DUES PAYING HOMEOWNERS 2016 Budget Approved at Annual Meeting on January 9, 2016 January February March April May June July August September October November December TOTAL Total Number of Dues Payments 0 0 25 0 0 0 0 0 0 0 0 0 25 REVENUE HOA Dues @ $600/Year/Owner $15,000 $15,000 Bank Interest $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $360 Total Revenue $30 $30 $15,030 $30 $30 $30 $30 $30 $30 $30 $30 $30 $15,360 OPERATING EXPENSES Insurance $320 $960 $1,280 Professional Fees $400 $400 $800 Misc Office Expenses $60 $40 $100 Postage $60 $60 PO Box Rental $65 $65 $130 Gate-It (Maintenance) $167 $133 $300 $600 Century Link (Phone for Gate) $60 $60 $60 $60 $60 $60 $60 $61 $61 $61 $61 $61 $725 PNM (Electricity for Gate) $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $30 $30 $350 Landscaping/grounds $325 $425 $425 $425 $425 $425 $425 $425 $425 $425 $425 $425 $5,000 ABC WUA (Water) $30 $30 $30 $40 $40 $60 $60 $60 $60 $50 $30 $30 $520 Government Regulation Expense $50 $50 Misc Maintenance & Repairs $100 $100 $100 $300 Total Operating Expenses $931 $664 $994 $1,579 $787 $674 $974 $615 $875 $630 $646 $546 $9,915 MAJOR EXPENSE ITEMS Major Road Maintenance* $8,000 $8,000 Total Major Expense Items $0 $0 $0 $0 $8,000 $0 $0 $0 $0 $0 $0 $0 $8,000 Total Expenses $931 $664 $994 $1,579 $8,787 $674 $974 $615 $875 $630 $646 $546 $17,915 BANK ACCOUNTS - SLFCU** Balance at Beginning of Month $63,602 $62,701 $62,067 $76,103 $74,554 $65,797 $65,153 $64,209 $63,624 $62,779 $62,179 $61,563 Net Increase (Decrease) ($901) ($634) $14,036 ($1,549) ($8,757) ($644) ($944) ($585) ($845) ($600) ($616) ($516) ($2,555) Ending Bank Balance $62,701 $62,067 $76,103 $74,554 $65,797 $65,153 $64,209 $63,624 $62,779 $62,179 $61,563 $61,047 *Major Road Maintenance Includes Filling Cracks and Sealing Surface. **Balances include the sum of Checking, Savings, & Money Market Accounts, all at SLFCU. 2016 CH HOA Approved Budget.xlsx 1/9/2016 1:54 PM
2015 FINANCIAL REPORT Prepared January 3, 2016 By Gary Snow, Treasurer I was chosen as Treasurer of the at the special meeting of the members on April 27, 2013. Prior to this date, the original builder, Patrick Strosnider, was responsible for keeping the books. I have submitted annual reports at the end of each year starting with the year 2013. I am submitting this 2015 report today so that the members of the HOA will be able to review it prior to our annual meeting, which is scheduled for Saturday, January 9, at 10:30 AM. At that meeting, I will be happy to answer any questions about this report. The following documents are appended for your perusal: Table I. Summary of Dues Received (2007-2015) Table II. Operating Expenses By YEAR (2012-2015) Table III. Cash Flow By YEAR (2007-2015) Table IV. 2015 Cash Flow By MONTH Table V. Suggested 2016 Budget Sandia Laboratory Federal Credit Union Statement dated December 31, 2015 DISCUSSION OF DATA Summary of Dues Received (Table I). In this table, dues payments by homeowners are organized according to the year for which the payments became due, regardless of when they were actually received or deposited into the HOA bank account. Dues payments were prorated for the year in which the homeowners closed on their homes. Initially dues were set at $900 per year per homeowner, and they remained at $900 until 2014 when they were reduced to $600 per year per homeowner. All homeowners are now up-to-date on their HOA dues payments through the year 2015. Operating Expenses By YEAR (Table II). Actual operating expenses for the last four years are shown in this table. Cash Flow By YEAR & Cash Flow By MONTH (Tables III & IV). Inflow and outflow from the HOA bank accounts are documented. HOA Dues Collected are organized according to when the dues were actually deposited into the HOA bank account regardless of when they became due. (For example, some of the dues received and recorded in 2013 were actually for 2012.) Payments for expenses are organized according to the date a check was actually written rather than when a check cleared, although in 2014 and 2015 all checks cleared in the same year that they were written. Page 1 of 3
Bank Accounts. Since May 2014, the HOA funds have been held at Sandia Laboratory Federal Credit Union (SLFCU). Prior to this they were held at Washington Federal Bank in a checking account and a savings account. Bank Charges occurred in 2012 and 2013 (Table III) when the HOA C C A W F ause, on that account, the bank charged a penalty when Patrick Strosnider wrote more than 6 checks in a one-month period. The HOA has three accounts at SLFCU: A checking account, a money market account, and a savings account. The checking account at SLFCU allows free unlimited check writing as long as the balance remains above $1,000. Currently the regular monthly bills are paid from the checking account through BILL PAY. Most of the HOA funds are held in the money market account, which currently pays 0.50% interest. The balances in the SLFCU accounts, as of December 31, 2015, are shown in the attached statement. The sum of the balances in the checking, savings, and money market accounts ($63,601.82) is equal to the E B B shown in Table III and Table IV. SUGGESTED BUDGET for 2016 (Table V) Based on the following discussion of homeowner Dues, operating expenses, and major expenditures, I have prepared the un-official budget shown in Table V. This is solely my own suggested budget any input from others. It is only presented here as a starting point for discussion. A 2016 budget proposal will be presented for formal approval at the annual meeting. Homeowner Dues. In 2014 our dues were lowered from $900 to $600 per year. They were kept at $600 per year in 2015, and I am suggesting that they remain at $600 in 2016. At $600 per year per lot, homeowner dues would bring in $15,000. Insurance. In 2015 we paid $916 for a policy that includes liability & property insurance plus D&O insurance, and we paid $320 for a Fidelity Bond (Dishonesty Bond) to protect the homeowners against loss of funds due to theft and fraud. We spent a total of $1,236 for insurance. I am guessing that we will spend $1,280 for insurance in 2015. Professional Fees. This item includes prospective fees charged by lawyers and other professionals. For example, the $988 entry in 2013 was for our lawyer to make changes to the CC&Rs. It is particularly difficult to budget for this item, but I have included $800 in the proposed 2016 budget. PO Box Rental. Prior to 2013, there was no charge for Post Office Box Rental because, when Patrick was in charge of finances, he used his business PO Box for HOA affairs. When the HOA took over in 2013, a PO Box was rented at $118 per year. In 2014 the fee went up to $122, and in 2015 it was $124. I am suggesting $130 for the 2016 budget. Gate-It. This is the company that maintains the automobile gate and the DoorKing (DKS) entry system at the gate. Prior to 2013, they billed us $155.40 per year for the DKS internet server modem subscription fee, $300 per year for bi-annual equipment preventive maintenance, $900 per year for monthly maintenance of the software, and quite possibly additional amounts for emergency repair and maintenance. In January of 2013, I took over the software maintenance Page 2 of 3
from Gate-It and this has eliminated the $900 charge. Also, we were not billed the $300 for biannual equipment preventive maintenance in 2013, 2014, and 2015. In 2015 we have been billed a total of $655.59. This included $166.28 for the DKS internet server subscription and $489.31 for emergency repairs, which included a new radio receiver in the gate entry system. I am optimistically suggesting a budget of $600 for 2016. Century Link. Telephone service at the entrance gate is necessary for communication with the gate. This communication occurs when someone calls a home from the gate requesting to be I hed between the modem inside the gate entry system and a personal computer to allow reprogramming of the entry system. We are currently paying about $59 per month for telephone service. Incidentally Century Link charges could be reduced by about $125 per year if long distance phone numbers were eliminated. (Currently there are seven residents who have a long distance number in the gate software.) I am estimating that telephone services for 2016 will be about $725. Red Shovel. As shown in Table II, our largest operating expense is for Landscaping/Grounds Maintenance. The monthly maintenance fee charged by Red Shovel is $241.17 ($2,894/year) and has remained at this amount for three years, except for a slight increase in income taxes. They charge extra for some special requests. For example, in 2012 and 2013 two rather large additional payments were made for one-time expenses for weeding vacant lots and for replacing some of the plantings near the Chelwood Hills entrance. I am estimating that expenditures in 2016 for landscape maintenance will be $3,200. PNM. We are currently paying $335 per year for electricity. This covers power for the street lighting as well as the gate and watering controls. I have suggested we budget $350 for 2016. ABCWUA. There was a big increase in the cost of water this year. In addition, we used a lot more water than in previous years. We have discussed the idea of xeriscaping the lawn area, which would reduce our water consumption. Based on this possibility, I am estimating that we will pay approximately $520 for water in 2016. I an optimistic number. Contingency Items. So far we have incurred no major expenses for long-term maintenance, repair, and replacement of HOA assets. However, we are maintaining a fund for such contingencies. For example, one significant item is road maintenance. Several cracks have appeared in our streets. To prevent deterioration of the road, these cracks should be repaired by filling them with melted asphalt and a seal coat should be applied to the entire road surface. I am estimating that this repair will cost $8,000, and I believe this work should be done in 2016. If we xeriscape the lawn area near the gate, that will cost upwards of $4,000. What other contingency items need to be included in the budget? This should be a topic for discussion at our annual meeting. Page 3 of 3
Table I. Summary of Dues Received 2007-2015 Homeowner 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Lot 01 - Soto 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 206.25 206.25 Lot 02 - Atencio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 244.20 244.20 Lot 03 - Vigil 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 80.85 80.85 Lot 04 - Ohmberger 34.52 900.00 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,634.52 Lot 05 - Risan 0.00 0.00 0.00 0.00 0.00 510.46 900.00 600.00 600.00 2,610.46 Lot 06 - Wood 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 255.75 255.75 Lot 07 - Wolf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 118.38 600.00 718.38 Lot 08 - Chavez/Schultz 32.05 900.00 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,632.05 Lot 09 - Marie 0.00 340.27 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,040.27 Lot 10 - Stein 337.81 900.00 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,937.81 Lot 11 - Hohimer 0.00 0.00 611.51 900.00 900.00 900.00 900.00 600.00 600.00 5,411.51 Lot 12 - Scurlock-Garcia 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 333.70 333.70 Lot 13 - Driggers 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 326.70 326.70 Lot 14 - Perez 0.00 609.04 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,309.04 Lot 15 - Watt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 258.85 258.85 Lot 16 - Merewether 0.00 0.00 0.00 0.00 0.00 0.00 0.00 452.04 600.00 1,052.04 Lot 17 - Ruscetti 0.00 0.00 0.00 327.95 900.00 900.00 900.00 600.00 600.00 4,227.95 Lot 18 - Karas 8.42 900.00 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,608.42 Lot 19 - Ireland 0.00 517.81 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,217.81 Lot 20 - Snow 29.59 900.00 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,629.59 Lot 21 - Fine 0.00 0.00 91.23 900.00 900.00 900.00 900.00 600.00 600.00 4,891.23 Lot 22 - Whitaker 320.55 900.00 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,920.55 Lot 23 - Hollingsworth 0.00 830.96 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,530.96 Lot 24 - Isparza/Goldberg 0.00 776.71 900.00 900.00 900.00 900.00 900.00 600.00 600.00 6,476.71 Lot 25 - Smith 0.00 0.00 835.90 900.00 900.00 900.00 900.00 600.00 600.00 5,635.90 TOTAL DUES RECEIVED 762.94 8,474.79 11,438.64 12,927.95 13,500.00 14,010.46 14,400.00 10,170.42 12,506.30 98,191.50 2015-1 CH HOA Dues Received Summary.xlsx 1/3/2016 6:07 PM
Table II. Operating Expenses By YEAR 2012* 2013 2014 2015 Insurance $821.00 $834.00 $1,257.00 $1,236.00 Professional Fees $988.00 Bank Charges $24.00 $75.00 Office Expenses $39.16 $246.43 $13.18 Postage $44.00 $92.00 PO Box Rental $118.00 $122.00 $124.00 Gate-It (Maintenance & Control) $1,558.70 $622.64 $388.31 $655.59 Century Link (Phone for Gate) $716.78 $709.98 $670.72 $702.57 PNM (Electricity) $295.34 $256.94 $293.30 $335.78 Landscaping/Grounds $3,776.25 $3,860.44 $2,889.00 $2,968.26 ABC WUA (Water) $382.68 $387.78 $395.24 $577.27 Government Regulation Expense $41.02 $35.36 $10.51 Miscellaneous Maintenance & Repairs $219.13 $221.92 Gate Transmitter Purchases $262.12 TOTAL EXPENSES $7,657.91 $8,451.36 $6,548.15 $6,609.98 *Total for 2012 does not include payment of $688.51 paid in 2012 to reimburse Strosnider for 2011 Utilities. However, it does include $327.93 paid by Strosnider in 2012 for 2012 utilities which were not reimbursed by the HOA. 2015-2 CH HOA Operating Expenses By YEAR.xlsx 1/3/2016 6:07 PM
Table III. Cash Flow By YEAR 2007 2008 2009 2010 2011 2012 2013 2014 2015 DUES PAYING HOMEOWNERS No. of Dues Payments - For Current Year 0 11 14 15 15 14 16 18 25 No. of Dues Payments - For Prior Years 0 6 0 0 0 0 2 0 0 Total Number of Payments Received 0 17 14 15 15 14 18 18 25 REVENUE Dues Collected* $9,237.73 $11,438.64 $12,927.95 $13,500.00 $12,600.00 $15,810.46 $10,170.42 $12,506.30 Gate Transmitter Sales $154.00 $302.00 Bank Interest $109.88 $194.84 $176.18 $216.67 $88.64 $86.20 $212.44 $304.76 Total Revenue $0.00 $9,347.61 $11,633.48 $13,104.13 $13,716.67 $12,688.64 $15,896.66 $10,536.86 $13,113.06 EXPENSES Insurance $785.00 $797.00 $821.00 $834.00 $1,257.00 $1,236.00 Professional Fees $988.00 Bank Charges $24.00 $75.00 Office Expenses $13.70 $39.16 $246.43 $13.18 Postage $44.00 $92.00 PO Box Rental $118.00 $122.00 $124.00 Gate-It (Maintenance) ** ** $1,558.70 $622.64 $388.31 $655.59 Century Link (Phone for Gate) ** ** $538.66 $709.98 $670.72 $702.57 PNM (Electricity for Gate & Lights) ** ** $217.65 $256.94 $293.30 $335.78 Landscaping/grounds $2,053.04 $3,776.25 $3,860.44 $2,889.00 $2,968.26 ABC WUA (Water) ** ** $310.56 $387.78 $395.24 $577.27 Government Regulation Expense $41.02 $35.36 $10.51 Other Maintenance & Repairs $219.13 $221.92 Gate Transmitters Purchases $262.12 Paid to Chelwood Hills, LLC, for 2010 & 2011 Expenses*** $1,775.28 $1,383.29 $688.51 Total Expenses $0.00 $0.00 $0.00 $2,560.28 $4,247.03 $8,018.49 $8,451.36 $6,548.15 $6,609.98 BANK ACCOUNTS Balance at Beginning of Year $0.00 $0.00 $9,347.61 $20,981.09 $31,524.94 $40,994.58 $45,868.03 $53,110.03 $57,098.74 Net increase(decrease) $0.00 $9,347.61 $11,633.48 $10,543.85 $9,469.64 $4,670.15 $7,445.30 $3,988.71 $6,503.08 Adjustment for Uncleared Checks $203.30 ($203.30) Ending Bank Balance $0.00 $9,347.61 $20,981.09 $31,524.94 $40,994.58 $45,868.03 $53,110.03 $57,098.74 $63,601.82 * Dues Collected are shown in year they were deposited into HOA account, not for the year they became due. ** For 2010 & 2011 utilities were initially paid by the LLC, but the LLC was reimbursed by the HOA. ***These amounts were paid to the LLC by the HOA to reimburse the LLC for expenses in 2010 & 2011. 2015-3 CH HOA Cash Flow By YEAR.xlsx 1/3/2016 6:08 PM
Table IV. 2015 Cash Flow By MONTH January February March April May June July August September October November December TOTAL DUES PAYING HOMEOWNERS No. of Dues Payers - Current Year 2 3 11 2 0 2 0 4 0 0 1 0 25 No. of Dues Payers - Prior Years 0 Total Number of Dues Payments 2 3 11 2 0 2 0 4 0 0 1 0 25 REVENUE HOA Dues Collected $1,200.00 $1,800.00 $6,600.00 $1,200.00 $660.40 $965.05 $80.85 $12,506.30 Gate Transmitter Sales $26.00 $26.00 $142.00 $26.00 $52.00 $30.00 $302.00 Bank Interest $23.31 $21.49 $25.51 $25.69 $26.61 $25.82 $26.29 $26.49 $25.86 $26.63 $25.08 $25.98 $304.76 Total Revenue $1,223.31 $1,821.49 $6,625.51 $1,225.69 $26.61 $712.22 $52.29 $1,133.54 $51.86 $26.63 $157.93 $55.98 $13,113.06 EXPENSES Insurance $320.00 $916.00 $1,236.00 Professional Fees $0.00 Bank Charges $0.00 Miscellaneous Office Expenses $0.00 Postage $0.00 PO Box Rental $61.00 $63.00 $124.00 Gate-It (Maintenance) $166.28 $489.31 $655.59 Century Link (Phone for Gate) $56.93 $58.00 $57.84 $57.73 $57.48 $57.84 $58.00 $59.78 $59.77 $59.85 $59.54 $59.81 $702.57 PNM (Electricity for Gate) $27.96 $31.69 $32.00 $24.07 $26.31 $24.55 $27.41 $27.11 $27.93 $28.09 $27.73 $30.93 $335.78 Red Shovel (Grounds Maintenance) $240.75 $240.75 $240.75 $240.75 $240.75 $240.75 $317.91 $241.17 $241.17 $241.17 $241.17 $241.17 $2,968.26 ABC WUA (Water) $20.17 $16.51 $25.00 $8.02 $23.83 $34.81 $34.81 $65.93 $98.29 $84.80 $82.55 $82.55 $577.27 Government Regulation Expense $10.51 $10.51 Other Maintenance & Repairs $0.00 Gate Transmitter Purchases $0.00 Total Expenses $832.09 $346.95 $366.10 $1,307.57 $348.37 $357.95 $927.44 $393.99 $427.16 $476.91 $410.99 $414.46 $6,609.98 BANK ACCOUNTS - SLFCU Balance at Beginning of Month $57,098.74 $57,489.96 $58,964.50 $65,223.91 $65,142.03 $64,820.27 $65,174.54 $64,299.39 $65,038.94 $64,663.64 $64,213.36 $63,960.30 Net Increase(Decrease) $391.22 $1,474.54 $6,259.41 ($81.88) ($321.76) $354.27 ($875.15) $739.55 ($375.30) ($450.28) ($253.06) ($358.48) $6,503.08 Ending Bank Balance $57,489.96 $58,964.50 $65,223.91 $65,142.03 $64,820.27 $65,174.54 $64,299.39 $65,038.94 $64,663.64 $64,213.36 $63,960.30 $63,601.82 2015-4 CH HOA CASH FLOW By MONTH.xlsx 1/3/2016 6:09 PM
Table V. Suggested 2016 Budget January February March April May June July August September October November December TOTAL DUES PAYING HOMEOWNERS Total Number of Dues Payments 0 0 25 0 0 0 0 0 0 0 0 0 25 REVENUE HOA Dues @ $600/Year/Owner $15,000 $15,000 Bank Interest $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $360 Total Revenue $30 $30 $15,030 $30 $30 $30 $30 $30 $30 $30 $30 $30 $15,360 OPERATING EXPENSES Insurance $320 $960 $1,280 Professional Fees $400 $400 $800 Misc Office Expenses $60 $40 $100 Postage $60 $60 PO Box Rental $65 $65 $130 Gate-It (Maintenance) $167 $133 $300 $600 Century Link (Phone for Gate) $60 $60 $60 $60 $60 $60 $60 $61 $61 $61 $61 $61 $725 PNM (Electricity for Gate) $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $30 $30 $350 Landscaping/grounds $260 $260 $260 $260 $270 $270 $270 $270 $270 $270 $270 $270 $3,200 ABC WUA (Water) $30 $30 $30 $40 $40 $60 $60 $60 $60 $50 $30 $30 $520 Government Regulation Expense $50 $50 Misc Maintenance & Repairs $100 $100 $100 $300 Total Operating Expenses $866 $499 $829 $1,414 $632 $519 $819 $460 $720 $475 $491 $391 $8,115 MAJOR EXPENSE ITEMS Major Road Maintenance* $8,000 $8,000 Replace Lawn with Xeriscape $4,000 $4,000 Total Major Expense Items $0 $0 $0 $0 $4,000 $0 $8,000 $0 $0 $0 $0 $0 $12,000 Total Expenses $866 $499 $829 $1,414 $4,632 $519 $8,819 $460 $720 $475 $491 $391 $20,115 BANK ACCOUNTS - SLFCU** Balance at Beginning of Month $63,602 $62,766 $62,297 $76,498 $75,114 $70,512 $70,023 $61,234 $60,804 $60,114 $59,669 $59,208 Net Increase (Decrease) ($836) ($469) $14,201 ($1,384) ($4,602) ($489) ($8,789) ($430) ($690) ($445) ($461) ($361) ($4,755) Ending Bank Balance $62,766 $62,297 $76,498 $75,114 $70,512 $70,023 $61,234 $60,804 $60,114 $59,669 $59,208 $58,847 *Major Road Maintenance Includes Filling Cracks and Sealing Surface. **Balances include the sum of Checking, Savings, & Money Market Accounts, all at SLFCU. 2015-5 CH HOA Suggested 2016 Budget.xlsx 1/3/2016 6:10 PM