 2 yellow onions, diced 5 carrots, diced 1 stalk celery, diced ½ cup olive oil 1 tbsp. cumin 32 oz. vegetable stock

3x 14 oz. cans coconut milk 1 bunch cilantro Salt and pepper to taste Sriracha, toasted sesame oil, cashews, chives and/or coconut milk for garnish

PREPARATION

Peel and deseed butternut squash, then cut into ½ inch cubes.

Toss with ¼ cup olive oil, salt, pepper and cumin. Place on baking sheet and bake at 375 degrees for approximately 45 minutes until golden, stirring halfway through.

Heat a non-reactive pot on medium and add ¼ cup olive oil. Add onion, carrots and celery, then sauté for 5 minutes. Next, add cooked squash, vegetable stock and coconut milk. Bring to a boil and then reduce heat and simmer for one hour.

In small batches (or with an immersion blender), pour soup into a blender and puree until smooth, adding pureed soup back into a new pot. Once all the soup is pureed, bring it back up to a simmer and season to taste. To serve, ladle soup into bowls and garnish with a drizzle of toasted sesame oil, sriracha (to taste) and cilantro leaves. Serve with a loaf of warm bread. Smile. Enjoy.

ALI DICKSON

TAHOE DONNER NEWS |

21

THE REPORT

2020 DEFENSIBLE SPACE INSPECTIONS ENHANCED NOTIFICATIONS + EXTENDED COMPLIANCE DATE ! ! ! ! ! !

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Defensible space is your property’s front-line defense against wildfire. Creating and maintaining defensible space around your home can dramatically increase your home’s chance of surviving a wildfire. It will also improve the safety of firefighters defending your property. Even with the current COVID-19 pandemic, there are no plans to suspend the defensible space program or inspections. However, we are giving homeowners an additional two weeks to achieve compliance. All is dependent on stay at home order restrictions.

ALDER

2023

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IMPORTANCE OF INSPECTIONS

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Authority for these inspections comes from the State of California Public Resources Code 4291, Truckee Fire Protection District Ordinance 94-1 and Tahoe Donner Association C&Rs Article VIII, Section 1 (a) iii and iv.

2021 2022

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Tahoe Donner Forestry inspectors will walk through your property in order to complete the defensible space inspections.

2019 2020

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INSPECTION AUTHORITY

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During the fall of 2019, defensible space inspections took place within all of Unit 1 and portions of Units 4 and 5. Properties that were found to be noncompliant will be reinspected beginning June 2020. Areas subject to reinspection to complete compliance verification include properties located on Baden Road, Bern Way, Bernese Lane, Bolzano Way, Christie Lane, Davos Drive, Heidi Way, Innsbruck Avenue, Northwoods Boulevard, Skislope Way, Swiss Lane, Weisshorn Avenue and Zermatt Drive.

Legend

Alder Creek Adventure Center

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2020 DEFENSIBLE SPACE ZONE

Defensible Space Program 2020 Through 2024

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RULES AND GUIDELINES !

Please watch your email inbox and junk folder for reminder emails, and add defensiblespace@tahoedonner.com to your safe sender list. If you need to update your email address, please go to tahoedonner.com/contact-update.

Tahoe Donner Association

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New this year, the Forestry Department is enhancing its member communication in several ways: • All inspection notifications will be sent electronically instead of physically via USPS. • Members whose properties are subject to this year’s defensible spaces inspection zone will receive a reminder email with an outline of the inspection process.

• Members will also receive a reminder email notification at least 45 days before their inspection date.

• The Forestry page on the Tahoe Donner website is being updated to include a digital inspection request form and the new reinspection form for your use.

Rules and guidelines for defensible space inspection standards are as follows:

DEVELOPED LOTS

Around the structure or to the property line: • Pine needles removed from the ground at least 10 feet from the structure • All pine needles removed from the roof • No vegetation within 10 feet of a chimney or propane tank • All combustible material removed from under decks and next to structures, including stored firewood which may remain only if covered with a tarp • Nuisance firewood must be managed Within 100 feet of structures and property lines: • All dry, flammable vegetation and woody debris between ½ inch and 12 inches in diameter removed (not pine needles) • Trees greater than 12 feet in height – all branches removed 6 feet from the ground • Trees smaller than 12 feet in height – remove the lower branches for half the height of the tree • All dead and beetle-infested trees removed • No brush within 10 feet of the structure • 11-30 feet from the structure – brush must be in clumps no greater than 5 feet in diameter with a minimum separation of 20 feet between them • 31-100 feet from the structure or the lot line, whichever comes first – brush must be in clumps no greater than 10 feet in diameter with 15 feet of separation between them • No brush under trees or within 10 feet of the drip line (widest ring of branches) • Excessively dense tree cover thinned (generally trees under 10 inches in diameter that are

growing without proper spacing from one another or growing under the canopy of larger trees) • Nuisance firewood must be managed For all of the items, 100 feet applies if your lot is flat. If your lot is on a steep slope, a greater distance may be required.

UNDEVELOPED LOTS

All of the following apply for the entire lot: • All dry, flammable vegetation and woody debris between ½ inch and 12 inches in diameter removed (not pine needles) • Trees greater than 12 feet in height – all branches removed 6 feet from the ground • Trees smaller than 12 feet in height – remove the lower branches for half the height of the tree • Excessively dense tree cover thinned (generally trees under 8 inches in diameter that are growing without proper spacing from one another or growing under the canopy of larger trees) • All dead and beetle-infested trees removed • 31-100 feet or the lot line, whichever comes first – brush must be in clumps no greater than 10 feet in diameter with 15 feet of separation between them • No brush under trees or within 10 feet of the drip line (widest ring of branches) • No firewood storage allowed on vacant lots Covenants and restrictions require that each lot be maintained annually to not create a fire hazard.

Failure to comply may result in a hearing and possible fine from the Covenants Committee.

Covenants rules can be found under “Homeowner Guidelines” at tahoedonner.com/members.

If you have questions about the defensible space program, please visit tahoedonner.com/defensible or email defensiblespace@tahoedonner.com.

THE REPORT

BRIEFS ALERT TAHOE FIRE CAMERA COMING TO TAHOE DONNER THIS SUMMER The AlertTahoe fire camera combines innovative technology with ground firefighting efforts to help protect Lake Tahoe communities. The camera in Tahoe Donner will be wirelessly connected to a network of other area cameras and will help monitor and protect the Tahoe Basin from devastating fires. Installation will take place after the snow melts this summer.

TRUCKEE DONNER PUD COVID-19 RELIEF PROGRAM The Truckee Donner Public Utility District (TDPUD) recently passed an action by their board to reallocate $275,000 of their budget for primary residential customers in need due to COVID-19. Qualifying customers who can demonstrate their financial hardship will earn a credit on TDPUD bills. This program will run until 30 days after the stay-at-home orders have been lifted or until funds are exhausted.

This relief program is partnered with the Sierra Community House (SCH). Full program rules are available by calling SCH at (530) 587-2513 or visiting tdpud.org. For general customer support or help with other financial programs, call (530) 587-3896, email service@tdpud.org or visit www.tdpud.org.

ARE YOU GETTING UPDATES FROM NIXLE? Tahoe Donner residents can get up-to-date information on community safety and emergency preparedness by signing up for local NIXLE text messages. Sign up by texting your zip code to 888777. For updates on the status of Tahoe Donner facilities, follow tahoedonner.com/closure-of-amenities.

PROTECTING TAHOE DONNER STAFF + MEMBERS We want to offer a big “thank you” to ‘Chelle Sonder, Member Services manager, and Marilyn Dundas, member of the Tahoe Donner Quilt Club, for their volunteer efforts during this COVID-19 pandemic. Together, they sewed 60 cloth face masks for Tahoe Donner employees. Staff will now stay

protected while performing essential duties.

We appreciate your time and hard work to keep our team safe!

PLEASE STAY OFF MUDDY TRAILS The Tahoe Donner trails are still very muddy and covered in snow in some places. Please allow the trails to dry before use. This helps prevent erosion and keeps our trail system in great condition!

HOMES ON THE RISE The Architectural Standards Committee reviewed the following plans in March 2020: UNIT/LOT ADDRESS

SQ. FT.

PROJECT

08/283 11115 Mougle Lane

2,561

House

COVENANTS VIOLATIONS HEARINGS The Covenants Committee meeting was postponed, and there were no hearings scheduled for March 2020.

TAHOE DONNER NEWS |

23

THE REPORT

BOARD MEETING RECAP BOARD OF DIRECTORS MEETING March 28, 2020 ACTION: Consent Calendar, 5-0 ACTION: 2020 Financed Related Project Prioritization and Finance Committee Goals, 5-0 ACTION: Association Update, no action • The Board of Directors received an update from Director of Risk + Real Property Annie Rosenfeld on employee status and business priorities due to COVID-19. Annie also presented the board with a brief update on the goals and objectives.

• Director of Finance Mike Salmon, provided the board with the financial impacts due to COVID-19.

• The board also reviewed an updated survey calendar presented

by Director of Marketing + Member Relations Lindsay Hogan.

There was consensus by the board for Lindsay to continue moving forward on the creation of the member survey.

DISCUSSION: GM Update, no action • Board President Charles C. Wu provided an update on the recruitment process of the General Manager.

ACTION: Capital Projects Update • After discussion, there was consensus by the board to add snowmaking to the April 9 Special Meeting agenda.

Lic. # 440341

PAINTING | CARPET CLEANING | RESTORATION

Call Today 530-550-PROS(7767) 30 YEARS LOCAL PAINTING EXPERIENCE INTERIOR EXTERIOR PAINTING • EXTERIOR SIDING DECK STAIN RESTORATION • CABINET REFINISHING • INTERIOR NATURAL WOOD • REFINISHING • DRYWALL REPAIR IICRC CERTIFIED TECHNICIANS • STATE OF THE ART EQUIPMENT STAIN REMOVAL CARPET, UPHOLSTERY AND RUG CLEANING SCOTCHGARD APPLICATION IICRC CERTIFIED TECHNICIANS FLOOD • FIRE • MOLD REMEDIATION STRUCTURAL DRYING • SNOW REMOVAL - Institute of Inspection Cleaning and Restoration Certification -

IICRC

www.TruckeeTahoePros.com • Residential & Commercial Installations • Renewable Energy Wind, Solar & Hydro • Generators (Generac Dealer) • Exterior & Interior Specialty Accent Lighting • Home Theater & Sound Systems • Single-Phase & Three-Phase Electrical Systems • Sound & Recording Studios • Deicing, Floor Heat & Exterior Heaters • Remote Automation Systems & Security • Electric Car Charger Installer Partnership with Chargepoint & experienced with all major electric car chargers

ACTION: Recording Committee Meetings, 5-0 ACTION: Board Leadership Training and CAI Board Member Tool Kit, 5-0

UPCOMING BOARD MEETINGS

Saturday, May 16, 2020 – Regular Board Meeting Friday, June 26, 2020 – Regular Board Meeting + Election Ballot Meeting Sunday, June 28, 2020 – Annual Meeting of Members Board meeting dates subject to change. Visit tahoedonner.com for dates.

See full minutes at tahoedonner.com/boardmeetingdocs.

To provide feedback to help improve the overall association, please submit your comments and concerns to tahoedonner.com/feedback.

CA license # 1058910 NV license # 0081321

INFO@KDELECTRICACDC.COM

let us light up your life

775.357.9767 kdelectricacdc.com

Wishing Your Family a Happy, Healthy Spring SOLD!

SOLD!

15097SwissLane.com

SOLD!

13406SkiSlopeWay.com

14528ChristieLane.com

Selling Your Property? Contact Elder Group.

Elder Group Leads the Tahoe Donner Market Realtor #5 111 Units $62,530,000 Realtor #4 130.5 Units $72,630,000

Alison Elder 431.5 Units $275,050,000

Realtor #3 147 Units $85,800,000 Realtor #2 188 Units $116,190,000

*

Happy Seller and Buyer Clients Alison has represented us on three real estate transactions over four years.

Through her outstanding marketing, we have sold two homes and we purchased a prime lot to build a house. Alison’s ability to present our home to the market, supported by excellent photography resulted in our home selling in two weeks.

Thank you, Alison!

Scott and Julie Render Sellers and Buyers

Information gathered from TSMLS 1/1/2012-3/31/2020.

Volume has been rounded up to the nearest $10,000 for ease of reader review.

ELDER GROUP TAHOE REAL ESTATE

ELDER GROUP TAHOE

Alison Elder

Real Estate Advisor, Partner 530.582.8103 Tahoe@AlisonElder.com ElderGroupTahoeRealEstate.com

PARK CIT Y | NEWPORT BEACH | SAN FR ANCISCO | TRUCKEE DONNER | MAR IN | NAPA | L AGUNA BEACH ©2020 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. Engel & Völkers and its independent License Partners are Equal Opportunity Employers and fully support the principals of the Fair Housing Act. If your property is currently represented by a real estate broker, this is not an attempt to solicit your listing. CA DRE License #01399851

TAHOE DONNER ASSOCIATION 11509 NORTHWOODS BLVD. TRUCKEE, CA 96161

What a difference 30 days makes.

People buy and sell real estate for many different reasons. At Dickson Realty, we are continuing to assist people to do so, but now under very different circumstances. Our first priority is to keep our staff, our agents and our clients safe. Like many businesses, we are leveraging technology tools to communicate and meet with people. You can still tour and view properties online and then, under safe conditions, see them in person. Our offices remain closed to the public, but all calls are answered. Our staff and agents are working remotely to provide you with the extraordinary service we’re so proud of. We’re not surprised by the number of people who are looking to either make a permanent move to our smaller community or buy the vacation home that will provide them a safe haven from more congested areas.

The real estate snapshot will look different for a while.

Dickson Realty has weathered through challenging circumstances, recessions and hard times over the years.

As your neighborhood and market area real estate experts, we are all doing what is necessary to get us all through this unprecedented situation safely.

We pray for and send good vibes to our agents, staff, clients and friends. Thank you for supporting us at Dickson Realty and please don’t hesitate to contact us if we can help in any way. Please take this crisis seriously. Stay safe and healthy.

11836 Donner Pass Road, Truckee 100 Northstar Drive, Truckee 289 Commercial Street, Portola 530.587.7444 | DicksonRealty.com