SOMERSETT OWNERS ASSOCIATION 2014 Operating and Reserve Fund Budgets Presentation to Homeowners Oct. 10, 2013
2013: A Year of Transition Developer turns over Somersett Owners Association control to homeowners on Jan. 1, 2013 5 homeowner board members elected Strategic Planning committee formed Existing Finance and Communications committees re-staffed with homeowner volunteers Homeowner survey conducted
Somersett Owners Association Our Vision It's Great to be Home defines Somersett. We care for one another and respect the diversity of all our residents and their recreational interests, their safety, and the property values of their neighborhoods. We are the premier planned residential community in Reno. Our Mission To preserve and enhance the quality of life of our community through the prudent stewardship of our shared amenities and common areas.
Somersett Owners Association Board of Directors Tony Fakonas President; Curtis Chan Secretary; Ray Lee Treasurer; David Hughes VP; Danielle Kirby - VP Aesthetic Guidelines Seth Padovan; George Trowbridge; Steve Thomsen; Rachel Hart; GK Rep Community Standards Tony Fakonas; David Hughes; Glenda Powell; Tiffany Roland COMMITTEES Finance & Budget Ron Sobrero; Steve Spear; Mike Slattery; Joe Fadrowsky; Dan Kanyr Election Oversight Linda James; Glenda Powell; Terry Retter; Jim Haar Strategic Planning Chuck Walker; Rob Morrison; Ed Williams; Beverly McDowell; John Hetz Communications Rob Duca; Jim Haar; Dave Nisenfeld; Shannon Dressel; Bill Pollard; Julie Stoik; Bryan Walker 4
Committee Actions Strategic Planning Committee Vision & Mission statements created and adapted by Board Other area planned communities visited Homeowner survey development Communications Committee Homeowner survey development & vetting New resident orientation process developed Finance Committee Monthly review of SOA financial condition Recommendations to Board on exercise equipment purchase vs. lease and reserve funding Major service contract review and accountability process developed Creation of 2014 operating and reserve fund budgets Election Oversight Committee SOA Board candidate night ground rules, questions and moderator Vote count process and verification
First Service Residential Nevada Somersett Site Management Team Melissa Ramsey AMS, CMCA, CPO Community Manager Sean Stapleton Assistant Community Manager - Compliance Lauren Stemmler Assistant Community Manager Lifestyle Jeanette Metz Private Events Director Your Private Event Planner Melissa Hook Program Director Your Activities Planner Blake Lederman Sports Director Your Sports & Fitness Planner Ron Eckhardt Maintenance Supervisor 6
2014 Assessments will remain the same Monthly Assessments: 2014 2013 2012 2011 Common / Canyon 9 $82.00 $82.00 $84.00 $84.00 The Club at Town Ctr. $74.00 $74.00 $75.00 $75.00 Active Gate areas $64.00 $64.00 $72.00 $77.00 Inactive Gate areas $52.00 $54.00 $58.00 $55.00 Somersett master association assessments: Sierra Canyon * $82.00 $82.00 $84.00 $84.00 other Somersett * $156.00 $156.00 $159.00 $159.00 Active Gate areas $220.00 $220.00 $231.00 $236.00 Inactive Gate areas $208.00 $210.00 $217.00 $214.00 * Owners in Sierra Canyon, The Vue and Village at Town Center pay additional assessments to their respective sub-associations. 7
Washoe County Foreclosures 6,000 # of Foreclosures 5,000 4,000 3,000 2,000 Somersett home construction starts 1,000-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: http://www.co.washoe.nv.us/repository/files/9/countystats.pdf; 2013 data is through 9/11/13. 8
Washoe County Median Single Family Sales Price by Year 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: http://www.co.washoe.nv.us/repository/files/9/countystats.pdf; 2013 data is through 9/11/13. 9
SOA Delinquent Assessment Receivables $ - thousands 800 700 600 500 400 300 200 100 0 797 Gross Net Gross Net = Bad Debt Allowance 402 288 107 Dec.'10 Dec.'11 Dec.'12 Aug.'13 10
SOA Cash Balances Operating Fund Cash - $ thousand Reserve Fund Cash - $ thousand 1000 900 800 700 600 500 400 300 200 100 It is likely that $200k will be transferred to reserves at next SOA board meeting. 94 468 127 883 4000 3500 3000 2500 2000 1500 1000 500 1,519 2,538 3,067 3,460 0 Dec.'10 Dec.'11 Dec.'12 Aug.'13 0 Dec.'10 Dec.'11 Dec.'12 Aug.'13 11
2013 SOA Accomplishments to date 39 Vue lots and 1 custom lot foreclosed and sold over $370k collected Mow Strip litigation ruled in SOA s favor; $20k in legal expenses recovered from complainants Transition issues with Developer pending Construction Defect claims; Reserve Funding deficiency claim SGCC Access & Amenities Agreement restructuring in progress Added TCTC reserve funding contribution? 12
2013 Projects Common Rockfall area landscaping; Canyon 9 ADA compliance trail work TCTC Canyon View room window treatment; new exercise equipment purchase Gates video surveillance / Wi-Fi installed at new gates 13
2014 SOA Goals / Objectives Improve and build a sense of community Improve common area landscaping response and accountability Improve evening community patrol services Continue further improvements in operations and amenities without assessment changes Improve overall communications Plan for the future with our strategic plan and explore funding options to continue to enhance our community 14
Homeowner Survey Result Highlights More than 500 responses received from throughout the communities Responses consistent whether you live in Sierra Canyon, the Village, gated Somersett or the rest of Somersett We want to live in Somersett because of its overall environment; lifestyle and the amenities offered We want to see improvements in aquatics; cardio equipment; trail systems and security 15
Assessment Paying Unit Counts at end of each year 2012 2013 2014 Public Streets 614 610 610 Vue & Village 332 371 371 Gated Communities 578 612 662 Sierra Canyon 852 852 902 Total Units 2,376 2,445 2,545 Assessment paying units include builder lots/ units and some vacant lots that have been triggered by city approved development maps. 16
2014 Projects under Consideration Common Strategic plan consulting; Walking trail path signs and added benches; crosswalk safety and Somersett access point security; Canyon 9 motorized golf carts TCTC Strategic plan consulting; more shading in pool area; expand seating in deck area; fitness room expansion including possible expansion into media room, extending room towards pool or lease of space in Town Square Gates Strategic plan consulting; upgrades to gate keypads for additional lighting Some items identified on the list may cost more than the allocated funding in the 2014 budget. Utilization of a capital contributions fund identified in Article 3, Section 15 Association s CC&R may be possible for some of the projects. 17
Consolidated SOA Operating Expenses ($-thousand) 2013 Budget 2013 Est. 2014 Budget Owner Assessments 4,217 4,223 4,380 Other Revenues 440 511 446 Total Revenues 4,657 4,734 4,826 Transfer to Reserves 758 758 766 Payroll / SOA Mgt. 780 791 806 Landscaping 750 717 784 Canyon 9 Mgt. / SGCC access 749 633 750 Canyon 9, TCTC loan 336 336 336 Utilities 423 391 435 Bad Debt Expense 42 42 44 Legal Fees / Expenses 42 136 196 Special Project 75 6 95 Other Misc. Expenses 806 737 806 Total Expenses 4,761 4,547 5,018 Carry over Applied (104) 157 (192) Net Operating Expenses 4,657 4,735 4,826 Operating Surplus / Loss - - - 18
2014 Budget by Activity Center ($-thousand) Common TCTC Gates Total Owner Assessments 2,466 1,437 477 4,380 Other Revenues 183 261 2 446 Total Revenues 2,649 1,698 479 4,826 Transfer to Reserves 280 156 330 766 Payroll / SOA Mgt 152 619 35 806 Landscaping 766 18-784 Canyon 9 Mgt / SGCC access 750 - - 750 Canyon 9, TCTC loan 59 277-336 Utilities 344 77 14 435 Bad Debt Expense 25 14 5 44 Legal Fees / Expenses 96 100-196 Special Project 10 75 10 95 Other Misc. Expenses 200 489 117 806 Total Expenses 2,682 1,825 511 5,018 Carry over Applied (33) (127) (32) (192) Net Operating Expenses 2,649 1,698 479 4,826 Operating Surplus / Loss - - - - 19
Reserves by Activity Center ($000) Common TCTC Gates Total Replaceable Assets $3,176 $2,518 $3,955 $9,649 Beg. Bal. Jan. 1, 2014 $1,087 $771 $1,891 $3,749 Transfer to Reserves 280 156 330 766 2014 Expenditures (109) (108) (134) (351) End. Bal. Dec. 31, 2014 $1,258 $819 $2,087 $4,164 According to the Browning Reserve Group, the SOA s reserves are approximately 88% and 85% funded at the end of 2013 and 2014 respectively. 20
Remaining 2013 SOA Meetings OCTOBER 15th - 3:30 pm Strategic Planning (TCTC) 22nd - 5:30 pm Board Meeting (LOFT) 28th - 5:30 pm Finance Mtg. (TCTC) Candidate Nights 20th - 3:30 pm Canyon View Room at TCTC 21st - 5:30 pm Aspen Lodge at Sierra Canyon NOVEMBER 5th & 19th - 3:30 pm Strategic Planning (TCTC) 20th - 4 pm ANNUAL MEETING (TCTC) 25th - 5:30 pm Finance Mtg. (TCTC) 21
There are gems to be found all over Somersett! EGGstravaganza March 30, 2013
89523 Demographics Population: 25,503 Ages: 0-18 26%; 18-64 66%; 65+ 8% Median Age 33.1 Educ. Attainment (Age 25+): High School 19% Some College 35% Bachelors 27% Graduate / Professional 13% 89523 Housing Data: Mean Detached House Value $292,592 Mean Townhouse Value $218,488 Single Family 70 % 2-4 Units 4% 5+ Units 25% Average Age 9.1 Owner - Occupied 65% Median Rent $935 Income: Median Household Income $65,291 Married with One Wage-Earner 19% Sources: 2010 US Census; www.city-data.com /zips/89523; and http://www.clrsearch.chttp://www.clrsearch.com/reno_demographics/nv/89523 24
What s happening closer to home? 25